Forums / Getting Technical / Legal & Accounting / Contract under Nominee

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  • Profile photo of SebastianSebastian
    Member
    @sebastian
    Join Date: 2003
    Post Count: 55

    Hi,

    When signing a contract of sale I understand you can sign it as nominee and then change to either the name of a trustee or personal name at time of settlement. Is this correct?

    Reason for my question is that I have an opportunity right now, but trust is not in place (and will not be for another couple of weeks).

    Please advise if the above is possible.

    Many Thanks

    Sebastian

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    Sebastian,

    I can only confirm for Victoria and Queensland

    For Vic, you can sign up as Name and/or nominees, and then you have 28 days prior to settlement to confirm the exact name on the contract.

    In Qld, I was in a similar situation re trust. Signed contract in my name and/or nominees but I could only proceed with the contract in my name, unless we cancelled original contract and re-signed another in the name of the trust.

    Not sure for WA…

    James

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Sebastian

    James is correct in Qld you would incur a double duty.

    The way around it is to have a nomination letter. The company gives you the right to act on their behalf to sign the contract although it will not be in your name. The contract shows your name however the Stamp Duties office will accept the nomination and not charge you double duty.

    Cheers Richard
    richard at fhog.com.au
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    Profile photo of SebastianSebastian
    Member
    @sebastian
    Join Date: 2003
    Post Count: 55

    Thanks guys.
    Yes, I beleive it is the same for WA, re: confirmation of name 28 days prior to settlement. So this works well for me.

    I made an offer last night, the agent was a bit reluctant to accept as name and/or nominee, but then informed me that I have 28 days prior to settlement to confirm.

    Thanks Again!

    Sebastian

    Profile photo of skippygirlskippygirl
    Member
    @skippygirl
    Join Date: 2003
    Post Count: 127

    Sebastian,

    One thing the Vic Govt requires re substituting the nominee (ie your Trust) is that you must have INITIATED establishment of the trust BEFORE you signed the contract, or else they will charge double stamp duty I’m told.

    If the turs is established after contract sign date you might (in Vic) need to supply a letter from your accountant/solicitor confirming you had initiated setting up the trust before you signed the contract to buy.

    Cheers
    Skippygirl

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