Help please. Selling an Off The Plan before Settlement

[Jude H]

Hi to all.

Need a bit of help here if you don't mind.

Contracted an OTP in May 2001 for 296k. Due for completion

about Oct. All were sold previously but with delays some of the

owner occs terminated contracts so there are some for sale.

1 beds with 1 car space going for 358k, mine is 1 bed, study and

2 car spaces. How do I sell it before settlement? Do I just

approach the REA and ask them to sell mine while they're at it? I

am prepared sell at about 360k, is this going to annoy developer

because it is kind of undercutting him? Not interested in any grief

just want to sell. Any thoughts would be greatly appreciated.


Jude

 

[asy]

Hiya Jude,

you surely can sell the unit.

On the condition that it is unconditional on the vendor. If the vendor has an out clause in there anywhere, then you may put yourself in the rather precarious position of having sold the unit, and then having the developer pull out of the contract, leaving you holding the bag.

If you do sell it, you will do a simultaneous settlement with your purchaser, where there will be 3 lots of conveyancers at the settlement, and they will literally pass cheques and titles around until they all leave with what they are supposed to.

The title and money will pass through your conveyancers hand like a filter, and only your 'cut' will stay there.

Be aware that you will still be up for both CGT and Stamps.

You can use that REA or another in the area. Depends who you like.

Go for it and let us know how it goes!

asy

 

[steve]

Asy.
Could stamp duty have been avoided if from the start in the contract it was writen for instance , Steve and/or nomimee or does this not apply in OTP purchases.
thankyou steve.

 

[asy]

Hiya Steve...

Technically you can make the contract an and/or nominee purchase and avoid stamp duty, but, you are supposed to have a pre-existing relationship with the nominee, or pay stamp duty.

What I mean by this is, that, say your brother asked you to look for a house for him, you could do this on an and/or nominee clause and legally avoid stamp duty.

If you meet the person later and pass the contract over, then the problem is, how do you make your money?

Say you contract at 200k, on an and/or nominee clause. You then find Joe, who wants to buy the house and is happy to pay 225k. How do you do this on the original contract?

You can get Joe to pay you 25k and take the contract over... This would (since you have no prior relationship, illegally) avoid stamp duty, but puts you in the technical position of having received a 25k payment in respect of a real estate transaction, which means that you (again, legally) should hold an estate agents license.

Anyway, Steve, I hope that has answered your question. If not, please let me know which bits are the muddiest and I will try again..

asy

PS: All usual disclaimers apply. I am not a solicitor.