On selling a property

Hi - We are looking at a 1600 sq block with a 2 bed house

We have put an offer with a 5 month delayed settlement and have requested early access which we think will be granted. We will re-configure the house to a 3 bed and want to be able to on sell on settlement or sooner.

I kind of remember David Siacci / Rick Otton mentioning that on-selling is a possibility without us executing the contract / paying stamp duty.

Has anyone done this, apparently, there are some clauses to be included in the contract. My conveyancer could not help, hence this request.

Many thanks.
 
I'd be curious to know how you could do this?

On selling a property without executing the contract... so you're trying to sell someone else's property without owning it?
 
I kind of remember David Siacci / Rick Otton mentioning that on-selling is a possibility without us executing the contract / paying stamp duty.
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Nope. If you enter into a contract, in NSW, and later assign it, novate it, or on sell the property stamp duty will apply. Same if you use options.

The only way that I know of is if the seller rescinds the contract with you and then enters a new contract with the end buyer - but even this would probably be subject to duty.


Without executing the contract - you would have no binding contract. A verbal promise is a valid contract but not enforceable. If you trust the vendor you could ask him to promise to sell to you and then if you find a new buyer to sell to the new buyer instead, at a higher price, and give you the extra cash instead.
 
One way the "gurus" suggest- if you join their platinum club- is that you enter into a option which has the contract attached as an annexure with the buyer left blank. You pay for the option but a clause allows you to force the elderly vendors to enter into that contract with you as buyer or your nominee- in this case the other buyer who you assign the rights under the option for a fee. No money down! Stamp duty only applies on the sale contract in Qld. If you've already signed up it may be a bit too late though.
 
One way the "gurus" suggest- if you join their platinum club- is that you enter into a option which has the contract attached as an annexure with the buyer left blank. You pay for the option but a clause allows you to force the elderly vendors to enter into that contract with you as buyer or your nominee- in this case the other buyer who you assign the rights under the option for a fee. No money down! Stamp duty only applies on the sale contract in Qld. If you've already signed up it may be a bit too late though.

Didn't they change the laws in QLD last year to stop this sort of thing?
 
Thanks Terry.

Cut - that's exactly what I was referring to and I know this has happened in Qld; NSW is a different game, I reckon.

Ah well, I will factor in stamp duty in our costs before putting in an offer.
 
option contracts are your friend,

however, good luck in finding a vendor who would be happy with such an arrangement

in my eyes, theoretically possible,

in reality, very very hard to find
 
Didn't they change the laws in QLD last year to stop this sort of thing?

Not that I was aware of although the Property Occupations Act does require the cooling off notice to be given but under the new act you no longer need a lawyer to waive the cooling off period. I expect the gurus are all over this like a rash- simply include the waiver with the contract at time of signing.
 
I have been trying to avoid stamp duty on my purchase then on sell to someone. however, never really successful.

I just simply factored in my stamp duty in my purchase price.

I have no luck with getting an option from seller so far.... ><
 
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