Vendor paying stamp duty

[Munchkin]

Is it possible to make some kind of arrangement where the vendor pays the stamp duty for the purchaser?

Would a lender likely have any problems with the arrangement?

 

[Rolf Latham]

Is it possible to make some kind of arrangement where the vendor pays the stamp duty for the purchaser?

Would a lender likely have any problems with the arrangement?

VAL will usually be adjusted for the rebate

Much depends if the valuer or lender have access to the full contract.

Full disclosure is recommended

Ta

Rolf

 

[Munchkin]

Valuation is already higher than the contract price, does that make a difference at all?

 

[Munchkin]

What if the vendor was to purchase goods from the property back from the purchaser, to the value of stamp duty, payable at settlement?

 

[alexlee]

What if the vendor was to purchase goods from the property back from the purchaser, to the value of stamp duty, payable at settlement?

So why not just drop the purchase price?

 

[Rolf Latham]

[QU contrtOTE=Munchkin;958307]Valuation is already higher than the contract price, does that make a difference at all?[/QUOTE]

Unless there is a favourable sale between relos most lenders will use the lower of the VAL or contract. There are some exceptions

Ta. Rolf

 

[Munchkin]

So why not just drop the purchase price?

Because that will also lower the amount that can be borrowed, and won't give us the cash for the stamp duty.

Unless there is a favourable sale between relos most lenders will use the lower of the VAL or contract. There are some exceptions

Ta. Rolf

Yes, that is what it is. So the bank would subtract the stamp duty amount from the purchase price and only lend a % of the new amount?

What if we were to do the second idea I mentioned?

 

[Rolf Latham]

Because that will also lower the amount that can be borrowed, and won't give us the cash for the stamp duty.



Yes, that is what it is. So the bank would subtract the stamp duty amount from the purchase price and only lend a % of the new amount?

What if we were to do the second idea I mentioned?

If IRS a sale from a relo we can usually rely on the higher VAL

Ta

Rolf

 

[Munchkin]

If IRS a sale from a relo we can usually rely on the higher VAL

Ta

Rolf

I haven't had much luck with that so far, with lenders only being willing to lend against the contract price.

What if the vendor was to purchase goods back from me, payable at settlement? Would that work for them to basically cover the cost of stamp duty?

 

[tobe]

lots of land vendors/developers have special rebates, something like, we pay the stamp duty for you etc. They are perfectly within their rights to do this.

Trouble is, the buyers think they can use the money being returns as 'funds to complete' the purchase, when being assessed for home loan eligibility.

They can not, and if the bank finds out about the rebate, they will reduce the loan amount/LVR/valuation further.

The client has to have the funds to complete, in their bank account. If their bank account swells after settlement from the rebate, this is irrelevant.