Assignment of Contract

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Jack Dempsey
Member
@jack-dempsey
Join Date: 2003
Post Count: 5
May 28, 2003 - 10:53 am
I am interested in this area of activity but understand that there may be stamp duty issues with it in Sydney and that an Option to buy is better. Does anyone have any expertise on this or a road map?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 28, 2003 - 11:58 am
Jack
I understand that this is not possible, even if you have and/or nominee, without incurring double stamp duty (in NSW anyway). i have done in in Vic, but have heard the laws have changed and it is not possible down there either.
With options I think they have to be stamped by the land titles office to make them a legal document and that stamp duty is payable on this. But not sure how much or how it is calculated.
I have written options in VIc and haven’t had them stamped. I was not concerned with it too much as I was selling it not buying it.
Terryw
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FW
Member
@fw
Join Date: 2002
Post Count: 478
May 28, 2003 - 12:03 pm
I buy with and/or nominee in Victoria all the time, but then again I also then transfer the contract to my company (most times). So because there is a connection there’s no double stamp duty.
Not so sure how it works if you transfer the contract to an unrelated party.
Keep smiling
Felicity
G-MAN007
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@g-man007
Join Date: 2003
Post Count: 37
May 29, 2003 - 12:34 am
As far as im aware options are fine, just about all commercial transactions are completed in this manner especially land purchases. Many companys purchase an option on property, find a developer then sell them the option, thus avoiding stamp duty. if this is no longer legal please advise ASAP.
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
May 29, 2003 - 3:23 am
If you transfer to an unrelated party then there will be double stamp duty. I have done this on off-th-plan purchases a few times.
As far as I am aware the last purchaser becomes liable to pay all the stamp duty for the orginal purchaser/s. There is then a disbursement via solicitors at settlement to refund the stamp duty payable by the vendors to the last purchaser.
A bit messy but solicitors seem to work it out OK.
The point for you is that you as an individual should never pay double stamp duty but the SRO may get two stamp duties on a property in quick succession.
We are all in the wrong job – get rid of stamp duty or at least call it a tax because that is waht it is.
Petters