Must I pay stamps on nomination as land has not titled? How can I sell for profit?

Hi everyone, I've been a silent reader for a while now and have always found great advice here. Now its my turn to ask for some help please...

I purchased land in a new estate back in May-14. The land only titles early-16, say March. Purchase price $450k, can sell now for $500k. My conditions have changed and I want sell this land.

1) Speaking to the sales agent in the estate they've advised that I can't sell it for a profit and that all I can do is a straight forward nomination. However, my conveyancer says that because the person I would nominate is not related I may still have to pay stamp duty (even though the land has not yet titled). Is this correct? Any way around it?

2) Ideally I'd like to sell for $500k. Hypothetically - nominate per above + $50k cash. Is there a better way? I don't mind paying discounted CGT on the profit (as I'll sell 12 months after I purchased), but the though of paying stamps for something that didn't even title in my name is painful!

Any help would be appreciated!
 
You need to get good legal advice on how to go about this. Bear in mind that even if you do nominate or transfer to someone else you are likely to be liable under the original contract until settlement occurs.
 
per the terms of the contract I can't sell for a profit - apparently so they can control the prices in the estate...stupid.

I called the SRO re this and they said I would need to pay stamps but not the party I'm transferring to...so no double stamps...in which case I'll get them to reimburse me...
 
per the terms of the contract I can't sell for a profit - apparently so they can control the prices in the estate...stupid.

I called the SRO re this and they said I would need to pay stamps but not the party I'm transferring to...so no double stamps...in which case I'll get them to reimburse me...

That is because stamp duty is levied on the transferee - the purchaser. They would have to pay too.
 
You can only nominate and avoid paying stamp duty if you don't change the price.

If you want to change the price, you have to pay stamp duty.
Having a 'side deal' like you suggest is illegal I'm pretty sure, but the stamp duty paid can go towards the cost base when calculating CGT if that's any consolation?
The stamp duty and agent fees are going to eat into just about all of your profit Id suggest.....

Test the market, you might find $500k isn't as easy to achieve anyway. In my experience having capital gain in a new estate in the first 12 to 24 months is very rare, regardless what the developers seem to be charging for subsequent releases....
 
Thanks Terry and tobe. The SRO advice ties in with what you said tobe, that if i don't change the price then stamps only gets paid once. This looks like the best option I think.

I've already got an offer for $500k. The last release of land is being sold in july for ~$480k so I'm asking a $20k premium for being able to settle early-16 if they buy my block instead of mid-17 when the last release would settle.
 
My understanding of QLD legislation, the nomination, (if the purchase was and or nominee) had to be in writing, prior to entering into the Contract. I am also told, that does not guarantee that the Stamps Office do not see it as a second sale, and look for stamps on original documentation (which I assume is a contract albeit an OTP one) and the subsequent sale. Get legal advice and set warily.
 
Since SRO has been mentioned the property might be in VIC which has some unusually generous stamp duty laws. There are some concessions for 'subsequent purchasers' under the duties act.
 
Terry, I am always envious when some one takes "over the phone advice" from a department. Yes I saw it was Vic, however still felt it worth suggestion "get advice"
 
Terry, I am always envious when some one takes "over the phone advice" from a department. Yes I saw it was Vic, however still felt it worth suggestion "get advice"

Definitely worth getting advice. Sometimes if you ring the OSR twice you will get 2 different answers - but they seem to be much better than the ATO.
 
Definitely worth getting advice. Sometimes if you ring the OSR twice you will get 2 different answers - but they seem to be much better than the ATO.

My accountant once joked that if you ask the ATO the same question twice you'll get four different answers.
 
I just called and got the same guy as yesterday and had to try and pose the questions slightly different! Same opinion though, that stamps will only be payable once. Hopefully I get someone else tomorrow...
 
I just called and got the same guy as yesterday and had to try and pose the questions slightly different! Same opinion though, that stamps will only be payable once. Hopefully I get someone else tomorrow...

Would be funny if he gave a different answer.:)

My bet is you will get him tomorrow again. Why not ask him for the relevant section of the legislation.
 
my eyes started to glaze over even as I read the word legislation :D ...as you've all mentioned I'm getting legal advice on this so will see what they say as well.
 
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