Northern Territory Consolidated Acts Northern Territory Consolidated Acts4A. Unencumbered value
(1) The unencumbered value of property is the full value of the property free from encumbrances (including any GST payable on the supply of the property).
(2) The unencumbered value of land is to be determined with regard to:
(a) the use of the land that would best enhance its commercial value; and
(b) commercial advantages (such as goodwill) that:
(i) attach to the location or other aspects of the land; and
(ii) would affect the price that a reasonable purchaser would be willing to pay for the land; and
(c) information about the land that would, if known to a reasonable purchaser, affect the price the purchaser would be willing to pay for the land.
Examples
1 The value that accrues to premises because they have been licensed or approved for a particular commercial purpose would be taken into account under paragraph (b) in valuing the premises.
2 Information about the results achieved from exploratory or other operations in the area of a mining tenement would be taken into account under paragraph (c) in valuing the tenement.
(3) Information relevant to the value of property will, for the purposes of valuation, be regarded as an attribute of the property and not as a separate form of property to which an independent value can be attributed.
(4) An encumbrance includes:
(a) a mortgage or charge; or
(b) a debt or liability that might give rise to a right of recourse against the property; or
(c) any agreement or arrangement (including a lease) that has the effect of reducing the value of the property unless:
(i) the parties to the agreement or arrangement are not associates; and
(ii) the Commissioner is satisfied that the agreement or arrangement was not made for a purpose (collateral or otherwise) of reducing the value of the property;
but does not include an easement or restrictive covenant unless the Commissioner is of the opinion that it was created or entered into for a purpose (collateral or otherwise) of reducing the value of the property.
(5) For the purpose of assessing duty on a particular conveyance the Commissioner may, if satisfied that improvements on land subject to the conveyance have been built by, or at the expense of, the conveyee, reduce the unencumbered value of the land by an amount that reflects, in the Commissioner's opinion, the value of the improvements at the date of the conveyance.