on 29-01-2018 04:20 PM
I registered a Section 32 Subdivision which consolidated OC2 common property into two remaining Lots and dissolved the OC2 common property. As a result, I now have two titles as NICO, ie. OC1 & registered proprietor. We have sold the properties yet I can't seem to transact in PEXA with a NICO Title... does this sound correct and if so, why is that?
on 29-01-2018 05:02 PM
Unfortunately, transfer of a NICO Folio requires SRO (Manual/ Complex Assessment) and cannot be processed on line via Duties on Line (DOL).
Consequently, transfer of a NICO Folio in VIC is unable to be processed in PEXA. Electronic stamping is a pre-requisite fo electronic lodgement of a Transfer transaction.
Please let me know @GeorgePolus if you have more questions.
on 30-01-2018 08:19 AM
I hold the NICO title with two registered proprietors and the Property has been sold. So we are not transferring between two registered proprietors but rather, to a third party. I can deal with a paper transfer but surely the purchaser doesn’t have to settle and then go for a duty determination. It’s a parcel of land at full value under a contract of sale.
I will contact the SRO today but in the meantime, do my comments above change your opinion regarding a duty determination?
on 30-01-2018 11:34 AM
It is my understanding from SRO that Transfer of a NICO folio requires SRO determination and is not eligible for processing in DOL.
If you learn differently from SRO I would be most grateful if you let me know. Indeed, either way, I am very keen to learn SRO's opinion on the matter.
Sorry to be the bearer of bad news.
As always, please contact me @GeorgePolus if you have more questions.
on 30-01-2018 12:20 PM
So, the matter has been resolved. If you hold a NICO title and transferring to a third party, then you can do Duties Online like a normal transfer under Contract as the SRO doesn't care whether it's NICO or not, as long as it's a third party taking the whole of the land, like a normal contract. This makes sense because why would a third party need to take all documents to SRO for determination? Why would they care if it's a NICO Title, they're taking the whole property.
With respect to PEXA, they don't have the appropriate platform as yet to transfer a NICO title to a third party. If they have a NICO Title, it is automatically refused in PEXA, even to a third party. However, they are working on that anomaly so that if it's a third party transfer taking the whole of the land under a Contract of Sale, eventually it can be transacted in PEXA.
I'm pleased with the result.
on 30-01-2018 04:16 PM
Thank you Roslynne,
I am aware that for PEXA transactions NICO folios are out of scope for DOL. But I was not aware that NICO folios could be processed in DOL for paper lodgements.
Thank you for letting me know. I will follow up with OSR and see how we can work together to remove this exclusion.
on 16-12-2018 01:01 PM
Has this been verified that for a NICO transaction you can still lodge a DOL and not need to lodge for complex assessment when the whole of the NICO title is being transferred to a third party?