Nomination sale nomination sale melbourne is becoming more and more common amongst buyers due to credit tightening, reduced economic conditions, foreign purchaser restrictions and changes to off the plan stamp duty concession rules. This arrangement allows the original purchaser to sell their new residential property to a third party before settlement without having to resign their contract or have their name on the title. It’s also a great way to avoid the negative implications of defaulting on their loan or damaging their credit history.
The rules around nomination are different in each state and territory. For example, Victoria has a general condition in contracts which allows purchasers to nominate 14 days prior to settlement – but this doesn’t mean that you can include a special condition in your contract requiring that the nominee pay a fee or restricting the timeframe within which the nomination must occur. Failure to follow the correct processes can result in expensive stamp duty consequences.
Building Dreams with the Melbourne First Home Buyers Grant: Eligibility and Benefits
This can be particularly important if you are selling a new residential development which requires the approval of a plan of subdivision or application for plans and permits prior to settlement. If you do a nomination sale on this type of land and the nominee does not settle then you may face a claim from the State Revenue Office for double stamp duty (which is based on the assumption that the nomination was made in good faith).
It’s critical to discuss with us any nomination sales your clients are considering. We will ensure that you have the appropriate documentation in place to protect yourself and your client’s interests, including personal guarantees and any lender requirements.
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