My recent purchase of a IP included all cost like morgage insurance and stamp duty. I was told by the convayancing agent that stamp duty must be paid to the OSR within 3 months or i will be sluged with a late payment fee. Now the problem is the bank will not release any funds until settlement in three months.So what do i do?? Do i make sure stamp duty is paid on settlement not a day late or do i push the bank to release the money allocated for stamp duty a bit sooner to make it safe.
PS how do i pay the stamp duty, is a cheque giving to the convayancer who passes it on to the OSR or am i responsible and get the bank to pay direct for me.
Sorry for all the questions ,im new to this and tend to over analize everthing(that means worry) when some times i should just let things happen.If the loans are cross collaralised then there is little you can do as the lender will not released funds until he gets title to the property.
If you have arranged them correctly as stand alone deals then merely draw down one of the loan prior to settlement of the other and you wil be fine.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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HI there
with payment of stamp duty – the time limit doesn’t normally start until your contract is unconditional. So if you made your contract subject to finance or some other condition (which was to be satisfied say 14 days after the contract), you will have the opportunity to stamp documents between settlement and the new time period. Your conveyancer will advise the OSR that the contract became unconditional on a certain date and stamping is occurring within the 3 month period.
If you still have a problem because the contract was unconditional, you will need to speak to your conveyancer about lobbying for funds from your financier – particularly if they require to have stamped documents at settlement or seeking some form of time waiver from the stamp duty office given the timeline for the settlement.
If the financier is organising the stamping, and they are late then they will be the party seeking the waiver from the stamp duty office.
As for who is responsible for stamping, if you are stamping a transfer – it is usually your responsibility to ensure your conveyancer has the funds to then be in a position to organise the stamping.
If it is a mortgage to be stamped – that is normally your financier who organises this.
Every state has a slightly different process given it can be either the contract or the transfer which attracts the duty. For example in QLD, both the contract and transfer are stamped at the one time – and stamping can actually occur in a solicitor’s office – as they can act for the OSR – and forward their stamp duty returns at the end of each month.
It is a problem for your conveyancer to resolve.Sounds like you might be in NSW? I think the penalty is approx. 20% pa penalty interest – not much really
Terryw
Discover Home Loans
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Sounds like you might be in NSW? I think the penalty is approx. 20% pa penalty interest – not much really
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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