Hi all, I searching the flip topic in this forum, and getting more confused as seems (pardon me if i wrong) most flipper are in NZ and US.
I would appreciate any suggestion for my situation:
1. make an offer to buy a property at $305,000 in melbourne, settle in january with $100 deposit and additional $5,000 at end october subject to:
– vendor approval for access to property for reno
– solicitor approval that s32 is in order
– business partner approvalI put “and / or nominee” beside my name, the offer has been accepted. then 2 days later the agent call that a builder interested to buy for $320,000.
Question:
1. can i make a contract or assign the contract to the builder (can i do it even i do not have assign contract clause or option structure? (I did not plan to flip it at beginning)) then withdraw from the contract using my partner disapprove the contract?2. How to evade the stamp duty? I am not sure if I do action above I will trigger stamp duty, but if it is, how I can get out the contract, get $15,000 and still pay no stamp duty?
All advice and thought greatly appreciated [biggrin]
Love learning and this forum definately one of the best [baaa]
cheers
F.X Reagan
Happy_Dragon
you can use your nominee clause to nominate the builder as the final purchaser for an assignment fee.
Do you have a conveyancor? Need to ask them of the stamp duty implications, I dont know victorian rules! also be careful with the agent, does he want a commission from you for finding the buyer?
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
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phone 0412 437 582Xenia is correct it all depends on which State you are in.
In Qld “and or nominee” is not acceptable so you would need to utilise a standard Call Option.
Keeping it in “and or nominee” means double duty in the Sunshine State.
Cheers Richard
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http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Xenia is correct it all depends on which State you are in.
In Qld “and or nominee” is not acceptable so you would need to utilise a standard Call Option.
Keeping it in “and or nominee” means double duty in the Sunshine State.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
I live in melbourne and the property also in melbourne. If I can assign the contract without asttracting stamp duty, I don’t mind paying the agent commission ($100 initial for $15,000 in 1 week is a very good deal I reckon [biggrin])I am using solicitor instead of conveyancer, so I will see what my solicitor say on monday. Anyone has done this in victoria yet?
Say I want to option next time, how shall I put the ” wording into contract” ?
ie. the buyer acquired a call option to purchase property at $xxx on or before ??? (date). (need expert help in this [bomb] How I convince seller to agree to this condition ?Things is I got a lesson in my 1st property deal. I ask the agent to put building inspection, and he put the condition “..buidling report shows a major structural defect, the purchaser may end the contract..”. Found out in inspection there is damage worth $5,000 (live wire and damage to inside tiles in bathroom as the tiles cracking). the vendor get away with technicality that the damage is not a structural defect [angry2]
anyway the purchase still proceeded, with my $5,000 lesson (which can used for better things). My 2 cent advice is put extra clause in your contract subject to your solicitor/ business partner approval, to protect yourself [baaa]
cheers,
F.X Reagan
Happy_Dragon
Hi all, just met with my solicitor, she said that I do have right to terminate the contract using business partner clause or assign the builder as nominee, BUT the stamp duty still apllies [bawl]
I think I remember someone in forum (is it Terry??) whom mentioned that if I can make an agreement pre date the contract with the builder, I can avoided stamp duty? need confirmation about this. Anyone know VICTORIA law please help !![bawl]
For future references, I asked about option contract in case smth like this happen again, my solicitor doesn’t know much about it. Does anyone know good solicitor/ contacts who know a lot about option contract and business structure in property investing in Melbourne?
love to learn from all of you guys [
]cheers
Happy_Dragon
A simple act is worth ten thousand times of a decision to to act.
HD
It was in fact me he posted that.
In Qld if you are signing on behalf of someone else i.e a Pty Ltd Company etc then you can use a nomination letter and transfer the actual name to the purchase contract at a later date.
This will avoid S/D however i am unsure as to the requirements in VIC.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thank you Dr. X and Richard for the suggestion (now I know whose idea it is [biggrin]
Still looking for all genius out there whom haven’t check this post yet [baaa] and put their 2 Cent donation (ah, by the way I accept cheque as well [
]This forum is an endless road filled with angels [angel] and not so evil devils [devilish]
cheers,
Happy_Dragon
A simple act is worth ten thousand times of a decision to to act.
Is the “and / or nominee” clause valid in NSW?
I think I have posted something about this too, for VIC. Previously in VIC, if you had signed and/or nominee and had a written agreement with your nominee prior to signing the contract, then you could nominate the nominee and avoid paying stamp duty twice. But this was a few years ago, and I think things have changed – many were no doubt just back dating their nominee agreements.
Terryw
Discover Home Loans
Parramatta
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Thanks Terry, my current solicitor said can not do it, even you got “and/ or nominee clause”,as the law the vic cover this circumstances. I am looking for other solicitor in melbourne. Any suggestion from anyone?
cheers
Happy_Dragon
A simple act is worth ten thousand times of a decision to to act.
]
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