The Purchasing Entity

Get the ownership structure right!

woman sitting with man having a discussion

Choosing the correct ownership structure when purchasing a property is extremely important to consider prior to signing a contract.
The purchasing entity can be an individual or a company. This may be in its own right, or as the trustee of a Trust (often referred to as a Family Trust) or Self-Managed Super Fund.

We strongly recommend seeking advice from your financial or tax advisor prior to entering any contract to ensure that the right decision is made. Not doing so at all, may mean that opportunities to minimise taxation may be lost and rectification (by transfer to the correct entity after settlement) would incur Transfer Duty again.
Seeking such advice only after entering the contract, but before settlement, may allow rectification but it is not quite as simple as amending the contract. Doing so would be considered a dutiable transaction by the Queensland Revenue Office, incurring Transfer Duty (a second time). A Deed of Rescission and a new (or fresh) contract would instead need to be prepared in order to change the buying entity (without incurring Transfer Duty a second time), however this may delay settlement, incur costs to you and the Seller and requires the cooperation of the Seller (likely by passing on their legal fees to you).
As the old saying goes, ‘prevention is better than a cure’ and that is certainly true here. To avoid issues, make sure the buying entity is clear and correct at the time of signing the contract or contact our office to discuss the best options.

Settle it. Ownit. Love it.


Other Topics
Need Help?

Contact us today for all your conveyancing needs.

Andrew Francey


Chief Operating Officer

Andrew has over two decades experience in high growth fast moving consumer goods, agribusiness and professional services. Supporting the Ownit team to deliver on client expectations, and implementing processes to scale the organisation, is a key focus for Andrew.

Andrew is a C-Suite leader with Chairman and Board experience.  He has formal qualifications in Business, Applied Finance and AICD Company Directors Course.

How Can We Help?

Property State:
Digital Marketing by King Kong