Conveyancing is the process of legally transferring a title of home ownership. Traditionally, conveyancing is associated with buying and selling a property between two distinct parties; a buyer and a vendor (seller). A conveyancing lawyer's role is to ensure that the documents needed to transfer a property title are completed thoroughly, accurately and in a timely manner.
But there are other instances of property transfer where a conveyancing lawyer is needed, including when a property is being transferred between family members or in the event of a change in domestic relationship such as marriage or divorce.
If you need to transfer a property title it is important to be aware of a range of financial implications which may extend far beyond the title transfer and ownership. A good property conveyancing solicitor can help you to understand any elements of your property transfer that you may be unfamiliar with. They can manage your transaction and make sure things run smoothly.
If you would like to speak to our property conveyancing lawyers in Melbourne today, please contact us on 1300 444 444 or get in touch with us. We are here to make your conveyancing transfer a straightforward process.
1. Your mortgage may be affected by your property transfer
If you are transferring your property and there is a current mortgage on the property, your mortgage will need to be discharged on settlement. This happens when the title associated with your loan is removed from that loan.
This process can take anywhere from 14-21 days to complete. If you are transferring or acquiring the whole interest in the property and you need finance to do so, you need to make sure you have the right loan approval in place before settlement takes place. If you are taking on a property with another person, and there is a mortgage on the property, your lender will probably want the current mortgage discharged. You may need all parties to start a new mortgage for the property in joint names.
Your conveyancing transfer lawyer can help you to understand these obligations in line with title transfer obligations.
2. Transferring property to a family member is likely to incur stamp duty
Thinking of transferring an interest in property to a family member or a friend? Whoever you transfer an interest to will be liable to pay stamp duty. The stamp duty will be calculated using the price paid for the interest share they received or at the current market value. If you want to find out what the current market value is, you will need to get a valuation completed by an independent service.
3. Is this a principal place of residence transfer to your partner or spouse?
Transferring an interest in property to your de facto partner or spouse may see an exemption from stamp duty - but only if the property being transferred is the family home (principal place of residence). Exceptions also apply if the property being transferred is land on which the family home is intended to be built. The property being transferred does need to be held by both parties as joint tenants.
4. Property transfer is a potential way to minimise business risk
Depending on the structure of your company or business, you may need to transfer property into your spouse or partner's name to avoid potential risks down the line. Transferring property doesn't require all of the usual searches and contracts that are required when buying or selling.
It is best to speak to your conveyancing lawyer about what you are considering with your property transfer so that they can advise you how best to avoid risk.
5. Are you transferring a property to a trust?
If you are looking to transfer a property to a trust, the process may actually be a lot more complicated than a standard purchase or sale transfer. Your conveyancing solicitor will be able to provide guidance and expertise around the most effective way to manage a property transfer to a trust to ensure the lowest possible expense.
6. Stamp duty may be avoided when a transfer is due to relationship break down
When a relationship breaks down it is tough for all parties involved. If property transfer forms part of a binding financial agreement or a court order you will not have to pay any stamp duty. This is only the case when a marriage, de facto or domestic partnership has been terminated, annulled or otherwise broken down. Again, if you have a mortgage on a property when it is transferred you will need to arrange to discharge the mortgage with your lender.
7. Do you need a section 27?
A section 27 is also known as an Early Release of Deposit Authority. If you are buying property this is where a section 27 comes into play. If you are transferring property you will not usually need this. But again, it is always best to speak to our property conveyancing lawyers who can help you understand what your obligations are duties are.
We make the property transfer process simple to understand. We are efficient and provide straightforward advice and service. Contact us on 1300 444 444 for a chat about how we can help.