Can a Child Buy (or sell) Property in NSW?

Sometimes a young person will have accumulated significant funds through inheritance, sport or entrepreneurship before they turn 18 and decide that they want to acquire real estate. A person under 18 can legally own real estate in NSW. The catch is that buying property as a minor is more complicated than a standard purchase.

For families thinking about buying property in the name of a child as part of estate planning, wealth creation or asset protection, it’s important to understand how the rules work.

Can a minor buy a property in their own name?

Yes.

There’s no law in NSW stopping a child from being registered on the title of a property. NSW Land Registry Services recognises property dealings involving minors, provided certain requirements under the Minors (Property and Contracts) Act are met.

The Supreme Court can grant a minor legal capacity to enter certain transactions, including property purchases.

Fortunately, there is a more time and cost-effective solution that avoids the need for litigation. Provided that an independent solicitor advises the minor and provides the required certificate confirming that legal advice the minor can purchase a property. The solicitor cannot be acting for any party in the conveyancing matter (including for the minor) and must have been provided expert advice (usually in the form of a valuation) that the price that the minor is paying for the property is not ‘manifestly excessive.’

The minor therefore needs two solicitors (from two different law firms). One to act on the conveyance, and another to provide the necessary independent legal advice.

Can a minor sell a property that is held in their own name?

Yes, and the process is similar.

The minor must be advised by an independent solicitor (who is not acting for any other party, or for the minor) and that solicitor must be provided with expert advice (again, usually in the form of a valuation) that the price that the minor is receiving for the property is not manifestly inadequate.

The legal status of the minor is noted on the title.

To alert potential buyers of properties owned by minors to the additional legal requirements, NSW Land Registry Services notes the words ‘(a minor)’ on the title to the land. This can be removed on application in the required form, once the minor turns 18.

Penmans can help

If you need an independent lawyer to provide the necessary legal advice certificates, we can help. We can also provide these services by video conference (subject to our verification of identity requirements).

We can also assist with removing the notation after the minor has turned 18.

For more information complete our contact form and a member of our property team will be in touch.