To our property owners / developers / purchasers / vendors: changes to LRS Fees and Transfer Duty that may affect you!

To our property owners / developers / purchasers / vendors: changes to LRS Fees and Transfer Duty that may affect you!

NSW Land Registry Services – Fee increases from 1 July 2019

NSW Land Registry Services (LRS) is responsible for the recording of all dealings relevant to real property in NSW. If you have ever purchased or sold land, entered into a 3+ years commercial or retail lease, mortgaged your property, granted or sought a right of way for your property, or inherited property from an estate, you have most likely had a dealing with LRS!

As we herald in the new financial year, the LRS welcome fee increases for their services. This means, your property transactions will incur additional fees (albeit, the increases are mostly minor).

The fee increase will only apply to dealings and plans lodged after 1 July 2019. For a full list of the LRS 2019/2020 fees, visit their website www.nswlrs.com.au.

Transfer duty (formerly stamp duty) – increases from 1 July 2019

As “promised” in the NSW state budget, an annual indexation of transfer duty thresholds shall apply to contracts for sale of land exchanged after 1 July 2019.

Transfer duty is calculated based on a property’s sale price or current market value, whichever is higher. It’s important for buyers to know what their transfer duty liability will be before they enter into an agreement to purchase land to avoid any nasty surprises after exchange.

The rates that shall apply from 1 July 2019 are contained in the snapshot below.

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Source: NSW Revenue.

Premium duty applies to properties valued at over $3,040,000, and there are exemptions and grants still available for first home buyers.

If you have a question about transfer duty, or purchasing a property generally, PDC Lawyers & Planners can assist you with all things property and planning related.