Penalties imposed on buyers flouting the OIO rules

Some overseas based people are still buying residential properties classified as sensitive land without getting permission from the OIO. Rules are rules. If the legislation requires you to obtain OIO assent, then the buyer must get approval before buying the property.

Authorities have tracked down the buyers and imposed a penalty on buyers flouting the OIO rules.

The case in point is a overseas based buyer who bought properties at 79-95 Gills Rd in Albany for $12.95 million in 2013. The authorities ordered the foreign buyer to sell the land as soon as practically as possible without the sale affecting the sale prices of other buyer in the project..

Normally, the buyers will be imposed a penalty equivalent to the gain the buyer made. However, if the buyer didn’t make a profit after selling, the court imposed the maximum statutory penalty of $300,000.

Similarly, owners of two Warkworth properties were fined $2.95 million after OIO enquiry discovered the land was bought illegally.

So especially if you are not sure if you require OIO consent, check with your lawyer first.

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