Buying IPs with and/or nominee as purchaser



From: Nelson .

Hi all.

My understanding with buying off the plan is that if you put 'name' and/or nominee as the purchaser, you will not need to pay the stamp duty (before settlement) should you decide to sell the property to another person.

Is this true and has anyone ever been able to transfer the title before settlement and not pay the stamp duty. This can you me thousands if i need to sell.

I've heard this is only true if transferring to family members.

Many thanks.

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Reply: 1
From: Jakk Bass - The SLUM LORD

G'day Nelson,

from my understanding, you can substitute a nominee to take over the contract as long as there are no changes to contract details (that includes price) and tis the new party that is liable to pay stamp duty.
If you were to sell it at a higher price then stamp duty would be paid by both parties.

Check it out with your legal eagle just to be on the safe side.


**Believe you can succeed and you will**
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Reply: 1.1
From: A. .

Hi Nelson,

'and or nominee' is a useful tool in buying a property when doing so if someone else is going to buy the property either jointly or in place of you.

You can avoid the stamp duty by 'flipping' over the property to another buyer, BUT, you would want to have a separate agreement that you were acting in the capacity of an agent for that person. This would definatley be the case should be on selling for a higher price. Without the agency agreement or similar (depending on which state your in) then if you flipped it over to another person for a 'spotters fee', you would want that it writing.

If you were selling it to another person for a higher price you would need a new contract on top of the one that you have signed. Then you would be up for the stamp duty as well. An agency agreement will alleviate the problem with paying dual stamp duty.

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