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Good topic.
What are the tax implications of such an arrangement? CGT, income tax etc…
The SMSF would obviously be able to claim deductions? But, what about Mr Markie's rental expense, is that deductible also?
There are standard form leases out there issued by each states' law institute.
For example in Victoria: https://www.elawpublishing.com.au/samples/107.pdf
(the site has sample commercial leases for all states)It appears this all occurred a month ago. What's the update on your project? I've seen consulting practices which operate on a shared secretaries. Similar to that of virtual offices and serviced offices. Seems like a decent idea, but I wouldn't know enough about the subject to say whether it'd maximise return or not.
So you have some property in Cochin?
Checkmate. Good thinking with the special conditions!
Goes to show how important it is for buyers (and/or their representative) to read and negotiate the terms of the contract before signing.
So what's happening with the returned deposit? looking for other IP?
Sounds like something horrible to be experiencing. So much uncertainty and stress!
Which state are you from? Can't say much with regard to your rights as the relationship is contractual (obviously). So you need to have a look at the contract to see what each party's respective rights are in relation to the delay of settlement. What I mention below is based on the the Victorian standard contract.
The vendors may be in default depending on what was provided in the contract. Your right to rescind (ability to exit the contract) is dependent on you giving them a written notice to that effect (in accordance with conditions of contract). Only if they do not remedy their default within 14 days are you legally allowed to rescind and walk away from the contract. So make sure the notice is written and according to the Contract.
You may then be able to claim damages. But if they are now able to proceed, i don't know if you can drop the contract now.
Is it an empty lot? I presume not. If the property is a lot on an undivided plan, then settlement can be delayed until 14 days after they give you notice of registration of the plan.
Is the licence agreement express and in writing? If so is it contained in a separate document from the Contract itself? Your rights are also governed under this agreement.
Was it an options agreement? I.e. an option to purchase property in the future?
IN SUMMARY I think you should seriously think about getting a solicitor review your rights. Further costs, but it'd be good to know exactly where you stand.
All the best with it. I'd like to know how this matter turns out, so keep posting. Feel for ya.
Regards
P.s. what did they say to you originally about expected completion/settlement date (before you signing contract)? You may have a consumer action brewing if you've suffered any loss…
Any way, go see a solicitor!
(This is not legal advice. I'm not a lawyer and not purporting to be one, and you should not rely on any of what is said.)
