Australia (AU) Registering a Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019.

What the indicators measure

Procedures to legally transfer title on immovable property(number)

• Preregistration procedures (for example, checking for liens,notarizing sales agreement, paying property transfer taxes)
• Registration procedures in the economy’s largest business city.
• Post registration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

• Does not include time spent gathering information
• Each procedure starts on a separate day — though procedures that can be fully completed online are an exception to this rule
• Procedure is considered completed once final document is received
• No prior contact with officials

Cost required to complete each procedure (% of property value)

• Official costs only (such as administrative fees, duties andtaxes)
• Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0–30)

• Reliability of infrastructure index (0–8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)

Case study assumptions

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):-

• Are limited liability companies (or the legal equivalent).
• Are located in the peri urban (that is, on the outskirts of the city but still within its official limits)area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
• Are 100% domestically and privately owned.
• Perform general commercial activities.

The property (fully owned by the seller):

• Has a value of 50 times income per capita, which equals the sale price.
• Is fully owned by the seller.
• Has no mortgages attached and has been under the same ownership for the past 10 years.
• Is registered in the land registry or cadastre, or both, and is free of title disputes.
• Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.
• Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards,building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.
• Will not be subject to renovations or additional construction following the purchase.
• Has no trees, natural water sources, natural reserves or historical monuments of any kind.
• Will not be used for special purposes, and no special permits, such as for residential use,industrial plants, waste storage or certain types of agricultural activities, are required.
• Has no occupants, and no other party holds a legal interest in it

Registering Property — Australia

Procedures (number)

4

Time (days)

4.5

Cost (% of property value)

5.4

Quality of the land administration index (0–30)

19.5

Details — Registering Property in Australia — Procedure, Time and Cost

Procedure 1:.

Obtain a zoning certificate from the Municipal Council:

Agency Municipal Council (City of Sydney)The seller is responsible for obtaining a Zoning Certificate from the Municipal Council. This document must be attached to the Contract for Sale (prescribed documents). A Building Certificate can also be obtained from the Municipal Council, but it is not mandatory. Certain municipal councils now process applications through the internet and deliver Zoning Certificates electronically. In the case of Sidney, it is possible to request a certificate online athttps://online.cityofsydney.nsw.gov.au/Certificates, and it is possible to receive it by email.

Time to Complete

2 days

Associated Costs

AUD 53

Procedure 2:.

Obtain a title search certificate through the information broker:

Agency Information broker According to the Conveyancing Act 1919 and the Conveyancing (Sale of Land) Regulation 2017,the seller is responsible for obtaining a title search certificate, a copy of any easement or covenant registered on title, a deposited plan and a land rates clearance certificate from the NSW Land Registry Services. The seller also obtains a sewage service diagram from the local water authority.

If the seller or the seller’s solicitor is doing the process online, they must use an approved information broker.

Time to Complete

Less than one day, online (Takes place simultaneously with previous procedure).

Associated Costs

AUD 130.19; (Through information brokers

A title search for the property located in Sydney: AUD 24.50 A copy of any easement or covenant on the title: AUD25.30

A deposited plan of the property: AUD 25.70

Land rate clearance certificate: AUD 27.55

Sewer service diagram:AUD 35.14

Water rate clearance certificate (Section 66certificate): AUD 31.40

Procedure 3:.

Obtain an assessment for the stamp duty:

Agency Revenue NSW To obtain an assessment of the stamp duty, Electronic Duties Returns (EDR) is used to electronically assess and endorse a range of duties transactions. Client service providers of the Revenue NSW provide the solicitor with access to the online EDR. A client service provider’s website is used for this assessment.

After the solicitor fills the information in the online EDR, a Duties Notice of Assessment will be issued with the stamping reference number with the total tax payable and the due date for payment, and instantly sent to the solicitor by email. The reference number is used to make the payment, generally at the time of an electronic lodgment. The buyer’s solicitor retains the original buyer’s declaration and supporting documents on behalf of the Revenue NSW.

Time to Complete

Less than one day, online

Associated Costs

AUD 4; (Client Service Provider’s service fee to access the online EDR: AUD 4 (the fee differs by CSPs))

Procedure 4:.

Lodge the property transfer electronically:

Agency NSW Land Registry Services (Concessionary for Office of the Registrar General)After July 1, 2018, the transfer must be lodged electronically via an Electronic Lodgment Network(ELN), under the Conveyancing Rules. Property Exchange Australia (PEXA) is the only ELN operating in NSW as of May 2019.

To conduct the electronic lodgment, each seller and buyer must use the service of a certified solicitor or conveyancer.

The solicitor prepares and reviews a contract for sales for the seller. The seller provides evidence to establish their right to deal in the land and the buyer provides the solicitor with details to enable them to complete the Electronic Notice of Sale (ENOS).

The parties physically sign Client Authorization Forms (CAF) and undertake Verification of Identity(VOI) to provide the solicitor with the authority for the electronic lodgment.

The seller’s and buyer’s solicitors fill the necessary information online within a digital ‘workspace’ in the PEXA system. The buyer’s solicitor completes an electronic transfer form and Electronic notice of sale ENOS.The stamping reference number obtained from the Revenue NSW will be required for the PEXA workspace to make the payment of the stamp duty.

Once the dealing is submitted, the registration will be completed almost immediately. A paper certificate of the new title will be issued to the new owner by postal delivery within two to three working days.

Time to Complete

2 days

Associated Costs

AUD 191,383.14; (AUD129.10 for registering property transfer at NSW Land Registry Services

AUD121.50 for the electronic lodgement by PEXA

Stamp duty, according to the following schedule of tariffs :

Below AUD 14,000, the fee is 1.25% of property value of property Between AUD 14,001 and AUD 30,000, the fee is AUD 175 + 1.5% of excess over AUD 14,000Between AUD 30,001 and AUD 80,000, the fee is AUD 415 + 1.75% of excess over AUD 30,000Between AUD 80,001 and AUD 300,000, the fee is AUD 1,290 + 3.5% of excess over AUD 80,000 Between AUD 300,001and 1,000,000, the fee is AUD 8,990 + 4.5% of excess over AUD 300,000 Between AUD 1,000,001 -3,000,000, the fee is AUD40,490 + 5.5% of excess over AUD 1,000,000Over 3,000,000, the fee isAUD 150,490.00 + 7% of excess over AUD3,000,000

Transfers also incur fixed stamp duty costs AUD 20.)

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