A step-by-step guide to changing property ownership

A property ownership structure describes the way a property is owned. These details matter, especially when selling.

Is your property owned by one person, a group of people or jointly by husband and wife? 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 different types of owner structure is important. 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.

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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 tenant. Here you own the property equally with someone else. Together you both have full ownership of the property. One joint tenant cannot pass their share onto another person when they die, for example. It passes instead to the other tenant.
  • Tenants in common. Here two or more people own specified portions of the property. This can be a 50/50 split, or 70/30 or any other combination. Each owner has their own rights to their share and can sell it to others of offer it in a will to someone else. The other tenants in common don't have an automatic right to the whole 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.

Adding your partner's name to your house

Why change the property ownership?

There are many reasons people may want to change the ownership details of the property they range from a change in circumstance or situation all the way to gifting to a family member or inheritance. Below is a list of the most common reasons people have for changing property ownership:

  • Divorce. When you purchase a property as part of a relationship and that relationship breaks down you will want to make changes to the details of ownership.
  • Change ownership structure. You may have originally chosen an ownership structure that no longer is relevant for you and anyone you may own the property with.
  • Family reasons. The owner of the property may have become quite ill or unable to properly look after their own affairs in order, they have decided to pass the property onto a family member or the owner may have died. All these situations would require that the family make changes to the ownership.
  • Change in circumstance. A property may have been purchased with the assistance of a friend or family member or as a joint purchase and now there has been a change in financial circumstance that allows one owner to buy the other out.

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.

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Steps involved in changing property ownership

There are a few steps involved in changing the ownership details of a property and these vary depending on the type of property ownership, how you are changing it and whether it is under a mortgage. Below are some of the key steps involved.

1. Check the mortgage. If the property still has a home loan attached to it you will need to have the details of this on hand as they may also need to be adjusted depending on your reason for making a change to the property ownership.

2. Get a copy of the property title. You can contact your local state office that looks after land titles for a copy of the properties title as a reference for changing the details.

3. Fill out a property title transfer form. This can be gotten from your government agency that looks after land titles for the form/s required to change the property ownership. You can also ask them for instructions on how to properly fill this out, alternatively if you are in NSW read our guide here.

4. Submit the title transfer form. Once you have completed the form with all relevant details you will need to submit it to your local state government land office that looks after property titles.

5. Pay the relevant fee. Any change of title or adjustment to property ownership will incur a fee to be paid to the relevant state government office.

6. Wait for the processing of the form. The relevant agency will then process the form and if all is well will make the relevant adjustments to the ownership details held by the state.

If you have a mortgage still attached to the property you will need to notify your bank of the change to property ownership and they may ask you to alter your loan documents to match the property title details.

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.

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114 Responses

  1. Default Gravatar
    JulieApril 9, 2019

    Are there any legal or tax problems with my elderly mother transferring ownership of her home to her 5 children as is listed in her will. She too old to manage this property now…

    • Avatarfinder Customer Care
      NikkiApril 10, 2019Staff

      Hi Julie,

      Thanks for getting in touch with Finder. Tax and legal obligations to the property will depend on the type of ownership structure of the property as stipulated in the will. Seek a legal advisor and a tax agent for help before transferring any ownership fo the property. Hope this helps!

      Best,
      Nikki

  2. Default Gravatar
    CindyMarch 28, 2019

    I am in QLD and I want to transfer my principal house to my son. Which forms do I need to fill out to transfer ownership of a property? Thank you

    • Avatarfinder Customer Care
      JeniApril 1, 2019Staff

      Hi Cindy,

      Thank you for getting in touch with Finder.

      Please note that any transfer must be registered in the Titles Registry in order to take effect. Please see this page as your guide in transferring ownership to your son in QLD. You may also reach the QLD’s land registry service on 1300 255 750 for all your titles enquiries.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  3. Default Gravatar
    MichelleFebruary 27, 2019

    My father passed away a few months ago and did not leave a will myself and and 2 siblings are going through probate, I just want to know what my rights are as I was his full time carer and also living in his house with him and still are living here, his rates are due and my siblings are refusing to help me pay it they think because i am still living in my dads house it’s my responsibility just wondering is this true?

    • Avatarfinder Customer Care
      JohnFebruary 28, 2019Staff

      Hi Michelle,

      Thank you for reaching out to Finder.

      Since you and your siblings are already undergoing probate. It is best to have this discussion with your siblings during this time. In that way, each one’s obligations as well as rights could be provided. Hope this helps!

      Cheers,
      Reggie

  4. Default Gravatar
    RosettaMay 6, 2018

    l bought a land through my husband’s relatives. My problem is they wrote Mr and Mrs instead of my name so I want to know if it is possible to change the name to my name as the owner of the land? Thanks

    • Avatarfinder Customer Care
      JeniMay 6, 2018Staff

      Hi Rosetta,

      Thank you for getting in touch with finder.

      Each state and territory has a central register of all land in the state which shows the owner of the land. The land title is the official record. It can also include information about mortgages, covenants, caveats and easements.

      Please go to this link for further info on housing property and land titles.

      I also suggest that you speak to an expert who can help you on changing the name of the title deeds.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

  5. Default Gravatar
    AdamApril 13, 2018

    My father is ill and my step mom (not legally married) is looking after him. The house is paided off. My dad has asked to change the house title to my name. Are there any responsibilities I need to know about or weekly/monthly fees. I want to know what I’m getting into before signing, thank you.

    Adam

    • Avatarfinder Customer Care
      NikkiApril 13, 2018Staff

      Hi Adam!

      Hi there, this is Nikki. Welcome to finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      Please note that we’re a product comparison website and we hold no affiliation with any company we feature on our site. We provide general information on products to assist you in your buying decision process hence we cannot recommend product / service that is rightfully fit for you.

      You may have to call a mortgage broker to check how much weekly/monthly fees you’d take in before you sign into the contract. You may inquire about the following such as type of property onwnership, property taxes, maintenance & upkeep & security, and insurance.

      Hope this helps! Feel free to message us anytime should you have further questions.

      Cheers,
      Nikki

  6. Default Gravatar
    NiteshFebruary 6, 2018

    Hi Team
    My wife and myself owns a property as joint Owners with varied percentage of ownership. NoReply w I want to change that ownership percentage due to change in earnings. We ave bought this property 2yrs ago in Victoria. It is on mortgage
    Would I have to pay any charges to do that.

    Thanks
    Nitesh

    • Avatarfinder Customer Care
      MayMarch 1, 2018Staff

      Hi Nitesh,

      Thanks for your inquiry.

      Basically, any change in the property ownership has associated costs like stamp duty and this varies from state to state. I would suggest that you get in touch with your state revenue office in Victoria and confirm if you’ll be exempted to pay for stamp duty/other fees as the change will only be between you and your wife (i.e. if no third party will benefit from the transfer/change).

      Cheers,
      May

  7. Default Gravatar
    EveOctober 25, 2017

    A couple are separating and have an investment property bought as a house land investment package however they now need to change this to one persons name.
    What costs are involved and what do they need to do. ( My relatives and they don’t have a solicitor)

    • Avatarfinder Customer Care
      JoanneOctober 25, 2017Staff

      Hi Eve,

      Thanks for reaching out.

      Generally, the cost of changing ownership would include Stamp duty, capital gains tax and fees. The details and steps involved can be found on this guide. On the same page you may also enter your details should you wish to speak with an expert to get professional help in transferring property ownership.

      In addition, the cost of changing the details of a property title also differ depending on the state or territory the property is located in so you may need to contact them directly to get the full list of fees and charges.

      Cheers,
      Joanne

  8. Default Gravatar
    donnaOctober 24, 2017

    I have brought a property now my partner would like to be on the contract, is their any way of doing this without all the charges.

    • Default Gravatar
      MariaOctober 25, 2017

      Hi Donna,

      Thank you for your inquiry.

      When you include your partner on your title, they will have a share of property and will be involved in your mortgage. Because of that, you may need to seek legal and professional advice through the process.

      Transferring a share or renegotiating any mortgage may require you to contact your lender in order for them to process the documents and there’s usually a fee for this.

      You may refer to this page on Adding Your Partner’s Name To Your House Title.

      Best,
      Maria

  9. Default Gravatar
    JoanOctober 18, 2017

    How can I go about getting my name off the title of a house I own with 2 other siblings? I don’t want to sell my third with them; I just want out!

    • Avatarfinder Customer Care
      JudithOctober 18, 2017Staff

      Hi Joan,

      Thanks for contacting finder, a comparison website and general information service.

      I understand your concern. You may check this page for a guide on how to remove a name from a property title.

      I hope this helps.

      Best regards,
      Judith

  10. Default Gravatar
    RebeccaSeptember 11, 2017

    If I have a property in my name ( not living in but family are living in it) and I have a mortgage on the property I currently live in now…what would be involved to transfer my name off the property family live in to them? and costs involved etc

    • Avatarfinder Customer Care
      JoanneSeptember 11, 2017Staff

      Hi Rebecca,

      Thanks for reaching out.
      The process of removing someone’s name from the property title depends on which state or territory your property is located. But generally, to start with, you’ll need to fill out a relevant transfer form that can be obtained from your state government department’s website.
      You’d also be best to utilise the services of a conveyancer so you’ll be guided properly with the process and the fees involved.

      The cost of changing the details of a property title differ depending on the state or territory the property is located in so please contact them directly to get the full list of fees and charges.
      You may also want to visit this link to get additional information.

      Cheers,
      Joanne

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