Related Party Transfers (WA) | Help Centre

Saysa · ‎08-05-2018

Last updated: 11 September 2019
Jurisdiction: WA

Overview

This article presumes a general understanding of PEXA Workspaces, roles, and how to navigate in PEXA. If you do not have this background knowledge, we recommend you step through the PEXA Certified content available in the Community Transacting in PEXA

This article will give you a general overview of how to complete a transfer when there are two or more proprietors on title and one proprietor is being taken off the title and at least one remaining on title. A common example of this, is the family law scenario, where both husband and wife are proprietors of a property and one party is transferring their interest to the other pursuant to a property settlement.

Please note, you should contact your Land Registry and Office of State Revenue for questions around specific scenarios.

For more information on the scope of eligible documents for paperless conveyancing in WA, see this document.

Steps

Scenario 1:

Margaret and Maxwell Black are Joint Tenants of 271 Ocean View Lane, Broome WA.

A condition of their family law property settlement is that Maxwell transfers his interest in the property to Margaret. Margaret and Maxwell have authorised you to represent both of them in this transaction.

Steps:

The following steps are for the above scenario.

Create the Workspace with the following settings:
- Representative Role: Proprietor on Title.
- Financial Settlement required?: Yes.
  IMPORTANT: Even in scenarios where there is no monetary consideration, there still needs to be a financial settlement in PEXA for a related party transfer to account for Lodgement Fees, PEXA Fees, Duty and any other items, like your professional fees.
- Will this transaction involve a Transfer?: Yes.
Review the Land Titles screen:
- Ensure you have entered in the correct land title reference.
- Ensure the tenancy type is correct.
Invite and/or represent the parties in the Workspace:
1. Navigate to the Participants screen.
2. Do any of the below that is applicable to you:
  
  If you represent the Proprietor on Title:
  - From the Actions column, select Edit Party next to the Proprietor on Title whom you represent.
  - Leave I represent this party selected.
  - Complete the party details.
  - Save the changes.
    Repeat these steps for all parties you represent.
  If you do not represent the Proprietor on Title:
  - Click Invite Participant and invite the other participant in the role of Proprietor on Title.
  - Click Send Invitations to invite them into the Workspace.
  - Wait for the other participant to:
    - Accept the invitation via Invitations.
    - Represent the Proprietor on Title.
  If you are representing Margaret (the Proprietor remaining on title):
  - Add a new Workspace role:
    - Navigate to Workspace Settings >Role Settings > Edit.
    - From the drop-down list, select Incoming Proprietor and then click Add Role.
    - Save the changes.
      Your role in the Workspace is now Incoming Proprietor.
  - Add Margaret in an Incoming Proprietor to the Workspace:
    - In the role of Incoming Proprietor, navigate to Participants > Create Party.
    - Under Representation, select I represent this party.
    - Add in the details of the party remaining on title.
    - Save the changes.
  If there is a mortgage registered on title:
  - Click Invite Participant and invite the other participant (bank who holds the mortgage) in the role of Mortgagee on Title.
  - Click Send Invitations to invite them into the Workspace.
  - Wait for the other participant to accept the invitation via Invitations.
  If Margaret is signing a new mortgage:
  - Click Invite Participant and invite the other participant (bank who is providing the funds) in the role of Incoming Mortgagee.
  - Click Send Invitations to invite them into the Workspace.
  - Wait for the other participant to accept the invitation via Invitations.
  For more information on acting in multiple roles, see the following Community articles:
  - Instructions on representing multiple roles in PEXA
  - Video on how to represent multiple roles in PEXA
Create the Transfer document:
1. Navigate to Documents > Create Documents > Transfer.
2. Complete the following details on the Transfer screen:
  - Consideration Type: Ensure you select the correct Consideration Type (monetary or non-monetary).
  - Transaction Information: Confirm the parties are related or associated at the date of the Transfer and then enter in the Market Value (mandatory) and Valuer Details as applicable.
  - Complete the remaining details and click Save.
Complete your stamp duty in PEXA.
- Stamp/Transfer duty must be eligible for self-assessment in the online duties system in order for the transfer to settle electronically. Check with your State Revenue Office for eligibility criteria.
- Once your documents have gone through Lodgement Verification the PEXA Fees, (one for each role) and Land Registry Lodgement Fees will populate as Destination line items in the Financial Settlement Schedule.
Note: In WA, if the title is unencumbered and your hold a paper title, edit the lodgement instructions and complete the Duplicate Holding Details.
Complete the Financial Settlement Schedule:
1. Prepare the Financial Settlement Schedule and enter the relevant source and destination funds.
2. Sign off on all documents in the usual manner.
  If you represent both parties, then you'll need to switch roles and sign the Documents and Financial Settlement in both roles.

Results:

You have created and lodged a Related Party Transfer for Margaret and Maxwell Black.