Am looking to buying a property from a seller who previously purchased off the plan. My understanding is they do not have to pay SD as it is under $600k.
If the seller purchased OTP at under $600K after 1 July 2010, then yes, they would not have to pay SD in NSW due to the Home Builder's Bonus program.
Should we settle prior to the seller completes settlement with the developer, does that mean my SD is exempted too?
That is a VERY interesting Q. I am assuming that you are buying off a seller who has exchanged on an OTP plan property and he is flicking it onto you before he has to settle on it (and it has never been lived in before)?
Firstly though, you cannot settle before the seller settles with the developer. The best you could hope for is a simultaneous settlement. (the reason being that the seller cannot sell to you something which he does not yet own, since he himself has not settled with the developer)
Secondly, you will not be buying OTP (I assume this development is nearly finished??). As such, "for those buying a newly constructed or under construction home up to the value of $600,000, a 25 per cent stamp duty discount will apply."
So it looks like you will still possibly be up for 75% of the SD owing, unless this property is not yet constructed.
This is assuming the developer is paying for the SD.
The developer WON'T be paying SD. The purchaser pays SD not the vendor.
I am just worried that after settlement I will have to fork out additional SD on top of my purchase price. All help appreciated. Thanks
I think you need to call the OSR in the morning to clarify your SD obligations (if any).