Title Change

Hi, I own a property in Sydney with my brother, I bought him out of it years ago and would like to change the title to my name so I can use some of the equity. Where is the best for me to go to get advice and help with the process? Will I have to pay stamp duty? Cheers

 

A solicitor & accountant should suffice - issues may include capital gains tax & stamp duty.

 

First get your loan pre-approved and then see a lawyer.
Yes you will pay stamp duty and it will be a CGT event.

 

Stamp duty on only 50% of the property is likely. CGT for your brother. For you your costbase now has two parts.

 

Check the stamp duty cost using an online calculator as it may not be worth the excersize depending on the property value? Stamp duty on a 1 mill NSW property is circa 41k and you would be up for half of that.

Also consider CDR lenders (common debt reducers) if serviceability is an issue due to "joint and several" borrowings. St George and AMP are examples of CDR lenders who will apportion the debt according to ownership instead of the whole lot when it comes to servicing current and future debt.

 

I suspect that since the OP "bought him out of it years ago" then the finance is no longer a concern.

Stamp duty would be payable on 50% of the value at the time of exchange. I believe that this is payable within 3 months of exchange of contracts, or on settlement (whichever occurs first). I am not sure how your "years ago" transfer fits in here (the property value would have changed over that time, plus the expenses during that period would need to be apportioned to whomever was on the title) or if there would be any penalties for late payment of stamp duty. I would suggest a lawyer look at this for you.

Also the OP's profile says that they are in NZ, I don't know how CGT is calculated in that situation.

 

Finance wow be relevant if change of legal ownership is happening and there is a mortgage on property.

Stamp duty may have been due 3 years ago too

 

I have seen osr and ato ignore duty and cgt events where related parties ignore a event 3 years before. And determine present value is consideration. Legal advice is always a great idea

 

If land tax has not been assessed since 2015, any chance it will be ignored?

 

No. its is just that you haven't been caught yet. When you sell you will need a land tax clearance certificate.

 

None at all. It may be under threshold (?)