When property and assets are jointly owned, and one of the joint owners passes away, the property and assets will automatically pass to the surviving party.
For property, both names will remain on the title until a survivorship application is completed. To remove the deceased party’s name from the title, the surviving party must lodge a survivorship application with the Land Registry.
When is an application required?
We recommend lodging a survivorship application once a joint proprietor passes.
If the surviving proprietor intends to sell the property to distribute the funds to beneficiaries, a survivorship application should be lodged before a sale of the property so that the updated title can be included in the Vendor’s statement.
If a contract of sale is prepared with the deceased person’s name remaining on title, the purchaser will not be able to complete the required documentation to ensure the successful transfer of the property into their name. Further, if the purchaser is taking out a loan to purchase the property, the bank will require the newly issued title with only the surviving party’s name to approve the loan.
Lodging a survivorship application can also assist with finalizing the deceased person’s estate, such as lodging their final tax return.
What is the process?
Historically, any individual can apply for a survivorship application directly with the land registry office. Nowadays, the survivorship application can only be completed through PEXA, an online transaction portal. You must be a subscriber of PEXA to use its services, which generally includes banks, solicitors and conveyancers.
There are certain documents required to complete the application, such as:
- Application by Surviving Proprietor (ASP) statutory declaration
- Certificate of Title
- Verification of Identity
- Death Certificate
The turnaround time to process a survivorship application is dependent on the circumstances of each application. Once you have on hand all the required documents, the survivorship application can be processed by the land registry office within days.
Is there a bank involved?
If there is a bank holding security over the property, the surviving proprietor will need to contact the bank about the mortgage on the title. The surviving proprietor may:
- Pay out the loan; or
- Take out a new loan in their individual name.
Which of the above two options to go with would be dependent on the surviving proprietor’s situation.
Is there a caveat on the title?
The processing of a survivorship application may be prolonged if there is a caveat lodged on the title.
A caveat is essentially a notice placed on the title which prevents any person from dealing with the property. A caveat will need to be withdrawn or removed from the title for the survivorship application to be lodged.
The time required to remove a caveat is dependent on the options taken to remove it. For instance, if a caveat is removed through an urgent application to the Supreme Court of Victoria, the application may take up to 55 days to process. If the caveat was lodged by a third-party financier, then the caveat removal can be completed quite quickly once the debt is paid.
Once the survivorship application is lodged along with any required documents, the surviving proprietor will be reflected as the sole owner of the property. This means they will be solely responsible for any rates, taxes, and all other responsibilities concerned with the property.
How can we help?
Contact W Legal Group if you have any questions or require assistance with lodging a survivorship application.
