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We have a TT townhouse and are interested to know what happens if we are able to find someone who wants to EXCHANGE a property with us – either a direct swap or with an added cash component by one party.
How do we register change of ownership – in the normal way?
For stamp duty purposes for the swap: can we just declare our properties to be worth any amount we wish: eg – if it was $450K on the market but didn't sell, can we declare it a notional, say, $200K, to minimise stamp duty- because we cannot establish a current value – or is this somehow regulated?
If it's not a direct swap and there's a cash component, presumably that would be added to the notional value of the property concerned, and stamp duty on the composite sum payble?
Appreciate any advice on this unsual situation.
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Replies
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Hi
You can swap properties by competing a transfer for each and having them registered the usual way . You have to pay duty on the true worth of the property however that sum is paid ie by a mix of cash and property. If you write it down to save duty you will commit an offense and will be liable to fines and penalties not to mention criminal charges for making a false declaration.
Regards
Chris KerinSenior Lawyer
TEYS Lawyers
The Strata Law Experts
02 9562 6500
Suite 73, Lower Deck
Jones Bay Wharf
26-32 Pirrama Rd
Pyrmont NSW 2009Don't miss our next
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Register HERE nowThanks for that Chris Kerin. Seems logical enough.
However, value is a moot point. We're assuming we can give ourselves the benefit of the lowest – reasonable/defensible – market estimate.
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