Apart from selling and buying property on the open market, there are a few other reasons why property ownership is transferred from one person to another.
The most common reasons why property ownership is transferred include but aren't limited to things such as:-
When there is a marriage or relationship breakdown.
Rather than selling the property, it is often the case that one partner decides to buy the other partner out of the property so that they become the sole owner.
Property transfer for tax reasons
Investors may receive advice from their Accountants to transfer their investment property from their names to a trust or company name for tax purposes.
Transferring the property to a family member
We often see parents gifting the property or part of their property to their children.
The death of an owner
In the unfortunate event that one of the registered owners passes away, the property needs to be transferred into the survivor’s name. How this is done is different as the processes change if you hold the property as Joint Tenants or Tenants in Common.
What's the cost?
Before agreeing to transfer your property, there are fees that you will need to consider on both sides of the transaction, not just for the person purchasing the property.
Some of these fees include bank fees if there is a mortgage involved and Stamp Duty. In most circumstances, stamp duty is payable on a property transfer. The stamp duty payable is based on the higher the market value of the property or the consideration amount agreed to.
There are circumstances under which you are exempt from stamp duty. You are exempt from stamp duty if you are transferring the property due to a marriage breakdown, or due to the death of an owner. For more information click here for the NSW Office of Revenue site.
When transferring property a Valuation is also a great idea and in some circumstances, compulsory.
If you have any questions k or need more information, don't hesitate to get in touch.
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