Selling 80% of a property

[ruck]

Hi Guys,

Wondering if anyone can help out with this one.

I currently own a property in a trust. I am looking to sell 80% of this property to an investor.

Can anyone explain how I can approach this. Does the trust sell the property to me and the investor as a Joint venture 80/20? This would probably cause me to pay stamp duty again for my 20% share.

or

Can the trust bring in the investor as a 80% shareholder of this property. If this can be done how is the property title amended to show both parties?

Thankyou

John

 

[quiggles]

At a guess, it would first depend on the nature of the trust - trusts with units, including HDTs and unit trusts will have different options than those facing family trusts. You need expert advice on this one - find someone really well qualified who knows trusts inside out to help you.

 

[quiggles]

You've talked about selling 80% of the property, but not what you had in mind. When you consult your advisor, be clear about your goals, not your approach. Also, selling 80% will make you the minority partner, but if the trust holds the property you may still be doing all the work. Lots of issues to think through.

 

[Chev]

The fact that the property is held under the name of a trust doesn't mean it is any different than a property held under the name of a person, as long as all relevent parties (trust deed permits/trustees/beneficiaries) agree.

It is possible, by way of a sale contract and a transfer effected by a solicitor to transfer 80% of the ownership of the property to another person, without affecting the trust structure itself. That is the simplest way of doing it for most standard trusts.