transfer of property

A change of title can be defined in property terms as a change in a property’s ownership structure. The ownership structure of a property describes the way a property is owned – for example, if it’s a shared property, the property could be in the name of the highest income earner to maximise gearing benefits. Or, ownership could be shared between low and high income earners to spread the income tax liabilities and capital gain.

Knowing the different types of owner structure is extremely important. You may want the benefit of tax savings, have a relationship breakdown, or wish to start a property business. Read below for valuable insight into how a transfer of property, and as such, how a change of title could affect your property’s ownership structure.

Types of Ownership Structure

Joint Ownership

This refers to owning the property equally with someone else. One joint tenant cannot pass their share onto another person – and even in the case of death, their share passes on to the other tenant.

Tenants In Common

Indicates a specified proportion of ownership rights in real property and if one of these tenants is to pass away, that share is transferred to the estate of the deceased, and not just divided up equally.

Trust Ownership

In this instance, the property is managed and owned by a trust – most commonly, a family trust. This is the most useful type of structure if you are deciding to leave your property to your children.

Sole Ownership

One name is on the title deed, making that one person the sole owner and therefore wholly responsible for the property.

Company Ownership

This refers to owning a property through a company. In this instance, it is best to speak to a financial advisor about capital gains tax to ascertain what your situation may involve.

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