Property War Stories: Check off the plan duty calculations and save
99.9% of clients accept that when purchasing ‘off the plan’ there will be a (stamp) duty saving. Only a few check the amount of the saving when settlement comes around. A recent Aitken Partners’ file demonstrates the advantage of doing so.
- Client purchased an apartment ‘off the plan’ in October 2012 for $620,000 when the property was a vacant block of land. He photographed the block at that time.
- The apartment building was constructed.
- About two weeks before settlement, the Vendor sent through a draft statutory declaration for SRO duties purposes saying 25% of building works were done before October 2012. (One of the methods of calculating duty is based on the value of building works completed prior to the Contract). Duty was estimated at about $8500.
- The client asked us to request the Vendor to amend the declaration so as to reflect 0% building works, which we did and enclosing a copy of the photo as proof. The Vendor agreed and provided an amended declaration. Duty was reduced to $4100, saving $4400.