Hi, What would be the costs of changing a title of a house from tenants in common to Joint Tenants please. The value of the house is about $350KThanks.
Hello and thank you for your question.
If the property is presently owned 50/50 by the current owners then there generally shouldn't be any tax issues since both parties share of the property will remain the same before and after the transfer (even though the type of ownership will change). In which case it is just a question of engaging a lawyer or conveyancer to prepare the necessary documents to change the title details. This will likely cost you in the order of $500 to $1000.
However, if the property is held in uneven shares, then stamp duty and capital gains tax will generally apply to such a title change since as joint tenants the owners effectively have an even share of the property, and so there is an actual transfer of equity which will be treated as if the property were being sold for its market value (even if no payment is actually made). How much stamp duty and capital gains tax is payable depends on many variables, and you will need to seek the advice of an accountant to assess this.
In addition to these taxes, the property would need to be valued professionally (the valuation being required as one of the variables affecting the amount capital gains tax and stamp duty payable) which is an additional cost of perhaps another $1000.
I trust the above assists your understanding.
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