- What is a transfer of property?
- How to transfer property
- How much does it cost to transfer ownership of a house?
- Is stamp duty payable on transfer of property between family members in NSW?
- How long does it take to transfer ownership of a property?
Transfers of property often occur between family members, children, spouses and friends. While the process of transferring a property differs from selling a house, there are still a number of regulations and laws that must be followed. To help you navigate them, we’ve explained everything you need to know about transferring land or property below. Read on to learn more or speak to one of our conveyancers if you have any questions.
What is a transfer of property?
A transfer of property is when one person, or an entity, transfers the ownership of a property to another person. This can happen between spouses, de facto couples, parents and children, family members, as well as friends. Property transfers can occur for a number of reasons, including marriage, divorce or death.
How to transfer a property
When transferring property, there are slight differences depending on the relationship of those involved.
Transfer of property to include spouses/de facto partners
If one person owns a home and is marrying or involved in a de facto relationship, they may want to transfer part ownership of a piece of property to their new spouse or long-time partner. To do so, the owner of the property must fill in a Transfer of Whole of Registered Title application. Once this is completed and filed, the spouse or partner’s name will be added to the title register.
Transfer of property between spouses due to divorce/separation
If spouses or de facto partners owned a home together and are going their separate ways, it may be necessary to remove either the spouse or the partner from the title register for a jointly owned piece of property. To do this, the couple must engage the assistance of a conveyancer or family lawyer.
Transfer of property from parents to children
If a parent wants to transfer property to their child/ren, they can do so via a gift. In this instance, the transfer must occur by use of a TR1 and must be sent to the Land Registry along with an AP1 form. Again, it is recommended the parties use a conveyancer or a property lawyer because if they do not, they will need to file an additional form, the ID1.
How much does it cost to transfer ownership of a house?
If the transfer of the ownership of the house is a gift, then no money needs to pass between the grantor and the grantee.
However, under some circumstances in NSW you will need to calculate the transfer duty (stamp duty). This can be done by using a transfer duty calculator. The cost of the transfer is dependent upon the date of the actual transfer, so it is important to have an up to date knowledge of the current transfer rate. In addition, the transfer rate will be dependent upon the sale price of the property or the current market value, whichever is greater.
Related information: costs of selling a house
Can you transfer property without a solicitor?
Yes, you can transfer property without a solicitor, but it is wise to use a professional for these matters as there are several types of forms that must be properly completed and filed before the transaction can be completed.
In the event that you find yourself in need of assistance, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 780 770.
Transfer of property FAQs
Yes, by transferring the property or house to another person, the ownership of the property will change. The ownership can be transferred in whole or in part. For example, if a couple is divorcing and one spouse will be buying out the other spouse, the ownership of the home will transfer from both parties owning it, to only one party owing it. The same is true of parents transferring a home to one or more of their children. The parent(s) will give up their ownership rights, and the rights to own the property will transfer to the child of their choice.
Yes, stamp duty is generally payable regardless of whether the property was transferred between family members. The stamp duty is owed on the day of the sale by the party purchasing the property.
However, there are exemptions in New South Wales. If a property is being transferred between married or de facto couples, and the house is your principal place of residence, you will not be required to pay stamp duty. Likewise, if the relationship breaks down, you may be exempt from paying stamp duty. In saying that, if the family home is used for other purposes, such as running a business or the owners are living overseas, you will need to pay stamp duty.
The entire process of transferring property takes about four to six weeks to complete.