Half share transfer - NSW - no monetary consideration

[PetaStewart]

I have a matters where the transfer is as follows:

Mr & Mrs Smith own half share

Miss Blue owns other half share

Miss Blue is transferring her half share to Mr & Mrs Smith for no consideration.

I understand Mr & Mrs Smith will need to be in the PEXA workspace twice, as a proprietor on title and also incoming proprietor – however will that mean Mr & Mrs Smith will be charged 2 lots of PEXA fees and Miss blue 1 lot of PEXA fees?

[GeorgePolus · Accepted solution]

Hi @PetaStewart,

Unfortunately today, this transaction is out of scope in PEXA in NSW. 

Part Tenancy transfer from one Proprietor Party to another Proprietor Party is not supported. 

Today PEXA can only support Part Tenancy transfer in NSW where one or more, but not all, PoT Party(s) are relinquishing their share to completely new Party(s).

From November 2018, this shortcoming will be rectified.

Also, from a billing perspective, if a Party is represented by the same Participant as both Transferor and Transferee, PEXA will, from November only charge a single fee, not one for each counterpart.

Please contact me @georgepolus if you have more questions.

[LG]

Hi @GeorgePolus, 

Can you confirm if the below limitation was rectified in the Nov release, and if part tenancy transfers to a PoT is now supported?

We have the following scenario;

A + B + C are on title. A + B are transferring their share to C. 

There is also a refinance taking place. 

Thank you

[GeorgePolus]

Hi Lindsay,

In the scenario, each of A, B and C must be represented.  

Also, given the transaction is non-monetary, there ought be no duty payable by C.

Therefore, the cleanest way to process the transaction will be all off / all on.  Meaning A + B + C all relinquish and C receives. 

This will work fine in PEXA for both LTO and SRO.

Where we currently have an issue is where A only relinquishes their interest to C, while B remains unrepresented.   In this scenario while from an LTO perspective PEXA is OK, from a duty perspective the OSR will see the interest received by C (the share fraction interest of C plus the share fraction interest of A) as their total new interest, not the difference between the interest C previously held and C's new interest.

Please let me @GeorgePolus know if I have been unclear. 

Regards,

George