Frequent Visitor
melissajg

Purchaser insisting on clear s47 when land tax paid at settlement

There is a land tax charge. 

A clearance quote has been received from OSR.

This has been provided to the purchaser. 

We have entered a payment destination for the full amount noted in the clearance quote.

Purchaser is insisting they are NOT required to settle until they receive clear 47. 

- Their solution is we pay prior to settlement. This is not a solution. 

- I offered an undertaking to provide clear s47 within 5 days post. No

 

Occasional Contributor
ChristaC

Re: Purchaser insisting on clear s47 when land tax paid at settlement

I noticed the standard terms of the NSW Contract changed between the 2018 and 2019 editions regarding land tax charges -

 

Clause 16.6 of the 2018: "If a party serves a land tax certificate showing a charge on any of the land, on completion the vendor must give the purchaser a land tax certificate showing the charge is no longer effective against the land."

 

vs

 

Clause 16.6 of the 2019 edition: "If a party serves a land tax certificate showing a charge on any of the land, by completion the vendor must do all things and pay all money required so that the charge is no longer effective against the land."

 

The NSW Law Society said the update reflects the change in process of clearing land tax charges, including payment via an ELNO on settlement. From my understanding, there is actually no requirement under the 2019 edition of the Contract to provide a clear s 47 certificate prior to settlement now.

https://www.lawsociety.com.au/sites/default/files/2019-10/LS3254_ECOS_2019_Summary-of-changes_0.pdf

 

Seems odd that they wouldn't even accept an undertaking.