Frequently Asked Questions about NSW Land Registry Services and Homes for Homes partnership
Over the next 30 years Homes for Homes, created by the Big Issue, aims to raise more than $1 billion for social and affordable housing.
NSW Land Registry Services partnered with Homes for Homes in 2020 to help raise awareness of this innovative programme. Below you will find some frequently asked questions about how to support this great cause.
What does a donation to Homes for Homes look like?
Homes for Homes, created by The Big Issue, operates on a voluntary promise from a property owner that when a home sells, the seller donates 0.1% of the sale price to Homes for Homes. These donated funds pool and are used to increase the supply of social and affordable housing for those in need in NSW.
Read more about the initiative here: https://homesforhomes.org.au/
How does the donation work?
In short, you sign-up via a registration form (see www.homesforhomes.org.au/register). After completing the form, you’ll be emailed a donation deed to print, sign and return. Homes for Homes then lodge a caveat on the property title, which formalises your promise to donate 0.1% of your home’s sale price when you sell. Commercial properties can also be registered.
What is my donation used for?
When you donate to Homes for Homes, the money is pooled with other contributions in NSW. Then it goes to creating what’s needed most, social and affordable housing. Find out more here: https://homesforhomes.org.au/where-the-money-goes/
Setting up my registration
What do I need to do to set up my property registration?
Registration with Homes for Homes is easy and takes about five minutes. You can find all the details here: https://homesforhomes.org.au/the-process/.
Step 1: You sign up via registration form directly with Homes for Homes
Step 2: Homes for Homes email you a Donation Deed to sign and return
Step 3: Homes for Homes register a caveat with NSW Land Registry Services
Step 4: When you sell your property, 0.1% is donated to Homes for Homes.
You can read more about:
Does registration cost anything?
Registration is free.
Will I be notified when registration is complete?
The donor (being the registered owner of the property) will receive a letter from NSW LRS advising that a caveat has been lodged on their property, which is the last step in the registration process. Caveats are now lodged electronically through PEXA and are automatically recorded on title unless there is a query on the caveat or a reason why the caveat could not be automatically recorded.
How long does it take to process my registration with Homes for Homes?
Once a property owner has signed and returned the Donation Deed to Homes for Homes, registration will take approximately one week to finalise.
What happens if I change my mind?
Homes for Homes is a voluntary initiative. So if you ever wish to withdraw, just contact Homes for Homes on 1300 767 918 or email enquiries@homesforhomes.org.au. There is no cost to withdraw a property.
Legal and Financial information
Could registering my property affect my financing/ mortgage?
Homes for Homes works closely with lenders and has the support of the Australian Banking Association. Registering with Homes for Homes should not have any impact on your financing or mortgage. Homes for Homes acknowledges that it will rank in priority after, and be subordinate to, dealings like a mortgage on the property.
Do I need to inform anyone that I have signed-up to donate, for example my solicitor or my lending institution?
You should tell your solicitor about the caveat if you are proposing to sell the property, as Homes for Homes will be disclosed to a future purchaser within the Special Conditions in your contract of sale.
What is the legal mechanism when a property is registered with Homes for Homes?
To recognise a property’s participation in Homes for Homes, Homes for Homes lodges a
caveat over the land title. The caveat simply acts as a reminder to the registered proprietor when selling their property of their promise to donate 0.1% of the sale proceeds to Homes for Homes.
Home for Homes have information for NSW Solicitors and Conveyancers here: https://homesforhomes.org.au/practitioners/new-south-wales/
Will the caveat stop me dealing with my property? For example if I wanted to refinance or subdivide?
The caveat is designed to only prohibit transfers, without consent. In the event a caveator’s consent letter is required, you simply need to contact Homes for Homes and one will be provided.
Are there any tax implications?
Donations to Homes for Homes are tax deductible. When your home sells, on settlement, 0.1% of the sale price will be donated to Homes for Homes as part of the disbursement process. You can claim this as a tax deduction when you lodge your return.
NSW
When it’s time to sell my house
Do I need to inform the prospective buyer?
Yes, you simply need to disclose Homes for Homes in your Contract of Sale as a Special Condition. A proforma is available on the Homes for Homes website.
What if the buyer of my home wants to remove the Homes for Homes donation promise?
Homes for Homes is a voluntary initiative. So if the prospective buyer wishes to withdraw, they should notify Homes for Homes once they are the legal owner of the property.
Where can I get more information
What is NSW Land Registry Services’ involvement?
We partnered with Homes for Homes in 2020 and will facilitate voluntary donations from NSW properties sold by registering caveats and informing customers of the opportunity to donate.
Is there another way to donate to Homes for Homes?
Yes. You can donate directly to Homes for Homes by contacting 1300 767 918.
How can I contact Homes for Homes?
If you have any questions you can reach Homes for Homes via phone on 1300 767 918 or email enquiries@homesforhomes.org.au