NSW Legislation Update

Philip Argy, renowned solicitor, arbitrator and mediator will review the latest changes to property law in NSW.

 

Verification of Identity

 

Full compliance with the new Verification of Identity Rules under the LPI Conveyancing rules was mandatory as of 1 August 2016. In order to comply, a Representative must apply the Verification of Identity Standard or verify the identity of a person in some other way that constitutes taking reasonable steps. The amended Verification of Identity Standard as set out in Schedule 8 of the NSW Participation Rules took effect on 9 November 2015.

 

Section 47 Clearance Certificate

 

As of 1 July, where a transfer of land is to occur under contract a vendor will now be required to apply for an OSR Land Tax Clearance Certificate as per the requirements of the Conveyancing (Sale of Land) Regulation 2010. See the OSR Clearance certificates page and Land Tax Certificate Changes factsheet for more information.

 

Foreign resident capital gains withholding

If the market value of a property is $2 million or above, a Land Clearance Certificate from ATO is required to be given by the vendor to purchaser before settlement to ensure no funds are withheld from the sale proceeds, or the purchaser must withhold 10% of the purchase price paid to the vendor on completion for the ATO. View the ATO website for more information.

 

Commonwealth reporting requirements

Effective 1 July 2016, additional information is required on real property transfers. The OSR is now required to collect and report transfers of freehold or leasehold interests in real property situated in New South Wales to the Commissioner of Taxation. View the OSR Commonwealth reporting requirements page for more information.

 

Purchaser Declarations

As of 21 June 2016, any person entering into a transaction that results in the acquisition of an interest in land in NSW must complete a Purchaser Declaration.

 

EDR

All agreements for sale of land and transfers of real property processed through our EDR service require additional purchaser/transferee information as of 4 July 2016. This information will be used for the purpose of creating National Register of Foreign Ownership of Land Titles. View the OSR edr update for more information. 

 

Council amalgamations

 

The NSW Government announced 19 new councils in NSW commencing 12 May 2016. For a list of councils proceeding, merger proposals pending and merger proposals not commencing, click here.  


 

Swimming pool certificates

From 29 April 2016, vendors of a property with a swimming pool or spa must have a certificate showing whether or not their pool fencing is compliant with the Swimming Pools Act 1992. View the LPI Circular.

 

Electronics Transactions Act 1999

 

The Australian Electronic Transactions Act of 1999 (ETA) says that electronic executions of contracts are valid under common law as long as the signing party has authority and been identified properly.

 

VIC Legislation Update

Russell Cocks, esteemed consultant, will review the latest changes to property law in Victoria.

 

Verification of Identity

 

Requirements for paper and electronic conveyancing were aligned through determination of Version 1 of Registrar’s Requirements for Paper Conveyancing and Version 3 of the Operating Requirements and Participation Rules. Formalised VOI requirements have applied to all paper conveyancing transactions as of 9 November 2015.

 

Form 62 Purchaser Statement

 

A Form 62 Purchaser Statement is now required for all land acquisitions in Victoria and an additional duty rate of 7% applies to contracts, transactions, agreements and arrangements entered into on or after 1 July 2016. For more information, visit the SRO website and review their FAQs.

 

Foreign resident capital gains withholding

If the market value of a property is $2 million or above, a Land Clearance Certificate from ATO is required to be given by the vendor to purchaser before settlement to ensure no funds are withheld from the sale proceeds, or the purchaser must withhold 10% of the purchase price paid to the vendor on completion for the ATO. View the ATO website for more information.

 

Electronics Transactions Act 1999

 

The Australian Electronic Transactions Act of 1999 (ETA) says that electronic executions of contracts are valid under common law as long as the signing party has authority and been identified properly.

 

The electronic conveyancing revolution

Paperless conveyancing is revolutionising the way Australians buy and sell property. Will you be part of that revolution?

There is a nation-wide move towards electronic conveyancing, with the NSW Government having announced plans to accelerate the transition to electronic conveyancing and progressively phase out paper certificates of title. This initiative falls in line with the move towards paperless conveyancing across Australia, with Victoria, Western Australia and South Australia all recently announcing new measures to transition conveyancing to the digital channel. 

Roadshow

Join us as we tour throughout New South Wales and Victoria to demonstrate the latest in electronic conveyancing technology and provide a forum for practitioners to learn from experts, share their opinions and spark debate amongst their peers. This is an event not to be missed!

#ITROADSHOW