Changing Tenants in Common Shares in Victoria

The names on your Victorian title will stay the same, but you've agreed to change the ownership percentages. Before arranging the transfer, make clear what each person owns now and what each should own afterwards.

The short answer: Existing tenants in common can transfer an ownership interest between them using an approved transfer document. Give your conveyancer the current shares, the interest moving and the intended final holdings so the documents can be prepared and the duty position assessed. The transferred interest passes on registration.

This guide concerns an agreed new split between existing tenants in common whose title was correct at the outset and who will all remain owners.

Separate the current share, the share moving and the final share

Tenants in common can hold equal or unequal shares. Each is an undivided ownership interest in the land, rather than ownership of a particular room or physical section.

Suppose Alex holds 70% and Sam 30%. They agree on Alex holding 60% and Sam 40%, with both remaining tenants in common.

The amount moving is ten percentage points of ownership of the whole property. Sam's final 40% includes the 30% already held, so the transfer is neither 40% of the property nor 10% of Alex's existing 70% share.

The State Revenue Office describes the interest held after transfer as the recipient's total holding afterwards. Use the example to understand that distinction; it does not calculate duty or prescribe how to complete a transfer form.

Give clear instructions and the supporting information

Send a before and after summary naming every owner and their current and intended shares. Include the interest moving and who is transferring it to whom. A request to 'change the title to 60/40' leaves unanswered who is to hold each percentage.

For an initial review, gather:

• The property address, current title if available, and each owner's name and registered share.
• The intended final shares, adding to 100%, with everyone continuing as a tenant in common.
• Any written agreement and details of payment or other value being exchanged. Say if no payment is proposed.
• Available valuation information, details of any existing mortgage and the intended completion deadline.

These are preparation prompts; the conveyancer can confirm what your particular transfer needs. A title may record a mortgage, so include that information for consideration alongside the proposed change.

The Digital Duties Form captures the transaction information for land transfer duty. The representatives complete the information and identity verification before inviting clients to sign that form.

Unchanged names do not establish a duty exemption

Keeping the same owners does not, by itself, make a change of shares exempt from stamp duty. The State Revenue Office's section 54 category covers transfers between joint tenancy and tenancy in common in equal shares; its guidance states that a change in the interest acquired is subject to duty.

That category does not establish an exemption for the agreed new percentages. The actual arrangement needs assessment, including whether another exemption applies. The example above explains the ownership arithmetic and does not determine anyone's duty liability or wider tax position.

Compare the registered result with your instructions

After registration, ask for an updated title and compare it with the agreed before and after summary. Check every owner's name, each resulting fraction and that the owners continue to hold as tenants in common.

For Alex and Sam, the result should match the agreed 60% and 40% holdings. Raise any discrepancy with the conveyancer so the registered result can be checked against the transaction documents.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing provides residential purchase, sale and title transfer services in Melbourne and Victoria. For an agreed ownership share change, the team can discuss the conveyancing documents and title transfer steps for your property.

Sources we consulted

• Land Use Victoria: land registration glossary
• Transfer of Land Act 1958: current authorised version
• State Revenue Office: interest in title after transfer
• State Revenue Office: guide to the Digital Duties Form
• State Revenue Office: completing the Digital Duties Form
• State Revenue Office: joint tenants and tenants in common exemption

Discuss your proposed share change

Have your current title and proposed before and after shares ready. To discuss our conveyancing services and the title transfer steps for your agreed change, Email contact@pearsonchambers.com.au.

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.