The information in this page is correct at April 2020
Michael and Stephanie have been in a relationship for many years. When they met the property was in Michael’s name but they’ve both been paying the loan and contributing to the costs of the property for years. They recently decided that they wanted to have both names on the title as owners to reflect their shared contributions to the property.
Because they weren’t sure how to make the change happen, they contacted Clearman Lawyers to help. One thing they knew they would have to do as part of the process is to refinance the existing loan. They were very happy with the talented finance broker recommended by Clearman Lawyers because the process was easy and reduced their interest rate. There are no significant risk exposure factors or tax considerations.
Summary: Generally, a transfer from one spouse to both spouses is exempt from stamp duty. Titles Office fees are $192.00 (in 2020). You’ll need a ‘transfer of interest in property to spouse’ declaration, a basic valuation and possibly a Form 18 General Consent signed by your bank (if any). This kind of transfer is generally quick, easy and cost-effective.
Particular residences – transferring an interest to your spouse
You don’t pay duty on the transfer of an interest in your home to your spouse if all the following apply:
- the transfer is by way of gift
- after the transfer, you and your spouse will own the entire home as joint tenants or tenants in common in equal shares
- the home will be your principal residence.
Transferring an interest in property to your spouse may affect their land tax liability.
How to claim
To claim an exemption, you need to lodge:
- a dutiable transaction statement (Form D2.2) claiming the section 151 exemption
- an identity details annexure for each non-Australian transferor and transferee, when transferring real property (e.g. homes, apartments, business premises and vacant land)
- a transfer of interest in property to spouse declaration
This page is not intended to provide legal advice and does not create a client-lawyer relationship. This post is provided for general information purposes and should not be relied upon as a substitute for legal advice. If you need help with legal advice for your particular situation, please contact our office (see ‘Contact’ page at top right) and we’ll be happy to assist you.