Hi All,
My close friend purchased a property in February this year and in the contract the only clause relating to land tax or adjustment says:
"OUTGOINGS AND STATUTORY CHARGES:
Information concerning any rates, taxes, charges or other similar outgoings (including any Body Corporate charges) AND any interest payable on any part of them are as follows -
(1) Whitehorse City $xxxx
(2) Yarra Valley Water $xxx
Their total does not exceed $2000
The purchaser will become responsible for proportionate amounts of the current rates and charges set out above in consequence of the normal adjustments to be made on settlement. The purchaser may become liable for Land Tax depending upon other real estate owned in Victoria."
This property is in Victoria. This is my friend's first property (not that it'll make a difference but I thought I just mention it)
I have seen many many contracts and this is one of the few ones that actually don't mandate adjustment of land tax. She hired this very dodgy cheap conveyancer that just adjusted everything. So she's been asked to pay $985 in land tax adjustment. I told her she shouldn't need to pay because Land Tax Act does not provide for pro rata adjustment; and there is nothing in the contract that says land tax must be adjusted between the parties (most comprehensive contracts will have this clause though). This one says "the purchaser may become liable"
Your thoughts guys?
Cheers!
mm
My close friend purchased a property in February this year and in the contract the only clause relating to land tax or adjustment says:
"OUTGOINGS AND STATUTORY CHARGES:
Information concerning any rates, taxes, charges or other similar outgoings (including any Body Corporate charges) AND any interest payable on any part of them are as follows -
(1) Whitehorse City $xxxx
(2) Yarra Valley Water $xxx
Their total does not exceed $2000
The purchaser will become responsible for proportionate amounts of the current rates and charges set out above in consequence of the normal adjustments to be made on settlement. The purchaser may become liable for Land Tax depending upon other real estate owned in Victoria."
This property is in Victoria. This is my friend's first property (not that it'll make a difference but I thought I just mention it)
I have seen many many contracts and this is one of the few ones that actually don't mandate adjustment of land tax. She hired this very dodgy cheap conveyancer that just adjusted everything. So she's been asked to pay $985 in land tax adjustment. I told her she shouldn't need to pay because Land Tax Act does not provide for pro rata adjustment; and there is nothing in the contract that says land tax must be adjusted between the parties (most comprehensive contracts will have this clause though). This one says "the purchaser may become liable"
Your thoughts guys?
Cheers!
mm