A member asked almost 9 years ago

Knock down and rebuild on parents land - title split legal requirements

My parents are looking to knock down their house and build a duplex where my
husband and I would occupy the other side. We would pay for the rebuild and I
was told to make things easier/cheaper they could add me to their Certificate
of Title and I could use that land as security to get a loan. I need to find
out what legal aspects need taking care of:

1. What is involved in adding someone to an existing CT? 

2. What are my parents options in terms of contracts for protecting themselves?

3. If we subdivide and my parents sell us the land - would we be eligible for the First Home Owners Grant?

Any other relevant advice would be greatly appreciated.


Law Advisor Research Team
Researchers at LawAdvisor

Hi there. You may find the following information helpful:

1. Adding someone to an existing CT In order to add someone to an existing Certificate of Title (CT), the current property owner needs to transfer an interest or share in the property to the person whose name is to be added. This means your parents would need to decide what interest in the property you are to take, and then execute the proper legal documents to effect that transfer. Specifically, a Transfer Form plus a Notice of Sale or Transfer of Land form would need to be completed and lodged with NSW Land & Property Information together with any fees. On completion of the transfer, the existing Certificate of Title would be updated and reissued with your name on it, as well as your parents’ names. Note that, if your parents’ property is mortgaged, they should first speak to their lender about whether it is possible to transfer an interest in the property to you.
2. Protecting your parents’ interests It is possible to transfer property between family members by simply using a Transfer Form (as described above), without the additional effort of preparing a full contract of sale without appropriate disclosure documents (e.g. title searches, council zoning certificates, etc). However, when dealing with such a valuable commodity, it is advisable that the transaction is properly documented. This can help minimise disputes between parties down the track if any were to arise. It is also recommended that you and your parents obtain separate and independent legal advice before proceeding with the transaction. This prevents any potential conflict of interest between you and your parents, and ensures their legal rights are adequately protected.
3. First Home Owner Grant The First Home Owner Grant (New Homes) is valued at $15,000 (reducing to $10,000 on 1 January 2016) and applies only to brand new homes. To be eligible, an applicant or their spouse must not have previously been a home owner, the value of the new property must not exceed $750,000, and the applicant must live in the new house for a continuous period of 6 months after it is built. Other eligibility criteria and more details about the grant are available at www.osr.nsw.gov.au/grants/fhog.
4. Other information A transfer of land, even if between family members for no value, will still attract stamp duty in NSW. This means you (as transferee) would need to pay stamp duty to the Office of State Revenue, calculated based on a current valuation of the property.


Suggested way forward

Dealing with interests in land can be risky because of the significant value of the asset and the complexity of property law. A lawyer or conveyancer can advise you on your legal options and take care of the legal process to transfer the property. By pressing the “Take Action” 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.

Answered almost 9 years ago   Legal disclaimer

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