In New South Wales, a severance of a joint tenancy can be done either by agreement or unilaterally (on your own).
A severance of a joint tenancy takes place when the joint owner transfers his or her interest in the asset ‘to themselves’. Accordingly, there is no stamp duty or CGT payable on the severance.
There are separate Land & Property Information (LPI) forms for the two types of severance. For an agreed severance, you use a ‘Transfer altering tenancy’ (Form 01JT). For a unilateral severance, you use a ‘Transfer severing a joint tenancy’ form (Form 01TJ).
For a unilateral severance, Land & Property Information is required to notify the other owners of your application to sever the joint tenancy, so you must provide the names and postal addresses of the other owners on the Form 01TJ.
The Certificate of Title must be produced with each application for severance (whether by agreement or unilateral). This means that your mortgagee’s consent to the severance will be required, and your mortgagee will need to produce the Title to allow registration.
For assistance changing the ownership of jointly held property to a property held as tenants-in-common, call us on 1300 654 590.