VIC Selling Inherited Property - Steps for Contract and Stamp Duty?

[Tizzma]

The farmer next door to me has agreed to purchase the 10 acres I inherited from my grandfather, with the house and dairy thereon. Our council has agreed in principle with the subdivision to excise the 10 acres.

I need to get a contract prepared. What matters do I need to address in the contract? What steps should I take if I'm dissatisfied with the stamp duty assessment on the transfer of this land under Property Law?

Can someone help me briefly?

 

[James D. Ford - Solicitor]

Hi,

Who currently owns the land to be sub-divided?

As you have inherited the land... (and it has not yet been subdivided) is the land still held by your grandfather's estate?

If so, who is the Executor of your grandfather's estate? and has the estate gone to probate?

Subject to inheritance

If the property is not yet in your name... there is a question as to what legal right you have to enter a Contract to sell the property... at the very least a special condition would need to be included stating that the Contract is subject to the successful inheritance of the property.

Subject to Sub-division

The Contract will need to include special conditions to be subject to the successful subdivision of the 10 acre block, and you will need to be careful regarding who will be responsible for the costs of preparing and making the application to council, as well as the costs of complying with the council's approval conditions which could include (by way of example only):

- surveying and town planning costs of preparing and lodging the council application;
- the installation or connection of services to the block of land (roads, sewerage, power, water, etc.);
- financial contributions to Council, etc.,
- other as yet unknown council conditions.

Stamp Duty

The farmer next door, as purchaser will most likely be liable to pay stamp duty, unless a farm land or some other exemption applies.

Gifts made strictly according to the terms of a will are generally exempt from stamp duty, though I would need to see the Will, before I could confirm that your land subdivision is in strict accordance with the terms of the Will.

Deceased estates and duty | State Revenue Office

Kind regards

 

[Tizzma]

Hi,

Who currently owns the land to be sub-divided?

As you have inherited the land... (and it has not yet been subdivided) is the land still held by your grandfather's estate?

If so, who is the Executor of your grandfather's estate? and has the estate gone to probate?

Subject to inheritance

If the property is not yet in your name... there is a question as to what legal right you have to enter a Contract to sell the property... at the very least a special condition would need to be included stating that the Contract is subject to the successful inheritance of the property.

Subject to Sub-division

The Contract will need to include special conditions to be subject to the successful subdivision of the 10 acre block, and you will need to be careful regarding who will be responsible for the costs of preparing and making the application to council, as well as the costs of complying with the council's approval conditions which could include (by way of example only):

- surveying and town planning costs of preparing and lodging the council application;
- the installation or connection of services to the block of land (roads, sewerage, power, water, etc.);
- financial contributions to Council, etc.,
- other as yet unknown council conditions.

Stamp Duty

The farmer next door, as purchaser will most likely be liable to pay stamp duty, unless a farm land or some other exemption applies.

Gifts made strictly according to the terms of a will are generally exempt from stamp duty, though I would need to see the Will, before I could confirm that your land subdivision is in strict accordance with the terms of the Will.

Deceased estates and duty | State Revenue Office

Kind regards

So comprehensive, thank you!!! I will looking into all these points of consideration.