Browse Forums General Discussion 1 Nov 12, 2008 10:27 am I was just speaking to a real estate agent and he told me he thinks if you sell a block of land the same day that you settle on it you dont pay the stamp duty. Does anyone know if this is correct? Can you advertise your block of land before it has titled? Re: Buying and selling land the same day = no stamp duty??? 2Nov 12, 2008 10:58 am You can advertise and sell the land before it is titled, but essentially you will still settle on it and then it will transfer to the new owners the same day. You will still pay stamp duty though. Re: Buying and selling land the same day = no stamp duty??? 3Nov 12, 2008 12:01 pm Not likely. Stamp Duty is payable on the transaction itself - as in the change of ownership, not the actual property or aquisition. Thus doesn't matter what length of time you own the property for if the transaction happens you have to pay duty.
I'm gone to the SRO website and there does not appear to be an exemptions to what you speak of however a quick call to them would confirm. Building Upside down house in Wantirna VIC Current Stage: Procrastination... it's just all too hard.... Blog: http://thereluctantbuilder.blogspot.com/ Re: Buying and selling land the same day = no stamp duty??? 4Nov 12, 2008 12:18 pm Thanks everyone it is good to know I can sell the land before titling. I just wonder what would happen in the event the title was delayed? Would I be penalised? I guess it could be written into the contract. Re: Buying and selling land the same day = no stamp duty??? 5Nov 12, 2008 1:32 pm Thats right. I have sold them for people before titles are released before and we have the settlement date as eg.. 4/6/09 or 14 days after notification of registration of titles etc etc. whichever is the later. Re: Buying and selling land the same day = no stamp duty??? 6Nov 12, 2008 9:08 pm This is what you call a "put and call" or "deed of transfer".. But, its all how the contract is written up with clauses and settlement times. All states are different as well.
"Put and call options give one party (purchaser) the right to exercise an option to enter into a. Contract for Sale within a specified time period. They also give a right to the other party (vendor) to require the purchaser to enter into the Contract for Sale. The contract arises when the call option is exercised by the purchaser or the put option is exercised by the vendor. Generally, the purchaser may assign the call option or nominate a third party to exercise the call option. Put and call options are used extensively to facilitate property development Example – A and B enter into a put and call option deed which grants a right on A to purchase land from B and a right on B to require A to purchase the land. The price stated on the contract for sale attached to the option is $1,000,000.00 (GST inclusive). No duty is payable at this point. – A then assigns the call option to C for a fee of $100,000.00. A pays call option assignment duty of $45,990.00 on the call option assignment. C pays duty of $1,990.00 on the transfer of the option on the dutiable value of the option." - Google But best thing to do is ask solicitors. HOME- is where your story begins! Re: Buying and selling land the same day = no stamp duty??? 7Nov 13, 2008 10:22 am Thanks everyone I really appreciate the info.
Will probably list it early next year (provided we buy something established but that is looking increasingly likely) 4 6825 Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6442 you need to understand the breakdown of warranties. 90 warranty is considered as minor defects rectification period where as the longer ones are more major/structural… 1 5339 |