HDT property subdivision and sale

Discussion in 'Legal Issues' started by paisneil, 10th Jun, 2019.

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  1. paisneil

    paisneil Member

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    The property which is in the HDT is subdivided. So Unit 1 is with the house and unit 2 is a vacant block.

    Sold the house and it settles in one week. Now the subdivided block which does not have any loan on it.

    Under whose name is the title registered under when its released from the bank??

    Is it the company name atf The trust


    Im sure I cant put it in my name without triggering cgt or SD…property in Victoria


    Thanks in advance
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I expect it would Trustee Company Name ATF The HDT trust , same as the parent title ?

    ta
    rolf
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Change in ownership would be a CGT and dutiable event.
    Now it is presumable in the name of the trustee?

    Incidentally, You cannot put the title in XXX Pty Ltd as trustee. Trusts are not recorded on title - it is forbidden under Section 37(1) of the Transfer of Land Act 1958 (Vic)
    TRANSFER OF LAND ACT 1958 - SECT 37 Entry of trusts in Register
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Thats a strange question to be asking now. Legal advice and tax advice on the way through ?? Selling the two titles on two contracts also makes a GST problem that may have been avoided.

    As it relates to drafting a contract I would encourage legal advice now. Dont allow a RE agent to be involved
     
  5. paisneil

    paisneil Member

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    Thanks a lot for you valuable input Paul and appreciate the time that you take from your busy schedule to help out.

    Gratitude and appreciation