Transferring property in NSW, commonly known as or referred to as a ‘conveyance’, involves a number of steps that need to be undertaken properly to ensure proper title to the land is given.
Transfering a property also involves proper consideration of all tax and legal implications of the transfer to all parties involved. Whether it is a husband wanting to transfer one of his properties owned in his own name to his new wife, or the transfer from a parent to their child, it is imperative to consider the tax and legal effects of the transfer as each scenario will have different considerations and implications.
The last thing you want is to be hit with a tax bill for capital gains tax, or stamp duty on the transferee that you did not anticipate.
Transferor (selling or transferring property)
Capital Gains Tax (CGT) is an important consideration when you are distributing the property to another person/company. You may be entitled to a CGT concession or exemption, so it is important to obtain legal and tax advice in this regard. If a CGT event is triggered this could drastically influence when and how you transfer the property.
Transferee (buying or acquiring property)
Stamp Duty is a major consideration when acquiring a property through a transfer. If you are in a domestic relationship, married or related by family, you may be entitled to a concession or full exemption for the payment of Stamp Duty to the Office of State Revenue. On the other hand, if you are not entitled to a concession/exemption, you may be liable to pay a considerable amount of Stamp Duty in NSW.
If the property is being transferred into more than one person’s name, it is important to determine how you will hold the property. That is, either as joint tenants, or tenants in common, as both are very different and can lead to drastically different outcomes in certain situations. For example, if you were to die owning a property as a joint tenant, the other surviving joint tenant would normally automatically receive your interest in the property, instead of the property forming part of your estate and going towards your beneficiaries under a Will.
Rockliff Snelgrove Lawyers experienced Property & Conveyancing can guide you through the process of transferring a property to ensure you are fully informed every step of the way. Call us now for more information.