Transfer of property title ownership: How to transfer a house title
Changing property ownership between spouses or other co-owners is relatively straightforward, but there are a few steps involved. Here's what you need to know.
There are a number of reasons why people look into changing the names on a property title. You might have shared ownership between high and low income earners and you want to spread the capital gain and income tax liabilities. Or perhaps there's been a relationship breakdown and one co-owner is transferring the property to the other.
You need to know the different types of ownership structure to help you work out how to transfer ownership. This guide to changing property ownership will help you determine which property ownership structure suits you best and how to move forward with a transfer of ownership.
If you need expert help navigating title changes and property ownership questions you should consider speaking to a conveyancer or solicitor. They can help you with issues related to ownership and property law.
Types of ownership structure
- Outright ownership. You are the sole owner of the property. Your name alone is on the deed and you are responsible for the property. The property is likely to be owned in your own personal name.
- Joint tenants. You own the property equally with someone else. Together you both have full ownership of the property. One joint tenant cannot pass their share onto another person when they die; it automatically passes instead to the other joint tenant.
- Tenants in common. This is where 2 or more people own specified portions of the property. This can be a 50/50 split, or 70/30, or any other combination. Each owner has their own rights to their share and can sell it to others, or offer it in a will to someone else. The other tenants in common don't have an automatic right to the whole property.
- Trust ownership. This is where the property is owned and managed by a trust, which is an entity that holds assets in trust on behalf of its beneficiaries. There are a number of trust types, although the most common are family trusts. These are useful for when property is being left to younger family members.
- Company ownership. You can also own property through a company. Profits are liable to be taxed at business tax rates, which currently has a base rate of 25%, assuming the property is an investment.
Adding your partner's name to your house
Why change the property ownership?
There are many reasons people may want to change the ownership details of the property, ranging from a change in circumstance or situation all the way to gifting to a family member or inheritance. Below is a list of the most common reasons people have for changing property ownership:
- Divorce. When you purchase a property as part of a relationship and that relationship breaks down you will want to make changes to the details of ownership.
- Change ownership structure. You may have originally chosen an ownership structure that no longer is relevant for you and anyone you may own the property with.
- Family reasons. The owner of the property may have become quite ill or unable to properly look after their own affairs and they have decided to pass the property onto a family member, or the owner may have died. All these situations would require that the family make changes to the ownership.
- Change in circumstance. A property may have been purchased with the assistance of a friend or family member or as a joint purchase and now there has been a change in financial circumstance that allows one owner to buy the other out.
- Gifting property to family. It's a very common scenario that family members want to transfer property to other family members, like a parent giving a home to their child.
How much does changing property ownership cost?
- Stamp duty. Changing property ownership will incur stamp duty, which will be calculated based on the valuation of the land. Usually it is between 3% and 5.5%. In some states like Victoria, stamp duty can be waived. Find out more here.
- Capital gains tax (CGT). Selling or transferring ownership may incur CGT. If the sale involves an investment property, then the seller will need to pay CGT. As a general rule, it is 25% of the capital gain. Read more about Capital Gains Tax.
- Fees. When you sell or transfer the title of a property, you change the conditions of the mortgage, which may incur break fees. If you require a lawyer, there may also be legal fees and valuation fees.
Expert insight: Think twice about a spousal trasnfer
"Transferring investment or income generating property to a spouse may seem like an attractive option where change of income circumstances arise, however, will likely lead to Transfer Duty being incurred by the incoming proprietor and a Capital Gains Tax event arising for the party relinquishing their share. In most jurisdictions in Australia, there is an exemption of Transfer Duty in a very specific scenario where half of the title is gifted to the spouse, so long as they are not already on title and the property is their primary place of residence. Prior to considering this type of property transfer it is essential that expert advice is sought from a property professional and accountant to ensure all liabilities and taxes are taken into consideration."
Steps involved in changing property ownership
The steps involved in changing property ownerships vary depending on the type of property ownership, how you are changing it and whether it is under a mortgage. Below are some of the key steps involved.
1. Check the mortgage. If the property still has a home loan attached to it you will need to have the details of this on hand as they may also need to be adjusted depending on your reason for making a change to the property ownership.
2. Get a copy of the property title. You can contact your local state office that looks after land titles for a copy of the property's title as a reference for changing the details.
3. Fill out a property title transfer form. You can get this from your government agency that looks after land titles for the form/s required to change the property ownership. You can also ask them for instructions on how to properly fill this out.
4. Submit the title transfer form. Once you have completed the form with all relevant details you will need to submit it to your local state government land office that looks after property titles.
5. Pay the relevant fee. Any change of title or adjustment to property ownership will incur a fee to be paid to the relevant state government office.
6. Wait for the processing of the form. The relevant agency will process the form and if all is well will make the relevant adjustments to the ownership details held by the state.
If you have a mortgage still attached to the property you will need to notify your bank of the change to property ownership and they may ask you to alter your loan documents to match the property title details.
Beware of tax legislation
There are anti-tax avoidance rules that state you must have a valid reason for transferring the title of a property apart from tax benefits. Be sure you know your reason and be certain to document it.
More resources on Finder
More guides on Finder
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Is title insurance a waste of money?
Title insurance is a minor cost, but it could be a major protection for your property purchase.
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How to remove someone’s name from a property title
Removing a name from a property title can require the help of a legal expert, and might come with fees depending on the state. Find out how to do it here.
-
Adding your partner’s name to your house title
Adding a name to a property title, or transferring house title to your spouse? Our guide walks you through the steps and costs involved.
Ask a question
Hi, in my property settlement my house has been given to my ex. My name is to be taken off the title and all joint bills. My ex is now telling me to get a conveyancing solicitor and pay half the household bills. do I have to do this and what else do I have to do. All bills including mortgage is now my ex’s responsibility and not mine since the day I moved out as per the property settlement.
Hi Bec,
As we’re not conveyancers, we don’t really have the right insight to provide here. We have a couple of other guides below that might be helpful for you, but it probably is worth speaking to your own solicitor to get an expert recommendation.
Splitting property after a divorce
How to remove your name off a property title after a divorce
Thanks,
Rebecca
Hi
I cannot find the answer to this question on your website.
My wife and I divorced about three years ago. She moved out of the family home (owned jointly) to a home unit some distance away which was owned by her alone. She had purchased it during the marriage and we had lived there together for a while.
The separation was relatively amicable and we trusted each other. We drew up an agreement in 2019 that we would limit our marital assets to the two properties, and the value these would be ‘pooled’ and upon selling we would share the assets 50:50.
I tried to sell the family home but as it is a commercial-residential property with a 175 y.o. colonial inn on it, it received no offers at all.
I kept in regular email contact with my wife, who asked for a divorce in 2020 and almost immediately remarried. She did not advise me that she was putting “her” unit on the market or that it sold for twice the price she had stated it was worth two years before. I found out a year later as she had contrived to keep the sale off the internet, by which time she had gone overseas with the proceeds and purchased a house to live there with her new husband, stating she had cut off all ties with Australia. She has not provided a forwarding address, and has ceased responding to emails. She did however advise earlier that she felt she was entitled to a share of the value of the family home if and when it sold, and that she was not inclined to sign over the title until I had paid the reminder of her share. I have paid her all but around 15 per cent of the agreed value, but am unable to raise a loan on this amount.
As she has already helped herself to around 80 per cent of the combined value, I believe I should be entitled to remove her name from the title and keep the property for myself.
Any advice on how to proceed would be very welcome.
Thanks
Kerry
Hi Kerry,
We’re sorry to hear about everything that has been going on. We are not authorised to provide personal or legal advice, so we strongly recommend you retain the services of a lawyer to help you navigate the next steps.
All the best.
If a mother & daughter have purchased a property in sa 50/50 & down the line the daughter wants to have the title 100% in her name will she have to pay stamp duty again ? or if she refinances the property just into her name can stamp duty be avoided
Hi Jim,
In most cases, they will have to pay stamp duty again even if they are refinancing. However, there are situations in which one can avoid paying stamp duty.
Note that if they borrow more when refinancing (say, a home loan top-up) they may have to pay stamp duty on any amount above the original loan.
When transferring property there may also be other fees to watch out for. You can see a full guide on transferring property titles here.
Kind regards,
Rebecca
Where do I find the form/s to change from Joint Tenancy to Tenancy in common? I am finding the Registrar General’s Guidelines web site very confusing.
Hi there,
The forms and regulations needed when changing ownership differ by state and territory.
You can visit our Property Title guide to check the links by state.
I hope this helps!
Regards,
Richard
hi, i want to know how long it take to property to change hands from late mother to kids. i was told a couple of weeks
Hi Paolo,
The timeframe varies depending on the location and their resources at the time, but it can take four to six weeks to complete the legal processes involved in the transfer of title.
Many thanks,
Sarah