Change of ownership is a significant event that occurs when the ownership of a business, property, or asset transitions from one individual or entity to another. This process can be complex and requires careful consideration of legal, financial, and operational aspects. Whether you are selling or acquiring an asset, it is crucial to understand the various steps involved in a change of ownership to ensure a smooth and successful transfer. In this Legal Kitz guide, we will explore the key aspects of a change of ownership, including preparation, legal considerations, financial implications, and the importance of due diligence in New South Wales (NSW) and South Australia (SA).
Transferring car ownership in NSW
For a change of ownership in regards to cars in NSW, first, both the seller and the buyer need to complete and sign the vehicle’s transfer of ownership form, available from the NSW Roads and Maritime Services (RMS) website or a service centre. If the vehicle is over five years old, a Roadworthy Certificate is required to verify its roadworthiness, obtained through a safety inspection. The seller should ensure any outstanding finance on the vehicle is settled, and both parties must visit an RMS service centre in person to submit the transfer of ownership form and pay the required transfer fee. Once the process is complete, the buyer becomes the new registered owner of the vehicle, and they will receive a new certificate of registration. The buyer will also need to pay the required fees for the transfer. The time it takes to transfer registration in NSW can vary depending on factors such as the completeness of documentation and the processing times at the RMS service centre. In most cases, a straightforward transfer of ownership can be completed within a few days to a week. However, it is recommended to allow at least a week for the entire process to be finalized, especially if there are additional complexities or delays.
You can transfer your car ownership online in NSW through the Service NSW website. Both the seller and the buyer need to have active Service NSW accounts. The seller initiates the transfer by providing the buyer’s details, and the buyer accepts the transfer request through their Service NSW account. The buyer then pays the relevant transfer fees online, and once the payment is complete, the transfer is confirmed. Please note that some circumstances may require an in-person visit to a Service NSW centre, and it’s essential to have all necessary documentation ready before starting the online transfer process. For the most up-to-date information and assistance, visit the Service NSW website or contact Service NSW directly.
This is the following link to the NSW vehicle registration and change in ownership legislation.
Transferring vehicle registration in SA
To transfer vehicle ownership in South Australia (SA), both the seller and the buyer must complete and sign the “Notice of Disposal” on the vehicle’s registration certificate. The buyer needs a valid driver’s license and should visit a Service SA centre with the seller to submit the required documents. Any outstanding finance on the vehicle must be settled before the transfer. The buyer pays the transfer fee, and in some cases, a Vehicle Identity Check may be necessary. Once the process is complete, the buyer becomes the new registered owner of the vehicle and receives a new certificate of registration. For specific and current information, check the SA Government website or contact Service SA for assistance
Transfer of registration in SA can be completed online through the EzyReg service. Both the seller and the buyer must have active EzyReg accounts. The seller initiates the transfer process by providing the buyer’s details, and the buyer confirms the transfer through their EzyReg account. The buyer pays the relevant transfer fees online, and once the payment is made, the transfer is complete. However, not all transfers may be eligible for online processing, it is important to check the SA Government website or contact Service SA for specific eligibility and requirements for online transfer of registration.
This is the following link to the SA vehicle registration and change in ownership legislation.
Transferring real estate and businesses
To transfer real estate ownership in Australia, both the buyer and seller have to agree on the sale terms and sign a Sale of Land Agreement. Engage a conveyancer or solicitor to handle the legal aspects. Settle on a specific date, and on that day, the buyer pays the purchase price, and the seller hands over the property title. The parties sign a Transfer of Land document, and the conveyancer registers it with the land titles office to complete the transfer. Professional assistance is essential to ensure a smooth and legally compliant process.
To transfer ownership of a business in Australia, the buyer and seller negotiate and agree on the sale terms, documented in a Business Sale Agreement. Legal and financial advisors may be engaged, and due diligence is conducted. During settlement, the buyer pays the purchase price, and necessary documents are executed and filed with relevant authorities. The new owner assumes full control of the business. Proper planning and professional guidance are essential for a successful and legally compliant transfer of business ownership in Australia.
Transferring an ABN to another person
An Australian Business Number (ABN) is a unique 11-digit identifier given to businesses by the Australian Taxation Office (ATO). It is not transferable between individuals or entities. If there is a change of ownership for a business, such as selling it to another person or entity, the new owner will need to apply for a new ABN. The process involves notifying the ATO of the change, and the new owner can apply for an ABN online through the ATO website.
To register for a new ABN, this is the following link.
In conclusion, changing ownership of assets such as an ABN, car, or vehicle registration in NSW requires careful adherence to the necessary procedures and legal requirements. Whether it’s applying for a new ABN, transferring a car to a family member, or changing registration over to a new owner, being well-informed about the process and associated costs is essential for a successful and seamless transfer. It is always advisable to seek professional advice for specific and up-to-date information on the process.
Legal advice
If you have any concerns regarding transferring property, you can always contact Legal Kitz to assist you. To request a FREE 30-minute consultation with one of our highly experienced team members, contact us at [email protected] or 1300 988 954. You can also check out our sister company – Business Kitz’s Subscriptions, to access our full range of legal, commercial and employment document templates to begin your business with a solid foundation that ensures compliance.