We’re here to make your transfer of property a stress free transaction. No matter your situation, we can help you with a comprehensive transfer service.
Following on here is further information about transfers for your interest, or you can simply call us and we'll make it as simple and stress free as possible for you. Transfers can be:
These are two commonly used terms in the transfer process and you will need to understand them. Basically, they mean:
|Transferror||This is the entity or person currently holding the title and transfers (gives/hands over) the property to another. The source.|
|Transferee||This is the entity or person that receives or takes possession of the title to the property. The recipient (target).|
Most people understand the process of selling a house, but transferring a property title between family members is a different thing altogether. Stamp duty is not applicable between spouses but is applicable between parents and children or between siblings.
There are many reasons for doing it, and it involves a number of legal requirements and tax obligations. But the rules vary from state to state, so legal advice is key.
It’s possible to transfer property titles between family members, but it requires careful consideration. Owners transfer properties for many reasons, but the main drivers are:
Transfers are usually done via gifting, through a conveyancer, but it’s also possible to sell a property to a family member. If a property is jointly owned, a change can be made to the ownership split. Such transfers or mortgage changes incur fees.
Different tax considerations apply depending on the state or territory in which the property is located, on whether the property is residential or commercial property, and on how many properties the involved parties own.
Each case is different, so those thinking about transferring a property need to get legal advice. Some people will end up paying more tax, such as capital gains, some less. It all depends on the specific circumstances of the people at both ends of the transaction.
There is a lot to consider when contemplating transferring property titles between family members. Before transferring, people need to consider the following:
Note that those transferring property should also be aware of the anti-avoidance rules in their state or territory.
"Where someone is being sued and they transfer the family home into the spouse’s name, there are what’s called claw back provisions, or anti-avoidance measures, where people can say you’re disposing of your assets so you don’t have to pay out on a lawsuit and challenge it. That’s something to be aware of,”
There are three main ways to transfer property title between family members.
Gifting is where a property is transferred without paying any money – the same as giving a birthday present to a friend.
Unless an exemption applies, the recipient may still need to pay land tax when they take ownership of the property, and the person gifting or transferring the property may have to pay capital gains tax – depending on whether it was an investment property or their primary residence.
Some exemptions apply depending on the state or territory in which the transfer occurs. For example, owners can sometimes transfer their interest in a property to their spouse without needing to pay stamp duty, but there are strict requirements around this.
It’s possible to simply sell a property to transfer its ownership, which is documented with a contract of sale of land.
As with any sale of land, the purchaser normally has to pay stamp duty, and depending on the type of property, the person selling may have to pay capital gains tax.
Sometimes, a property can be held in a family trust or through a superannuation trust, but strict rules apply.
3. Changing ownership share
If family members jointly own property, the ownership split can be changed on the title.
A conveyancer will prepare all the relevant documents and lodge these with the land titles office.
At Central Victoria Conveyancing, as Victorian farmers and former city dwellers, we understand all your Victorian country, suburban and city property concerns. We are with you all the way through your transaction, we are always available to discus any concerns or questions you may have in a friendly and easy to understand way with no unnecessary legal jargon.
Whether you are a first home buyer or looking to upsize or down size from your current home, a business looking to buy or sell, a developer looking to subdivide, an investor looking for your best options, or a farmer selling land ( we can help with water shares too), our team at Central Victoria Conveyancing can help you with advice and legal professional property services to suit your requirements and needs.
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