Karen, one of our clients, own a property under her own name. Recently, she plans to refinance her loan associated with this property to another bank, which means her new bank will need to reassess her situation again.

However, Karen’s financial situation changed. As she takes care of her newly born baby at home, compared to the past, she has less job income now. Based on her current situation, her income won’t be sufficient to refinance her home loan.

So, she is thinking about adding her partner’s name to her house title. By doing that, her existing home loan will be transferred to their joint names, then their joint income can support them to refinance.

In this week’s blog, our guest solicitor from Turner Hopkins, Joy Yuan, discusses the process when you change your property ownership in New Zealand, such as adding your spouse to your property title, which might be more complex that you think.

How to add or remove a name to a property title in New Zealand?

Video Timeline:

1. Under what situations will title on the property be changed? -- 02:00
2. How to add my spouse to my property title? -- 03:06
3. How to transfer your property to a trust? -- 04:31
4. How to remove someone (e.g. ex-partner) from your property title? -- 05:06

Under what situations will title on the property be changed? 

Here are some common scenarios that the title of a property can be changed:

When you sell or purchase a property;

When you sell your property to a family trust or a company;

When you add someone (e.g. your partner) to the title of your property;

When you remove someone (e.g. your ex-partner) from the title of your property.

How to add my spouse to my property title? 

For some reasons, when you purchase a property, you may decide to have your own name on the title. However, if you wish to add your spouse to your property title, then the process of changing property ownership in New Zealand might be more complicated than you think.

In the case study we mentioned early, Karen has a property under her own name, and she wishes to add her partner’s name to her property’s title.

From the legal perspective, this changing of property ownership can be achieved through a property sales and purchase agreement, which allows the vendor (Karen) to sell her property to their joint names.

When it comes to the equity in the property, your solicitor can help you prepare legal documents, such as legal gifting or legal forgiveness of debt, so that your property ownership transfer can go smoothly. 

How to transfer your property to a trust? 

Another common example is a couple wish to sell their property to their family trust.

In this case, the process of changing property ownership is similar to Karen’s case study.

A property sales and purchase agreement will be required to sell a property from a couple’s name to their trust. Also, a deed acknowledge of debt can be prepared to forgive the debt and to document how the remaining purchase balance can be arranged, so that the property can be smoothly transfer to a trust.

How to remove someone (e.g. ex-partner) from your property title? 

Joy mentioned that she met a couple who wish to remove the wife’s name from the property. After some deep conversions with them, Joy figured out the reasons behind this.

The couple was going through separation, and they had agreed to let the husband take over the property.

In this case, they can’t transfer the property ownership simply by signing a sales and purchase agreement. Joy recommended they consult a family lawyer to prepare a separation agreement in order to document the separation of assets properly. And through that base agreement, then the conveyancing lawyer can process the transfer.

When you consult solicitors, you need to have a very clear message to them about what you try to achieve, so that your solicitor, along with other associated professionals, such as your mortgage broker, your bank and your accountant, ensure all the right documentations are in place. This is because when you change your property ownership, the process will involve tax, legal and financial factors.

Need an excellent solicitor? Here’s why you should choose Joy Yuan

As a senior solicitor at Turner Hopkins, Joy has extensive expertise in commercial and property law. Her strong commercial and business sense ensures she gives the most professional and practical advice to all her clients.

Joy loves challenges and always ensures clients receive their advice in a timely and effective manner. She is highly recommended by her clients.

For all these reasons, we highly recommend you choose Joy to be your solicitor. You can contact Joy via email: joy@turnerhopkins.co.nz, or phone: 09 975 2624.

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action. 

Prosperity Finance – here to help

Prosperity Finance looks at your loans strategically, empowering you to make the best long-term, informed decisions. We are professional mortgage brokers and are here to help. Give us a call today on 09 930 8999. 

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