Double Stamp Duty ?? Nominee Clause

Every nomination of a purchaser under a Victorian real estate contract attracts double stamp duty.

The purchaser must then meet one of the exemptions for single duty to apply.

This problem typically arises when a property is bought at auction and the contract is signed ??and/or nominee??.

The purchaser then considers who is to be ??real?? purchaser eg a family trust, superfund, spouse etc.

If the nominee clause is invoked to change the purchaser to an existing family trust, double duty will apply. On a $500,000 property the duty would go from $25,600 to $51,220.

The future benefits need to be very substantial for this extra cost to be justified.

The better plan is to discuss the prospective acquisition with your adviser, decide on the purchaser and ensure that arrangements are in place before the purchase. Therefore, there is no need to include the ??and/or nominee?? clause and avoid the potential double duty.

Using an experienced solicitor, rather than a conveyancing firm, could also make a difference. Why spend big dollars on a property and then take risks on its ownership to save a pittance on transfer costs?

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