Notice of Acquisition of an interest in land

Written by Nagisa Takaki

Edited by Nanki Kiegaldie

A Notice of Acquisition is a form, that informs relevant authority of changes in ownership of property.

In Victoria, settlement takes place electronically via an Electronic Lodgement Network meaning that transfer of land is lodged electronically (called ‘PEXA’). The purchaser’s solicitor or conveyancer creates a Notice of Acquisition electronically via PEXA.

Before settlement, the purchaser is required to indicate to their solicitor or conveyancer whether the property will be used as a principal place of residence or not. It is important to provide accurate information. The following details are contained in a notice of acquisition:

• The vendor’s full contact details including whether the vendor is an individual, trustee for a trust or company, etc.

• The purchaser’s full contact details including whether the purchaser is an individual, trustee for a trust or company, date of birth etc.

• Property descriptions

• Transaction details

Once the transfer is complete, a Notice of Acquisition is sent automatically to the land titles office. For land tax purposes, the State Revenue Office also receives an automatic Notice of Acquisition through PEXA.

As soon as settlement takes place, the purchaser’s solicitor or conveyancer is required to submit a Notice of Acquisition to the relevant authorities such as local councils, water authority, owners corporation manager etc. that the ownership has been changed.

The vendor’s solicitor or conveyancer is also required to lodge a Notice of Disposition to the relevant authorities.

If a purchaser is acting as a trustee, the purchaser’s solicitor or conveyancer is required to lodge a notice of trust acquisition with State Revenue Office within one month of settlement (https://www.sro.vic.gov.au/ltxtrust08).

Land tax assessment

One of the reasons why a Notice of Acquisition with its correct information is so important is for land tax purposes.

Owning property in VIC, may require paying land tax. Land tax is calculated on the site value of all taxable land owned on 31 December. Usually between Jan and May, the State Revenue Office will send a land tax assessment notice. Without accurate information, land tax would not be correctly assessed by State Revenue Office.

Once received a land tax assessment notice from State Revenue office, we suggest to review the assessment notice if all details are correct such as:

• Contact details

• Principal place of residence

• If there is a property which is no longer owned

• If there's a recorded exemption if it's not entitled to

• Applying for an exemption for a property should been marked as Principal place of residence.

It is property owners responsibility to ensure all information is correct. If there is a need for it to be updated on the assessment, the proprietor on the title must contact the State Revenue office.

The information contained in this article is for general information only. If you have any questions, please do not hesitate to contact our office.