Non-sale transfers are a cost effective way to transfer property. Some reasons to complete a non-sale transfer is:
- to give the property as a gift to your children
- for tax reasons
- is part of a deceased estate or
- due to a relationship breakdown
You are able to transfer a title of a property without actually selling it. This can occur when you would like to transfer a property, like a house, to your husband, wife, a child or relative. Since legal and taxation documents are required for a non-sale transfer, engaging a property lawyer ensures the process is conducted efficiently and effectively. We help you navigate the legalities to ensure a non-sale transfer works best for both parties.
Transferring property between spouse or partner
Spouses and domestic partners can transfer the principal place of residence, or the family home, without needing to pay stamp duty. However, at least one person in the relationship must have lived continuously in the property for at least 12 months, within 12 months of transfer. This commonly occurs when tax benefits are involved.
Non-sale transfer through separation or divorce
A property can be transferred to a person as per the separation or divorce agreement, rather than selling it. This can be a sensible path to take for some people as this would save in stamp duty fees. The non-sale transfer during a separation or divorce usually occurs when a Property and Financial Settlement takes place.
Parents gifting property to their children (the Granny Flat Agreement)
Under Victorian law, parents are able to transfer ownership of their home to their children. This is also known as a Granny Flat Agreement. This allows the parents to maintain a pension and take advantage of Centrelink concessions like Rent Assistance. The ‘granny flat’ agreement isn’t necessarily a separate granny flat in the backyard. It can also be a designated room in the house that is an exclusive retreat for the parents. An example of this is having their own bedroom and bathroom facilities. If the Granny Flat Agreement is not prepared properly, there may be dire consequences, especially if the family has a falling out later in life or if the parents are required to pay the bond to enter an aged care facility.
Transferring ownership due to a deceased estate
In this unfortunate event, property is usually transferred directly to the person or people nominated in the Will via a non-sale transfer. However, there are many legal issues that need to be identified and dealt with before this occurs. Please visit Grants of Probate and Administration of deceased estates for more information.
Victorian law compels us to deal with property rights in a specific way. Whichever reason you require a non-sale transfer, you need to be informed of the legal, taxation and land transfer duty consequence.
Mackinnon Jacobs Lawyers ensures you are protected from every angle and can assist with all aspects in relation to non-sale transfers. If would like our experienced lawyers to provide you with personal, tailored advice, call or contact us via email.
Would you like to know more?Contact our property law expert Brian Irving on 1300 424 452 to receive personalised advice about your case.