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  • Tanya Spencer

Why a Purchaser Declaration is required in Buying Property in NSW

When buying property in NSW, there are various legal documents and declarations that you need to complete. One such crucial document is the Purchaser Declaration. This declaration plays a significant role in ensuring the transparency and legality of property transactions. In this blog post, we’ll explain what a Purchaser Declaration is, why it’s important, and how it affects the process of buying property in New South Wales.

buying property in NSW

What is a Purchaser Declaration?

A Purchaser Declaration is a formal statement made by the buyer of a property in New South Wales. This document is required under the Duties Act 1997 and is used by Revenue NSW to determine the correct amount of stamp duty that applies to the transaction. It includes details about the purchaser and the nature of the property being bought.

Key Information Included in a Purchaser Declaration

1. Personal Details:

The declaration requires personal information about the purchaser(s), such as full name, contact details, and identification information. If the property is being purchased by multiple buyers, details for each individual must be included.

2. Property Details:

Information about the property being purchased, including the address, land size, and type of property (e.g., residential, commercial, or vacant land), is required.

3. Purchase Price:

The declaration must state the purchase price agreed upon for the property. This helps Revenue NSW calculate the stamp duty payable on the transaction.

4. Intended Use of the Property:

The purchaser must declare the intended use of the property. This could include whether the property will be used as a primary residence, a rental property, or for commercial purposes.

5. Foreign Purchaser Status:

The declaration asks if the purchaser is a foreign person. Foreign buyers may be subject to additional surcharges and duties, making this information crucial for accurate stamp duty assessment.

Importance of a Purchaser Declaration in Buying Property in NSW

1. Legal Compliance:

Completing the Purchaser Declaration is a legal requirement in New South Wales. Failing to provide accurate information or submitting the declaration late can result in penalties and delays in the settlement process.

2. Stamp Duty Calculation:

Revenue NSW uses the information provided in the Purchaser Declaration to calculate the correct amount of stamp duty. Accurate and complete information ensures that the purchaser pays the correct amount and avoids underpayment or overpayment issues.

3. Transparency and Record-Keeping:

The declaration helps maintain transparency in property transactions and provides a clear record of the details involved in the purchase. This is essential for legal and financial records.

Common Questions About Purchaser Declarations

1. Who Needs to Complete a Purchaser Declaration?

Any individual or entity purchasing property in New South Wales must complete a Purchaser Declaration, including Australian citizens, permanent residents, and foreign buyers.

2. What Happens If There Are Multiple Purchasers?

If there are multiple purchasers, each buyer must provide their details on the same Purchaser Declaration form. All purchasers must sign the declaration.

3. Are There Any Penalties for Inaccurate Information?

Providing false or misleading information on a Purchaser Declaration can result in penalties, including fines and potential legal action. It is crucial to ensure all information is accurate and truthful.

The Purchaser Declaration is a vital document in the process of buying land in New South Wales. It ensures legal compliance, accurate stamp duty calculation, and transparency in property transactions. By understanding its importance and completing it accurately, you can facilitate a smooth and successful property purchase. At SL Conveyancing, we’re here to help you navigate every step of the buying process, ensuring all legal requirements are met seamlessly.

Ready to buy land in New South Wales? Contact SL Conveyancing today for expert guidance and support throughout your property purchase journey.

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