Stamp duty advice

Hello

I am in the process of buying my first investment property in sydney.
Can you tell me when I need to pay stamp duty?

I settle in the middle of august next month and the conveyancer is asking me to pay stamp duty now.
To provide them a cheque now for the stamp duty and this they can arrange payment to OSF.

Am I able to wait until close to settlement to give this to them?
When is the latest I need to pay this ?

Many thanks
L
 
Hello

I am in the process of buying my first investment property in sydney.
Can you tell me when I need to pay stamp duty?

I settle in the middle of august next month and the conveyancer is asking me to pay stamp duty now.
To provide them a cheque now for the stamp duty and this they can arrange payment to OSF.

Am I able to wait until close to settlement to give this to them?
When is the latest I need to pay this ?

Many thanks
L

Hi Lam,

Generally you provide the funds for the full deposit to the solicitor/conveyancer, who then dispurses the funds as necessary at settlement. There is no specific need to provide these funds early, however it's not something you want to leave to the last minute, waiting for cheques to clear etc. Alternatively most lenders will provide facilities to allow the funds to be drawn from their account at settlement if you nominate this within the letter of offer documents.
 
Am I able to wait until close to settlement to give this to them?

Shouldn't be an issue.

However, as CJ said - best to have everything ready to go so there's no delays at settlement. The interest you'd be saving (or making) on the funds allocated for stamp duty between now and mid August shouldn't be too significant.

Cheers

Jamie
 
Hello

I am in the process of buying my first investment property in sydney.
Can you tell me when I need to pay stamp duty?

I settle in the middle of august next month and the conveyancer is asking me to pay stamp duty now.
To provide them a cheque now for the stamp duty and this they can arrange payment to OSF.

Am I able to wait until close to settlement to give this to them?
When is the latest I need to pay this ?

Many thanks
L

the standard contract in NSW requires you to supply the transfer to the vendor at least 14 days before settlement. This transfer has to be stamped and this is done when the contract is stamped - which happens when you pay the stamp duty.

So althought the Duties Act NSW allows stamp duty to be paid up to 3 months after exchange the practicialites don't make this possible. The mortgagee would want the stamped transfer at settlement. In theory it could be paid on settlement day - but not practical.
 
the standard contract in NSW requires you to supply the transfer to the vendor at least 14 days before settlement. This transfer has to be stamped and this is done when the contract is stamped - which happens when you pay the stamp duty.

So althought the Duties Act NSW allows stamp duty to be paid up to 3 months after exchange the practicialites don't make this possible. The mortgagee would want the stamped transfer at settlement. In theory it could be paid on settlement day - but not practical.


Thanks for the responses.

Hi Terry

Sorry can you elaborate.
When is the latest (practically?) can I transfer my stamp duty to the conveyancer?

I am asking because I have purchase a property before and from memory I had the stamp duty paid at settlement.
Whereas now, I am using a different conveyancer and they demanding the stamp duty payment now when property settles in mid aug.

Thanks
L
 
Well, going from memory of the standard contract, you would need to give your conveyancer enough time to get it stamped and then send it to the otherside before 14 days is up.

Probably tomorrow!
 
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