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Can I on-sell?

Discussion in 'Legal Issues' started by Rocko, 9th Feb, 2016.

  1. Rocko

    Rocko Member

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    I am currently purchasing a house in NSW, but have decided that I don't really want it. I have just exchanged. Can I list it for sale with an agent now? Or do I need to wait until after settlement?
    Thanks.
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    why not keep it? It's going to cost you lots with stamp duty and selling fees if you sell it.

    You probably can't sell something you don't own yet.

    Why don't you see if you can back out of the deal. You may lose your deposit but that may be less than stamp duty and selling fees.
     
  3. Rocko

    Rocko Member

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    I bought it at a very good price and I don' t think I'll lose money. Just wondering at what point a property can be put back in the hands of a real estate agent.
     
  4. Greyghost

    Greyghost Well-Known Member

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    Why not draw equity to buy another and keep it?

    If you bought at a good price it will (all things being equal) always still be a good buy.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Some good advice above so that you don't waste those $ you're investing in stamp duty and transaction costs.

    • Why don't you want the property any longer?
    • Is this buyer's remorse?
    • Why did you buy it (other than price)?
    • What other factors are in play?
    • Simply by holding for 12 months you can halve your cgt liability
     
  6. Greyghost

    Greyghost Well-Known Member

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    Ah correct, have you factored the tax bill into your buy and sell?
    If you did hold for 12 months you will:
    A. Be eligible for 50% discount
    B. depending on state of the market - have generated more growth than if you sold now.


    May I ask what suburb the property is in and the price band?
    Are their any personal circumstances here that are conflicting with investments?
     
  7. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Yes, you can list for sale now. You don't have to wait for settlement.
    As the others have said, you may be up for CGT (without the benefit of 50% discount if held over 12 months) and certainly have to pay SD and selling agent comms.
     
  8. Rocko

    Rocko Member

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    Maybe, I'll keep it. Thanks everyone for your assistance.
     
    larrylarry likes this.
  9. larrylarry

    larrylarry Well-Known Member

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    That's a quick decision by OP. :)
     
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  10. neK

    neK Well-Known Member

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    What about a memorandum of transfer or something similar?
    ie adding or removing names on a contract.

    I've had names added on twice now (never taken off though).
    No impact to the seller though, they still get their money regardless.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes you can on sell before settlment but some legal issues you need advice on.
     
  12. Rocko

    Rocko Member

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    OK thanks.