Adding owners to a property title
Hi. I would like to add my parents' names to the properties that are currently under my name only. Could you please advise the process and if there is any tax implications in doing this? Thanks.
Hi there. To include your parents’ names on the property titles of those that you currently own, they will need to have an interest or share in the property. This means that you will need to complete and lodge the following forms, for each property, with your local Land & Property Information (LPI) office:
- Transfer form 01T – This form records your parent’s acquisition of an interest in the property. You will need to indicate whether you and your parents are to hold the interest as ‘joint tenants’ or ‘tenants in common’. These terms have a special legal meaning and affect what happens to the property if either you or one of your parents dies. You should seek legal advice about the type of co-ownership you want.
- Notice of sale (NOS) form – This form can be completed online or ordered in hard copy from the LPI website.
- Original Certificate of Title – This document will be held by you or, if there is a mortgage on the property, the lender.
- Any mortgage documents – If the property is mortgaged, your parents' acquisition of an ownership interest in the property needs to be reflected in the mortgage documents. You should contact the lender to discuss the proposed transfer as soon as possible.
In NSW, transfer of land duty (formerly called stamp duty) is payable on most transfers of land. Your parents will be transferees of land and therefore required to pay duty to the Office of State Revenue (OSR). Duty is calculated based on the total dutiable value of the property subject to the transaction. If your parents are not paying money to acquire an ownership interest in the property, you will need to provide evidence of the value of the property. This will require a valuation of the property to be done. Note that the ‘Transfer form 01T’ referred to above must be stamped or marked by the OSR before presenting the form to LPI. More information on stamp duty can be found on the OSR website (www.osr.nsw.gov.au).
Suggested way forward
Dealing with property can be a complicated process. You should speak to a property lawyer about your circumstances, including any tax issues, as they can advise you of your legal obligations and assist in the process. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.