Paying Vendor's land tax bill

[Hodge]

Hi Everyone,

Just received contracts on a property that is going to auction next week. I found this line in the contracts interesting:

Under Section 96 of the Land Tax Act 2005 (the Act), land
tax is a first charge on the land to which it relates and should
the vendor default, payment will be obtained from the
purchaser. The purchaser should take into account the
possibility that the vendor may default where land tax has
been assessed but not paid.

The land tax bill owing is $800. Can the vendor default if the money owing is taken out during settlement and adjustments? The only time I can think of a vendor defaulting is if my solicitor forgets to include the vendors land tax bill in the adjustments.

Does this sound right?

Regards


Hodge

 

[Terry_w]

Hi Everyone,

Just received contracts on a property that is going to auction next week. I found this line in the contracts interesting:

Under Section 96 of the Land Tax Act 2005 (the Act), land
tax is a first charge on the land to which it relates and should
the vendor default, payment will be obtained from the
purchaser. The purchaser should take into account the
possibility that the vendor may default where land tax has
been assessed but not paid.

The land tax bill owing is $800. Can the vendor default if the money owing is taken out during settlement and adjustments? The only time I can think of a vendor defaulting is if my solicitor forgets to include the vendors land tax bill in the adjustments.

Does this sound right?

Regards


Hodge

You would probably want to pay it directly to the land tax office - SRO in Vic. ie not pay it yourself but divert funds to the SRO as part of settlement.

 

[Hodge]

That's a good idea, thanks Terry.