Purchasing property in Trusts – Avoid additional Stamp Duty costs!

 

1. Buying land or property via Trust Structure
It has come to our attention that some issues are arising regarding property purchases, when lawyers and conveyancers are submitting the required forms to the State Revenue Office (SRO).

If you are buying a property via a trust structure it is vital your lawyer or conveyancer correctly answers and submits the below SRO form:

“LTX Trust Form 8 – Notice of Trust Acquisition of an Interest in Land”

2. Using ‘and/or nominees’ on the contract for ‘off the plan’ properties
A common issue that some lawyers and conveyancers have communicated to us relates to Sub Sale Provisions of land.

In particular, this relates to purchasing ‘off the plan’ property.

Should you sign contracts with an individual name, another entity name and then state and/or nominees on the contract, a nomination is then made of another person/entity.

Should there be land development on this property, the SRO will issue TWO stamp duty invoices. One being to the name stated on the contract and the other being to the nominated purchaser.

To avoid this, it is best to get advice from your accountant & lawyer first, before signing the contract, to determine which entity you will be purchasing the property in to avoid additional stamp duty costs.

To find out more, speak with your Highview experts today.

Cranbourne: 5990 1000
Mornington: 5911 2100
Prahran: 5929 1566