Transfer with purchasers interest not being fractional

[CDGLaw]

I am needing to create a Transfer where there are four purchasers

one purchaser is buying 50% of the property as tenants in common with the remaining three purchasers joint tenants in the remaining 50% share

how can this be done in the electronic system as the three purchasers can't be split evenly in the remaining 50% share

[GeorgePolus · Accepted solution]

Hi Megan

May I please confirm the scenario first.

Single Title;

One or more current proprietors, but IMPORTANTLY (please see note below) all Proprietors are relinquishing their shares to a new set of Proprietors;

The Transferees are A, B, C and D ( each may be represented by a single Rep Subscriber, or each by their own Rep Sub, or a combination of both);

The Transferee shareholding will be:   A (1/2) as Tenant in Common with (A+B+C+D) 1/2 where (A+B+C+D) are Joint Tenants

Assuming I have correctly interpreted the scenario then you may most certainly specify this in PEXA. 

Here is how you would do so.  In the Transfer Document:

• Select Tenancy Type of Tenants in Common;
• Add Party A;
• Select Add Tenant in Common;
• Add Party A (again)   each will default to a shareholding of 1/2;
• On the Action Cog of the second Party A, select Add Joint Tenant;
• A new JT will be added, ensure to select Party B;
• On the Action Cog of Party B, select Add Joint Tenant;
• A new JT will be added, ensure to select Party C;
• On the Action Cog of Party C, select Add Joint Tenant;
• A new JT will be added, ensure to select Party D;

The screen should now show A (1/2) as TIC with (A+B+C+D) 1/2

PLEASE NOTE:  Currently in NSW, we have an issue between PEXA and EDR, where if a Transferor is also a Transferee, an incorrect Duty assessment will result for the share fraction received by the Transferee.  If your scenario involves one or more Transferors as Transferee, then you must go to paper.    This issue will be rectified in PEXA R9.1 (Feb 2019).

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

Regards

George 

[CDGLaw]

Thanks @GeorgePolus that worked!

You understood the scenario exactly and the steps you gave were very easy to follow

Thanks again!