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If I put land up for sale, do I pay land management fees on that land until someone buys it?
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Question
Rolig Loon
You pay land fees on the total amount of land that you own at any time during the billing cycle. So, suppose that you own 512 sq m of land today and the billing cycle ends tomorrow.
1. If you sell the first 512 sq m parcel this morning and buy the new 512 sq m parcel this afternoon, you will pay fees only for 512 sq m. in each billing period.
2. If you sell the first parcel today and buy a new 512 sq m parcel tomorrow, you will still pay fees only for 512 sq m. in each billing period.
3. If you buy the second parcel this morning and sell the first one this afternoon, you will pay fees for 1024 sq m of land in THIS billing period and for 512 sq m of land in the NEXT period.
4. If you buy the second parcel today and sell the first parcel tomorrow, you will pay fees for 1024 sq m of land in BOTH billing periods.
The lesson is to sell before you buy or, at the very least, to get both transactions finished in the same billing period.
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