Can you change the name on the property?
A question that seems to come up regularly is whether you can change the name of the purchaser once an offer and acceptance contract has been accepted by all parties.
Often during the buying process, and in a fast-paced market, buyers focus on making an offer quickly and overlook the importance of putting the property in the correct entity name.
Unfortunately, if you don’t get it right first time, you could end up with another fee. The Commissioner of State Revenue can see this as two transactions and may apply double stamp duty in some instances.
It’s crucial not to rely completely on the Real Estate Agents’ opinion when writing the offer. Instead, it’s important to consult your accountant and settlement agent to ensure the correct wording is used in your offer and acceptance.
Purchasing Property on Behalf of Others
When a person wants to buy but can’t physically be present to do so, they can appoint a sibling, partner, parent, friend or business partner to offer in on their behalf.
There are ways to do this, and it’s important to get it right to avoid costly changes later.
Let’s look at an example
Jane Smith is the mum to Kate Brown. Kate and her husband Joe Brown want to buy the property but are working in a remote part of WA and do not have access to email, internet or data. Jane wants to put in offer on behalf of in her daughter and son-in-law.
Jane can do this by writing the buyer as:
Jane Mary Smith as agent for Kate Anne Brown and Jane Mary Smith as agent for Joe Jack Brown.
Jane, as the agent, needs to sign the offer and acceptance contract twice, once for Kate and the other for Joe. This ensures the correct names appear on the Certificate of Title – the legal document that serves as official proof of ownership.
Revenue WA’s Substituted Purchaser process
If you realise after signing the purchase contract that you want to change the ownership, you may have the option to use Revenue WA’s Substituted Purchaser process
This happens when a person purchases the property, and they want to able to substitute it to certain close relatives either in whole or in part percentage. To avoid double stamp duty, it’s crucial to get the details right so please ensure you speak to your settlement agent who can give advice on your specific circumstance.
It’s worth noting that not all relationships qualify for the transfer so check the Revenue WA’s definitions beforehand
Substituted Purchaser
Another scenario where you might use the Substituted Purchaser to transfer ownership is after consulting with your accountant (post-purchase). For example, you might buy a property and later receive advice from your accountant to hold it in a Company, a Trust (Family, Unit or Discretionary) or in your Superannuation Fund or Bare Trust.
You can use the Substituted Purchaser process to transfer the ownership between these entities, however, there are very specific relationships that apply.
Sometimes it’s not possible to use the Substituted Purchaser Application process to make changes. That’s why we ALWAYS encourage you to do your due diligence with your settlement agent and your accountant to get it right the first time and avoid the risk of having to pay double stamp duty fees.
Do you need help from a professional?
Our team of experienced settlement agents here at Kidman Conveyancing can help you through the entire buying process. We help put your mind at ease and make buying your property as stress-free as possible.
Whether you’re a first-time buyer or a seasoned investor, our team of conveyancers are here to guide you every step of the way.
Contact us today to get started on your buying journey.
Can I change the name of the purchaser after an offer and acceptance contract is accepted?
Yes, it’s possible to change the name of the purchaser, but it’s crucial to do it correctly to avoid potential issues like double stamp duty. Seek advice from your accountant and settlement agent to ensure the correct wording is used on your offer and acceptance contract.
How can I purchase a property on behalf of someone who is not present?
If you want to buy a property on behalf of someone who is not physically present, such as a family member or business partner, you can do so by acting as their agent.
Can I transfer the ownership of a property to a different entity or close relative after purchase?
Yes, you can potentially transfer ownership to a different entity or close relative using Revenue WA’s Substituted Purchaser process. This process allows for ownership changes between certain close relatives or entities.
However, it’s essential to get the details right to avoid double stamp duty. Consult with your settlement agent and accountant to ensure a smooth transfer that complies with Revenue WA’s definitions and regulations.