Hi all
I have a technical question about subdivision and the title registration process.
Let’s say Mr A and Mr B bought a block of land together and subdivided it into two lots, “Big Lot” and “Small Lot”.
Is it possible to assign only “Big Lot” to Mr A and “Small Lot” to Mr B? When does this separate ownership title take place? Will there be any stamp duty implications for Mr A and B?
Yes.
Assingment needs to occur at the time of purchase by the parties entering a deed. Failure to do this will mean there is a transfer from A and B to A and from A and B to B. Stamp duty, CGT and GST may apply.
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
Thanks Terry.
Let’s say settlement for the original full block hasn’t occurred yet. Can parties A and B still do this to ensure they don’t pay associated taxes and duties twice?
How exactly do A and B enter into a deed? Do they go to a lawyer to do this? If so, what costs can we expect?
Sorry to bombard you with all these questions, settlement is in a couple of months and there is still time to amend the purchase contract if necessary.
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This reply was modified 9 years, 1 month ago by
Noobugawa.
Yes still possible if before settlement. You will need to see a good property lawyer = around $5k to $10k all up
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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This reply was modified 9 years, 1 month ago by
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