Memorandum Of Transfer

Memorandum of Transfer is a term used in real estate and conveyancing that some people can find vague or ambiguous.

Memorandum of Transfer has a specific and limited meaning, referring to a particular document. Understanding what this document is and what it does should clear up any confusion you may have about the term.

Overview

What is a Memorandum of Transfer?
What does a Memorandum of Transfer include?
Memorandum of Transfer: explainer video

What is a Memorandum of Transfer?

A Memorandum of Transfer is a crucial legal document registered at Land Services SA to transfer land ownership at the agreed purchase price officially. This process is a fundamental step in property transactions, ensuring the lawful land title transfer from the seller to the buyer.

In a property transaction, both the vendor and the purchaser sign a Client Authorisation, permitting their conveyancer to sign the Transfer on their behalf. The Memorandum of Transfer, often referred to as the MoT, is distinct from the sale and purchase agreement. While the contract handles the financial aspects, the Memorandum of Transfer is essential for transferring ownership of the land.

Without the Memorandum of Transfer, only money changes hands, but the property ownership remains unchanged. This document ensures that the new owner, or registered proprietor, is legally recognised.

The process also involves other legal documents and considerations, such as stamp duty, which is a tax imposed on property transactions. In South Australia, various and full stamp duty exemptions may apply, particularly for first-time homebuyers or specific property types like strata titles.

Moreover, transferring ownership might incur additional costs such as legal fees, disbursement fees, and closing costs. These fees are calculated based on the property price and can vary depending on the particulars of the transaction.

It’s important to engage a trained professional to navigate these legal documents and ensure all terms are met to the fullest extent permitted by law. Understanding the roles of these documents can be complex for those new to property transactions, but they are vital for securing legal ownership and completing the sale.

What does a Memorandum of Transfer include?

In South Australia, the Memorandum of Transfer will generally include at least the following sections:

Land Description: Detailed information about the property, including its address and legal land title references.
Estate and Interests: Specifies the type of estate (e.g., freehold, leasehold) and any interests related to the property.
Encumbrances: Lists any encumbrances, such as mortgages, easements, or covenants, that may affect the property.
Transferor and Transferee Details: Information about both the vendor (seller) and the purchaser (buyer), including their full names and addresses.
Witnessing and Certification: Provisions for the transfer to be officially witnessed and certified as required by law.

While this particular document is not the most demanding in the conveyancing process, it is a crucial document to get right to ensure the smooth transfer of real estate.

The process is straightforward, but it requires attention to detail from an experienced conveyancer to avoid issues. It is not unheard of for documentation to be rejected by the Lands Title Office due to incorrect wording and formatting.

This is one reason that it is important to select your conveyancer carefully and maintain a relationship with them over time. At Eckermanns, we do everything possible to help you save money, time and stress throughout the conveyancing process.

Rely on the expertise of Eckermanns conveyancers to ensure your property transaction proceeds smoothly. Contact us today to discuss your conveyancing needs and experience the difference that professional, attentive service can make.