Hi !
Just as a matter of interest, would anyone happen to know if in the case where the title of a residential property were changed over to someone else’s name (ie. transfer to a friend or relative), without actually going through the formal sale of the property, would that still incur stamp duty charges?
Cheers!
Between spouses, there is no stamp duty charge. On properties with no mortgage (that is, owners have the title), they can swap back and forth as they please. Either names or both.
Other than that, you will pay stamp duty on transfer, with or without a contract of sale.
Without one, you’d best have an independent valuation done as proof or value, or at the very least, sign a stat dec.
Michael
Jon,
Stamp Duty laws vary slightly in each state.
In WA you could not tfer property without the instruments (O&A) being stamped.
An exemption does exist for the PPOR held in one of the married couples names to get the other on the title. All other transactions except for ruling by the family law court (divorce) and through a will would be subject to duty.
Ben.
Hi Michael & Benson,
Thanks for you replies.
Could I just clarify Michael that if the property still requires a mortgage to be paid, then stamp duties are necessary for both married AND unmarried couples?
Or did you mean that, mortgaged or not, married couples are exempt from paying stamp duties?
Many thanks
Jon
Hi Jon. Even with a mortgage husband and wife can do the same, but I was highlighting the issue of no cost with a transfer.
With a mortgage the husband/wife owners will need to re-finance, so there may be costs there. Also, if transferring from the higher income spouse only to the lower income spouse only you may find that the application falls down.
That is, without the higher income partner, it may not be possible to transfer a property with mortgage to the lower income spouse on their own.
Could I just clarify Michael that if the property still requires a mortgage to be paid, then stamp duties are necessary for both married AND unmarried couples?
So “No” to transfer stamp duty, but “Yes” to any stamp duty related to a new mortgage.Or did you mean that, mortgaged or not, married couples are exempt from paying stamp duties?
They are exempt from paying transfer stamp duty, mortgage or not, but not mortgage stamp duty if a new or greater mortgage.Sorry about that.
Michael
Thankyou Michael,
Your information has been invaluable!
Best wishes,
Jon
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