New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 9B

9B Transfer of option occurring on nomination or other change

(1) A transfer of an option to purchase land in New South Wales is taken to occur if, for valuable consideration--

(a) another person is nominated to exercise the option, or

(b) another person is nominated as purchaser or transferee of the land the subject of the option on or before the exercise of the option, or

(c) the option holder agrees to a novation of the option, or otherwise relinquishes rights under the option, so that another person obtains a right to exercise the option or to purchase the land.

(2) For the purposes of this Act, in a case referred to in subsection (1) (a) or (b)--

(a) the option is taken to be transferred when the nomination is made (and a reference in this Act to the time at which a transfer occurs includes a reference to such a time), and

(b) the person nominated is taken to be the transferee of the option (and a reference in this Act to a transferee includes a reference to such a person).

(3) For the purposes of this Act, in a case referred to in subsection (1) (c)--

(a) the option is taken to be transferred when the option holder agrees to the novation or otherwise relinquishes rights under the option (and a reference in this Act to the time at which a transfer occurs includes a reference to such a time), and

(b) the person who obtains a right to exercise the option or to purchase the land is taken to be the transferee of the option (and a reference in this Act to a transferee includes a reference to such a person).

(4) This section applies regardless of when the option is exercisable.

(5) For the purposes of this section, anything done by a person under a power of appointment or other authority granted by an option holder is taken to have been done by the option holder.

(6) To avoid doubt, a person who has a right to accept an offer to sell land has a right to purchase the land.

(7) To avoid doubt, a transfer of an option to purchase land that is taken to occur under this section is a transfer of dutiable property and a reference in this Act to a transfer of dutiable property or a dutiable transaction includes a reference to such a transfer.

(8) In this section--

"option holder" , in relation to an option to purchase land in New South Wales, means a person who has a right to purchase the land under the option (whether vested or contingent).