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Client A and Client B have an agreement. Client A purchases…

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Answer 1

Solicitor: Leon, Solicitor replied 10 years ago

Good Morning,

If it is the tax purposes, a statutory declaration by both parties to confirm the client B made contributions of 50% towards the purchase of the property would be sufficient for the Australian taxation office.

If client B and also provide evidence that the money has left their account at the time they say that it did, this would add weight to the statutory declaration.

The intention of the parties is the key, and also what they did during the course of this relationship.

Is client A was claiming repayments of interest to client be on their tax return, then this would go towards proving it was a loan and not a purchase.

Also information from the conveyancer/solicitor that acted on the purchase confirming the intention of the parties at the time would also assist.

The issues I have, is the transfer from client a to client B of the property as this transfer has impacts on capital gains at the time of the initial transfer, and also whether the parties entered into any agreement at that time to show that there was a constructive trust and thats client B was actually already a 50% owner and that is 50% share should not be liable for stamp duty.

Their actions at that time will also have an impact on what is occurring now when the property is being sold.

But to declare that it was an ownership and not a loan is not difficult, if that is a declaration by the parties as well as the solicitor/conveyancer acting on the purchase can verify what the transaction really was.

I hope this is of assistance. There is anything I have missed please let me know and I will address the matter before you leave any feedback.

If I have assisted please do not forget to provide me with positive feedback.

Answer 2

Solicitor: Leon, Solicitor replied 10 years ago

Good Afternoon,

A statutory declaration by client A to confirm that the property was purchased by both them and client B, funded 50% of the purchase by providing $X private settlement.

Client B would also do a statutory declaration confirming how much money they paid and they would attach to their statutory declaration a copy of the bank statement showing the money was withdrawn.

Finally the conveyancer who acted on the purchase, would also confirm that 50% of the purchase price was paid by client B, and detailing that the instructions were they were both purchasing the property but only client a was to be registered as the owner.

This should be sufficient to satisfy the Australian taxation office.

A constructive trust, is a trust that occurs because there is no official trust deed between the parties.

In this case client A was holding 50% of the property in trust for client B. Because there was no document it is a constructive trust.

It is up to the parties to prove that this was the arrangement.

I hope this is of assistance. There is anything I have missed you wish further information please not hesitate to ask before providing me with feedback.

If I have assisted please do not forget to provide me with positive feedback.

Answer 3

Solicitor: Leon, Solicitor replied 10 years ago

Good Afternoon,

A Statutory declaration can be signed in front of either a justice of the peace or solicitor in doesn't matter.

If they had an agreement between them at the time they should attach that agreement to the statutory declaration and also refer to that agreement in the statutes declaration.

I hope this has assisted and if it has please do not forget to provide them with positive feedback.

Answer 4

Solicitor: Leon, Solicitor replied 10 years ago

Good Afternoon,

You are very welcome and if I can help again please let me know.

I hope you have a great Christmas and great New Year.

Client A and Client B have an agreement. Client A purchases…

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