Refinancing , conveyancing and transfer of title

[gprp]

Dear Forumites ,

I would to ask your collective wisdom to share your knowledge about transfers of property titles.

The situation :

My partner and I purchased a property more than 5 years ago . Recently , we've decided to separate . The title was registered under both of our names .
We've decided that I will keep the property and the other party will get half of our assets .

Obviously , transferring a title would be similar to a conventional refinancing process. Consequently , I've obtained a better deal from another banking institution .The formal letter of approval was issued on 12th Jan .

There is a special condition that makes sense to me :


The Borrower agrees and acknowledges that the Bank requires a duly executed and stamped transfer in
registrable form ("Transfer") from XXX to XXX for the property situated at XXX described as Lot XX on Plan of Subdivision XXX. A copy of the Transfer is to
be provided to the Bank prior to Settlement. The original Transfer is to be provided to the Bank at/or prior to Settlement.

I've asked my mortgage broker to specify all the expected expenses prior to the beginning of the process . She's mentioned the gov. fees for the title transfer , however didn't say anything about conveyancing involved . We had a chat yesterday and apparently " a conveyancer is required to transfer the title under my name ".

I would've thought that the service of a professional conveyancer is required when another party is involved in a buying/selling process. Essentially , this process doesn't involved any 3rd party . At the bottom line , I would like to avoid unnecessary expenses .

My apologies for the long message .

My question is simple. I am not sure if I understand the process correctly .

I've searched the web and there is a form that needs to be filled in to transfer
the property from husband and wife to husband or wife per below:

http://www.dtpli.vic.gov.au/__data/..._from_husband_and_wife_to_husband_or_wife.pdf

Can you please confirm that my understanding of the title transfer process is correct ?

Thanks in advance
gprp

 

[Marty McDonald]

You could try and do yourself i suppose but I wouldn't attempt it myself.

 

[Terry_w]

Good golly. Do you u derstand the consequences?

Itwould be a simple process to do yourself but what bout the tax consequences?

Payi g a solicitor for some advice as well as they conveyancing may cost you a bit but could save you a lot.

 

[gprp]

Thank you for your prompt response.

Terry_w what do you mean by tax consequences ? Please your clarification .

 

[Terry_w]

Thank you for your prompt response.

Terry_w what do you mean by tax consequences ? Please your clarification .

Income tax, stamp duty and possibly CGT. Different ways of transferring will mean different results. This is why you should get some professsional advice. There are also other legal consequences such as succession and asset protection.

 

[Peter_Tersteeg]

In any property transfer there is a legal process, even when it's between spouses. You can do it yourself, but given you're talking about an asset worth hundreds of thousands, do you really want to risk it on a DIY job? In Victoria the tax consequences are low, the main risk is ensuring you actually own the property at the end of it all.

If you're going through a separation, at some point there's probably a solicitor involved even if it's only to write up the separation agreement. They can easily handle this.

A broker can be expected to quote loan related costs. You can't expect a broker to tell you what a third party's legal costs are.

 

[gprp]

In any property transfer there is a legal process, even when it's between spouses. You can do it yourself, but given you're talking about an asset worth hundreds of thousands, do you really want to risk it on a DIY job? In Victoria the tax consequences are low, the main risk is ensuring you actually own the property at the end of it all.

If you're going through a separation, at some point there's probably a solicitor involved even if it's only to write up the separation agreement. They can easily handle this.

A broker can be expected to quote loan related costs. You can't expect a broker to tell you what a third party's legal costs are.

Thank you all for your responses.


I perfectly understand the role of the mortgage broker and I expect some level of honesty from a broker . I've asked a very simple question at the beginning : "What are the fees and expenses that I might potentially incur during the process ? I didn't ask to quote a specific amount . I've asked to specify the type of expenses to be prepared . The broker specified that I have to add a government fee for the title transfer , however didn't say a word about costs associated with conveyancing . This topic emerged only when I received a letter of approval. I still question professional integrity of my broker .

 

[Peter_Tersteeg]

You're absolutely entitled to honesty from a broker, but a broker doesn't have anything to gain by not telling you that there may be conveyancing costs. It's hardly fair to suggest they're being dishonest.

It's not unreasonable to assume that in a separation that you've got some sort of legal representation. It's also not unreasonable to assume that your lawyer take care of the transfer in their costing.

If you asked a lawyer what the costs in a separation might be they'd quote things like their fees, various legal costs and mediation costs. If you're lucky they'll indicate there would be costs in the transfer of the property but I doubt they'd mention that there might be a bank application fee. Is the solicitor therefore unprofessional and dishonest?

 

[thatbum]

You're trying to do your own division of relationship assets.

I hope you've had at least some advice from a family lawyer on what the family law consequences might be.

 

[Sean M]

GPRP given the point Peter has made it may be wise to sit down with your team of professionals and get some advice.

Also you need to speak to the right professional in each situation.

 

[cu@thetop]

You're trying to do your own division of relationship assets.

I hope you've had at least some advice from a family lawyer on what the family law consequences might be.

Sames.

Binding Financial Agreement or Consent Orders. In Qld if you have these the stamp duty is free so the lawyers fees in part pay for themselves. This doesn't even get into CGT dramas.

Ring the Law Society and speak to a family lawyer.

 

[gprp]

You're absolutely entitled to honesty from a broker, but a broker doesn't have anything to gain by not telling you that there may be conveyancing costs. It's hardly fair to suggest they're being dishonest.

It's not unreasonable to assume that in a separation that you've got some sort of legal representation. It's also not unreasonable to assume that your lawyer take care of the transfer in their costing.

If you asked a lawyer what the costs in a separation might be they'd quote things like their fees, various legal costs and mediation costs. If you're lucky they'll indicate there would be costs in the transfer of the property but I doubt they'd mention that there might be a bank application fee. Is the solicitor therefore unprofessional and dishonest?

Peter ,

I appreciate your comprehensive response , but each personal situation us different . I do speak with a family lawyer to finalise the dead of agreement and indeed he's mentioned the fees
associated with a title transfer . I can't give you any comments about his honesty or professional integrity , although he was upfront about potential costs involved . As I've mentioned previously , assumptions are irrelevant since I've asked a broker a clear question about potential fees involved. There are some additional aspects that I dislike about this person's attitude , though I will not mention it out of courtesy since the person might read it . The only conclusion I have from my experience is to submit the application to a bank directly in the future.