Hi Laura
This transaction is most certainly supported in PEXA.
SUMMARY - DETAIL STEP BY STEP BELOW
In the jurisdiction of VIC, the Registrar does not permit part tenancy transfer. So the model is 'All OFF, ALL On, meaning all proprietor parties must relinquish their interest and all incoming proprietors, even if they are the parties that relinquished, must now receive their new interest.
To prevent a party who is actually remaining on title being subject to duty, PEXA enables a PoT (vendor) Party to also act a IP (Purchaser party) In this manner the SRO can see the PoT and IP are the same party and will not question the duty amount payable.
For 'Love and Affection' transfers, the PEXA Transfer of Land document allows selection of 'Consideration Type' option of 'Non Monetary.' This affirms to the OSR that the transfer is for $0 consideration.
Please note however, that duty is calculated in the SRO platform, Duties On Line. But as a PEXA user you must ensure that what is entered into PEXA matches with Duties On Line. PEXA passes data to SRO. If there is a mismatch, the SRO will return an error to PEXA.
STEPS
- Create workspace, for land title reference
- Ensure the worskspace includes settlement. Even if this is not selected PEXA will enforce this once a Transfer is created. See below.
- Navigate to the title screen to ensure you have the correct title. Update address if not provided by Land Use VIC.
- Navigate to Participant Screen.
- Select to represent the current Proprietor
- Create a new Party for the Incoming Proprtietor
- Select to represent that party
- When updating party details ensure to add address details
- Your firm will now represent both Transferor and Transferee parties. You will be required to switch between roles and digitally sign two counterparts of the Transfer - one for Transferor and another for Transferee.
- Navigate to Document Screen
- Select to Create Transfer
- On the transfer screen PEXA will show the current proprietor as the Transferor (party relinquishing)
- Select the current proprietor as one of the Transferees (party receiving)
- Select the other party also as a Transferee (party receiving). Make sure to set the correct tenancy - e.g. Tenants in Common with respective share holdings or as Joint tenants.
- In the Consideration Type selection box select 'Non Monetary'
- Complete the Transfer and associated Notice of Acquisition. You may need to change roles to complete all documents.
- When in the role of IP Rep (Transferee) complete stamp duty
NOTE: The workspace will default to inclusion of financial settlement. This is because all transfers must be passed by the SRO, even if duty payable is $0.
Consequently you will need to balance the FSS as all Lodgement and PEXA fees will route to the FSS.
Also - if the property is encumbered by a Mortgage the registered mortgagee will be required to be invited into the workspace to, at minimum, Nominate the title to the dealing. They may also want to Discharge the existing mortgage and re-apply citing both tenants as Mortgagee.
Please let me @GeorgePolus know how you get on. If you need assistance I will arrange one of our PEXA Virtual or PEXA direct specialist to assist you.
Regards
George
