Hi. I need some legal advice on stamp duty savings. I am considering a purchase of an inner city apartment in Melbourne from the resale market now, but the apartment will only be ready in early 2005.
The real estate agent mentioned that The property was sold to the Vendor off-the-plan and the Contract of Sale was made out in the name of the Vendor and with the legal clause of “and / or nominee.” This notification allows the property at the time of settlement to be transferred into my name and therefore the title is not in the Vendors name. Simply the original Contract of Sale will be transferred into my name instead of the Vendor, which will entitle me to substantial stamp duty savings. The agent also said that this happens in a lot properties purchased off-the-plan and sold prior to occupancy of the building.”
Is this legal and what are the legal considerations when dealing with this situation?Is there really a substantial stamp duty saving to be made and if so, roughly how much?
Thanks for your help!
Please talk to your solicitor.
I think I would be a little concerned as to the validity as well. But I am no Victorian SD expert and it may very well be correct.
All the best and I hope it works for you.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As far as I know this would be illegal in Victoria. Unless you have a written agreement for that peron to be acting on your behalf before they signed the contract, it would be fraud.
To confirm, just ring the state revenue office and ask them over the phone – without names.
I think you would be required to pay stamp duty on the value of the project at the time you sign. The person you are buying from would also have to pay stamp duty on the value at the time they signed.
However if you had a prior written agreement, then yes they may avoid stamp duty and you would save stamp duty. It would be like you were buying instead of them.
Terryw
Discover Home Loans
North Sydney
[email protected]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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