Transfer Home Ownership

Buying or selling is not the only time a Victorian title changes hands. Every week Melburnians gift properties to children, add a spouse to the title, adjust ownership after a break-up, or tidy up a deceased estate. The paperwork may feel arcane, yet a sound transfer protects both the outgoing and incoming owner, avoids nasty stamp-duty surprises and keeps councils, banks and the tax office happy. This guide breaks the process into bite-sized steps, explains the common traps and shows when to call in professional help.

Why People Transfer Property Rather Than Sell

Change in family structure – marriage, divorce, entering a domestic partnership or moving assets into a family trust.

Estate planning – adding adult children, transferring to a testamentary trust or completing a survivorship application after a joint tenant passes away.

Asset protection or refinancing – shifting the title to align with new borrowing arrangements.

Gifts – parents helping children onto the property ladder.

Government concessions – using the spouse exemption or the off-the-plan stamp-duty discount announced in May 2025.

Each motive has its own legal and tax wrinkles, so the first step is to match the paperwork to the purpose.

Step-by-Step Victorian Property Transfer Process

Step 1 – Confirm the Type of Transfer

Victorian law recognises several flavours of change:

Scenario: Husband adds wife to principal place of residence for no money

Typical document: Transfer of land plus Digital Duties Form
Duty payable: Exempt under spouse exemption

Scenario: Parents gift an investment unit to adult child

Typical document: Transfer of land
Duty payable: Full duty based on market value

Scenario: Divorce settlement

Typical document: Court order or financial agreement lodged with SRO
Duty payable: Exempt

Scenario: Surviving joint tenant becomes sole owner

Typical document: Application by surviving proprietor
Duty payable: No duty

Scenario: Executor transfers to beneficiary

Typical document: Transmission application then transfer
Duty payable: No duty if beneficiary was entitled under will

The State Revenue Office decides duty, so always complete the online form before signing anything.

Step 2 – Gather the Disclosure Documents (the Section 32)

Even when no money changes hands, a transfer counts as a sale under the Sale of Land Act 1962. The outgoing owner must provide a Vendor Statement, better known as a Section 32. It discloses title details, planning restrictions, owners-corporation information, council rates, water charges and any building works. Handing over an incomplete statement can void the deal and is a criminal offence.

Important tip: Certificates in the Section 32 expire after ninety days, so do not order them too early.

Step 3 – Complete the Digital Duties Form

Victoria moved duty assessment online years ago. Your conveyancer logs into Duties Online, enters the figures and obtains a duty assessment notice. Where an exemption applies – for instance a spouse transfer of a principal place of residence – evidence such as a marriage certificate and proof you live in the home must be uploaded. Since July 2017 the exemption is limited to a home transferred for no consideration.

Step 4 – Prepare the Transfer of Land

The transfer sets out the folio number, consideration (often 'natural love and affection' for a gift) and the new ownership shares. Land Use Victoria provides the approved form and charges a lodgement fee that changes each financial year. Because electronic lodgement is now mandated for almost every dealing, your practitioner will create the instrument in PEXA or another Electronic Lodgment Network.

Step 5 – Verify Identity and Client Authority

Before settlement the incoming and outgoing parties must complete a face to face or online VOI (verification of identity) check and sign a Client Authorisation. This protects against title fraud and is a core requirement of the Electronic Conveyancing National Law.

Step 6 – Settlement in PEXA

On settlement day the conveyancers' PEXA workspace lodges the transfer instrument, any mortgage discharge or new mortgage and automatically sends a Notice of Acquisition to councils and authorities. The platform calculates duty, collects the money and pays Land Registry fees in real time. Over 97 percent of Victorian dealings were lodged electronically in 2023.

Step 7 – Post-Settlement Clean-Up

Once Land Use Victoria registers the transfer, an electronic Certificate of Title (eCT) issues to the incoming mortgagee or proprietor. You should:

Update home and contents insurance with the new ownership details
Notify the ATO if the property is a rental
Check the council rate notice to ensure the correct name and postal address appear

Property Transfer Costs to Budget For

Stamp duty – duty scales from 1.4 percent on values up to $25,000 to 6.5 percent on amounts above $2 million.

Land Use Victoria fee – currently about $108.60 for a straightforward transfer.

PEXA fee – roughly $132 for a single-title transfer.

Conveyancer's professional fees – usually $900 to $1,500 plus GST and disbursements.

Victorian Property Transfer Exemptions and Concessions

Spouse or domestic-partner exemption – limited to a principal place of residence transferred for no consideration and subject to a 12-month occupancy requirement.

Relationship breakdown – transfers made solely because of a marriage or domestic relationship breakdown are duty free.

Deceased estate – duty is not payable when an executor transmits property to a beneficiary entitled under the will.

Off-the-plan concession extension – the Victorian Government recently extended its stamp duty savings for off the plan homes until October 2026.

Property Transfer Timeline

Most uncomplicated title transfers settle within four to six weeks, provided the bank consents promptly, certificates arrive on time and the parties sign swiftly. Probate or family law matters can stretch the timeline to several months.

Common Property Transfer Pitfalls

Relying on market-value estimates – the SRO may order an independent valuation and reassess duty.

Forgetting foreign-purchaser duty – overseas transferees pay an extra eight percent surcharge.

DIY transfers – Land Use Victoria notes there are nearly 300 different transaction types and recommends professional help for all but the simplest dealings.

Out-of-date certificates – an expired Section 32 can derail settlement.

Mortgage-consent delays – allow your lender at least ten business days.

Should You Use a Conveyancer or Solicitor?

Modern e-conveyancing tools make settlement look easy, yet getting the duty position wrong can cost thousands and a defective transfer can cloud the title. A licensed conveyancer specialising in Victorian property will:

Draft the Section 32 and transfer
Apply the correct duty exemptions
Liaise with banks, councils and the State Revenue Office
Manage PEXA settlement
Issue you with a final statement showing that every cent has been accounted for

Case Study – Spouse Exemption in Action

Rachel and Sam in Brunswick added Sam to the title of their terrace. Their conveyancer secured bank consent, lodged a spouse exemption and processed settlement in PEXA. Duty saved: almost $29,000; total timeline: five weeks. Total professional and platform costs: roughly $2,150. The couple said the biggest surprise was how much time bank paperwork added compared with the legal work.

Six-Point Transfer Checklist

Confirm the reason for transfer and any exemption
Order a sworn valuation if the SRO may question market value
Obtain lender consent early
Gather current certificates and prepare the Section 32
Sign the Digital Duties Form and Client Authorisation
Check the PEXA statement before settlement and update insurers afterwards

Timing Tip for Melbourne Property Owners

PEXA settlements occur in hourly slots. Fridays at month end book out quickly, and public holiday weeks such as Melbourne Cup can halve the available windows. If you need funds for another purchase, ask your conveyancer to lock in an early week slot to avoid a cash flow squeeze.

Remember too that consultation with your accountant is wise, as duty and capital gains outcomes interact with overall income tax planning.

Conclusion – Take the Next Step with Pearson Chambers Conveyancing

Transferring home ownership in Victoria involves far more than signing a form. From duty assessments to electronic lodgement, each stage has rules that, if missed, can derail settlement or trigger unexpected costs. An experienced local conveyancer keeps the process smooth, compliant and stress free.

For clear guidance and a free Section 32 contract review, contact Pearson Chambers Conveyancing today:

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au