Swap purchaser on settlement?

Discussion in 'Coffee Lounge' started by Richard Feynman, 20th Jul, 2014.

  1. Richard Feynman

    Richard Feynman Mortgage Broker

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    17th Jun, 2012
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    Location:
    Sydney, NSW
    I am sure I have read about this thing being pulled off (for different reasons).

    Situation:

    - Have found a place for someone to acquire through their SMSF
    - SMSF is in the process of setup and may not be complete prior to auction

    Idea:

    - Request longer settlement
    - Have clause written up, enabling buyer to sign contract at auction under personal name but transfer name of purchaser (to SMSF) upon settlement


    Question:

    - Anyone had the experience of doing this or something similar?

    In my limited knowledge, it seems the only solution enabling the buyer to to bid at auction (or offer prior).

    I believe I have read about this on at least one or two occasions. One example was a bloke who found a place under value, offered with such a clause (and a longer settlement), then went searching for a new buyer at market value, which he found. He essentially switched purchasers on settlement and netted a tidy profit.

    I?m not asking for the same reasons but if it?s been done, I have hope it can be repeated.
     
  2. Terry_w

    Terry_w Member

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    Location:
    Sydney, NSW
    Very risky at the best of times, more so with a SMSF.

    Many issues such as stamp duty, liability, asset protection, breach of the SIS Act etc.
     
  3. DaveM

    DaveM KFC Buyers Agent

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    19th Mar, 2011
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    Location:
    Sydney/Adelaide
    Some states allow a nominee clause so you can substitute buyer prior to contract