Buying and Selling CONTRACTS: Any experience? How to buy?

Hi,

So I just got off the phone with my solicitor about my current purchase (PPOR). I wanted to change the name from my myself and fiancee to just her (for tax purposes). He reminded me that we would have to (void?) the current contract, then draw up a new one. He reminded me that a contract is just as powerful as a sale.

So it got me thinking about something I'd forgotten about: Buying/selling a completed contract. What the terminology here?

Is there any avenue for this? Say a someone got a property at a crazy low price, they could then on-sell this contract to someone and make a profit.

I'm also interested in this as an idea for my next investment purchase. I tried to search for other threads about this, but nothing came up (that I could find).

 

There are provisions to settle without the need of changing the contract of sale. This can usually be done without stamp duty implications - it can in NSW when spouses are involved.

Selling contracts is known as 'assignment' or 'nomination' = slightly two different things

Watch out for the stamp duty implications.

 

Nomination. In Victoria you can nominate anyone. You can't change the price on a nomination or a new contract without triggering a second set of stamp duty being changed.

 

Thanks so much for the help guys! Gets me started.

Have you got experience with this? Done it before? How could I buy?

 

First thing: why would someone want to buy a contract off you?

 

Because the contract is at a great (below market) price. I give the seller (of the contract) a few 1000 dollars, I get a good deal, they make cash

 

Hire a buyers agent? Assigning contracts is pretty complicated.

 

Good point. That would be easier. But, since noting exists..... I think there is a gap in the market for selling signed contracts.... I see a business idea...

 

For development sites, maybe. You know youve just said there are easier ways to do it?