Executing Transfers Outside of AustraliaBen Olsen
When executing transfers outside of Australia or selling real property in Queensland (e.g. house, unit or land), you are required to execute a Form 1 – Transfer. The original form is then registered at the Titles Office of Queensland and officially signifies the change in ownership from you to the new owner.
Because of the important nature of this form, there are stringent rules set out in the Land Title Practice Manual about executing the form in the correct way.
What are the rules around executing as Transferor?
Each Seller must execute the transfer at Item 6 as “Transferor’s” in front of a qualified witness.
Depending on your circumstances, different witnessing processes may apply – for example you may be selling under a trust or company name.
After the form has been executed you are to post the original documents back to your solicitor, endeavouring to avoid it being damaged or bent in the post. Your solicitors will then pass the transfer on to the Buyer’s prior to the settlement date.
Having transfers witnessed whilst overseas
If the form is being witnessed outside Australia, the witness can be any person prescribed by regulation, the most common witnesses being:
- an Australian consular officer;
- a notary public;
- an Australian lawyer; or
- a New Zealand lawyer.
The witness must provide their signature, full name and qualification. Depending on the type of witness used, a separate Certification document may also need to be completed by the witness.
What happens if do not follow the strict regulations?
There is a strict process for witnessing documents outside of Australia. If the process is not followed and the transfer contains an error, it will be requisitioned, resulting in a requisition fee as well as a requirement to re-execute a new transfer. This means that you will have to go through the execution and witnessing process all over again, including posting the original documents back to Australia. More often than not, this delay requires settlement to be extended, resulting in additional fees from your solicitor and potential compensation payable to the Buyer.
To ensure you get it right the first time and avoid unnecessary stress, delays in settlement and additional fees contact Olsen Lawyers for advice about executing transfers or other legal documents correctly.
For further articles please see Olsen Lawyers specialist blog: https://olsenlawyers.com.au/blog/