When talking about property ownership, a couple of things usually come to mind: buying or selling. However, there’s an in-between to these two ends of the spectrum: changing a property’s ownership.
Whether you are the sole owner of a property or the ownership is split between you and your spouse or several other people, establishing ownership is essential. It restricts the property’s use and secures fair access to it. Property ownership also plays a part in tax liabilities.
Sometimes, though, circumstances lead you to enter into the property conveyancing process to transfer ownership of your Townsville property. Below are some of the most common ones you need to know and prepare for.
1. Separation or Divorce
It’s normal for couples to purchase a property and share ownership of it. However, when the marriage breaks down and leads to separation or divorce, the property they jointly owned may need to transfer to just one of them.
For many couples, one side buying out the property from the other makes the most practical and financial sense. For one, divorce can be messy and shake your family’s very foundation. If you have custody of your children, it’s important to give them the stability that their family home provides.
2. Passing the Property to a Family Member
Most of the time, this happens when a parent passes a property onto their children. Instead of selling, they may choose to gift it to their children. Another reason is when the parents become ill and unable to look after their own affairs, so they pass the property and all the responsibilities of its upkeep to a family member.
All these situations require that the family legally change the property’s ownership.
3. Death of a Previous Owner or One of the Joint Owners
A lot of properties are jointly owned, whether it be from marriage or in the business sense. These joint property owners have an equal share of the property’s rents and profits. But, when one of the owners, as indicated in the deed, passes away, the ownership transfers wholly to the co-owner.
In cases of property with only one title holder, and said holder died with a will, an executor will have to divide the estate and give the ownership of the house to the deceased’s beneficiaries. If there wasn’t a will, a family member or spouse will need to apply for letters of administration so they’d have the authority to oversee what happens to their deceased loved one’s estate, including their properties.
4. Business Protection
If you’re a business owner or have a large stake in one and you own a property, that property can be taken by creditors. This happens when the company you own is in financial trouble. In cases like this, you can protect your property and other personal assets by transferring the ownership to your spouse or any other family member not involved in the business. This way, creditors cannot seize that property, but it will still be in your family.
Property ownership, especially real estate, has many benefits. However, there are also many potential challenges involved. So, having enough knowledge about it, from buying and selling to changing ownership and the reasons for it, is essential to making smart decisions regarding it.