Property 101: The new NSW contract for sale

Property 101: The new NSW contract for sale
Property 101: The new NSW contract for sale

REINSW and the Law Society of NSW have created a new edition of the Contract for Sale and Purchase of Land 2016 to comply with new legislation.

The new version highlights a law which was brought in on 1 July 2016, affecting foreign residents purchasing a property over $2 million.

Under the new law, vendors selling a property for over $2 million will need to apply for a clearance certificate to avoid the purchaser withholding 10 percent tax from the purchase price.  

It also affects companies buying a property, if any of the owners are a foreign resident. Find out more here.

As a result, to deal with this new law the REINSW and Law Society of NSW have updated the Contract for Sale of Land and Purchase of Land. This new edition is not available as a paper copy but can be purchased in digital form by visiting the ECOS website.

The new 2016 edition of the contract has prompts and clauses to deal with the new withholding tax law, and also includes a warning about the new swimming pool compliance. Find out about the main changes here.  

Barry Johnston, Principal of Balmoral Partners said: “REINSW CEO Tim McKibbin has spent a lot of time time lobbying the government to make sure the legislation is workable.

“The new contract reflects this - so it is best practice to make sure you are using the latest contract because it is there to protect us.”

To find out more about the Contract for Sale and Purchase of Land 2016, watch the webinar with Barry and Gary Newton, Partner in TressCox Lawyers, here

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Property News Property Law

Comments

Be the first one to comment on this article
What would you like to say about this project?