Question 1

Is GST payable on a commercial property sale?

Accepted Answer

GST can apply to the sale of commercial property, and how it is treated depends on the circumstances. Where the property is sold as a leased and operating going concern, the sale may be GST free if the parties agree in writing and both are registered for GST. In other cases the margin scheme may reduce the GST payable. Because the outcome affects price and cash flow, we advise on the GST treatment and draft the contract clauses to reflect what the parties intend.

Question 2

What should I check when buying off the plan?

Accepted Answer

An off the plan contract is entered into before the lot is created, so it needs careful review. We check the draft plan and schedule of finishes, the sunset date and the developer's rights to vary the plan, the disclosure statement required for off the plan contracts in NSW, and how and when the deposit is held. We also advise on the extended cooling off period that applies to off the plan residential contracts and on when transfer duty falls due.

Question 3

What due diligence is needed for a development site?

Accepted Answer

For a development site the searches go well beyond a standard purchase. We review the zoning and permitted uses in the planning certificate, any existing development consents, easements, covenants and restrictions on title, contamination and heritage issues, and services and access. We can also advise on structuring the acquisition and on any conditions, such as making the contract subject to development approval, so that your project is protected before you are committed.

Question 4

How is commercial conveyancing charged?

Accepted Answer

Commercial and development matters vary widely in complexity, so unlike a standard residential purchase they are not usually a single fixed fee. We provide a written costs agreement with a fee estimate at the outset based on the nature of the transaction and the work involved, and we keep you informed as the matter progresses. Contact us with the details of your transaction and we will provide a quote.