The transfer of property from one party to another is not a simple process, it can be quite complex. Being fully informed in respect to any stamp duty implications is vital. It is imperative that you seek legal advice from someone experienced in property law and conveyancing.
When is a property transfer needed?
There are many reasons why one party might transfer their interest in a property in whole or in part to another. For example, you may wish to transfer property to a family member or friend, or transfer part of your interest in your property as a result of a relationship (i.e. marriage or de-facto) or it may be necessary to do so as a result of a breakdown of a relationship.
Transfer to a Family Member or Friend
When transferring interests in property to family members or friends, the family member or friend acquiring the interest will be liable for stamp duty. The stamp duty payable will be calculated on the higher of either the price paid for the interest acquired or the current market value. In order to determine the current market value of the property, a valuation by an independent valuer will be required.
If you are transferring the whole of your interest and there is a mortgage on the property, that mortgage will need to be discharged on settlement. If you are acquiring the whole of the interest in the property and you require finance, you must ensure that you have a formal loan approval in place prior to settlement. If you are transferring part of your interest and will hold the property jointly with the person acquiring that interest and there is a mortgage on the property, your lender will likely require the current mortgage to be discharged and all parties enter into a new mortgage agreement or refinance.
Transfer Due to Marriage or De-Facto
When transferring an interest in property to a souse or de-facto partner, an exemption from stamp duty may apply when the property being transferred is either the family home (principal place of residence) or vacant land which is intended to be used as the site of the family home and where as a result of that transfer, the property will be held by the married couple or de-facto partners as joint tenants or as tenants in common in equal shares.
If the property is mortgaged, it is more than likely that the lender will require the current mortgage to be discharged and require all parties to enter into new mortgage agreements or refinance.
Transfer Due to Relationship Breakdown
No stamp duty liability will arise on a transfer of relationship property from one party if transferred or agreed to be sold to the other party of a marriage, de-facto relationship or domestic relationship that is dissolved, annulled or terminated or has broken down irretrievably, which must be evidence by either a binding financial agreement or court order.
If the property is mortgaged, arrangements will need to be made with the lender in respect to discharging the current mortgage and entering into a new mortgage agreement, if applicable.
There are many other reasons why transfers of property take place: the above are just a few.
What we will do for you.
- Prepare all necessary agreements and transfer documents
- Arrange for the discharge of your mortgage
- Liaise with your lenders in respect to new mortgages and refinances
- Arrange a valuation by an independent valuer for stamp duty purposes
- Prepare and complete all necessary documents to be lodged with the Office of State Revenue
- Attending to completion of exemption application forms
- Attend to the stamping of all agreements and transfer documents
- Attend to the preparation of the notice of sale
- Attend to settlement
Our firm prides itself on the level of service provided. Please do not hesitate to contact us to discuss your property law or conveyancing needs.