How to remove someone’s name from a property title

How to remove someone's name from a property title

A property title is an important legal document that lists the registered owners of a property. You may need to remove someone from a title because of a change in ownership, relationship breakdown or even a death.

• While it's possible to do it yourself, property title changes can be a complicated process and you may be better off seeking qualified legal advice.

Read our complete guide to changing property ownership here

The simplified steps to removing someone's name from a property title are:

1. (Optional) Hire a licensed conveyancer or solicitor. You can pay a qualified conveyancer to handle the paperwork for you. You'll still need to complete the transfer form and pay the government fee, plus the conveyancer's fee.
2. Fill out a transfer of title form yourself. You can skip the expert help and do it yourself. You'll need to find and complete the appropriate form and lodge it with the appropriate office for your state or territory government. You'll need the property's Torrens Title, the names of the transferor and transferee and the "consideration amount" (the money paid to the transferee) and the "share transferred" (for example, if one half of the property has been transferred from the transferee to you, the transferor).
3. Submit the transfer of title form. You'll need to submit the completed and signed form to the lands department or state revenue office in your state or territory. You may also be required to submit supporting evidence, for example a death certificate.
4. Pay the fee and wait for the form to be processed. Pay the necessary fee to have the transfer of title form processed. Fees and processing times vary between states and territories.

The steps outlined above are a simplified overview of the process. Your specific situation may be more complicated depending on where you live, the nature of your relationship to the other person (or people) on the property title and whether or not there's a mortgage on the property.

When completing forms you may also need to verify your identity or have the forms witnessed.

Do I have to pay stamp duty when removing someone's name from a property title?

Short answer:

• If you are (or were) married or in a de facto relationship: Probably not.
• In other circumstances: Yes, you generally have to pay stamp duty when removing someone from a property title.

You can remove your ex-partner's name from the title and avoid stamp duty

If you're removing a partner's name (spouse or de facto) because of a relationship breakdown then you may be exempt from paying stamp duty.

You should get legal advice here, but in general there are 2 ways to avoid stamp duty in this situation:

• Obtain a consent order. You can apply to the Family Court for a consent order related to how your finances and property will be handled.
• Enter into a Financial Agreement. A Financial Agreement is a contract between 2 (or more) parties that covers financial arrangements between the parties, including property and other assets. You will both need legal advice to draw up this agreement.

In either case, you should seek independent legal advice. You can also call the Family Relationship Advice Line on 1800 050 321.

• Note: In Victoria, spouses and de facto partners can avoid stamp duty while transferring property between themselves only if the property has been their primary residence (their home) for the last 12 months. If not, stamp duty applies.

Situations where you will have to pay stamp duty

In other cases, removing someone's name from a property title means the remaining person on the title takes full ownership of the property. And they'll have to pay stamp duty.

This is calculated on the amount of the property you're taking ownership of, based on the current market value.

Here's a quick example:

• You own 50% of a house and your sister owns the other 50%.
• You bought the property for $500,000 several years ago. You each paid $250,000.
• Your sister agrees to sell her portion of the house to you. You remove her from the title.
• You have to pay stamp duty on the 50% share you've acquired.
• Because the property is now worth $600,000 you'll pay stamp duty on $300,000 (50% of the current value) regardless of how much you paid your sister.

You're liable for stamp duty even if you're gifted a share of the property and no money changes hands.

Removing someone from a property title by state and territory

If you want to remove someone's name from a property title yourself you can visit the following website depending on where you live:

• New South Wales. Visit NSW Land Registry Services.
• Victoria. Visit Land Use Victoria.
• Queensland. Visit Titles Queensland.
• South Australia. Visit Land Services SA.
• Western Australia. Visit Landgate.
• Tasmania. Visit Land Tasmania.
• Australian Capital Territory. Visit the Access Canberra Land Titles Office.
• Northern Territory. Visit the Land Titles Office.

If you find the information is hard to find or too confusing you can contact the relevant government office with a question. Or you can contact a conveyancer who practices in your state or territory.

How much does it cost to remove someone's name from a property title?

The costs vary widely depending on your specific circumstances but in general these are some of the costs you'll have to pay:

• Lodgement fee. This is the fee charged by the government for processing the change in title. The cost varies but costs around $150 in several states.
• Conveyancer fee. If you go with a conveyancer they'll charge you for their services, plus the lodgement fee and other costs. Ask how much it will cost upfront and compare a few conveyancers first.
• Mortgage discharge and registration fees. If you have a mortgage you may need to discharge the old loan and register the new mortgage when you refinance.

Do I have to remove my ex-partner's name from the property title in a divorce?

You don't have to remove anyone's name from a title just because you're getting divorced. It's a good idea to seek independent legal advice first, but you have multiple options.

1. Keep both names on the title and mortgage. You could agree to keep paying off the mortgage and keep both of you on the title. This is convenient and could work if you're both able to agree on your future financial plans. It's a good idea to draw up some kind of contract with a solicitor just to be safe.
2. Remove one person from the title and refinance the mortgage. This is the process outlined in this article. You may decide that one person will buy out the other or you may not.
3. Keep the property as an investment. You could both decide to live separately in new properties and convert your former property into an investment property. You'll still need to refinance the mortgage to an investment loan.

Frequently asked questions about removing someone’s name from a property title

• Can a property owner legally remove someone’s name from the title without their consent?

  No, this is not possible.

• If one partner wants to remove their name from the property title, can both names remain on the mortgage?

  No, only one partner’s name can remain on the mortgage if they are removed from the title.

• Do you have to pay CGT when removing someone from a property title?

  If you sell a property that isn't your principal place of residence, such as an investment property, you have to pay Capital Gains Tax.

  As with stamp duty, spouses or de facto partners may be able to avoid CGT on an investment property if one buys out the other, but this depends on where you live.

  Let's say two brothers jointly owned an investment property with a 50:50 split. One brother buys out the other. The buyer now owns the whole property and has to pay stamp duty on the newly acquired 50% portion.

  The brother who is selling has to pay CGT on the portion they've sold. Because they owned the property for more than 12 months there is a 50% discount on the CGT.

• How do I transfer a property title between family members?

  You can transfer a property title between family members and it is treated like any other transaction.

  Parents may decide to gift a property to their children or sell it to them, possibly at a discount. There are different ways to set up the transaction:

  1. Gift the property. No money changes hands.
  2. Sell at a discount.
  3. Sell at full market value.

  In each case the family member who takes ownership of the property has to pay stamp duty. And in each case the government requires the buyer to pay the stamp duty based on the market value of the property (the price you'd get if you sold it on the market).

  This does not apply if the family members are married or in a de facto relationship.

• What if my ex-spouse is not willing to co-operate and refuses to have their name removed from the title?

  Your solicitor will be able to provide you with legal advice on what to do in this situation.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

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