For an amicable transfer of property, where neither party intends to exercise any rights should the other party default, it’s generally not necessary to prepare a formal contract of sale.
Whether you’re gifting or selling a property to a relative or business partner, you will need a conveyancer to prepare and lodge the necessary transfer documents and stamp duty forms, even if the transaction is non-dutiable.
Related party property transfers refer to the process of transferring the whole or part of a property to a relative or business partner and can be a great way to minimize stamp duty or protect the property.
Transfers of residential property between domestic partners for nil consideration or as a result of breakdown of relationship will be exempt from stamp duty provided that the property will be occupied as your principal place of residence following settlement.
A lot of the information required to prepare a section 32 can and will be obtained directly from the responsible authority of that information, for example, a search of title and copy of the plan of subdivision will be obtained from Land Registry Victoria, whereas a copy of the water encumbrance statement showing any unregistered water or sewerage easements will be obtained from the responsible water authority.
A section 32 will remain current as long as the information in it has not changed. A vendor should take note of the questions asked by the conveyancer when preparing the section 32, and read the section 32 upon completion so that they are fully aware of its contents and can advise if anything changes.
Conveyancing is commonly defined as the legal process of transferring ownership of title and property rights from one party to another. However, conveyancing also includes creating, varying or extinguishing a legal or equitable interest in real or personal property, such as the creation or removal of an easement, caveat, covenant or mortgage, as well as the giving of legal advice in respect of those matters.
It is an offence to provide false or incomplete information in a section 32, and the intentional omission or deception may give rise to the purchaser terminating the contract. However, where an omission was accidental, or where the purchaser is in substantially the same position they would be in had the information been provided, and a court would be satisfied the vendor has otherwise acted honestly and reasonably and ought fairly to be excused for the contravention, a purchaser would not have the power to rescind the contract of sale.
