The estate agent has "bought houses in trust" from the developer?

[CreNaCille]

Just viewed a new house which the estate agent says he has "bought in trust" from the developer.

What does this mean?

He says no stamp duty applies to sale.

 

[ButtermilkJa]

Maybe it's a deal of sorts that allows the EA to purchase all houses at a reduced price from the developer and then sell them on at the regular price to customers?

 

[Gav2]

Contact revenue to confirm, does'nt sound good to me.

 

[Brendan Burgess]

I wouldn't worry too much about it. I would deal with it as if it's a new house and if you agree to purchase it, get your solicitor to confirm the arrangement with their solicitor that it is new and will be exempt from stamp duty.

Brendan

 

[construct_06]

are u sure estate agent did not buy the houses in trust for 'a dveloper' and not 'the actual developer' of the site in question.

then all he would have done is bought the houses using his name to protect the developers identity

 

[sheena1]

"are u sure estate agent did not buy the houses in trust for 'a dveloper' and not 'the actual developer' of the site in question"

The estate agent said he bought the property in trust FROM the developer. This happens frequently and if the purchase is proceeding by way of sub-sale then it is treated as a new house for stamp duty purposes as the estate agent does not actually own the house.

 

[cjh]

So the Estate Agent is trying to 'Flip' the houses?

 

[FintanPhelan]

I'd ask him directly what he means about this, sounds unusual to me.

 

[mf1]

Maybe I'm old fashioned and out of touch..........But in 20 years practice I have not come across it, I am a conveyancing solicitor and I am always wary of a situation where there are too many parties/investors/middlemen involved.

mf