What have I missed?

[charttv]

Let me hypothesis for a second:

You have gifted a friend cash so that they could use it as a deposit for a property and receive the FHOG. The title is solely in their name so effectively, you are a silent partner.

You go on to later purchase two additional properties jointly with this friend using a tenants-in-common arrangement. The title for these additional properties are held in joint names.

Many months down the track you wish to claim some assurance over the first property by having a legal document drafted up which will give you a claim to the property in some form or other. Other than the addresses of the parties involved what would you have in such an agreement?

What about first option to purchase the friend's share of the additional properties should they choose to sell?

Also, the first property is in WA. I heard a murmur that the state government has scheduled in the abolition of stamp duty by 2009, is this correct?

Any pointers would be appreciated.

 

[lizzie]

huh - very confusing.

so are you going "silent partner" on this first deal so that you can both claim fhog?

if you gifted the money then you really have no claim over the property - unless your friend agrees. all i can assume you can do is draw up some legal documents that states that you have loaned the money to your friend at 0% interest and then you can put a caveat on the title deads as a mortgager - if you're wanting to go on the title documents you probably will have stamp duty to pay.

i really don't understand your strategy as you then go into two other deals with this person, so it's not because you don't want to own property with them. can you explain more as to why?

 

[charttv]

I had owned property before and therefore wasn't entitled to the FHOG.

The first deal went well so we were happy to purchase more properties together. As neither of us would be eligible for FHOG on the additional properties we could purchase using a regular tenants-in-common arrangement.

 

[The Y-man]

Still

...but then I am pretty slow.....

Cheers,

The Y-man

 

[snapshot]

Other than the addresses of the parties involved what would you have in such an agreement?

I get the picture just fine.

You have already alluded to a few points you might want to include. Firstly, an acknowledgement that debt exists, interest or other repayment arrangements, options for one party to buy out the other, dispute resolution procedures, agreements re the type of security you might hold over the property (caveat or whatever). I suggest you and the other party speak to a lawyer, but if you breeze through a standard mortgage document you might pick up on clauses suitable for your purposes.

cheers.

 

[charttv]

Thanks for your help everyone, it is most appreciated

 

[Barracuda]

The latest API magazine also has an article on shared ownership.

Cheers,

 

[lizzie]

i think i get what you mean - either you want to be assured you get your "gift" back when the property is sold, or you are wanting a share in the property.

with the "gift" you can have documents drawn up that states this is a loan with x% paid on whatever terms you like (monthly, annually, at sale etc).

if you are looking at having part ownership of the property and want to be on the titles, that is simple enough for any conveyancer. your friend would "sell" you a portion but you may be up for stamp duty etc.

 

[Les]

G'day charttv,

Perhaps a "clean" way would be to adjust the ownership of the SECOND property to claim your share of the first....

e.g. If the second property is worth $200k, and your partner owes you (say) $20k from the first deal, then put in equal amounts, but put ownership as 55:45 on the second property. (i.e. you get $20k more of the value of this second property).

Just a thought - I'm not an accredited adviser, so, if it sounds like it could help you, DO check it out with the usual advisers,

Rgeards,