NSW LPI paperwork costs rise in advance of $2.6bn sale
NSW apartment buyers will pay higher prices as the prices for services associated with the NSW LPI rise ahead of the new ownership.
The $2.6 billion sell off was announced yesterday.
The LPI service controls land title registration and creating new lots.
Apartment projects with more than 12 apartments or homes are faced with higher pre-development costs.
“The increases which have been implemented are extreme,” NSW Property Council executive director Jane Fitzgerald recently said advising a 150-lot strata plan used to cost about $22,000 to register.
Under the new fees calculated per lot, it will cost $43,050 — almost a 100 percent increase — because of the $287 per lot fee for each lot.
Other examples include a 565-apartment project in Newcastle under construction by the state’s development arm Urban Growth and listed developer GPT, which will be saddled with an extra $347,320 in costs for pre-examination lodgement and final lodgement and registration of strata and deposited plans.
Under the new fee structure, the developer will pay $473.50 per lot for pre-examination, and then another $287 flat fee, plus $287 per lot for final lodgement or registration of the plans.
There are also fears that home buyers will be needing to take title insurance to safeguard their purchase under the new structure.
Infrastructure fund manager Hastings Funds Management and pension fund First State Super signed a $2.6 billion deal to operate NSW's land titles and registry business.