How do I purchase part of a property?

[charttv]

There are four owners of a single title block of which each has an equal quarter share.

One of the co-owners wishes to purchase the share of another. How do they go about this?

Will the contract for sale state that they wish to purchase the other owner's share only or should the contract be for the whole block with a note made to the office of state revenue alerting them that only part of the title will be transferred and so they are liable for stamp duty on 25% of the market value of the block?

 

[TasInvestor]

It really depends on how the deal was set up in the first place, whether one person (or two, or three, or four) are on title. If it's a company it might be easier just to sell the shares. If it is a trust, there may be issues with re-settlement.

TasInvestor

 

[charttv]

Hi TasInvestor,

I forgot to mention that this is a deceased estate and the block is held in trust for the trustees.

 

[DavidMc]

I think you'll have to speak to an accountant/lawyer with a knowledge of trusts for this one.

 

[TasInvestor]

Hmmm.... You don't want to speak to an accountant, rather a lawyer will be more helpful.

From my limited understanding of your circumstances, basically you have a deceased estate in a trust (with a trustee who administers the trust). Pretty much I approach the trustee and say that you wish to buy one of the parties out, they have agreed, and you have decided on a price. (It also could be wise to have some kind of supporting evidence that the sale price is fair, as the trustee must work in the interest of the trustees).

If you expect to hit any resistance I would suggest you seek a lawyers advice (as mine is only very general in nature and does not take into account your particular circumstances).

If it is a public trustee I would seek legal advice before presenting any deal (as the Public Trustee can be inflexible).