Related parties transaction in Victoria

[Elena]

I have a file where one brother is buying out the other brother's half share in a property.  The funds for the purchase will be transferred between the brothers.  Can this file be done in PEXA? There is no bank involved.

[Ames · Accepted solution]

Hi @Elena

Yes it can, if it can be assessed in Duties Online (e.g. no water entitlements or sale of business).

Both brothers need to be represented by a Subscriber (whether that is one Subscriber in the incoming and outgoing roles, or two different Subscribers).

The funds transfer will need to be via a registered source account of a practitioner, if there is no bank involved. So your own trust account, or the PEXA Source Account if you do not operate a trust account.

If you're acting on both sides of the transaction, here's some helpful guidance.

Please let us know if you have further questions.

Ames.

[Elena]

Thank you Ames.  The funds will not be going through our trust account, they will be transferred between themselves.  Will this be an issue?

[Ames]

Hi @Elena

You’ll need to have sufficient source funds in your trust account to cover stamp duty, PEXA fees and lodgement fees, as these are all paid via PEXA.

Ames

[Elena]

Thank you @Ames