Back-to-Back Sales

A “Back-to-Back Sale” is a term used to describe the sale of a property immediately or soon after completing the purchase for a profit. Other Commercial Property areas we cover include:

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Back-to-Back Sales Examples

Some common examples of Back-to-Back transactions are as follows:

– Buying a property off-plan and selling it once the property is constructed; or

– Buying land is conditional on obtaining planning permission and selling it once it is obtained.

Back-to-Back sales are not without risk; one of the primary risks is that the buyer will often be obliged to purchase whether or not he has found an end user to sell to.

Additional risks include the value of the land/property not rising substantially and/or the stamp duty land tax due may be at such a level that it decreases or exceeds the potential profit.

It is essential that any proposed Back-to-Back purchase/sale is structured correctly and that these transactions are dealt with by legal representatives who are experienced in this type of transaction.

Due to the risks involved, seeking professional legal advice before agreeing to sell the property immediately is advisable.