or nominee

Discussion in 'Legal Issues' started by wrewan, 13th Nov, 2002.

  1. wrewan

    wrewan Member

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    I know it's somewhere but can't seem to find it anywhere but is it
    legal in Qld to sign a contract with an or nominee in it.


    sorry if it a repetive question




    Peter_C
     
  2. asy

    asy Member

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    As I understand it, yes it is legal...

    There were stamp duty implications, although I think they are no longer the case (You used to have to pay stamps twice).

    However, a quick call to your solicitor should clear it up!!

    asy :D
     
  3. geoffw

    geoffw Untitled

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    My understanding (however limited) is that in NSW, you can sign "or nominee" at exchange (provided the vendor agrees). But at settlement, you cannot.

    I assume this is what you meant- I was just making it explicit.
     
  4. brains

    brains Guest

    Hi,

    What does the term "or nominee" added to a contract mean exactly?

    Thanks
     
  5. asy

    asy Member

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    brains,

    When you sign a contract and/or nominee, that means that you can 'nominate' someone else to take over the contract prior to settlement.

    So, if you go in and sign, Brains and/or nominee, and then decide that you want to settle the contract in Mrs Brains' name, you can do that, whereas if you just signed the contract in 'Brains' then YOU would have to settle the contract and become the registered owner.

    (Yes, I know you can ask the vendor to re-sign a new contract under the same conditions, with the new name, and no penalties, but the question was re the nominee clause!)

    The other thing that this clause is used for is assigning the contract in the case of you onselling it to someone else. This has Stamp duty implications which you may have to discuss with your solicitor to see whether they apply...

    The only thing you need to be aware of in this case is that if you sign for the property with the intention of onselling it to someone else, you must be prepared to settle the property in the event you don't find someone to take the contract over.

    hope this helps

    asy :D
     
  6. Jas

    Jas Vice-Poohbah

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    It just means you can change the name on the contract. The idea behind it is that you want the property, you're just not sure whether to buy it in your name, your spouse's, your trust’s etc. Don't try flipping it using "or nominee" thou, you'll still have to pay stamp duty.

    Jas
     
  7. brains

    brains Guest

    Does it mean if i want the contract settled in the name of Lady Penelope i just put "or nominee" after my own name on the contract :)

    Thanks guys, great explanations.
     
  8. asy

    asy Member

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    Certainly does,

    or virgil, or even little Jimmy...

    :) Properties Are GO!!!

    asy :D
     
  9. paulzag

    paulzag Member

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    don't do it

    Actually in NSW is is a minefield - I just went through it again.

    OSR will try to assess two lots of stamp duty if the "or Nominee" isn't substantially the same or controlled by the same person.

    That means that you should do your structuring before you sign the contract.

    Don't take forum advice on this matter (including this one). Talk to your solicitor and make sure they are cool with what you're doing. If you don't like the answer ask them HOW to make it happen. If you still don't like the answer look for a solicitor who will make it happen.

    As an aside:
    GST was supposed to mean the end of stamp duty right? I think we should start lobbying our local (state) parliamentarians.

    Regards

    Paul Zag
    Dreamspinner
     
  10. NigelW

    NigelW Member

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    check out www.osr.nsw.gov.au/revrules/rrsd134.htm and note (d)...

    there is an ill-founded and dangerous belief promulgated by various "gurus" that you just slap "or nominee" on there and she'll be right mate no double duty.

    As i've mentioned in the past, stamp duty is a state based tax and the details vary substantially from state to state (although not as much as they once did!)

    start with the end in mind, set up your structures first and get professional advice. a bit spent getting it right from the start might save you a big stamp duty bill pls penalty tax, GST for good measure and then interest to rub salt into the wound!!!

    Cheers
    N;)