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Friend wanting to purchase in my name

Discussion in 'Real Estate' started by swf, 12th Aug, 2009.

  1. swf

    swf New Member

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    12th Aug, 2009
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    Location:
    QLD
    Hi, I am seeking advice. A very close friend is wishing to purchase 2 properties and has asked that they be put in my name due to protect them from possible future litigation. These properties will be purchased outright with no mortgages however I wonder what the implications, tax etc would be for me. Said friend is willing to draw up legal documents stating acceptance of responsibility for any costs that may be incurred both on purchase and on any future sale of the properties, though I suppose I just want to safeguard myself from any and all situations.
    Any help would be greatly appreciated though I suppose it would be silly of me not to seek professional advice. Said properties are in NSW.
    Thanks in advance.
     
  2. HandyAndy888

    HandyAndy888 Member

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    Miles, QLD
    Ha ha ha ha...sounds dodgy. If your friend wants protection, he/she should open a trust.
     
  3. Billv

    Billv Getting there

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    I'd seek legal advise.
    Why would he be afraid to put it in his name?
    Do you have full visibility of where the money came from and is it from legal dealings?
    If the money is stolen for example, the people who lost it could go after him and when they make him talk you could be involved as well....:eek:
     
  4. bella

    bella Well-Known Member

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    If he is doing it to avoid his missus getting her hands on it, it will be a waste of time.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Other implications of it being in your name include potential liability if a tenant (or someone else) injures themselves and the insurance on the property is inadequate ... etc.

    In general I would stay clear of such arrangements unless there is a commercial reason for you to be involved (eg joint venture) ... but even then, you want to make sure that risks are shared too.

    As already mentioned - for asset protection use a trust ... but if the event which might lead to the litigation has already occurred, then even a trust won't offer much protection.