Double Stamp Duty Risks ?? Property Purchasers 

If a purchaser wishes to nominate an ultimate purchaser after a real estate contract has been signed, the contract must when it is first signed, contain the words ??and/or nominees?? after the purchasers name. 

However, even where these words are included, the ability to subsequently nominate another person, company or trustee of a trust is limited.

The nomination may be deemed a sub-sale and double stamp duty will be payable ?? refer separate article about the Victorian stamp duty provisions.  The various State legislations on stamp duty is moving closer, hence this warning is likely to apply in all states.

One of the common nominations is a trustee of a trust.

To be effective for tax purposes, the trust must be established in writing before the first purchaser signs a contract.

This compares with a new company nominee where it is sufficient that the first purchaser has actually instructed a solicitor or accountant to incorporate a company or to purchase a shelf company before signing the contract.

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