The Overseas Investment Amendment Regulations 2018, which came into force in October 2018, created a transitional exemption certificate for developers of large scale residential developments.
The exemption certificate allows developers of existing large scale residential developments where sales had commenced before 22 August 2018 to sell to overseas persons without any restrictions on the number of overseas investors nor any rules about the overseas person occupying the dwelling. Applications for transitional exemption certificates can be made up until 21 February 2019
To be eligible for a transitional exemption certificate, the development must
1. Be used, or be intended to be used either
a) In the construction of one or more multi-story buildings, where each building consists of at least 20 residential units; or
b) To increase in the number of residential dwellings in 1 or more multi-storey buildings, where the number of residential dwellings in each building will be increased by 20 or more; and
2. Include at least 20 new residential apartments that were not complete as at 22 August 2018, but are likely to be completed by 22 August 2023; and
3. Be subject to at least one pre-sale of one of the incomplete apartments on or before 22 August 2018; and
4. The pre-sale must have been in good faith and in the ordinary course of business.
For more information on the transitional exemption certificate contact the Property law experts at TODD & WALKER Law on 03 441 2743.