Nomination is a direction to the vendor as to who should be named as transferee in the transfer, and the words and or nominee do not need to be added after the buyer's name. The vendor's only concern is to transfer to the named buyer or a buyer the named buyer nominates, as in Salter v Gilbertson.
Section 32A of the Duties Act 2000 is designed so that nomination does not lead to double duty except in limited cases. The main trigger is additional consideration, the hallmark of a sub sale, where the nominee or an associated person pays a premium or fee to the original buyer. A nominee may refund the original buyer the deposit and reasonable costs incurred between contract and nomination without that being additional consideration. An entity that did not exist when the first contract was entered can be nominated, provided it exists at the date of nomination.
The second trigger is land development, introduced to stop schemes where land was improved between contract and transfer so duty was paid on the lower original value. Traditional off the plan purchases are not caught, because duty is payable on the full price less the value of improvements made after the contract date, but applying for permits or demolishing structures before settlement and then nominating can amount to land development.
This is the kind of matter CMK Legal's property and conveyancing team handles.
Paying a premium to step into a contract, or developing the land before nominating, can bring a second lot of duty. The nominee must exist at the date of nomination, and each nominated buyer signs the Digital Duties Form.
Law referenced: Duties Act 2000 s 32A; Salter v Gilbertson [2003] VSCA 1; contract nomination conditions. Section G. Settlement and adjustments