Hi I have a questions regarding property settlement and stamp duty. My soon to be ex husband and I have a townhouse which we purchased only a couple of years ago with a 5% deposit. He is in NZ living with his new partner and kids, he stated after fees etc there would be nothing left after we sold it and said he would sign it over so he didn’t have to top up the mortgage. My question is as a single mum once I get my full time job back and should I get approved to take the house will I have to pay stamp duty? Or any extra fees that occurs if he just signs the property over? The townhouse was 340000 when we purchased it and around 310000 to pay now not sure in the current market how this will look to the bank. We have never owned a property aside this one in QLD. Thank you
Property settlement in separation
- Thread starter Katt619
- Start date
Is the mortgage in joint names or just his name? .... If so that existing loan will have to be finalised, & you will then have to be approved for a loan, ie, the bank accepts that you can service the repayments with your current income ..... usually there are some fees associated with this process, the bank will be able to tell you what they are...
Yes there will be transfer costs (costs vary from state to state).... If you have a consent order from the family court, or a binding financial agreement (these are formal legal documents setting out how you are to divide assets) then in most cases the stamp duty is waived or at least greatly reduced
There's a couple of moving parts to this. Aside from dealing with the bank (which is a process unto itself), there will be two particular issues for you: (1) transfer duty (stamp duty) and (2) Titles Office fees.
Re transfer duty: There is an exemption from transfer duty available to transfers of property between ex-spouses as long as the requirements are met. The requirements are that you must have either a court order or a financial agreement under the Family Law Act (specifically made under sections 90, 90L, or 90WA of the Act). A copy of the orders/agreement must be lodged to obtain the exemption.
Otherwise, transfer duty will be assessed on the value of the property. Since you are considered related parties you'll need to get an appraisal/valuation, and duty will have to be paid on the highest value attributed to the property under that appraisal/valuation for the share being transferred (e.g. half share). For example, if the appraisal says the value is between $330,000 and $360,000 - you calculate transfer duty on $360,000 and then multiply it by the share in the property actually being transferred.
If it is your principal place of residence, you'll get a further reduction on the duty payable.
You can find a calculator here: http://amun.osr.qld.gov.au/sap/osrqld/wd_tfr_calc_com#
Re Titles Office fees: There's no exemption for Titles Office lodgement fees. If the transfer is pursuant to orders (effectively zero consideration), the lodgement fee is $192.00. Otherwise, the fee is based on the consideration at the current rate of $192.00 for the first $180,000 of consideration, and a further $36.00 for each $10,000 or part thereof after the first $180,000.
Re transfer duty: There is an exemption from transfer duty available to transfers of property between ex-spouses as long as the requirements are met. The requirements are that you must have either a court order or a financial agreement under the Family Law Act (specifically made under sections 90, 90L, or 90WA of the Act). A copy of the orders/agreement must be lodged to obtain the exemption.
Otherwise, transfer duty will be assessed on the value of the property. Since you are considered related parties you'll need to get an appraisal/valuation, and duty will have to be paid on the highest value attributed to the property under that appraisal/valuation for the share being transferred (e.g. half share). For example, if the appraisal says the value is between $330,000 and $360,000 - you calculate transfer duty on $360,000 and then multiply it by the share in the property actually being transferred.
If it is your principal place of residence, you'll get a further reduction on the duty payable.
You can find a calculator here: http://amun.osr.qld.gov.au/sap/osrqld/wd_tfr_calc_com#
Re Titles Office fees: There's no exemption for Titles Office lodgement fees. If the transfer is pursuant to orders (effectively zero consideration), the lodgement fee is $192.00. Otherwise, the fee is based on the consideration at the current rate of $192.00 for the first $180,000 of consideration, and a further $36.00 for each $10,000 or part thereof after the first $180,000.
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