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.
If you’re in a joint home loan can a borrower be omitted from the contract of sale/ title, or is this considered fraud?
Hi Nat,
Any owners listed on the property’s title must be listed on the contract for sale, or the sale would be considered fraudulent.
Generally if you apply for a joint mortgage, both parties will also have their name on the property title or deed and both are considered the legal owners of the property.
If your name is not on the title but is on the loan, some lenders may see you as a guarantor rather than an equal borrower or they may consider you don’t hold any ownership or rights to the property, even though you might be held responsible for repaying the loan.
Every bank and lender has their own policies so it’s a good idea to check with your bank before signing any contract.
I own a factory in Kalgoorlie W.A only in my name for the last 15 years and now i want to include my wife’s name for taxes purpose What is the best way to do that Regards.
The best approach is to talk to a conveyancer.
Where can I get a Transfer of Title form?
Hi Georgia,
It depends on your state or territory. It’s usually the land registry office or titles office.
Kind regards,
Richard
I would like to add my adult son to the title of my house. He does not live with me all the time , but does act as my carer.
How is this done? Is a fee payable ? I am a pensioner living in Victoria
Hi Nora,
You can do this by completing a title transfer form. But you might be better off getting a conveyancer to help.
Your son may also have to pay stamp duty when you add his name to the title.
I hope this helps,
Richard
Hi!
My parents are getting on in years, and own their home with no mortgage. They are wanting to put me onto the title of the property, to avoid any issues with Will challenges with and an estranged son.
They are currently both on the title, and are wanting to add me to it so we own it in 3 shares. My question is regarding stamp duty payable. They will ‘gift’ me the share in the property, but I am assuming that stamp duty will be payable on my share. If so, how is this calculated? Is it based on the entire value of the property, or is it based on what my third share would be worth after the valuation? For example, is the property is valued at $750,000, and I get added as one of 3 people on the title, what would my stamp duty payable be based on.
Thank you for your time.
Hi Ryan,
You will likely need to pay stamp duty based on the current value of the property. If you are being gifted a portion of the property, you will likely be charged a corresponding portion of the full stamp duty. But it’s worth consulting a conveyancer and checking with your local state revenue office.
Kind regards,
Richard