Just a reminder that GST is now a query of every Residential contract dated on & post 1/7/18.
Not just the obvious ‘new land or new builds’, since ‘New Residential Premises’ under the Taxation administration act, may still be quite aged properties!
“The term ‘new residential premises’ is defined in s 40-75 of the GST Act:
Residential premises are new residential premises if they:
a. have not previously been sold as residential premises and have not previously been the subject of a long-term lease; or
b. have been created through substantial renovations of a building; or
c. have been built, or contain a building that has been built, to replace demolished premises on the same land.”
The AICWA have created a ‘Seller’s Notice to Buyer’ seems to be more direct about if GST is applicable or not?
Either way this new ruling is not well known, nor tested so watch this space as it is likely to develop further as time goes on.
Some highlighted changes to the 2018 version of Joint Form of General Conditions (JFGC), might mean that you could see some differences to the 2011 JFGC.
Please note, we are not lawyers and are merely relaying some discussions as generically covered in an industry forum.
The biggest concern was the 'Lawyers picnic' referenced as clause 9.3, where opposing lawyers could argue just about any outcome they desired, for a breach of warranty.
Service by email still needed to be 'signed' and in writing, so as an attachment to an email is most likely outcome.
The Buyers 'Right to inspect' was arguably removed, unless there was a Seller obligation or condition of the contract, then that additionally included a right to re-inspect, to check if Seller has rectified an identified issue, under the contract.
Early Possession remained the same if under one (1) month. However the REIWA JFGC-18 states that Parties must comply with the Residential Tenancy Act (RTA) if Possession was granted for period of one (1) month or more.
Which differs from the RTA which specifies a minimum of three (3) months.
How will you manage change in 2018?
Are you ready for:
What will the rest of 2018 serve up to conveyancers?
Don’t get left behind!
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Source: 9th February AICWA Education e-Newsletter
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