Why a Missing Middle Name on a Contract Could Cost You Thousands

When it comes to property contracts, every detail matters, especially names. A seemingly minor error like a missing middle name might not raise immediate red flags, but it can have serious financial consequences down the track.

If the buyer’s name on the contract does not exactly match their legal name, including the omission of a middle name, they could face significant implications. The Revenue Office and the Tax Office may consider the person with the missing middle name and the correctly named individual as two entirely separate entities. This mismatch can result in costly consequences such as double transfer (stamp) duty and even Capital Gains Tax complications.

So, what should you do if yous name is misspelled or a middle name is left out?

The first and most important step is to speak with a legal representative immediately. Acting quickly ensures that any issues are addressed before settlement and before the contract is lodged with government authorities.

Typically, the buyer’s and seller’s legal representatives will work together to amend the contract. The most secure method for doing this is via a Deed of Variation, though in some cases, it may be acceptable to correct the name through an exchange of letters between parties.

It’s a great reminder that accuracy in contracts isn’t just a formality, it’s a financial safeguard. If you're buying or selling and unsure about any details on your contract, always consult your solicitor or conveyancer early to avoid potential risks.