Contract of sale sign this week but effective date 1-July

My friend wants for tax reasons not register a sale until 1-July-2004, as he wants the sale to be in 2004-2005 tax year. However as per tax law, the date of the contract not the date of settlement is the key date. However the REA of course wants the "hot" buyer to sign now. REA says that post-dating contracts is a big no-no. What can be done, sign now, and with handshake agreement of both then rip up the contract parties resign in 8 days time?

It is assumed that the buyer is a owner occupier and that contract date doesnt matter to them, on settlment date.
 
Why not get him to sign a Call Option with a 11 Option period and attach an unconditional purchase contract to it to be exercised on 1st July 2004.

Pay the deposit as the Option Fee and this should satisfy the Vendor.

This is common practise and a proceedure we use all the time in development acquisitions
 
Back
Top