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Do I have to pay Land tax?

You often see in contracts where you are buying land from a developer, a clause stating that the developer will not pay any land tax outstanding at the date of settlement but instead will give an undertaking to pay the land tax at a future date. The reason these clauses are inserted is due to the problems developers have had with the Department of Land Tax and getting refunds for overpayment of land tax.

While this presents a risk for the buyer if the developer goes into liquidation, very few developers will delete the clause due to the problems they have had with the Department of Land Tax. Rather than attempt to get the developer to delete the clause, we suggest you check the financial viability of the developer.

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