sec.246BCharge over interest in land for unpaid transfer duty

### sec.246B Charge over interest in land for unpaid transfer duty This section applies if— transfer duty including AFAD is imposed on a dutiable transaction; and all or part of the transfer duty is not paid by the date the amount (the outstanding liability ) is payable. The outstanding liability is a first charge on the interest of the following person (the chargee ) in the AFAD residential land that is the subject of the transaction— for a dutiable transaction mentioned in section 9 (1) (a) to (f) — if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or if AFAD is imposed on the transaction under section 241A —the company; or otherwise—the foreign acquirer under the transaction; for a dutiable transaction mentioned in section 9 (1) (g) —each partner who holds the AFAD residential land to which the partnership acquisition relates; for a dutiable transaction mentioned in section 9 (1) (h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53 ; for a dutiable transaction mentioned in section 9 (1) (h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee; for a dutiable transaction mentioned in section 9 (1) (i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made; for a dutiable transaction mentioned in section 9 (1) (i) that is a trust surrender— the trustee of the trust in which the trust interest is surrendered; or if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender. The charge has priority over all other encumbrances over the chargee’s interest in the land other than a charge under section 156P or 246V . Subsection (3) applies— whether the other encumbrances over the chargee’s interest in the land— are registered or unregistered; or were created before or after the charge arises under subsection (2) ; and despite the Land Title Act 1994 , part 3 , divisions 2 and 2A . The commissioner may lodge, under the Administration Act , part 4 , division 5 , a request to register the charge on the land that is the subject of the transaction. Despite the Administration Act , section 47B , the registrar must not register the charge if the chargee is no longer the registered owner of the land. On its registration, the charge is not affected by a disposition of the chargee’s interest in the land. s 246B ins 2016 No. 37 s 9 amd 2017 No. 20 s 15 ; 2025 No.15 s 4 (sec.246B-ssec.1) This section applies if— transfer duty including AFAD is imposed on a dutiable transaction; and all or part of the transfer duty is not paid by the date the amount (the outstanding liability ) is payable. (sec.246B-ssec.2) The outstanding liability is a first charge on the interest of the following person (the chargee ) in the AFAD residential land that is the subject of the transaction— for a dutiable transaction mentioned in section 9 (1) (a) to (f) — if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or if AFAD is imposed on the transaction under section 241A —the company; or otherwise—the foreign acquirer under the transaction; for a dutiable transaction mentioned in section 9 (1) (g) —each partner who holds the AFAD residential land to which the partnership acquisition relates; for a dutiable transaction mentioned in section 9 (1) (h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53 ; for a dutiable transaction mentioned in section 9 (1) (h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee; for a dutiable transaction mentioned in section 9 (1) (i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made; for a dutiable transaction mentioned in section 9 (1) (i) that is a trust surrender— the trustee of the trust in which the trust interest is surrendered; or if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender. (sec.246B-ssec.3) The charge has priority over all other encumbrances over the chargee’s interest in the land other than a charge under section 156P or 246V . (sec.246B-ssec.4) Subsection (3) applies— whether the other encumbrances over the chargee’s interest in the land— are registered or unregistered; or were created before or after the charge arises under subsection (2) ; and despite the Land Title Act 1994 , part 3 , divisions 2 and 2A . (sec.246B-ssec.5) The commissioner may lodge, under the Administration Act , part 4 , division 5 , a request to register the charge on the land that is the subject of the transaction. (sec.246B-ssec.6) Despite the Administration Act , section 47B , the registrar must not register the charge if the chargee is no longer the registered owner of the land. (sec.246B-ssec.7) On its registration, the charge is not affected by a disposition of the chargee’s interest in the land. - (a) transfer duty including AFAD is imposed on a dutiable transaction; and - (b) all or part of the transfer duty is not paid by the date the amount (the outstanding liability ) is payable. - (a) for a dutiable transaction mentioned in section 9 (1) (a) to (f) — (i) if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or (ii) if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or (iii) if AFAD is imposed on the transaction under section 241A —the company; or (iv) otherwise—the foreign acquirer under the transaction; - (i) if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or - (ii) if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or - (iii) if AFAD is imposed on the transaction under section 241A —the company; or - (iv) otherwise—the foreign acquirer under the transaction; - (b) for a dutiable transaction mentioned in section 9 (1) (g) —each partner who holds the AFAD residential land to which the partnership acquisition relates; - (c) for a dutiable transaction mentioned in section 9 (1) (h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53 ; - (d) for a dutiable transaction mentioned in section 9 (1) (h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee; - (e) for a dutiable transaction mentioned in section 9 (1) (i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made; - (f) for a dutiable transaction mentioned in section 9 (1) (i) that is a trust surrender— (i) the trustee of the trust in which the trust interest is surrendered; or (ii) if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender. - (i) the trustee of the trust in which the trust interest is surrendered; or - (ii) if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender. - (i) if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or - (ii) if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or - (iii) if AFAD is imposed on the transaction under section 241A —the company; or - (iv) otherwise—the foreign acquirer under the transaction; - (i) the trustee of the trust in which the trust interest is surrendered; or - (ii) if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender. - (a) whether the other encumbrances over the chargee’s interest in the land— (i) are registered or unregistered; or (ii) were created before or after the charge arises under subsection (2) ; and - (i) are registered or unregistered; or - (ii) were created before or after the charge arises under subsection (2) ; and - (b) despite the Land Title Act 1994 , part 3 , divisions 2 and 2A . - (i) are registered or unregistered; or - (ii) were created before or after the charge arises under subsection (2) ; and