It is important to ensure that the transfer of ownership is an arms-length transaction, in particular for stamp duty requirements. The NSW Office of State Revenue (OSR) administers the Duties Act 1997. Under this Act, a transfer duty liability is created when a person enters into a dutiable transaction relating to dutiable property in NSW.

At Bazaliza Lawyers we will prepare a transfer document noting the title details, agreed price and details of the transferor and transferee.

An original valuation no more than six months old, carried out by a certified valuer as opposed to a real estate agent, is required to accompany the transfer document when stamp duty is paid to the OSR. Stamp duty is calculated on the higher amount of the valuation amount and the agreed price for the purchase of the property.

The proportion of the acquisition is payable on the stamp duty amount. Stamp duty is required to be paid before registration of the transfer.

If there is an existing mortgage on the title, the mortgage will be required to be discharged on registration of the transfer. If the transferees have a mortgage then their mortgage will be registered after the discharge of existing mortgage has taken place.