DUTIES ACT 2000 - SECT 57D Land sold initially to natural person, beneficial interest then transferred to financial institution

DUTIES ACT 2000 - SECT 57D

    (1)     This section applies if a natural person and a financial institution enter into an arrangement under which—

        (a)     an estate in fee simple in land is transferred from a third party to the natural person ( the first transaction ); and

        (b)     at the same time as the first transaction—

              (i)     the natural person declares a trust in favour of the financial institution in relation to the natural person's beneficial interest in the land ( the second transaction ); and

              (ii)     the financial institution leases its interest in the land to the natural person for a fixed term; and

        (c)     at the end of the fixed term referred to in paragraph (b)(ii), or some other time agreement by the parties, the trust is determined with the effect that the beneficial interest in the land reverts to the natural person ( the third transaction ).

    (2)     No duty is chargeable under this Chapter in respect of the second or third transaction.

S. 57E inserted by No. 71/2004 s. 17.