Transfer of property refers to the action of changing the legal ownership of a property title. There are a myriad of documents and regulations to consider when going through this process. It’s imperative to understand these or get the help to get it right.
Why transfer property?
You may want to transfer a property for a number of reasons. If a relationship has failed and you’re separating or getting divorced, transferring property may be a part of that settlement. You may be fortunate enough to have the means to gift property to somebody, like your children, requiring a transfer of property. If one person in a shared ownership passes away, the property must be transferred to the remaining owner(s). If you’re entering a marital or de facto relationship you may want shared ownership of a property. In this case it may also be wise to enter into a binding financial agreement (BFA) to determine property ownership should the relationship end.
How do you transfer property?
The state government recommends that people seek legal advice from a solicitor when dealing with a transfer of property. In NSW, to transfer ownership of a property a Transfer Form 01T must be completed and lodged with the NSW Land Registry Services (formerly the LPI), which does incur a fee. You will also need to provide the title for the title being transferred.
More commonly known as stamp duty, transfer duty is a tax payable to the state government whenever there is a transfer of property. The duty is payable by the transferee, the person (or people) receiving ownership of the property. Transfer duty is payable on the date of the sale, or on a date that a contract specifies transfer. The amount of transfer duty is determined by the value of the property. It is important to get a valuation of your property from a registered valuer. If a part ownership is being transferred, then transfer duty is only calculated based on the transferee’s share of ownership. In NSW a purchaser/transferee declaration (ODA 076) must be completed. You may be eligible for exemptions to transfer duty if you are transferring from a deceased estate, entering a marital or de facto relationship or getting divorced. To claim the exemption, you’ll have to provide proof of the circumstance and submit additional forms.
For whatever reason you are transferring property, it’s important to get documents, contracts, valuation and transfer duty right so that you don’t leave yourself open to ownership dispute or tax issues. CM Lawyers have a property law team that can make sure everything is done correctly for you. Contact us to discuss property transfer.