When conveyancing properties, Mosaic Settlements has an eye for detail. Our careful approach ensures that our clients are best looked after. A recent example of this eye for detail involved saving a client from paying double stamp duty on a contract.
We take the utmost care to ensure that issues do not occur when adding or removing a party from a contract after it has been signed.
The issue we picked up with a recent property deal was that a married man was noted as the sole buyer on an offer and acceptance document. Not long after the the man’s offer was accepted, the man approached his real estate agent about buying the property as a joint tenant with his wife.
Mosaic Settlements chatted with the man’s real estate agent who was concerned that his client would be charged double stamp duty.
How to avoid double stamp duty
Mosaic Settlements carry out conveyancing Perth locals can rely on for having their best interests taken care of. Our experience shows that adding a buyer to an existing transaction carries great risk. In the instance mentioned above about the husband and wife, if the man instead wanted to instead purchase a dwelling with a friend, additional stamp duty would be payable, given that he is not related to his friend.
In other words, if you wish to complete the purchase of a property with a friend or unrelated party, you must make sure both names are on the contract to avoid paying double stamp duty.
How we fixed the issue
Adding the wife to the contract was simple given that she is a Related Person as defined by the Duties Act. Moasic Settlements simply contacted the Office of State Revenue and lodged a Substituted Purchasers form. We received plaudits from the client for the outcome as double stamp duty did not apply and we were able to achieve the settlement deadline.
Advice for real estate agents
In order to avoid the double stamp duty trap, real estate agents must be sure to ask buyers for the names they want to appear on the title, at the point of filling out offer and acceptance documentation.
Avoid double stamp duty, enlist the services of a first-class settlement agent