VIC nomination sale and original off the plan contract

[ress]

Hi all

can someone help me with a nomination sale question please

I plan to buy a off the plan townhouse advertised to sell by nomination sale.

the first purchaser and vendor shares the same address

I am not sure if the if the first purchaser paid a real money deposit to the vendor in 2016 for the off the plan sale. The contract was signed however.

If there was no money deposited into the vendor's trust account is this still a valid original contract and hence is this nomination sale that i am buying legal ?

 

[Rod]

Because you have asked the question, you should be asking both the developer (vendor?) and first purchaser if there are any issues over ownership.

People are protected in Victoria from losing their property in nearly all circumstances when they purchase property in good faith. This is a technical area of law and if you have genuine concerns then you should be asking your solicitor.

I don't favour using conveyancers for this and similar reasons - you do not get legal advice when using a conveyancer, on what is likely to be one of the largest purchases you ever make. Some people try to save a few hundred dollars on a $1M purchase - crazy, doubly so when the purchase is an off-the-pan purchase. More scope for things to go wrong. There have been cases recently where the developer takes deposits, funds the project, deliberately delays, gets out of the contract, sells for more. Win for developer, lose for intended purchaser. Always use a solicitor for off-the-plan purchases.

 

[ress]

thank you Rod

i am using a solicitor which is a good advice for all.

we have got a paper receipt of the deposit apparently placed by the first purchaser but no evidence the money was actually transferred into the trust account.

My solicitor tells me paper receipt should be sufficient to proof first purchase legally took place and hence eligible to be considered for nomination sale. But i am worried this receipt may be just one of convenience and if this is so was the first purchase legal?

Thank you again all.

 

[Rod]

Then you check with the developer/vendor. What they agree to between themselves is unlikely to be your concern. If they diddle the ATO it is not your concern as far as property ownership is concerned. Though it may affect their ability to finance the project.