Sole owners of property have the opportunity to transfer ownership of half of their property to their partner (either married or de facto) so that the property is held in their joint names without incurring Transfer Duty.
There are a number of benefits in gifting a share in your property to your partner including; meeting refinancing requirements by banks (you may want to access some cash against the capital value of your property to renovate or even make another investment), to simplify your estate so that it is easier to manage when you die, or simply to have your property ownership reflect your commitment to your partner.
Normally the Office of State revenue would charge Transfer Duty amounting to thousands of dollars if you include another person on the title of your property however there are a number of exceptions which allow the ownership change to take place without having to pay the Transfer Duty.
The exempt transfer usually applies to individuals who transfer an equal share of a residential property which is their principal place of residence to their partner by way of a gift.
A common question regarding gifting property is what would happen if you and your partner divorced or separated. Generally the transfer of the property would have little impact at all and would be managed in the same way as if the property was still owned in your sole name.
If you think that you could benefit from a Transfer Duty exempt property transfer contact McCarthy Durie Lawyers to discuss your options. Phone 07 3370 5100.
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