Stamp Duty Payable On Development Agreement

Since a development contract can last from 5 to 10 years, dispute resolution rules must be carefully considered and tailored to the parties. It is also important to ensure that dispute resolution rules cover all disputes under the development agreement. The State Revenue Commissioner assessed the Duties Act 2000 (Vic) land transfer tax as the sum of the sums paid by Lend Lease to VicUrban under the development agreement. Lend Lease objected to the assessment and argued that the consideration for the transfer could only be the amount set in the contract to sell the land. Lend Lease submitted that the amounts that could or would be the subject of a lend Lease contribution to VicUrban`s development costs and the amounts that would be paid as a share of the sums that Lend Lease would make on its sale of the land were not part of the transfer consideration3. In 2001, Lend Lease signed a dirty DA with VicUrban for the sale and development of part of the Docklands district in Melbourne. The parties agreed that the development should be orchestrated and that VicUrban transfer the country in tranches to Lend Lease. Lend Lease would occupy land, design, build and sell residential and commercial buildings in the countryside. Each of Lend Lease and VicUrban would build different infrastructures on and around the earth. The points to be considered and protected are different for each type of development agreement. However, any type of land transfer is important because it can have tax and tax consequences for both parties and jeopardize the viability of development. Whichever steps you choose, it`s worth detailing the procedure to be chosen.

For example, if the parties wish to apply an expert`s provision, the agreement should specify how an expert is selected, the process that the expert must follow and which bears the costs of the expert`s finding. In most developments, the developer will receive construction funding to finance the construction of the development. In particular, the development agreement should provide for all necessary security measures and determine which party is responsible for obtaining security. In addition to the general objective of the agreement, consideration should be given to justifying the benefits of the agreement for the health, safety and well-being of the Community. It is important for the developer to understand the current funding, if any, on the land and if the land is leased or if it has a different load that may affect the feasibility of development. Under a typical development agreement, the owners have the right to charge the landowner for the development costs incurred and can claim a margin of these costs as well as a share of the profits derived from the development. The benefit component of development compensation falls within the definition of “economic rights.” … Refusal of the petitioner`s assertion that stamp duty was taken from a document called memorandum of understanding and which, as part of a joint development agreement and a … Joint Development Agreement, arguing that it attracts stamp duty in accordance with Article 5, point f) of the Karnataka Stamp Act of 1957.