Example: Adding a long term partner to your property
John and Ling have been dating for 3 years and are ready to move in together. Ling already has a property in Dee Why, Sydney worth $750,000 while John lives with his parents. The agreement is that John will move into Ling’s property and start making 50% towards the monthly repayments.
Ling has paid $50,000 worth of repayments and provided a $100,000 deposit. She now owns $150,000 worth of the property, which means she owns 20% of the property.
Ling and John first approach the lender to see if they can get approval to get a joint loan. After reviewing their finances, the lender consents to adding John’s name to the title and mortgage. The lender also works with a third party legal service to obtain all the legal documents and a draw up a "tenants in common" agreement. This allows them to specify how much each person will own.
They decide that Ling will own 60% of the property (including the portion she already owns) and John will own 40%. After Ling and John fill in the appropriate paperwork and pay the transfer fee of $350, the house is now under both of their names.
My partner and I would like to add my name onto the deeds of your home which we are paying off. We live in Queensland. Where can we do this and how many will this cost us?
Hi Jane,
thanks for the question.
I’d recommend contacting the lender which currently has a mortgage over the property to initiate this process. They’ll be able to advise of the process and inform you of what forms you’ll need to fill.
I hope this helps,
Marc.
If a partner is added to a title deed, does one have to pay stamp duty on his/her share that is given to the partner?
Hi Gary,
thanks for the question.
Stamp duty exemptions are usually applicable on transfers of the matrimonial home. For more information please contact your office of state revenue.
I hope this helps,
Marc.
Hi
Can I use a quit Claim Deed in Qld to remove my Mother from my Mortgage Title. The bank in 2010 made us Tenants in Common instead of her income just being used to service the debt on paper. Mum doesn’t live here or has never serviced the debt and doesn’t want her name on the title.
Hi Karyn,
Thanks for your question.
This is possible if both parties agree to the Quitclaim Deed being signed.
Your lender will be able to assist you with the process and advise on the legal services.
Cheers,
Shirley
My daughter bought a property and we share the downpayment but the loan and ownership is under her as first time home buyer. We entered into contract last July 2013 and settled only last April 2013 where my daughter received the benefits as first time home buyer. We want to add my name on the ownership but I will pay in cash to pay half of the loan. Do I need to inform the bank re change of ownership or will I process the change of ownership from Registry of Deeds first?
Hi Lope,
Thanks for your question.
Please speak to your lender first to inform them of the change. They may be able to facilitate the change of ownership as well, to save you some of the effort.
Cheers,
Shirley
I want to put my son’s name onto our title deeds. Reason being is that we don’t wish our other child to have inheritance rights over the property when we die. Would our inheritor have to pay any tax or otherwise in being the new owner after our deaths?
Hi Curious,
Thanks for your question.
There could be tax implications if this property is to be your son’s investment property. Main residences are generally exempt from Capital Gains Tax.
For more information, please speak to your trusted accountant or solicitor.
Cheers,
Shirley