Land tax search

Hi

If buying a property at auction (in QLD) what is the go with land tax that may be owing on the property. I am far from knowledgeable on this issue.

If buying normally I know you can make an offer subject to searches satisfactory to buyer, but at auction how do you make sure you are not going to be up for land tax if the normal searches are not done? I have satisfied myself on most areas which would be covered by searches with council after making an offer, and I will bid below my price limit without a P&B to give me some safety margin and willing to up this after a P&B if passed in at auction (as I expect it to be), but it just dawned on me ....what if land tax applicable!

What data base is this available on, or able to confirm owners do not have other property in QLD (which would eliminate reason to search further)

I was going to ask my PM to look up RPData (assuming there is a search on name for properties owned), but then realised not all REA subscribe to all regions of QLD, some only to local and nearby.

Can anyone enlighten me, and if able to determine if any land tax applicable or confirm if they own more than one property I would be grateful - I can PM owner details.

thanks
 
in NSW land tax would be covered in the contract - adjustible or not. You would do a search prior to settlement and if there was land tax owing you would not settle until this is paid.

In QLD things are probably totally different..
 
As long as you do a land tax search and the standard conditions have not been changed then it is paid by the Seller at settlement (eg your solicitor cuts a cheque to OSR and the cheque to the Seller is reduced by that amount.)
 
My concern is that if buying by auction (or normally without a condition "subject to satisfactory searches") and land tax is payable, then any outstanding amount becomes my liability, or if sellers agree to proportion (like rates) I still have to pay part.

If buying normally with the above condition I could cancel contract if any land tax was owing unless owners agreed to pay all outstanding on the property.

I have just looked up the QLD Office of State Revenue. The relevent sections confirming by concern are:

Why am I paying land tax on property I do not own?
The owner of land as at 30 June each year is liable for the annual land tax?even if you buy and sell land during the year.


If you want to apportion the land tax, this is to be negotiated between the seller and the buyer.

Why should I apply for a clearance certificate?
When you apply for a land tax clearance certificate, you will find out if there is any land tax owing on the land for the relevant financial year.


You will either receive a clearance certificate confirming that no land tax is owing or be advised of any outstanding tax that needs to be paid.

Should there be tax outstanding, the purchaser or new owner may be asked to pay the tax?even if a previous owner incurred the tax.

On the QLD REIQ standard contract v12/14 page 7 section 2.6 (4) and (5) if I interpret correctly, (4) refers to land tax being payable and adjusted if the that specific block of land exceeds the threshold (which it doesn't), and (5) refers to a clearance being granted for the land by OSR if a specified amount is paid, which can be deducted from PP at settlement and paid to OSR by the buyer (as Darryl said).

This seems to contradict itself because in one part it says that tax is adjustable, in the other it says that the tax outstanding can be deducted from PP at settlement??? This also contradicts the section inserted above from the OSR website.

I am confused!
 
I just spoke to a QLD solicitor and mentioned the land tax issue.

He asked me one simple question - does the owner live in the home?

:eek:

It is O/O so therefore I realised not included in assessable land tax. DOH!!
 
I just spoke to a QLD solicitor and mentioned the land tax issue.

He asked me one simple question - does the owner live in the home?

:eek:

It is O/O so therefore I realised not included in assessable land tax. DOH!!

This doesn't necessarily mean there is no land tax owing. What if they had more than one property. perhaps moved in recently and it was a rental for the past 10 years with no land tax paid.
 
They are the original owners, but minor chance it was rented out for part of this and they own more than the threshold of land in QLD.

This gets back to the original point, is land tax paid by current owner if any owing at settlement or is this only negotiable which means I may have to pay some or all - if buying by auction and not a condition subject to searches.

Darryl said it is paid by vendor if applicable, is that 100% no variation if buying at auction on std contract.
 
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