| 1. Are there any restrictions on an overseas company or
business buying commercial property? |
Yes. An overseas company intending
to buy commercial property should consult the Foreign Investment
Review Board’s
policy. |
| 2. Is land/property
generally ‘registered’ so
that the title/ownership is guaranteed? |
Yes, most land titles are registered, only a small portion
of land comes under the old system title where the title
is not registered. Old system land is gradually being converted
to registered titles. |
| 3. What are the basic requirements/procedures? |
A Contract for Sale of Land prepared
by the vendor’s
solicitor is submitted to the purchaser. Contracts are then
exchanged with a specified settlement date. At settlement,
the vendor hands over the form of transfer, certificate of
title and any discharge or release of mortgage affecting
the property to the purchaser. The procedures may vary slightly
from State to State. |
| 4. On average, how long does the process take? |
The process would usually take 6 weeks and varies from
State to State. |
| 5. What searches are advisable? |
Title searches of the property, land tax certificates,
zoning certificates, environmental certificates, development
and building approval certificates. |
| 6. What are estimated disbursement costs? |
It varies accordingly from State to State and the type
of property purchased but would typically be AUS$1500 for
comprehensive searches. |
| 7. What are the local and/or national tax considerations
in the country of purchase? |
There is stamp duty to be paid for purchases of land and
mortgages in each State and the amount varies from State
to State. Capital gains tax may also apply if the property
is later sold at a profit. Land tax may be payable on a yearly
basis depending on the unencumbered value of the property. |
| 8. What other annual local charges are obligatory? |
The property will usually be subject to council and utilities
rates calculated according to the size and value of the property,
and also water usage rates. |
| 9. Are there any other issues to consider? |
Pre-purchase inspection reports should be ordered such
as development and building approval reports and also environmental
impact reports to assess whether the site is contaminated. |
