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We cannot source insurance for a 2 lot community title scheme (property on island off Brisbane consisting of two separate houses) – been through 3 brokers and contacted every insurer.
Therefore we are considering full subdivision so that the 2 lot owners each own their house and associated land. However I want to understand the stamp duty implications in Qld.
I would expect to only pay duty on the transfer of common property (currently held by lot owners as tenants in common under the CTS) not the lots themselves which are already exclusively held by the respective owners but I cannot find any cases/examples to support my position.
The reason I am concerned is that removing the CTS changes ownership converting the whole property (lots and common property) to freehold owned by the 2 owners as tenants in common. The subdivision then splits the property into two properties both held by the owners as tenants in common. Transfers are then registered for each of the two properties to transfer one owner’s share to the other owner resulting in each owner having full ownership of one property.
I’m concerned the stamp duty office won’t take into account that the house lots were already owned by the property owners under the CTS. Anyone come across this issue before?
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