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 about transfer of property 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 in Australia
If a parent wants to transfer property to their children, they can do so via a gift. In this instance, the transfer must occur by use of a TR1 (transfer deed) and must be sent to the Land Registry along with an AP1 (application to change the register) 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 (certificate of identity for private individuals).
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 family property transfer is dependent upon the date of the actual transfer, so it is important to have an up to date knowledge of the current house 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.
Speak to the experienced property lawyers at Owen Hodge
If you need any assistance with matters relating to the transfer of property, Owen Hodge is here to help. Our experienced team of conveyancing lawyers are always happy to assist clients in understanding the full ramifications of transferring properties and any other conveyancing matters.
Please feel free to contact us at your earliest convenience to schedule a consultation at 1800 780 770.
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Transfer of property FAQs
If you’re looking to transfer property between family members in Australia, you will need to transfer the title over to the elected person. In order to do this you will need to draw up a document known as a gift deed. For more legal advice, please contact our experienced property lawyers.
If you transfer property to a family member for less than the property’s worth, then you will be subjected to capital gains tax (CGT), which is based on the market value of the property.
For more information: Transferring property to family members or friends
This will depend on the insurance policy of your current provider. You may need to directly contact them for more information.