All Topics / Legal & Accounting / signing contract “and nominee”
I am trying to buy a property in my name only but the bank seems to be having trouble with that as i am using equity which is in joint names- can i put on the contract which is in QLD ‘and nominee ‘and later,before settlement, put in my husbands name if that is the only way the bank will finance it
Liz2005
Yes but expect to be hit by extra stamp duty from the OSR. Why not buy in a ratio of 99% & 1%- you don’t have to commit to this on the contract, only at the later time of the transfer forms
I would be finding another lender as it is common for couple’s to use property held in joint names and purchase an additional property in a single name.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksLiz,
You can put whatever you want on the offer – of course that doesn’t mean the Vendor has to accept any of it.
We got burnt 4 years ago selling one of our IP’s with this nominee rubbish. The purchaser was in fact next door, but used this phantom ‘nominee’ so as to hide their identity from us before we accepted the offer.
We knew the property was strategically more valuable to them than any other buyer, but our R.E.A. refused to disclose this fact (he subsequently lost all our business and many people have stopped dealing with him because of it) to us…with us numpties finding out who the real purchasers were 2 days before settlement – by which time it was too late.
We subsequently received offers for our properties which have been automatically rejected with this ‘nominee’ rubbish on it. The buyers are always flabbergasted and frustrated that their little seminar tricks won’t work in the real world…but then hey, we paid more for our real world mistake than they paid in seminar fees so we reckon it’s only right that it trumps seminar knowledge.
“and nominee” be gone…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Originally posted by Liz2005:and later,before settlement, put in my husbands name if that is the only way the bank will finance it
Liz2005
Are you sure this is legal, Liz? If your husband is going to be financed, then surely he is the purchaser. If the banks won’t let you be owner, then let him sign.
As for the “nominee” thing, I agree with Dazzling- no way I would be involved with this kind of “creative” contract. Vanilla contracts all the way for me!
kay henry
Why don’t you look in to a “Novation Agreement”. This allowes you to sign in your name and then change the name on the contract(as long as the rest of the contract is the same and the vendor agrees). No other costs involved eg. stamp duty.
CATA
Asset Protection Specialist
[email protected]There is also the ‘Bare Trust’ method.
This involves sitting around with no clothes on and signing contracts.
Oh no, it doesn’t, my mistake.
It is when a trust is formed between two people – the trustee and the beneficiary. The contract is signed in the trustee’s name, and then after settlement title is transfered to the beneficiary’s name. The ATO recognises the owner to be the beneificary and there is no stamp duty or CGT issues when transferred (if done correctly – see your solicitor).
It is especially good when buying properties next door and you don’t want it to be known who the real purchaser is.
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
I think I like the first explination Terry.
Only if the trust is already set in place will this work. If you have a trustee company then the person next door will not know anyway as the contract will have the companys name on it.
CATA
Asset Protection Specialist
[email protected]Cata
I don’t want to argue with you but in Qld your idea of a Novation Agreement will not work the Stamps Act is quiet clear on that.
The only thing I know in Qld that will work is an Assignment Letter.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Qld007
It was an idea to look into. I know someone who purchased a business this way, but I have no expierence with a Novation Agreement myself.
Some more info on an “Assignment Letter” would be great if you could?
ThanksCATA
Asset Protection Specialist
[email protected]Hi Liz,
In our case, both our names are on the loan document but only my name is on the property’s title.
As I understand it, it’s the person who’s named on the title that is relevant for taxation purposes, not the person or people named on the loan document.
cheers,
Carlin
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