Viewing 20 posts - 1 through 20 (of 22 total)
  • Avatar of PTWPTW
    Member
    Post count: 15

    Hi there,

    Have done a search but could not find the anything particular to my case. My wife and I will have our house paid off within the next couple of months and the loan is in both our names. Can the house be transfered directly to her name from the bank or would there be stamp duty involved? Edit: this is in Queensland.

    Cheers

    Avatar of crjcrj
    Participant
    Post count: 552

    S 151 Duties Act Qld only gives an exemption if the spouses will then hold the property jointly and it is their PPOR.

    Avatar of Qlds007Qlds007
    Participant
    Post count: 10882

    Stamp Duty would be payable on the transfer value.

    Richard Taylor I Ph 07 3720 1888 I richard@tayloredfinancialsolutions.com.au  Mortgage Broker specialising in investor loans. I 0-40 properties in a decade email me for a copy of my API interview. I www.tayloredfinancialsolutions.com.au Are you getting 1.5-2% per month (Yes per month) from your property investment ? Our clients are. Email us for details.
    Avatar of LinarLinar
    Member
    Post count: 521

    I agree.  The only time stamp duty is not payable when transferred within the family is when there is a marital breakup and subsequent division of assets, or when there is a death.

    Cheers

    K

    Avatar of Adam LaytonAdam Layton
    Participant
    Post count: 7

    Hi PTW

    For the sake of clarity – your house isn't in the bank's name just because they hold a mortgage over it. The house would already be in your name, or your wife's name, or most likely both if you have a joint loan facility. The bank's mortgage is registered on the title to the house securing the money loaned.

    Once your mortgage is repaid the bank will release it's mortgage, and your title will be clear. There won't be any change in the ownership of the house however.

    Unfortunately, the responses thus far are correct insofar as you can't transfer your interest in the house to your wife without incurring stamp duty in Queensland unless particular circumstances apply.

    Congratulations on paying off your loan though!

    Cheers
    Adam

    Avatar of PTWPTW
    Member
    Post count: 15

    Thanks all for the info.

    Perhaps a divorce, change of assets, then remarry is on the cards…..

    Wonder if there is a minimum time between a divorce and remarry? Could turn the "paying the house off holiday" into a honeymoon, hehe.

    Avatar of Adam LaytonAdam Layton
    Participant
    Post count: 7

    Sounds terrifying.

    I suspect that you would get nabbed under the anti-avoidance provisions of the Duties Act, unfortunately, but the prospect of a divorce, property settlement and remarriage makes paying stamp duty sound cheap anyway!

    Cheers
    Adam

    Avatar of murphyfinancialmurphyfinancial
    Member
    Post count: 3

    Hi PTW

    Check out the following item on the Office of State Revenue website…
    Just copy and paste this to your web browser:

    http://www.osr.qld.gov.au/duties/transfer-duty/exemptions-and-concessions/home-or-property-owner-exemptions.shtml

    I think you'll find, as it is in Victoria, that there is no stamp duty payable on the transfer.

    Cheers

    Steve Murphy

    http://www.murphyfinancial.com.au

    Avatar of Adam LaytonAdam Layton
    Participant
    Post count: 7
    murphyfinancial wrote:
    Hi PTW

    Check out the following item on the Office of State Revenue website…
    Just copy and paste this to your web browser:

    http://www.osr.qld.gov.au/duties/transfer-duty/exemptions-and-concessions/home-or-property-owner-exemptions.shtml

    I think you'll find, as it is in Victoria, that there is no stamp duty payable on the transfer.

    Cheers

    Steve Murphy

    http://www.murphyfinancial.com.au

    Not so, I'm afraid.

    The exemption only applies if, after the transfer, the land ends up being owned as joint tenants or tenants in common in equal shares.

    As PTW wants to transfer the whole property to his wife, no exemption would apply.

    Cheers
    Adam

    Avatar of PTWPTW
    Member
    Post count: 15

    Thanks all for the info : )

    Cheers
    Paul

    Avatar of TerrywTerryw
    Participant
    Post count: 14283

    For these sorts of questions it is best just to look straight at the legilsation:

    http://www.austlii.edu.au/au/legis/qld/consol_act/da200193/s151.html

    DUTIES ACT 2001 – SECT 151

    151 Exemption–particular residences

    Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, by way of gift, from 1 party to a subsisting marriage or de facto relationship to the other party to the marriage or de facto relationship, of an interest in residential land if–

    (a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and

    (b) the residence will be the principal residence of the parties.

    Terryw. Newsletter: https://twitter.com/FinlawPtyLtd/ Law, Estate Planning, Trusts, SMSF, Tax and Finance http://www.terryw.com.au/ | http://www.finlaw.com.au/ | http://www.Loan-Experts.com.au/  
    Avatar of fishngymfishngym
    Member
    Post count: 45

    (a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and

    (b) the residence will be the principal residence of the parties.

    I have previously contacted the QLD OSR in relation to the definition of WILL be the principal place of residence. They passed me around without really giving me an answer to rely upon.

    From memory the Macquarie dictionary also defines WILL as intent. I intend to move into the residence in 10 years time.

    Avatar of RenovataRenovata
    Member
    Post count: 9

    Wouldn't it just be easier to call a someone who does conveying? Surely they can tell you over the phone?

    Avatar of TerrywTerryw
    Participant
    Post count: 14283
    fishngym wrote:

    (a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and

    (b) the residence will be the principal residence of the parties.

    I have previously contacted the QLD OSR in relation to the definition of WILL be the principal place of residence. They passed me around without really giving me an answer to rely upon.

    From memory the Macquarie dictionary also defines WILL as intent. I intend to move into the residence in 10 years time.

    OSR staff can't provide legal advice, but have a look on their website and see if you can see any rukings about this. Also do a google search on the section of the act in question. Then look at the Acts Interpretation Act (QLD) and see if you can get any tips there. You may have to look at the intent of the drafters of the legilsation – they probably had in mind a single person adding their new spouse to the title.

    But, you may qualify if you just stay in the house a bit longer as it is still your main residence.

    Terryw. Newsletter: https://twitter.com/FinlawPtyLtd/ Law, Estate Planning, Trusts, SMSF, Tax and Finance http://www.terryw.com.au/ | http://www.finlaw.com.au/ | http://www.Loan-Experts.com.au/  
    Avatar of TerrywTerryw
    Participant
    Post count: 14283

    Hang on

    it subsection says:

    "(a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and "

    You will not qualify as you want  the property to be owned by your wife only.

    Terryw. Newsletter: https://twitter.com/FinlawPtyLtd/ Law, Estate Planning, Trusts, SMSF, Tax and Finance http://www.terryw.com.au/ | http://www.finlaw.com.au/ | http://www.Loan-Experts.com.au/  
    Avatar of PTWPTW
    Member
    Post count: 15

    Hello there

    The reason this all came about was that I work o/s and up until 1 July enjoyed the freedom of tax free pay under the 23AG ruling. Now that the %&*$%*@! gubberment in their infinite wisdom has abolished that, I started looking at other options. One of these was becoming a non-resident for tax reasons and therefore transferring all assets. A simpler way would be to get divorced….There are other options which have come to light, so at this stage I won't be transferring anything. Thanks for all advice and continue to use this thread for whatever benefit suits you : )

    Cheers

    Avatar of fishngymfishngym
    Member
    Post count: 45

    G'day Terry,

    From memory (while ago now) the Acts Interpretation Act and Duties Act could not assist me any further with definitions. I don't believe there were any Revenue Rulings of assistance either.

    PTW,
    You had better treat her good or she might not be keen to give you another go. It takes a special kind of woman to want to get dviorced for future financial gain.

    Best of luck mate.

    Avatar of PTWPTW
    Member
    Post count: 15

    No one knows how the $%#@&*@ are going to implement it. Losing 50K a year, in one scenario, is a powerful motivator….

    Avatar of AAQAAQ
    Participant
    Post count: 32

    Hi Guys;
    There is a way of minimising stamp duty in QLD and it took a lot of phoning to find a solicitor who knew about it.
    You can legally put the house in your wifes name only by using the terms "for love and affection" It doesn't completely get rid of the stamp duty but ours went down from $14,000 quoted by a conveyancer to $3600 and I was happy to pay that solicitors fees on top I can tell you!
    We have just done it but you need a solicitor not a conveyancer to do the paperwork!
    Hopefully this will save you a few $ and you wont have to get divorced!

    Avatar of Adam LaytonAdam Layton
    Participant
    Post count: 7

    Howdy AAQ,

    Transferring the property for "love and affection" is basically gifting it.

    Unless you meet the criteria for the exemption it makes no difference what form of words you use for the consideration (i.e. an actual figure, "By way of gift" or "natural love and affection"). You still have to get an appraisal and pay duty on the value of the property.

    Maybe your conveyancer forgot to take the Primary Place of Residence concession into account?

    Cheers
    Adam

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