Need Help- Land Sale

Hi all,
I need some help. I had put a deposit on the land last year which is due to settle September-October this year. Due to financial reasons, I won't be able to settle and so I am about to put it on sale. I have "and/or nominee" in the contract. I have 2 questions.

1. Who will pay stamp duty? I am told that new buyer will have to pay this. Just wanted to confirm.
2. What are tax implications? Lets say I make 50k from sale, how much I pay in tax?

Many thanks in advance.

 

seek legal advice.

 

Thanks, Sure will do. Was just wondering if anyone has done this here and have info.

 

You can't get a contract in your name if you have not settled. The only way is to nominate but if you make a profit ($50K) you will both pay stamp duty.

 

Which state is the land located in?

 

Victoria

 

not sure why it is so difficult and confusing to get the right info! My agent tells me that its the new buyer who pays stamp duty. My solicitor tells me we both ( I and new buyer) pay stamp duties!?

I am sure many have sold the land before it settles?
Not sure who to believe.

 

Is your agent qualified to give legal advice?

 

No

 

Then ask him what section of the duties act he is referring to. Then you can check with your lawyer.

In vic I believe there may only be one lot of duty with onselling in limited circumstances.

 

You're going to need a legal rep (solicitor/conveyancer/lawyer) (based in VIC) to represent you in the sale anyway, so get them on board now and ask them the question so that you get the correct answer.

 

There is nothing confusing about it. You said you can't settle the deal so you have to nominate another buyer. That means they take over your contract as is including the price.
If you want to get another $50K you will have to settle, pay stamps and than prepare another contract in your name and on sell it. That makes it 2 transactions therefore 2 payments of stamp duty.

 

We had this happen as a buyer. Vendor bought at auction and tried to on-sell to us within their settlement period. We didn't know this until did some DD into the property itself.
We had made a written offer that wasn't accepted but as their settlement date got closer they then asked us to be their 'and/or nominee' with a separate (silent) transaction for the previously rejected price.
Solicitor told us to RUN because it will have been classified as tax evasion/fraud on both parties behalf.
The vendor will have had agent's fees, stamp duty and CGT to pay which would have eaten into their 'profit' of around $50-60k. You may very well have these same costs.
You need listen to your CHOSEN legal representative, not a real estate agent who just wants to get the property settled AND potentially make 2 lots of commission if it was their original sale.