Does anyone purchase property in their name (or Company’s) and include ‘and/or nominees’ in the event they can’t proceed for whatever reason and therefore pass it over to their nominee?
I have had conflicting advice that both parties could be liable for stamp duty.
Welcome any advice on this one.
ThanksDepends on the state it seems. From what I hear, WA are very strict. I have done it in Vic with no problems, but there is a requirement to have a written agreement with your nominee before you sign the contract – or there used to be.
Terryw
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Thanks Terry
Yes seems like it is dependant on which state your in doesn’t it? I’ve also heard about the need for a written agreement with the nominee before signing the contract. Perhaps worth my while seeking a second opinion?
Any other thoughts?In some states the nominee must also be in existance before the contract is signed. So if you sign and/or nominee, then set up a company or a trust, you may not be able to nominate that entity, if you do, then it may be considered onselling and result in another payment of stamp duty. I think NSW and QLD fall into this category.
Terryw
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Thanks Terry,
In the following scenario
Property purchased our company name and/or nominees in the event we can’t get finance through can our nominee (a individual person) continue with the sale and our company exit from the purchase? Do you believe that double stamp duty be liable in this instance…considering this transaction is in NSW?Agent in Qsld wouldnt let me use ‘and or nominee’.
Couple year ago.
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.hi G3ipd
first off this is not advice you need to ask a solicitor or buyers agent if you wish.
yes its does matter which state you buy in and buying in wa is very different to buying in nsw.couple of things you need to check.
1. the company that you are buy in
is it a victorian company or a nsw company they in themselves are very different and have there own little quirks.
2. the company and trust must be set up before you put any holding deposit on the property in some states
as the transaction is done when the deposit is placed, in nsw stamp duty is paid 3 months after the deposit is placed and from that point the purchaser is the person or entity on the contract. and if that changes then the problem occurs so it is better to have the correct entity on the contract when the deposit is placed and the contract starts.
3.if you had in your senario used a victorian company and it was a clean skin new company you could sell the shares in the company to the new individual or in your case nominee.
with vic companies unlike nsw companies you can change directors with minimal cost.
you need to do this prior to exchange or the company becomes an asset rich company and that in it self causes a problem that I won’t go into in this post.
by buying in this structure because the entity does not change the directors do from my understanding and I have not had any state that has had a problem as yet.
this structure can be used in all states but again I do not buy anything or place a deposit on anything without our legals telling me its ok to do so.
This structure is the base structure for all my purchases.
this information is strictly as information only
as if you get the set up wrong fom the start from my understanding the stamp duty gov dep does not have a very good retraction of cost proceedure so you are risking in some cases a very large amount of money and if for me thats the case I would take all information that is possible but on this one before putting $1.00 on a property( and $1.00 is the smallest amount you can put on a property I would get some sort of legal advice from a solicitor or buyers agent( in some states).
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Originally posted by Jaffasoft:Agent in Qsld wouldnt let me use ‘and or nominee’.
Couple year ago.
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.Hi Jaff
It is up to you whose name you sign the contract in, shouldn’t let agents push you around.
Terryw
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Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by G3ipd:Thanks Terry,
In the following scenario
Property purchased our company name and/or nominees in the event we can’t get finance through can our nominee (a individual person) continue with the sale and our company exit from the purchase? Do you believe that double stamp duty be liable in this instance…considering this transaction is in NSW?I think you have problems in NSW if you are not careful.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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