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 part-tenancy transfer in VIC. A part-tenancy transfer occurs 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.
Scenario 1:
Margaret and Maxwell Black are Joint Tenants of 271 Ocean View Lane, Lorne.
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:
- Create the Workspace in the role of Proprietor on Title and include a settlement date and time.
IMPORTANT NOTE: 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.
- Check the Land Titles screen to ensure you have entered in the correct land title reference.
- On the Participants screen confirm you represent both Margaret and Maxwell.
- From the Actions column, select Edit Party next to the party you represent.
- Complete the party details.
- Save the changes.
- If you are not representing both parties, invite the other Representative into the Workspace as the Proprietor on Title by clicking on the Invite Participant button. Sending or Accepting Invitations.
- If there is a mortgage registered on title, you may need to invite the Mortgagee on Title into the Workspace. Follow the same steps as above.
- If Margaret is signing a new mortgage, you will need to invite the Incoming Mortgagee (Bank who is providing the funds) into the Workspace as the Incoming Mortgagee. Follow the steps as above.
- On the Documents screen create the Transfer document. Select Create Document > Transfer.
When you get to the Tenancy Details, select which party is remaining on title as the sole Proprietor. - Check the following:
- Consideration Type: Select monetary or non-monetary as applicable to your matter.
- 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.
- Complete the remaining details and select Save.
- On the Documents screen, edit the Notice of Acquisition by selecting Edit from the Actions column. Complete the outstanding details.
- If you represent the party remaining on title, complete your Stamp Duty Assessment.
NOTE: if the title is unencumbered, you may need to create a Nomination Document if you are in control of the duplicate Certificate of Title. To do this, navigate to the Documents screen and select Create Document > Nomination.Create a Nomination VIC
.
If there is a Mortgagee on Title, they will complete this step. - If you are the Responsible Subscriber (also known as the Lodging Party), edit the Lodgement Instructions and complete any outstanding details. Select Save.
- Once your documents have gone through Lodgement Verification the PEXA Fee, Land Registry Lodgement Fee and Stamp Duty (if any) will populate as Destination line items in the Financial Settlement Schedule.
NOTE: you will only be charged one PEXA Fee if you are representing both parties in the Workspace.
- Complete the Financial Settlement Schedule Preparing the Financial Settlement Schedule, sign off on all documents and the Financial Settlement Schedule in the usual manner Signing in PEXA.
NOTE: If you are representing an additional party who is being added as a new Proprietor, you will need to create them in an additional role of Incoming Proprietor. To do this go to Workspace Settings >Edit Role Settings and add in the role of Incoming Proprietor.
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
Please note, you should contact your Land Registry and Office of State Revenue for questions around specific scenarios.