Guide to changing property ownership

Guide to changing property ownership

Rates and Fees verified correct on October 27th, 2016

Because property is likely to be the most valuable asset you ever own, it's important your ownership structure is right.

A property ownership structure describes the way the property is owned. Is it owned by one person, a group of people or jointly by husband and wife? When it comes time to sell the asset, these considerations are important.

If it’s a shared property, you could put the property in the highest income earner’s name to maximise gearing benefits. Or you could share ownership between high and low income earners to spread the capital gain and income tax liabilities.

Knowing the options that are available to you is important. Your personal situation can often change in life, and so will your investment needs. You may have a relationship breakdown, you might start a property business or you may just want the benefit of tax savings. This guide to changing property ownership will help you determine which property ownership structure best suits you.

Types of ownership structure

  • Outright ownership: In this structure you are the sole owner. Your name alone is on the deed and are responsible for the property.
  • Joint ownership: Here you own the property equally with someone else. This shouldn’t be confused with “owners/tenants in common” where owners can have a different size share in the property.
  • Trust ownership: This is where the property is owned and managed by a trust or another figure. A trust is an entity which holds assets in trust on behalf of its beneficiaries. There are a number of trust types around, although the most commonly seen are family trusts. These are useful for when property is being left to younger family members.
  • Company ownership: You can also own property through a company. This isn’t the best setup for the small investor, because profits are taken up by business taxes and income tax should you wish to take a wage from the investment. On the other hand, it could be beneficial if the owner’s tax rate is over 30% because the company will pay less tax. This all assumes it is an investment property and not the owner’s principle place of residency, in which case the owner would not pay any capital gains tax on a sale.

Costs of changing ownership

  • Stamp duty. Changing property ownership will incur stamp duty, which will be calculated based on the valuation of the land. Usually it is between 3 - 5.5 per cent. In some states like Victoria, stamp duty can be waived. Find out more here.
  • Capital gains tax (CGT). Selling or transferring ownership may incur a CGT. If the sale involves an investment property, then the seller will need to pay CGT. As a general rule, it is 25% of the capital gain. Read more about Capital Gains Tax
  • Fees. When you sell or transfer the title of a property, you change the conditions of the mortgage, which may incur break fees. If you require a lawyer, there may also be legal fees and valuation fees.

Speak to the Property Tax Specialists

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The Property Tax Specialists are an award-winning leader in the Australian taxation field, with strengths in accounting, marketing and business. They can help with matters of asset protection, property investing, accounting and taxation, including capital gains tax enquiries. Fill out this form with your query to get into contact with an expert from Property Tax Specialists today.

Beware of tax legislation

There are anti-tax avoidance rules that state you must have a valid reason for transferring the title of a property apart from tax benefits. Be sure you know your reason and be certain to document it.

For more on changing ownership, check out this guide by finance expert Stuart Wemyss.

Want to speak to a financial planner?

A financial planner from Commonwealth Financial Planning could help you plan your investments.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at Talk to him to find out more about home loans.

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82 Responses to Guide to changing property ownership

  1. Default Gravatar
    Gai | August 22, 2016

    Hi, My Mother died recently and left her property to me. I want to keep the house as an investment. Mum had a small mortgage on the property and I am in the process of taking out my own loan in order to pay out what she owed. The loan officer wants a “Copy of Transfer of Mortgage into my name” before they will proceed with my loan. I don’t understand what that actually is. Do I need to go to my mother’s bank to have her mortgage changed into my name?

    • Staff
      May | August 24, 2016

      Hi Gai,

      Thank you for your question. You’ve come through to – we are a financial comparison website and general information service, we are not mortgage experts, so we can only offer general advice.

      Basically, yes, since the property is on a mortgage, you will need your mother’s lender consent to have her name removed from the property title, which may also involve getting new mortgage documents drafted out.

      In the process of having your mother’s name removed from the title after getting consent from the lender (or bank), you can start by filling out a relevant transfer form which can be obtained from your local state land department’s website. You can check the list from this page (in the blue box).

      Though this procedure can be done by yourself, it’s still best to seek out the services of a conveyancer who can assist you with the whole process and explain the fees that may be involved.

      After having done all this, you can then proceed with your home loan application.

      I hope this has helped.


  2. Default Gravatar
    Elizabeth | August 10, 2016

    How much will it cost my dad to get his name on the title of the house that my aunt left to him in her will?

    • Staff
      May | August 10, 2016

      Hi Elizabeth,

      Thanks for your inquiry.

      Basically, a title transfer normally involves adding or removal a name from the title deed which can be completed by filling out a transfer of title form, which you can access from your state government website.

      You can find the possible costs that your father may have to pay in putting his name on the property title on this page. Aside from fees, he may also have to pay stamp duty, usually between 3%-5.5% and capital gains tax. Though in some states, stamp duty will be waived so it’s best to check with your State Office of Revenue to see if your father can realise an exemption.

      Furthermore, you may like to read our guide on how to minimise costs when transferring property within the family, which you might find helpful.

      Hope this has helped.


  3. Default Gravatar
    Walshy | July 10, 2016

    Hi just want to know I have built a house in a new estate in boyne island that has Covent I have to abide buy . My questions is if I sell the house does the new owner have to continue to abide by the Covent or is it all voided and he can do any modify house, fences, sheds ?

    • Staff
      Jodie | July 11, 2016

      Hi Walshy,

      Thank you for contacting we are a financial comparison website and general information service we are not property or real estate experts and can only offer general information and advice.

      The rules and regulations around the covenant that is held over your property should be set out in the original contract, you should also be able to a copy of these details from the developer. Generally speaking, covenants still apply even if you resale unless the covenant was only for a specific length of time and you sell past this if you sell before this or there is no time restriction on the covenant if you sell the property the new owner will also need to abide by the covenant.

      It would be best to refer to the rules regarding your specific covenant.


  4. Default Gravatar
    Carolyn | May 29, 2016

    My husband died suddenly 4was not mentioned i weeks ago. A rental property in both our names and because of this will become mine in entirety. I have now received the death certificate and have been advised by the Executors of the Will that I may now go ahead and have this property changed to my name only. Please advise how I should proceed with this.

    • Staff
      Marc | May 30, 2016

      Hi Carolyn,
      thanks for the question, and sorry to hear about your loss.

      To start this process you’ll need to contact the relevant land department for your state, and from there you’ll need to fill in the appropriate form. You can find a list of state departments here.

      I hope this helps,

  5. Default Gravatar
    David | April 23, 2016

    Hello, My parents recently purchased a off the plan apartment, no stamp duty was paid just a deposit. Is it possible to change it so that I purchase the property before the is built.

    • Staff
      Belinda | April 26, 2016

      Hi David,

      Thanks for getting in touch.

      I’ve emailed you to follow up with this enquiry.


  6. Default Gravatar
    Mark | April 21, 2016

    Hello Belinda,
    My wife and I have owned an Investment property for approx 11 yrs in west Oz.
    The property is in both of our names, we would like to put the property in my name only to help with gearing.
    My wife does not earn enough to get any tax break from it , so at present we are only getting 1/2 of the tax break from the property. Will there be any stamp duty fee’s for putting the property solely in my name and removing hers?
    Any help would be appreciated , Thanks.


    • Staff
      Belinda | April 21, 2016

      Hi Mark,

      Thanks for reaching out.

      You can read about the process and costs involved when removing someone’s name from the property title on this page.

      We also have a guide about how to minimise costs when transferring property within the family which you might find useful.

      Generally, you will need to pay stamp duty when transferring property ownership which is normally between 3-5.5%. However, you’ll need to check with your state government because in some states and territories, such as VIC, stamp duty is waived for some transfers. Check out our stamp duty calculator.

      As the property is an investment, you’ll need to pay capital gains tax (CGT) which will be around 25% of the capital gain.

      Keep in mind that you may also need to pay valuation and legal charges to assist with the transaction.

      I hope this helps you!


  7. Default Gravatar
    Jennifer | April 1, 2016

    Hallo ,Just want to find out how I can cancel or make null & void a Mortgage we had drawn up for my daughter.

    • Staff
      Belinda | April 4, 2016

      Hi Jennifer,

      Thanks for reaching out.

      If you would like to cancel a mortgage product, you’ll need to get in touch directly with the bank or lender that issued the mortgage.

      Kind regards,

  8. Default Gravatar
    Terese | March 29, 2016

    What are the requirements of legal ID for the transfer of a property to another. In regards to correctly spelt names etc? E.g if a lottery home is won and the ticket name spelling is incorrect in respect to required Id ?

    • Staff
      Belinda | March 30, 2016

      Hi Terese,

      Thanks for reaching out.

      The rules surrounding property ownership are governed at a state level so your best course of action would be to speak to your state government department regarding the ID requirements. For instance, if the property is based in NSW, you should get in touch with the NSW Land and Property Information.

      The evidence required to lodge with your paperwork will depend on the nature of the ownership change. However, you’ll generally need to provide your Australian birth certificate or Australian citizenship certificate, your passport, your current Australian driver’s license, a current bank account statement and a current photo card.

      If possible, I would request for the ticket name to be changed to reflect the correct spelling before you proceed with changing the land title.


  9. Default Gravatar
    Kieran | March 3, 2016


    my wife and I bought into her parents property as modifications had to be made and an extension was the easiest way and we all live at this one property. time has passed and we want to go separate ways and sell the property.

    My Question is how is the money spilt once the property is sold, bearing in mind that there is money owing to the bank on this property and my wife and I percentage is 25 percent of title?

    Regards, Kieran.

    • Staff
      Belinda | March 4, 2016

      Hi Kieran,

      Thanks for your enquiry.

      I’ve sent you an email to follow up with this.


  10. Default Gravatar
    Johanna | February 16, 2016

    My partner and I are not married. We bought a house jointly 4 years ago. We now wish to remove his name from the property. What is required to do this? Would stamp duty be payable (again?!)?

    • Staff
      Belinda | February 17, 2016

      Hi Johanna,

      Thanks for reaching out.

      If you’d like to learn more about removing your partner’s name from the property title, you can visit this page.

      Above on this page you’ll find a summary of the potential costs that you may need to pay when changing the property ownership- including stamp duty. Unfortunately, in some cases stamp duty is payable again (it is generally calculated at 3-5.5%).

      However, in some states, stamp duty will be waived so it’s best to check with your State Office of Revenue to see if you can realise an exemption.

      All the best,

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