Description
Origin of this document
This document was created by the State Revenue Office of Victoria (SRO). It can also be accessed through the SRO website (see under "Links" below).
Purpose of this document
If real estate is transferred from one person to another the transfer is usually dutiable. This means that a person who receives real estate by way of a purchase, gift or for any other reason will probably have to pay stamp duty unless an exemption applies.
When a person purchases real estate, but "nominates" a substitute purchaser or a co-purchaser a stamp duty liability would arise in relation to what was regarded as a second transfer, and this caused all kinds of problems for people who simply wanted to buy real estate on behalf of someone else, or have a spouse added to the title between the day of sale and the transfer of ownership.
A change in the law has made it possible to transfer real estate from one party to another between the day of sale and registration without the transferee(s) becoming liable to pay stamp duty. Stamp duty will still be payable in some cases, but usually a "nomination" of a substitute or co-purchaser will be exempt.
This form is used to determine whether a transfer is dutiable or not. It is a Statutory Declaration by which the person seeking the exemption from stamp duty provides information to the SRO to prove that the transaction (i.e. the second transfer) is exempt.
Completing this document
There is no doubt about it, this document is complicated. It should be completed very carefully in accordance with the "Explanatory Notes" attached to it.
Questions regarding the correct completion of this form should be directed to the SRO, but you should make every effort to first work through the Explanatory Notes provided with the document so as to avoid asking questions that are already answered in the notes.
Submitting this document
Ordinarily, this document is completed by the purchaser of real estate, then delivered to the purchaser's legal representative well before settlement.
If a lender is involved you must inform your lender as soon as possible, and forward a copy of this document to your lender well before settlement. If the purchaser does not provide the lender with a copy of this document personally, you should instruct your legal representative in writing to do so on your behalf.
Last minute attempts to nominate can result in confusion for lenders and legal representatives, and may delay settlement, with consequent penalties and costs.
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