Purchase Anonymously

You should definitely run it past your lawyer. There will be no double stamp duty (in Victoria) but the issue is if the nominee does not come to the party. Than you are buying the property. Although I know the person very well and trusted them I had them sign an agreement that I am acting on their behalf. Its their deposit money after all but I could still be sued.

 

In Vic I believe there will be double duty if you do not have a written nomination agreement prior to the nominee entering the contract.

Yes it would be the person entering the contract that is sued - the nominee is not a party so very risky.

 

That's why you have a agreement signed with the other party before you sign the COS. Other ways your neck is on the line. You also have to have your structure in place (company, trust etc) before you sign "and or nominee".

 

Your neck is still on the line - though you may have an agreement with them to indemnify you. You need the agreement for stamp duty reasons.

 

It is very common to use this clause and yes your neck would still be on the line if you didn't discuss this with your lawyer. My understanding is that double stamp duty would only apply if you on sell with higher price. If it is the same price you are only passing it on. You can nominate any one or any entity (as long as it exist prior to you signing the contract).

 

I think you are right there. in VIC there is section of the duties act which could mean no double duty if there is no profit in the nomination.

 

The relevant section in VIC could be s32J
DUTIES ACT 2000 - SECT 32J How duty is charged on transfer

 

I can only speak from experience of what I have done in Victoria. I don't own real estate in other states so everyone should get legal advise before attempting to do this. Thank you for pulling me up on this. I hope we have enlighten few like minded people.

 

I have purchased a number of properties as nomnee in Vic, but we had nomination agreements upfront before the nominor entered the contract - but I think this must have been prior to the introduction of s32J.

 

Great discussion.