LODGEMENT GUIDE | First Home Owner Grant 2020 12 of 22
Related or associated party
A person is related to or associated with another party
when:
a) one is the spouse/partner of the other
b) they are related by blood, marriage or adoption
c) they are a shareholder or director of the other party,
being a company
d) they are a beneciary of a trust for which the other
party is a trustee
e) the transaction is otherwise not at arm’s length.
Relevant interest
A person with a relevant interest may be described as
someone who will have a legal entitlement to occupy
the home being bought or constructed. Usually this will
be the person(s) registered as proprietor on the title.
This commonly is an estate in fee simple. Other forms
of interest are dened in the First Home Owner Grant
(New Homes) Act 2000.
Residence requirement
At least one applicant must reside in the home as their
principal place of residence for a continuous period of
at least six months commencing within 12 months of
completion of the eligible transaction.
Residential property
Land in Australia on which there is a home which
is lawfully occupied or suitable for occupation. This
includes houses, townhouses, units, ats, duplexes,
converted warehouses, xed moveable homes and kit
homes.
Small interest holder
A person whose ownership share in the home does
not exceed 5 per cent. Where there is more than one
small interest holder, the total ownership share of all
small interest holders does not exceed 5 per cent.
Small interest holders cannot be the spouse or de facto
partner of the applicant
Spouse/partner
The person to whom the applicant is married or living
with as a couple in a de facto relationship (including
same sex relationships) as dened in the Interpretation
Act 1987.
Note: There is no minimum period of cohabitation
needed to establish a de facto relationship under the
Interpretation Act 1987.
Substantially renovated home
A home is a substantially renovated home if:
a) Has been created through renovations in which
all, or substantially all of a building is removed or
replaced (whether or not the renovations involve
the removal or replacement of foundations, external
walls, interior supporting walls, oors or staircases),
and
b) the home has not been previously occupied or sold
as a place of residence, since the renovation.
‘Substantial renovations’ of a building are dened
as renovations in which all, or substantially all, of a
building is removed or replaced. The renovations
may, but need not, involve the removal or
replacement of foundations, external walls, interior
supporting walls, oors, roof or staircases.
Terms contract
A contract for the sale of land where the purchaser has
to make two or more payments (excluding the deposit)
to the vendor after the contract is signed by all parties.
The applicant, as the purchaser, must be in possession
under the contract and cannot be registered on title
until the nal payment is made to the vendor.
Title search
A search on the land which shows the names of the
registered owners. A title search can be obtained from
www.nswlrs.com.au/Information_Brokers
Total value
Contract to purchase a new home, the total value is the
greater of the following:
1. the consideration for the eligible transaction
2. the unencumbered value, as at the commencement
date of the eligible transaction.
Contract to build, the total value is calculated by adding
together:
1. The consideration for the eligible transaction, and
2. The value, at the commencement date of the
relevant interest in the land on which the home is to
be built
Owner builder, the total value is calculated by adding
together:
1. The unencumbered value of the home at the date
the transaction is completed, and
2. The value, at the date the transaction is completed,
of the relevant interest in the land on which the
home is built.
Unencumbered value
The total value of the property determined without
regard to any encumbrance (e.g. mortgage) to which
the property is subject, or any arrangement that
results in the reduction of the value of the property
(e.g. child purchasing home from parents at a
reduced price). Please refer to the First Home Owner
Grant (New Homes) Act 2000 for the full denition of
unencumbered value.
Vendor Statement
A statement from the vendor or vendors legal
representative which states this is the rst sale of
the home and the home has never been previously
occupied since the completion of construction.
Terms used