Page 43 - Real estate: a guide for buyers and sellers
P. 43
After the Sale
Taking possession Duty exemptions may apply for certain
concession card holders and first home
Settlement buyers with children. Visit sro.vic.gov.
The settlement date is the date on which au for complete details including a duty
the balance of the purchase price is paid to calculator.
the seller in exchange for the property title.
Transfer of land
This is an official process conducted This document transfers the land from the
between legal and financial seller to the buyer. It is lodged with Land
representatives of the buyer and seller. Victoria and describes how the land is to
The settlement date is also the date on be held if purchased by more than one
which the buyer can take possession of the person.
property, unless otherwise arranged.
The land can be held either jointly or
At settlement all outgoings such as as tenants in common. If held jointly,
rates and other charges will be adjusted and one person dies, ownership is
between the seller and the buyer. The automatically transferred to the survivor.
seller is responsible for rates up to and Tenants in common effectively hold shares
including the day of settlement. The buyer (equally or unequally) in the property
is liable from the day after settlement. and each has the right to dispose of their
interest in the land as they see fit.
Duty (formerly stamp duty)
Duty must be paid by the buyer within Disputes and complaints
three months of settlement. It is calculated
as a percentage of the purchase price or the The Estate Agents Resolution Service
market value of the property, whichever is (EARS) is a dedicated team within
greater. It applies to the GST-inclusive price Consumer Affairs Victoria offering a free
of a new property. information and dispute resolution service
on residential real estate matters.
There are generally two sets of duty rates:
Buyers and sellers who have
• a general rate applicable to all property issues with an agent or
including residential, commercial, questions about a real estate
industrial and rural sale or purchase can call EARS
on 1300 73 70 30 or visit
• a principal place of residence rate (a consumer.vic.gov.au.
reduced rate for a property that is the
buyer’s principal place of residence). Penalties
Substantial penalties, including fines and
If you’re buying a property to live in, you imprisonment, apply to illegal conduct
can expect to pay the principal place of relating to a real estate transaction.
residence rate.
43
