and or nominees

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From: BILLY BOY


Hi All

I'm about to purchase an investment property.

Should I write down "and or nominee" after I my name ??

Any help in this matter would be greatly appreciated.

Bill
 
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Reply: 1
From: Asy .


Well done BillyBoy,

Using the "and/or nominee" bit after your name means that, prior to settlement you can assign the right to register title to another person or entity.

I always like to use it, because that way, should you decide to put the property into, say a trust, you can, with no hassles.

The only thing you have to be aware of is that you are responsible for the contract's completion. So, if you are buying it, hoping to put it into a company or whatever, you must be aware that the onus is on you to settle.

HAve fun with your first purchase, hope it all goes well.

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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Reply: 2
From: Anonymous


Further question on that:

If the "nominee" takes possession of the property in the end, are you still liable for stamp duty for transfer?

I heard that double stamp duty is payable.

This true?
 
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Reply: 2.2
From: George M


Be Aware that when you sign a contract "and or nominee" you must nominate the other party no less than 14 days prior to settlement, and be aware that the named party is responsibile for the contract through to settlement.

also on the stamp duty issue my understanding is this, if you contracted and or nominee and had a nominated purchaser within reasonable time prior to settlement and it is a straight settlement, what i mean is the other party is purchasing the property and you are not having a double transaction ie not making a profit the this would be ok.

however if you were buying off the plan and trying to make a profit by having the other party come in and purchase then in effect have a double transaction.this may be hk

but in reality the stamp duty issue could be small for the original purchaser as they have bought off the plan and if it were an apartment they would only pay stamp duty on the land component which is very small, sometimes less than $1000 so it may not be a big deal in the total scheme of things.

i could be wrong on the double stamp duty but this is how i understand it

George Mariotti
 
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Sim

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Reply: 2.2.1
From: Sim' Hampel


In South Australia there are no problems with putting and/or Nominee on the contract. I did this because I had not yet worked out whether I was going to hold the property myself or hold it in a trust.

My conveyancer sent me a "nomination" form to fill out well before settlement which specified the name of the trust etc I ended up using at settlement. No stamp duty issues.

One thing to be careful with is that (in SA anyway), you do not get your 2 working day cooling off period when purchasing through a structure - only applies to personal purchases. Another good reason to delay the decision about whether to hold personally or house in a trust until after cooling off has expired if you get my meaning !

 
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Reply: 2.2.1.1
From: Lotana Von Amor


In NSW stamp duty is payable on the purchase price not the land value even for OTP apartments. Lucky Victorians!

Cheers,

Lotana
 
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Reply: 2.2.1.1.1
From: Paul Zagoridis


I am not a lawyer. Check this out with your lawyer before acting on it.

I use and/or nominee in NSW. NSW OSR has traditionally taken the view that providing the nominee is substantially the same as or controlled by the named part then no additional stamp duty is payable.

Should you try to substitute an independent third party then stamp duty is payable on both transactions (potentially twice at the higher price). This is because stamp duty is payable on the value of the transaction not the sticker price.

So I use nominee contracts so that I can plan the holding entity.

Anybody noticed new special conditions in most NSW auction contracts? Basically the one where if a director of a Pty Ltd company signs the contract and the company fails to settle the director is deemed to be acting as a principle.

As a result, I now only send an authorised officer to sign contracts.

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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Reply: 2.2.1.1.1.1
From: BILLY BOY


Thanks for your help guys

Actually it's my second property that I'm purchasing. I also have a retail property as that I'm leasing as well.

This is my first stint in residential property.

I'll keep everyone posted on the developments


Billy
 
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Reply: 2.2.1.1.1.1.1
From: Paul Zagoridis


Hey Billy

It's strange you are moving from retail to residential.

Rarely do people leave the commercial end of the spectrum to deal with toilets and gardens.

What prompted your change?

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
 
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