For a lease of four years or less, duty is 0.4% of the total rent
A worked RES examination question on lease stamp duty, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A tenant signs a 24-month lease of a private unit at $2,500 a month, inclusive of all charges, and the agent checks the duty on the total rent for the term, the lease being within four years. On the tenancy stamp duty, which statement is correct?
The answer, and why
Answer: A
The rule. For a lease of four years or less, duty is 0.4% of the total rent.
Why A is correct. Total rent = $2,500 × 24 = $60,000; duty = 0.4% × $60,000 = $240; the 24-month term is within four years, so the whole-rent basis applies.
The other options.
- B $120 uses half the rent base.
- C $600 applies 1%.
- D $480 doubles the rent base.
Exam note. 24 months is within four years — 0.4% of the full $60,000.
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Independent study material. Not affiliated with or endorsed by the Council for Estate Agencies. No pass guarantee — for study use only.