My son is purchasing a boarding house in NSW that is land tax exempt.
To get the exemption, however, the owner must apply to OSR each year with a stat dec stating the property is a BH and will continue to be a BH through all of 2015.
The vendor has already applied, but the OSR have not issued the exemption yet (3 to 10 week turnaround).
The vendor is now demanding settlement, which would require my son to pay the majority of the land tax owing (it is adjustable) and if a refund is issued it would then flow entirely to the vendor!!
Does a land tax bill follow the property or the purchasor?? I.e. If you buy a property that has land tax owing on it, does the bill pass to the new owner or is the old owner still liable?
I am hoping the bill goes with the property....in which case he could settle without a clear land tax certificate and then chase the exemption from OSR.
To get the exemption, however, the owner must apply to OSR each year with a stat dec stating the property is a BH and will continue to be a BH through all of 2015.
The vendor has already applied, but the OSR have not issued the exemption yet (3 to 10 week turnaround).
The vendor is now demanding settlement, which would require my son to pay the majority of the land tax owing (it is adjustable) and if a refund is issued it would then flow entirely to the vendor!!
Does a land tax bill follow the property or the purchasor?? I.e. If you buy a property that has land tax owing on it, does the bill pass to the new owner or is the old owner still liable?
I am hoping the bill goes with the property....in which case he could settle without a clear land tax certificate and then chase the exemption from OSR.
