It is possible to add a company/trust structure to the ownership of a property prior to settlement if the contract was signed before the company/trust structure was set up. The contract is in Victoria and was signed “Individual and/or nominee.” Settlement has not taken place not has the structure been set up.
Thanks
Count
Best talk to your solicitor/settlement agent- but of course make sure they know what they are talking about!!! I understand that you would be up for double stamp duty if you had not set up the company/trust when you signed contracts. Best to get this sorted out BEFORE you sign anything to avoid painful and expensive mistakes.
Cheers,
LukeEach state has different rules. It may be possible if the purchaser is also the person behind the trust. You need to get legal advice asap as this will affect the loan you will be applying for.
You may also be able to terminate that contract and enter into a new one – which may be less risky for you
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
Hi count1234mein,
I am in the exact same position as you, having recently purchased a property in Vic, signed “and or nominees”, and am currently looking at setting up a trust structure. Having spoken to an accountant last week about this, i understand that the company in which you wish to nominate as trustee must be in existence BEFORE you sign the contract. (This is my situation also).
The way around this, is that you can purchase a “generic” or “off the shelf” company, which WAS set up prior to the date in which you signed the contract. The only issue is that you would not get to choose the company name (although you can pay a fee of approx $300 to have it changed to whatever you like). I understand it is also slightly more expensive to do it this way.
I am definitely not an expert in this though, so you should confirm this with your solicitor.
The most important thing is the trust too – this may have to be in existance before signing contracts.
Changing company name can be done cheaper by going direct to ASIC but this needs to be done quick and before settlement as it would be a hassle to change the name on the title of the land and the mortgage etc after settlement.
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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