Confused .. transferring Title in Victoria

Have a bit of a confusing question , not even sure how to ask it . Got a mortgage for a house in 1988 with my two brothers all tenants in common of one equal share . We then bought a second property in 1993 under the same arrangement Older brother and I subsequently bought out younger brother just after that so effectively we owned half of each house . The mortgage and title stayed in the three names . I lived in one house ( my present house ) older brother in the original . He decided to move to Queensland in 2003 and we sold the original house . For convenience we re-financed again with ANZ in the three names to secure my house . Being close knit not a problem . When the first house settled I paid out older brother and he moved . Effectively leaving me sole owner of the remaining house . Title and mortgage still named three equal owners . I have subsequently paid off the mortgage and wish to amend the title which which still needs to be registered as Nil mortgage to Show me as sole owners . I have written agreements between us stating I bought them out and they are more than happy that this in fact occurred . All three of us are aware this is to be done and are quite willing . My question is how to approach it . I realize there will be Stamp duty implications but as I am already one third owner not sure how to value the remainder or would it have to be at 100 % value . Where would I start and what fees are to be expected . Big question I know but any direction would be appreciated

 

How did you buy him out if title hadn't changed? Trust relationship?

You should have paid stamp duty way back when the equitable ownership changed. You will now probably have to pay it on the transfer of legal ownership.

CGT issues as well - you will be up for CGT unless you can convince the ATO of the bare trust relationship

 

Thanks for the reply Terry . Basically it was done on trust with little money changing hands as I paid approximately 90% of the total . We had and still do on occasion buy and sell things to I guess maximize buying potential and minimize exposure . Never really considered the implications as we always intended on selling the house and moving to a bigger family home . Kids have moved and don't really want to sell now . Stamps were fully paid on the original house when we sold it . Neither home was bought to make a profit just as a primary dwelling . Realize now we should have paid then as the value of the house has risen and stamp duty will be a lot higher . At this stage it would be as if the other two were effectively gifting me their share . Have been told by my broker it should be a simple matter of transfer with me having to pay two thirds stamp duty for the transfer as I am already recorded on title as owning one third . Not sure of this advice or where to start . CGT ? , will have to cross that bridge when I get to it . As it is effectively my family home not sure on that one .

 

Don't take legal advice from a broker!

First place to start would be to get some legal advice concerning whether there is a trust relationship, then work out any stamp duty and CGT consequences. And then decide whether do transfer and if so how.

 

Can you explain the trust relationship further . And no I don't take legal advice from a Broker .

 

The beneficial ownership could be different from the legal ownership. If there are 3 legal owners and one beneficial owner then there may not be any stamp duty or CGT consequences on transferring title

 

Thanks Terry . Not entirely sure of your meaning sorry , not at all my field . Time to get some legal advice .

 

A solicitor should be able to sort out the transfer into your name.
An accountant should be able to advise on the tax situation.
Marg