96Contravening conditions in relation to residential land

96 Contravening conditions in relation to residential land

Conditions in no objection notifications (1) A person who is given a no objection notification under section 74 (no objection notification imposing conditions) relating to a residential land acquisition must not contravene a condition (except a condition mentioned in section 97) specified in the notification.

Note: Examples of conditions that may be included in a no objection notification under section 74 are:

(a) a condition requiring a temporary resident to sell an established dwelling when the dwelling ceases to be the temporary resident’s principal place of residence; and
(b) a condition prohibiting a temporary resident from leasing an established dwelling; and
(c) a condition requiring a purchaser of vacant land to begin to build a dwelling before a particular time.

Conditions in notice imposing conditions (1A) A person who is given a notice imposing conditions relating to a residential land acquisition must not contravene a condition (except a condition mentioned in section 97) specified in the notice. Conditions in exemption certificates (2) A person who is specified in an exemption certificate relating to an interest in residential land must not contravene a condition (other than a condition mentioned in section 97) specified in the certificate. Civil penalty provisions (3) A person who contravenes subsection (1), (1A) or (2) is liable to a civil penalty. (4) The maximum penalty for the contravention is the greatest of the following: (a) double the amount of the capital gain that was made or would be made on the disposal of the interest in the relevant residential land; (b) 50% of the consideration for the acquisition of that interest; (c) 50% of the market value of that interest.

Note: For how to work out the capital gain, see section 98.