Conveyancing on Transfer Between Related Parties

[Liz]

Would anyone living in Qld and doing their own conveyancing offer me some steps to follow. Here is the story.

My son is buying my PPOR from me which is currently rented out but has a mortgage on it. Although he is an expat currently living and working in the US, he has received preapproval from his bank to buy it.

Because he knows the property well and we have a trusting relationship the usual circumstances of search/legal protection don't really work in this scenario. So while some may give me warnings about this I'm not sure it's really necessary in this case. Typical things like building/pest inspections have already been done as a course of rental responsibility.

At this stage, I have purchased a contract from REIQ and done the latest Title Search. Those have been emailed to him for his signature.
So where do I go from here? I am concerned about how it all comes together. My questions are -

Do I need to do any other searchs on my son's behalf or the bank's behalf? I read on the forum here about "Transfer" Documents. What are they? He will pay me the Stamp Duty and I will go and do that on his behalf and do the change of Title. When do I do that? Or who should I ring to get the info.

I'm presuming I have to contact my bank and advise them of the sale which should happen about mid December and arrange settlement with them. Does anyone know what documents I need there apart from a current Title Search done on the day?

I'm retired and have to the time to do all this. And I did my own conveyancing many years ago but then I needed to do all the proper procedure.

This just seems to me to be a pretty smooth changeover. I'd rather people didn't post and say things like the risk, get a solicitor, convancyer, or whatever.

 

[wylie]

I know you don't want to hear it but.... if you don't know how to do it why not have your son pay the $600 or $1000 (it is tax deductible) and get a solicitor to do it.

I've also done my own conveyancing. It was many years ago, and I found it stressful and have not done it since those first few times. With your transfer, being a mother/son transfer, is easier, but you still need to know what you are doing.

 

[Terry_w]

You just need a transfer no contract needed generally, but maybe good for tax and asset protection reasons. You should get a valuation done too by a valuer which can be used for stamp duty and tax purposes (proof of value). Get transfer signed, pay the stamp duty and notify bank of settlement date.
Do some calculations about rates, land tax etc too. And dont' forget to do your discharge of mortgage.

 

[Fourex]

I have a copy of their kit for purchasing a house or residential land in Queensland.

Have a look at:

http://www.legalkitspecialists.com.a...tial_land.html

Might be $ 92.50 well spent if you are looking at doing it yourself.

It will list the steps which will need to be taken for the conveyancing which include:

Selection of finance source.
Obtaining search request forms.
Finance approval.
Reading and understanding the form 30a, 27a, 31a and 32a where appropriate.
Reading and understanding the complete contract including the standard conditions and any special conditions.
Signing contract.
Inspections.
Various searches Title, Council,Contaminated Land, Heritage and Environment, Department of Main Roads, Qld Rail, Power Link, Ergon, Land Tax.
Transfer forms.
Stamping.
Insurance.
Final title search.
Settlement.
Lodgement of documents to titles office.

I had the copy given to myself from a solicitor who is a friend of mine. I have not had any experiences directly with them.

You may need to keep in mind what is required for Stamping of the documents if the following applies to you:

When the purchaser intends to obtain finance by means of a mortgage over the property it is usual for the mortgagee (for reasons of security) to require the Transfer to be stamped prior to settlement so the Transfer can be registered immediately after settlement. Arrangements need to be made with the vendor or the vendor's solicitor for this to be effected. Once the vendor has signed the Transfer he will be reluctant to release this back to the purchaser because it is virtually an agreement that the transfer has been made. Therefor an arrangement for both parties to meet at the Office of State Revenue or for the vendor's solicitor to carry out the stamping on behalf of both parties will need to be made. (Expect a charge if the later occurs).

Hope this helps.

P.s. I hate spending money on my solicitor however most times it is money well spent.


Cheers,

Fourex.

 

[Rolf Latham]

if u are doing it to learn something along the way thats one thing, but for saving money I personally dont believe its worth the hassle and potential risk.

Almost every time we have a self conveyer, there are dramas at settlement for a number of reasons

ta
rolf

 

[Liz]

Thanks for your replies. Neither my son or I are likely to get tied up in knots about who owns the property when. But I think our respective banks may. So I'm more than happy to transfer ownership to him prior to settlement or whatever the case may be as suggested by "fourex". So could you just expand on the word "transfer". It seems it needs a form, and from whom do I get it?

 

[Fourex]

http://pan.search.qld.gov.au/search/search.cgi?query=transfer+forms&collection=qld-gov&profile=derm

Fourex.

 

[Terry_w]

For a family situation like this no checks may be necessary and you could proceed simply by filling in the transfer form and paying the stamp duty.

But it may be a good idea to get some legal advice as well because there could be other issues such as estate planning, asset protection planning. tax planning etc

 

[Liz]

Thanks Terry. But this is simply, Mum, I've got $450,000 to spend on an investment house, I'm in the US, can you find one for me. And me thinking, I've got one of those, a good one rented out, and I want to go to a retirement village. Good deal both sides. I think what I'll do is record my process here once it is through for the benefit of other readers.

 

[Liz]

But I'm still waiting on some advice on this mysterious "transfer form"

 

[Aaron_C]

The 'mysterious transfer form' is called a Transfer of Land documentation which is issued in standard form by the Titles Office in your State. You fill that in with the consideration (i.e. price), names of parties (purchaser / vendor) and you must present the original title along with this filled out transfer of land document to the titles office to effect the transfer.

 

[ozsupra]

As Aaron_C states, however note that the transfer form is very particular about the details contained thereon 1 mistake and it's null and void.
Could I suggest that you look at a website quicklaw.com.au

If you insist going down this path, they at least walk you through the whole process and more importantly supply you with all the required documents so that nothing is missed. Lastly they provide access to a lawyer if it all goes pear shaped.
Regards,
A.

 

[Terry_w]

As Aaron_C states, however note that the transfer form is very particular about the details contained thereon 1 mistake and it's null and void.

If there is a mistake made the transfer may not be in registrable form and may not be accepted. But it could just be redone.

 

[Liz]

Thanks so much. Appreciate your replies.

 

[Liz]

Change of plans and didn't go ahead with this "transfer between related parties" deal. Decided to rent our house out rent one from our son instead. Much better all around. Thanks for your interest and replies.