New Villa

[Ramos023]

Hi im thinking about building a villa on the back of my sisters 900 sqm block! Going to pay her for the land etc, but an agreed upon cash amount.

My plan is to put it in my name once construction is complete. This is the first time Ive done such a thing, but while im building etc its still on my sisters title. Is there a way legally to put it in my name from the beginning, not that I don't trust her, but just for ease and peace of mind!

Thanks RAMOS

 

[D.T.]

Yes its possible, just subdivide the block so that a new title is created. Put the title in your name (buy it off her), then build on it.

A whole raft of legal and taxation issues for both of you to consider though.

 

[perthguy]

Is there a way legally to put it in my name from the beginning, not that I don't trust her, but just for ease and peace of mind!

It's nothing to do with trust, it's about asset protection. You should seek professional legal advice and your sister will need professional tax advice. This is not a situation where it is appropriate to DIY.

 

[Paul@PFI]

Yes its possible, just subdivide the block so that a new title is created. Put the title in your name (buy it off her), then build on it.

A whole raft of legal and taxation issues for both of you to consider though.

Whaaaa... Subdivision splits a title. Seek advice on how to approach this. You may finance a asset you don't own.. But lose?

 

[Ramos023]

Turning out to be more complicated than I had originally thought.... I just saw an opportunity and reacted.

Will seek legal advice ASAP

Side note - the land has to be purchased at market value or thereabouts? As currently I am getting it a lot cheaper, perhaps illegally cheaper ha ha

 

[Scott No Mates]

You can buy the land for any agreed price though stamp duty will be assessed on its market value.

 

[perthguy]

Turning out to be more complicated than I had originally thought.... I just saw an opportunity and reacted.

Will seek legal advice ASAP

Side note - the land has to be purchased at market value or thereabouts? As currently I am getting it a lot cheaper, perhaps illegally cheaper ha ha

There is nothing stopping you from buying the land at below market value, however there may be ongoing implications for the seller and the buyer. For the seller there may be tax implications. For the buyer, the land value forms part of the cost base for capital gains tax calculations. I suggest you get specialist accounting advice and legal advice.