Charge over transferee’s interest in land for unpaid transfer duty for ELN transfer
156P Charge over transferee’s interest in land for unpaid transfer duty for ELN transfer
This section applies if—
an ELN transaction document for an ELN transfer is—
stamped on the basis that duty is not imposed on the transfer under section 22(2A); and
registered under the Land Title Act 1994; and
all or part of the commitment amount for the payment commitment made for the relevant transfer agreement is not paid by the date the amount (the outstanding liability) is payable.
Note—For when tax must be paid, see the Administration Act, section 30.
The outstanding liability is a first charge on the transferee’s interest in the land that is the subject of the ELN transfer.
The charge has priority over all other encumbrances over the transferee’s interest in the land.
Subsection (3) applies—
whether the other encumbrances over the transferee’s interest in the land—
are registered or unregistered; or
were created before or after the charge arises under subsection (2); and
despite the Land Title Act 1994, part 3, divisions 2 and 2A.
The commissioner may lodge, under the Administration Act, part 4, division 5, a request to register the charge on the land that is the subject of the ELN transfer.
Despite section 47B of the Administration Act, the registrar must not register the charge if the transferee is no longer the registered owner of the land.
On its registration, the charge is not affected by a disposition of the transferee’s interest in the land.
This Act’s bill:Explanatory memorandum
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