What is a Deed of Nomination? And Why You Might Need One
A Deed of Nomination allows a buyer to nominate someone else (like a spouse, trust, or SMSF) to take ownership of a property after signing the contract. It’s often used for tax or planning reasons, but there are legal steps you must follow to avoid extra stamp duty or complications. This blog explains what a Deed of Nomination is, why it matters, and why it’s not enough to just ask your conveyancer to change the name.
What is a Deed of Nomination?
And Why You Might Need One
Ever signed a contract for a property, then realised you want someone else to actually take ownership of it?
Maybe it’s your spouse, your family trust, or your self-managed super fund. You’re not alone—and that’s exactly where a Deed of Nomination comes in.
So, what is it?
A Deed of Nomination is a legal document that lets you, the original purchaser under a contract of sale, nominate another party to take the transfer of the property. It says, “Hey, I signed the contract, but I want this other person/entity to own it instead.”
Why would anyone do this?
There are a few good reasons:
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- You’re buying the property using your Self-Managed Super Fund (SMSF).
- You want the property held in the name of your family trust.
- You’ve signed the contract, but later decide your spouse should own it.
- You’re planning for asset protection or tax reasons.
- You are no longer in a position to take transfer of the property.
But here’s where it gets tricky… stamp duty.
You can’t just change names willy-nilly. The State Revenue Office (SRO) in Victoria sees these changes as potential “sub-sales”, which can attract double stamp duty if not handled correctly. Ouch.
This is why the Deed matters.
The Deed of Nomination helps prove that the nomination is within the legal limits—especially around timing. Done right, it can mean no extra stamp duty is triggered. Done wrong? You could end up with a nasty tax bill.
But wait—what is a nomination, exactly?
In Victoria, if you sign a contract to buy a property, you automatically have the right to nominate someone else to take ownership on title—even if the words “and/or nominee” aren’t written into the contract. That’s because the standard General Conditions already give buyers that right. This can be handy in all kinds of situations, like when a couple plans to co-own the property, but only one of them was available to sign at auction. Or maybe the purchaser later decides the property should be held under a company or trust instead of their personal name.
However, some contracts may include special conditions around nomination—like requiring it to be done within 14 or 21 days before settlement, and charging a nomination fee (often between $300 and $600 + GST). These conditions are easy to miss, but they can cost you. Another reason to always get legal advice before you sign.
Can’t my conveyancer just fix it for me?
We hear this a lot. But no—your conveyancer can’t just cross out names or change the purchaser details after the contract is signed. That’s where people get into trouble.
You need a formal, written Deed—signed and dated properly. This isn’t just paperwork—it’s a legal safeguard.
And timing is everything.
To avoid stamp duty issues, your Deed of Nomination needs to be executed before certain conditions are triggered—like settlement or exercising options in the contract. That’s why it’s critical to get advice early.
So, what’s the takeaway here?
If you’re thinking of nominating someone else to take the transfer of a property you’ve signed for, don’t DIY it. And definitely don’t rely on a casual chat with your conveyancer. Get legal advice and a properly drafted Deed of Nomination.
A Deed of Nomination might seem like a simple formality—but when it comes to property, tax, and the law, it can make a big difference. Whether it’s for family reasons, future planning, or smart investing, doing it the right way protects you from costly mistakes.
Need help with a Deed of Nomination or just want to make sure everything’s done properly? We’re here at HazeLegal. Reach out anytime—your property plan deserves peace of mind.
DISCLAIMER
This commentary is published by HazeLegal for general information only—it’s not legal advice. If you have questions or need advice for your specific situation, we recommend speaking to a lawyer or reaching out to us at http://hazelegal.com.au before making any decisions.