From: Jay Hunter
Hi,
I have received a contract for a property I'm interested in... and one of the clauses/special conditions is a little strange.
Can someone explain the purpose of such a clause and how i might affect me as the purchaser ?
I plan to live in the property as my residence but may decide to rent it out down the track. I might also want to rent the car space of the building... not sure if this is relevant ? I've run the contract past a solicitor and he says not to worry about it... but i thought i would post the question before i do anymore.
Thanks for your help!!
Sale of Residential Premises
In this clause
37.1
"GST" refers to the goods and services tax under A New Tax System (Goods and Services Tax) Act 1999 ("GST Act") and the terms used to have the meaning as defined in the GST Act.
37.2
The vendor is, and has been, occupying the property as a residence and it is residential premise under the GST Act.
37.3
The Purchaser agrees, on and after completion of this sale, to use the property predominantly for residential accommodation
37.4
In the event of the vendor being liable for GST, because of the purchaser's failure to comply with 37.3
37.4.1
The purchaser agrees to pay to the vendor, within 14 days after the vendor's liability for GST on this sale is confirmed by correspondence or assessment from the commissioner, the amount of the GST, including any additional penalty and interest
37.4.2
The vendor shall deliver to the purchaser, as a precondition of such payment, a tax invoice in a form which com pliess with the GST Act and the regulations
Hi,
I have received a contract for a property I'm interested in... and one of the clauses/special conditions is a little strange.
Can someone explain the purpose of such a clause and how i might affect me as the purchaser ?
I plan to live in the property as my residence but may decide to rent it out down the track. I might also want to rent the car space of the building... not sure if this is relevant ? I've run the contract past a solicitor and he says not to worry about it... but i thought i would post the question before i do anymore.
Thanks for your help!!
Sale of Residential Premises
In this clause
37.1
"GST" refers to the goods and services tax under A New Tax System (Goods and Services Tax) Act 1999 ("GST Act") and the terms used to have the meaning as defined in the GST Act.
37.2
The vendor is, and has been, occupying the property as a residence and it is residential premise under the GST Act.
37.3
The Purchaser agrees, on and after completion of this sale, to use the property predominantly for residential accommodation
37.4
In the event of the vendor being liable for GST, because of the purchaser's failure to comply with 37.3
37.4.1
The purchaser agrees to pay to the vendor, within 14 days after the vendor's liability for GST on this sale is confirmed by correspondence or assessment from the commissioner, the amount of the GST, including any additional penalty and interest
37.4.2
The vendor shall deliver to the purchaser, as a precondition of such payment, a tax invoice in a form which com pliess with the GST Act and the regulations
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