My parents want to change the title of our property which is currently in their name to mine.
What are some methods this can be done?
ThanksContract of Sale or Transfer.
Stamp duty will be payable on the Transfer or fair market value but other than that fairly straight forward exercise.
Just get your Solicitor to do up the Transfer documents and then lodge them for stamping.
Of course i am assuming that the property has no loan secured against or is used as security elsewhere.
Richard Taylor | Australia's leading private lender
Yes, we own the property outright.
Is there any way to do it without paying stamp duty.
gifting?
Gifting still incurs stamp duty.
Richard Taylor | Australia's leading private lender
The reason for the change in ownership is to allow me to do renovations to the property. As my parents reside overseas now, they think it would be convenient if I could take ownership.
Is there such a thing as giving consent to the ownership of the property?
Thanks
Seems a bit dramatic to change the ownership just to enable their son to do some renovations.
Why would you not get them to tell you what they want done and you merely project manage it from here organising trades, architects etc etc.
That way they dont incur Stamp Duty and possible CGT is it is not the principal place of residence or their is no prior exmption in place.
Richard Taylor | Australia's leading private lender
Haha, that is what I said to them as well.
It is the principal place of residence. Now I know that Stamp Duty cannot be avoided, can Capital Gains be avoided?
Thanks
If it is their only main residence the it is usually CGT exempt. It can still be CGT exempt if it s rented out for up to 6 years while they are absent. If not rented the exemption applied indefinitely. I think residence doesn't matter, but you may want to check this (ie if they are non-residents for tax puposes which is different to immirgation status).
Why not get a power of attorney from them for the propertry and then you can be authorised to act of their behalf.
No sense in paying stamp duty – but if in their names the equity may be trapped, but you could still possibly use it by cross collateralising a few loans.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
What is the process to get a power of attorney for the property so i can be authorised to act on their behalf.
Many thanks
It is just a 2 page document – you can find it for free online. Needs to be witnessed by a solicitor – not sure how you would go with them overseas. I think maybe an overseas lawyer could witness.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
and try http://www.lawcentral.com.au
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
