Q. What is the 5 day cooling-off period?
A. Legislation is in place to address difficulties encountered by home owners informing them of their rights and obligations under agency agreements. A contract can be terminated by a purchaser within 5 business days from the day of signing.
Q. What about GST?
A.It depends whether a vendor is registered for GST or required to be registered for GST. The sale of the majority of residential property is GST exempt (GST free)
Q. What is a restrictive covenant?
A. A restrictive covenant is a restriction on the way land may be used and is created via a deed of agreement between two or more parties and recorded on the Transfer of Land document.
Q. What is land tax, and who must pay it?
A. Land tax is imposed on land owners in NSW who own property (other than their principal place of residence) above maximum threshhold which is $692,000 in 2019. There are some exemptions, such as holiday homes, where land owners live in them for at least 4 weeks in the year. In ACT, land tax is now charged against any property that is not the owners principal place of residence.
Q. What is penalty interest?
A. Most contracts accommodate for the payment of penalty interest if either party delays the payment of money that is due and agreed on under the conditions of the contract.