There are many reasons why you might want to change the ownership of your property. Have a read of our quick guide below on some of the more common things to consider.
Common reasons for transferring a property title:
- A marriage or relationship breakdown may result in a property being transferred to a different name.
- Transferring a property to a trust or company for tax benefits.
- To minimise business risk, a person may transfer a property to a spouse.
- Parents can legally hand over a property to their children.
- One of the owners of a joint-ownership property has passed away.
Do I need to use a conveyancer or solicitor?
Essentially the answer is ‘yes”. As it is a legal process that requires the preparation and review of legal documents, it is strongly suggested that you have a qualified property lawyer take care of the conveyancing process. On top of this, there may be stamp duty requirements on the transfer. Your solicitor will be able to advise on whether stamp duty is owed on the property transfer. There may also be other legal documents that need to be prepared. For example in a spousal transfer, a statutory declaration is needed by one of the parties.
Different types of ownership structure:
Trust ownership: In this situation, the property is owned and managed by a trust. The most common type of trust is the family trust. This type of structure is most useful when you wish to leave property to your children.
Company ownership: You can also own property through a company. It is best to speak to your financial adviser about Capital gains tax and your company in order to know what your situation may involve.
Joint ownership: Here you share equally the ownership and responsibilities with someone else.
Outright ownership: Your name is the only one on the title deed making you the sole owner and wholly responsible for the property.
Costs of changing ownership
Fees: There may be bank fees if the conditions of the mortgage change. There will also be legal fees for the conveyancing, and possibly valuation fees.
Capital Gains Tax (CGT): If the sale involves an investment property then the seller will have to pay Capital Gains Tax. The percentage amount you pay on capital gains tax differs depending on the particular situation.
Stamp Duty: Stamp duty is generally between 3-5.5% of the property value and is dependent on the State that the property is located in. In some states and some instances, stamp duty may be waived. Changing the ownership of property will incur stamp duty.
Please note that this article is meant as a guide only, and Titlexchange recommend that you speak to your lawyer or accountant for specific advice. Titlexchange can assist you with your title transfer and conveyancing needs – please get in touch with us here.