Partial Tenancy Transfer (NSW)

[Lina]

Hi Team,

we now have a matter for related parties Transfer without Contact for Sale. 

Currently under the title is A&B holding 3/4 shares as joint tenants, and C holding 1/4 as tenants in common.

Now A&B wants to transfer only 1/4 shares to C.

We have created the workspace for this matter (we act for A&B as Proprietor on title and act for C as incoming proprietor - please let us know if we need to add additional roles).

When we try to create the Transfer (we ticked "yes" for Transfer of a Part Tenancy), but then we can only select "A&B (3/4 share) " under Transferor, there is no other option for part of the shares transfer (eg.1/4).

Please advise us how to create a correct Transfer in this situation.

Thank you!

[GeorgePolus · Accepted solution]

Hi Lina

May I please confirm.   

You have Joint Tenants (A+B) who hold 3/4 share, as Tenants in Common with C who holds 1/4 share.

(A+B) will sell 1/4 of their 3/4 share to C.   The resultant share holding will be:

Joint tenants (A+B) 1/2 as tenants in common with C 1/2.    Is this correct?

Right now, we have an issue in PEXA that will prevent this outcome from being achieved.   

But, once the issue is rectified, you will be able to process this type of Part Tenancy Transfer.    We apologise for this temporary issue.

Unfortunately, you will be required to complete this dealing in paper. 

Please let me @GeorgePolus know if you need more information.

Regards

George

[Lina]

Dear George,

thanks for your reply. 

yes, it is correct. After Transfer, joint tenants (A+B) will hold 1/2 as tenants in common with C 1/2.

We will lodge it in paper accordingly. Thank you!

[VanessaTait]

@GeorgePolus   I have a similar situation, currently husband and wife are joint tenants and we want to change to tenants in common in unequal shares and transfer a further 49% to the wife so wife will hold 99% and husband 1%.

Can I do this on PEXA?

[GeorgePolus]

Hi Vanessa

Right now, we have a problem with this scenario.   The issue is that PEXA will currently advise NSW OSR that the wife in this case is receiving 99% (the total amount as Transferee and not 99% - (existing) 50% = 49%).

So until we correct this issue in Feb 2019, you will need to send this transaction to paper. 

Please let me @GeorgePolus know if you have more questions.

Regards,

George

[AnnH]

 @GeorgePolus

Can the below mentioned Transfer be completed via PEXA (we note your responses above and wanted to check whether there would be issues lodging this Transfer via PEXA - particularly due to your comments regarding what PEXA notifies OSR)?

I have been retained to act on a related party transfer (NSW property).

• The current registered proprietors are A (42/100) and B & C (58/100 as Joint Tenants).
• A intends to transfer 8/100 of her share to B & C, such that after the transfer, A will own 34/100 as Tenants with B & C, who will own 66/100 as Joint Tenants (Stamp Duty will be payable on 8% of the market value of the whole property, as only 8% is being transferred).
• I intend to prepare the Transfer as follows;
  • Transferor: A, B & C
  • Transferee: A (34/100) as Tenants in Common with B & C (66/100 as Joint Tenants)

[GeorgePolus]

Hi Ann,

Unfortunately, not yet.   

Today Part tenancy Tfrs in NSW are limited to scenarios where Transferee parties are not the same as Transferor parties.  

We are building an update to our Part Tenancy transfer capability which will address this current limitation.   For NSW this will be released later this year. 

Regards,

George 

[AnnH]

Dear George

Thank you for the prompt response.

Noting that standalone Transfers are required to be lodged via PEXA, what exception would this scenario fall under?

The Transfer proposed will be in the standard form (i.e. Form 01T - Transfer). I do not see the relevant transfer on the Registrar General's website - http://rg-guidelines.nswlrs.com.au/e-dealings/elodgment/dealings_eligible_for_elodgment/transfer_ele... and as such, would be concerned if NSW Land Titles Office later on tells me that it has to be lodged via PEXA.