Buying House by Nominee Sale off The Plan

Ltkwkrnen on 06/01/2022 - 00:23

Hey Ozbargainers.

I was looking to buy townhouse off the plan for my biggest dream come true.
Found one very fitting to my budget and went there.
Almost all are sold and one i wanted were sold out except! One unit has change of circumstances and the guy there told me they were looking for nominee.

But that would mean I’ll have to pay additional 10k to the realestate agent for their apparently* hard work finding a nominee and document n stuff.

I personally find this bit odd? Please correct me if I’m mistaken. They are getting their cut already from selling the houses and they want extra 10~15k. On top when we pay the deposit.

Is this 10~15k extra fair thing to put on?
I’m not sure about it and frankly no idea and no clue..

Best regards,
Fellow ozbargainer

Financial

Comments

  • EightImmortals on 06/01/2022 - 08:30

    Sounds a bit 'criminal' to me, but others might have more info. There's probably a real estate institute you could ask.

  • Duckie2hh on 06/01/2022 - 09:15

    You are getting ripped off. stay away.

  • brendanm on 06/01/2022 - 09:37
    +1

    Shouldn't the other party be paying any fees resulting from them exiting the contract?

    • tkwkrnen on 06/01/2022 - 09:43

      That’s what I’m thinking also.

      But to factor in something else is that.

      One unit left with same type is selling 20k higher.

      Still i think 10k plus 10% is ridiculous

  • frondono on 06/01/2022 - 09:39

    What does Nominee sale even mean? more middlemen? can you go straight to the horses mouth?

    • tkwkrnen on 06/01/2022 - 09:41
      +2

      Nominee sale meaning a person signs contract but due to circumstances they cannot so they have the right to choose a nominee to take over their contract and get back their deposit of 10% back ish.

      My understanding.

      • frondono on 06/01/2022 - 11:41

        it sorta sounds like you're paying for someone elses mistake. They guy couldn't organise finance and you've gotta pay?

  • Sergeant Salami on 06/01/2022 - 10:55

    I think you mean "Sale by Nomination." They are essentially making the 10K for selling you the contract.

    • wartortle on 06/01/2022 - 11:31

      My understanding is that in Victoria (OP's profile says Melbourne) if a profit is made on a nomination sale then you are required to pay stamp duty on your original contract, even if you nominate prior to settlement. Probably not worth it for $10k.

  • garetz on 06/01/2022 - 11:19
    +1

    Just say no, its a scam.

  • wartortle on 06/01/2022 - 11:30
    +1

    Sounds like the agent is making a commission on the resale - which is somewhat reasonable. If the owner were to make a profit on nomination they'd have to pay stamp duty which wouldn't be worthwhile. Most likely scenario is buyer has said to agent that they want out, but not willing to take a loss in order to pay him to sell it - so if he finds someone to pay 10-15k more that will cover his commission. Given that he is already being paid for the first sale to them he has no incentive to resell it to someone else for no extra money. I'd suggest these are your options:
    a) Since the agent won't facilitate the sale for no fee (which is fair) then ask the agent if he'd be willing to put you into contact with them directly and you'll organise a private sale via lawyers.
    b) Ask the agent if he'd consider a lower amount of $5k (at that point it's better than nothing and is probably the bare minimum to get his attention.)
    c) You really want it so you just pay the money.
    d) Move on and find something else.

    FYI I'd consider a lawyer rather than a conveyancer in this scenario.

  • MrThing on 06/01/2022 - 11:59
    +2

    off the plan

    more like run for the hills

  • iNeed2Pee on 06/01/2022 - 14:04

    Do not buy.

  • clover on 12/01/2022 - 21:42

    Never understand why people get into the biggest debt of their life without seeing what they are paying for. ( especially so many horror sample stories about off the plan)

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