All Topics / The Treasure Chest / Section 55 – Buying off immediate family

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  • Profile photo of soleilsoleil
    Member
    @soleil
    Join Date: 2003
    Post Count: 25
    August 21, 2003 - 4:48 am

    Just a quick question –

    When buying a place off immediate family (my dad), does anyone know about any special rules governing this? We have completed all the necessary paperwork (independant valuation, signature from vendor to say he’s viewed this, etc), but I heard there may be a condition stating that I can’t re-sell the property for at least 5 years…

    Does anyone know anything about this? We are looking into it but I wondered if anybody here’s done it before. Thanks [:)]

    Oops – just to clarify – my dad is a RE agent, and I am buying one of the properties he has listed.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    August 21, 2003 - 9:26 am

    I can’t think of any unusual tax implications if you are paying market value (as it is an arms length transaction).

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    August 21, 2003 - 1:45 pm

    Hi

    It might have something to do with agents regulations for your state. Agents may not be allowed to buy properties they have listed because in the past there have been unscrupulous agents that have listed properties well below market price and either purchased the property themselves or had a family member purchase it.

    What state are you in?

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of soleilsoleil
    Member
    @soleil
    Join Date: 2003
    Post Count: 25
    August 22, 2003 - 4:45 am

    Thanks…

    Terry, I’m in Victoria. Yes the rules are there to protect vendors (I can see how people could be VERY dodgy whilst doing this!).

    I actually bought the property after it’s sale fell through – I offfered the same price so there’s nothing funny going on! But I think there are some special rules governing this – dad’s trying to find out for me…

    Thanks again

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