Private Treaty
PROPERTIES FOR SALE
This is an agreement for the sale of a property at a price negotiated directly between the Seller and the Buyer, with the Bank included.
In most cases, the purchase deposit will go directly to the Bank to first settle the outstanding debt. Ensure you have on record the Bank’s confirmation of the debt owed.
Under Private Treaty Sales, the Seller will be required to pay Capital Gains Tax (CGT) before the Buyer can pay Stamp Duty and transfer..
Auction
PROPERTIES FOR SALE
Under this arrangement, the Bank is allowed by law to sell the property to interested Buyers, having failed to receive a sustainable repayment plan from the Borrower.
Often, selling at throw away prices is never done as the law provides that the lowest sale price is at least 75% of the current market value.
Under Auction Sales, the Seller is the Bank (chargee) and is, therefore, exempted from paying Capital Gains Tax (CGT).
