There are many situations where you might be required to transfer land. This could be giving the property as a gift to your children, setting up a trust or company for tax benefits or there has been a breakdown in your relationship. This article will assist you through the process, to ensure the transfer goes smoothly with no mistakes.
When would you be required to transfer land?
Transferring property can occur for a number of reasons. These reasons include:
- Parents who want to pass their property to their children in the form of a gift
- A marriage or relationship breakdown may result in a property being transferred to a different name
- An owner of a joint-ownership property has passed away
- To minimise business risk, a person may transfer a property to a spouse
- Transfer a title to a company or trust for tax purposes
Do I need to use a conveyancer or solicitor?
Yes, you do. 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. There will be legal documents such as Transfer Documents, which must be prepared by a lawyer.
What are the fees involved?
Transferring property ownership can be an expensive process. There are various factors that you need to be aware of:
Capital Gains Tax (CGT)
If the sale (transfer) involves a primary place of residence, then no CGT should apply. However, if the sale involves an investment property, then the Seller (transferor) will need to pay CGT and the percentage amount will differ, depending on your situation.
Stamp Duty
All transfers will involve the payment of stamp duty unless the person receiving the property can claim one of the concessions (e.g. first-home concession) or an exemption applies (e.g. divorce). The amount liable to the Office of State Revenue (OSR) will depend on the monetary exchange, if any. If no money is exchanged between the two parties, then the stamp duty will be calculated upon the valuation of the property.
Bank Fees
When selling or transferring the title of your property, the mortgage conditions change. This may trigger additional loan entry and exit fees, particularly if you have fixed rate loans. We recommend that you discuss with your bank or broker before any action is taken.
Legal Fees
If you are using a solicitor or conveyancer then you also need to factor in legal fees.
The steps you need to take?
After speaking to your bank/broker and solicitor. The first step is for your solicitor to prepare transfer documents and have it executed by the appropriate parties. Once that has been completed, your bank/broker will liaise with your solicitor to let them know that settlement is ready to be booked.
After settlement, your bank will lodge the transfer documents to the Titles Office and from there, they will transfer the ownership of the property.
Contact us
If you are looking for a solicitor or conveyancer to assist you with your transfer, call GLG Legal or email us at info@glglegal.com.au.
