Joint Tenants / Tenants in Common on Contact of Sale

Discussion in 'Legal Issues' started by thesuperman, 7th Jan, 2020.

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  1. thesuperman

    thesuperman Well-Known Member

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    On the front page of a Contract of Sale of a property transaction there's an option for either Joint Tenants or Tenants in Common. What happens if there's a group of 4 people in a family buying the property and when they sign the contract in their personal names they/their solicitor/the agent doesn't mark either Joint Tenants or Tenants in Common?

    What will the Land Title's Office register in their records? Do they even register in their records if it's held in JT or TIC?

    How is the property legally held if nothing is marked on the Contract of Sale?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Depends on the state.
    In NSW Joint Tenants is the default if not indicated. But it is the transfer document that is the one that determines how ownership is applied.

    Keep in mind that in some states there could be stamp duty consequences if the ownership percentages at settlement differ to the contract - such as QLD.
     
  3. thesuperman

    thesuperman Well-Known Member

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    How is it possible to know what has been recorded in the Land Title's Office and what was on the transfer document by the conveyancer?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    either get a copy of the transfer or the certificate of title
     
  5. thesuperman

    thesuperman Well-Known Member

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    Is there a way of doing a certificate of title search online for free or minimal cost? I came across this website but it doesn't seem to do it, it just shows who was the last one to do a Certificate of Title (CT) inquiry on you: Find records
     
  6. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Title searches are all online now excepting some old scheme docs which may need to be retrieved. None are free I believe. Minimal cost - You can pay more for extra info eg historical and retrieve transfer docs. Most I see through SMSFs are in the range $14-$20. State land title office will have info and advise who the providers are. It is mostly outsourced.

    eg NSW Access Titling Information - NSW Land Registry Services
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Think it costs $12 in nsw
     
  8. thesuperman

    thesuperman Well-Known Member

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    Thanks Terry :)

    Does anyone know if this can be done online and if so, where? I've been Googling about this but the only thing I come up with is that you need to go to the NSW Land Registry Services office in Sydney to do it
    Their website says "Title searches (over the counter delivery) $14.70": https://www.nswlrs.com.au/getattach...bd-9e1dae74b9c7/2019 2020 NSW LRS Fees Update
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Not a recommendation but if you were watching the Sydney Hobart yacht Race, a little known boat was sponsored by infotrack.

    @thesuperman - you obviously didn't read @[email protected] post.
     
  10. thesuperman

    thesuperman Well-Known Member

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    Ah ok, somehow I missed seeing Paul's post. Thanks for pointing it out. Also thanks Paul :)
     
  11. thesuperman

    thesuperman Well-Known Member

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    Wondering if doing a Title Search on a property you own (or your trust) is potentially tax deductible in the year it's done or is it not tax deductible at all?
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    How would it relate to the production of assessable income?
     
  13. thesuperman

    thesuperman Well-Known Member

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    It doesn't. Thought the answer would be a "no" but thought I'd ask anyway :)
     
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes I think no unless income produced
     
  15. thesuperman

    thesuperman Well-Known Member

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    Are there any disadvantages for a husband & wife to own property as JT as opposed to TIC? Looking it from the point of view if one of them were to be sued or bankrupt and the property was held as JT, would only 50% of the house be at risk or the whole 100% of the house?
     
  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes many advantages as the property doesn't pass via the estate if one dies.

    No difference in bankruptcy though as JT is severed to TIC when one goes bankrupt.
    But TIC can have an advantage where the other dies just before the survivor becomes bankrupt.
     
  17. thesuperman

    thesuperman Well-Known Member

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    If husband & wife owns a property as TIC with a 50/50 split and they each have a will saying that all their assets will go to each other, if one was to pass away would there end up being any stamp duty charged?

    Do properties passed on via wills get stamp duty charged at all or it's all exempt? Let's say they choose to pass it onto their kids via their wills instead of each other.
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    generally no duty on transfers of assets to executor or beneficiary on death
     
  19. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A common issue is a will leaves a property to kids A and B and C. B & C dont want it and agree to acquire from A. The executor will transfer title to A when B & C contract and settle that and A pays B & C. The property would be exempt for 1/3rd of the duty since A has acquired 1/3rd from the estate and the other 2/3rds from B & C.
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This would depend on the terms of the will and the location of the property.
     

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