Get in specie contributions in on time & don't think EFTs are instantaneous

As the current financial year will soon be closing, it is important to ensure that any in specie contributions which are intended to be made before 30 June 2014 are in fact completed before that date.  While it is relatively quick (but not instantaneous) to transfer money from one account to another, in specie transfers take much longer – particularly transfers of real estate.

An in-specie transfer could be delayed due to any of the following factors:

• not having original certificate of title (where title registration is not entirely electronic);
• having a redundant mortgage on title;
• delays in having the transfer documents signed;
• having mismatches between the legal name of the transferor and the name recorded as the registered proprietor – “Michael John Smith” as against “Michael Smith” as against “Michael J Smith” as against “Mike Smith”  - all these variations of name will cause delays; and
• delays in obtaining stamp duty clearance or registration.

As a rule of thumb, all cash contributions made by electronic transfer should be made a few days before 30 June as there have been many cases where the contribution was debited to the paying account on 29 June but not credited to the receiving account until after 30 June.  Electronic transfers of money are not instantaneous and the contribution is received when it is credited to the receiving account.

As a rule of thumb in specie transfers of real estate will generally take a few weeks.