Property Purchase Options in WA

Hi All,

I have recently delved into the world of property options – I am currently looking in WA as there are several large lots with small houses zoned R40 – prime for subdividing.

However, I have one major question no one seems to be able to answer, please consider this scenario

1. I offer an option to party A
2. The option is agreed upon for an option fee of say $1000 to me (party
3. I then find a developer (Party C) willing to buy the option from me and sub divide the lot

Now I know that I have to pay stamp duty on the $1000 ($19), based on the general rate of $1.90 per $100, but, who pays stamp duty on the overall price of the option? – I have asked many people (solicitors, agents, even the department of duties) who cannot seem to answer this scenario…

1. The option is for $500,000
2. The option is sold on to party C for $510,000

Who pays stamp duty on what?

Do I pay stamp duty on the $500,000 or does the developer pay stamp duty on the $510,000 – or do we both have to pay stamp duty?

And the stamp duty that has to be paid is what? – based on the general rate, the property rate…?!

Thanks for your help!