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If you want to trade Australian real estate in RMB, don't be careless in these questions.

 
[RealEstate]     23 Nov 2018
Recently, because of foreign exchange restrictions and exchange rate fluctuations, many clients facing Australian property delivery have come to ask the question: is it possible to use RMB for Australian property purchase transactions in China?

Recently, because of foreign exchange restrictions and exchange rate fluctuations, many clients facing Australian property delivery have come to ask the question: is it possible to use RMB for Australian property purchase transactions in China?

If you want to trade Australian real estate in RMB, don't be careless in these questions.

The issue is novel. Australian law does not explicitly allow money transactions in different currencies, and the delivery of the Australian currency is still the mainstream and most recommended safe trading model by lawyers.

This paper hopes to explore the pattern of Australian real estate delivery in China in order to help readers to know more about Australian investment and ensure the safety of funds.


A third-party regulatory account for Australian housing delivery consideration

Some Chinese banks can provide real estate trading funds regulatory account services to assist buyers and sellers to complete the delivery of housing to ensure smooth and safe transactions.

If you want to trade Australian real estate in RMB, don't be careless in these questions.

In Australian delivery, if the buyer and seller are allowed to trade in foreign currency, it is recommended that the following legal issues be recognized before the transaction:

Confirm that the parties A (seller), B (buyer) and C (third-party bank) shall, on a voluntary, equal and consensual basis, in respect of Party B's purchase of the property of Party A, Party C shall provide transaction capital supervision services to both parties and enter into relevant regulatory agreements.

2. Basic property information confirming transactions between parties A and B: Australia _ state _, title number _, transferor _ and transferee _.

3. Confirm that Party A opens an account in Party C (account name: _, account number: _), and this account is the property transaction collection account.

4. Confirm that Party B opens a trading fund supervision account (account name: _, account number: _) in Party C. Party B deposits RMB _ (Australian dollar, hereinafter referred to as "transaction funds") into the regulatory account.

5. Confirmation of the period of supervision from _. Party B hereby authorizes Party C to freeze the account during the period of supervision and withhold funds from the account during the period of freezing.

If the supervisory account is a savings account, Party B shall hand over the bank card to Party C and undertake to do so before the completion or legal discharge of the regulatory agreement, or prior to the consent of Party A and Party C. (a) the regulatory account is continuously set to a frozen state and to a non-deposit-and-exchange status; At the same time promise not to party C system inside and outside the business outlets to report loss, until party C under the regulatory agreement under the discharge of responsibility.

Party B undertakes to comply strictly and fully with the supervision agreement and issue authorization instructions to Party C in accordance with the agreement.

6. Confirm that Party C shall bear interest on the deposit of Party B's supervisory account according to the interest rate set by the people's Bank of China for the same period, and the interest shall be owned by Party B.

7. Confirm that all parties A, B and C shall not use the trading funds in the regulatory account without authorization, other than as stipulated in the regulatory agreement. The funds shall only be used to pay Party A the money involved in the transaction of the regulatory agreement, not for other purposes.

8. Confirms that during the period of supervision by Party C, both parties A and B failed to register property rights because they failed to meet the conditions for registration of property rights during the registration process of real estate transfer, after being examined and examined by the real estate registration authority, Or if, in the course of registration, the real estate is seized by the competent authority in accordance with the law or otherwise restricts the rights of the real estate or, for any other reason, the real estate cannot be transferred, Party C may unfreeze the funds in the supervision account on the basis of the certificate issued by the competent authority or the notice of termination issued by both parties.

If the supervisory account is a savings account, the bank card stored by Party B in Party C shall be returned to Party B.

9. Settlement of confirmed default: if the house is unable to complete the transaction during the supervision period for reasons other than Party C, Party C will unfreeze the funds in the supervision account after the period of supervision expires; If the supervisory account is a savings account, Party C will return the bank card originally deposited by Party C to Party B.

10. It is the laws of the people's Republic of China, not Australian laws, that confirm the application of regulatory agreements. Disputes arising from the agreement shall be settled amicably by the parties. If negotiations are not successful, a lawsuit may be filed with a people's court where Party C is located.

11. Confirm that Party C is signed and sealed by the Retail customer Manager or Manager.


B Stamp Duty, Registration fee of property right and payment of released funds

If you want to trade Australian real estate in RMB, don't be careless in these questions.

Although there is room for practice in Australian law to complete the delivery of Australian housing in foreign currency, it is still recommended that in Australia, the payment of stamp duty, payment of registration fees and repayment of the seller's release loan should be made in Australian dollars:

1. Time of payment of stamp duty:

If the subject is a building flower, the buyer shall pay stamp duty within 30 days after the registration of the property.

If the subject is a current house, it is important to note that the buyer is required to pay stamp duty within 30 days of unconditional entry into the contract, even if the property has not been closed within 30 days.

Failing to pay stamp duty within the prescribed time limit, the state will impose additional interest penalties; unless there are special reasons for late payment of stamp duty, an application for exemption or waiver of interest may be filed.

2. Registration fees:

Example: Queensland property Registration fee Calculator (please copy the link below and paste it into a browser to open it)

https://www.business.qld.gov.au/industries/building-property-development/titles-property-surveying/titles-property/payments/fee-calculator

3. Release of repayments:

If the seller bought the house on loan at the time of purchase, he had to complete the release application before delivery, and complete the release at the time of delivery in order to confirm that the property delivered did not have a mortgage of any seller's nominal value.


C to complete foreign-related asset transactions through the service of Chinese lawyers

As cross-border investment and foreign-related businesses continue to expand, Chinese lawyers are also playing an increasingly important role in overseas transactions.

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