Although this may seem simple, unfortunately that is not always the case.
Changing names before settlement
If looking to make this change before settlement, so that the property will be in both people’s names right away, it will often cause issues with finance.
This is because loan documents and approvals are generally issued in the same name as the contract, and any changes to this can require a re-approval process, new documents and other requirements that cannot always be completed before settlement is due.
However, if new finance documents can be arranged in both people’s names, in NSW, section 18(3) of the Duties Act 1997 (NSW) (the Duties Act) will allow the transfer of the property on settlement to both people to be done without causing unwanted stamp duty problems.
Changing names after settlement
After settlement, any changes to the property ownership almost always attracts stamp duty. This is a significant expense, from tens of thousands, up to hundreds of thousands of dollars in many cases.
Thankfully, there is an exemption on stamp duty in NSW, for transfers between spouses and de facto partners in some cases under section 104B of the Duties Act.
Stamp duty exemption to change names after settlement
Generally, couples are able to transfer part ownership without attracting stamp duty in the following cases:
- The property is either the current primary place of residence for the couple, or vacant land that will be used as the couple’s primary place of residence.
- After the transfer occurs, the property will be held equally by both partners as either joint tenants, or tenants in common in equal shares.
- The couple is married, or de facto (meaning living together for at least two years before applying for this concession).
Therefore, we will often suggest to clients that if they wish to add their partner to the title of the property, if settlement is too soon, they are often better off settling in the same sole name on the contract, and completing the transfer between them and their partner after settlement with nominal stamp duty.
Individual circumstances should always be considered, and personal advice provided on each occasion, as timeframes, citizenship, finance requirements and other matters can influence the best approach and our advice in relation to any such transfers.
Contact our Property Lawyers
If you would like to discuss the content of this article or to see if we can be of assistance to you, please do not hesitate to contact our Property Lawyers.
Important Disclaimer: The content of this article is general in nature and for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication
