It’s a common misconception that transferring the ownership of property between family members is easier and cheaper than a standard property transaction between two unrelated parties. However, the fact of the matter is there are extra legal requirements involved when transferring property to relatives.
Millner and Knight’s panel of expert conveyancing solicitors are well versed in these types of transactions.
Transferring property title between family members
There are three ways to change ownership between relatives and how you do it will depend on your individual circumstances. For example:
- Are you giving or receiving the property as a gift?
- are you buying or selling the property?
- changing ownership proportions in already jointly owned property or adding a family member on Title.
Once you have established what option is best for you, your next step would be to decide whether you will complete the transaction yourself or engage a legal representative to take care of it for you. Most people choose the latter, however, it’s not impossible to do it yourself, it can just end up costly if you get it wrong.
For help and independent legal advice regarding your matter, you can contact us on 1800 106 107 for a free consultation.
What does it cost to transfer a property between relatives
The usual costs involved include:
- Stamp duty. Changing property ownership will incur stamp duty. Stamp duty is calculated based on the valuation. Usually it is between 3 – 5.5 per cent. In some states depending on numerous factors, you may be eligible for discount or exemption.
- Capital gains tax (CGT). Selling or transferring ownership between family members can incur a CGT. If the property being sold, gifted or transferred has not always been the owner’s main residence and it was bought on or after September 20, 1985, capital gains tax may also apply. As a general rule, the sale of a property between relatives could incur a 25% of the capital gain.
- Fees. When you sell or transfer the title of a property, you will incur fees such as professional settlement fees, office and administrative costs, transfer duty, title search, transfer of land registration, local authority enquiry fees, bank cheque, PEXA, misc fees and legal fees if you wish to engage a solicitor.
- Pension and Centrelink. If the person selling or gifting the property receives a pension, the transfer of the may affect their entitlements. If you receive a pension and are unsure whether you will be affected we can advise.
How can we help?
Our solicitors can advise you and your family regarding the whole Title transfer process and help you identify which way will work out best for you and handle all the conveyancing too. Conveyancing is the legal process of changing the ownership of a Title from one family member to another.
What you can expect:
- Independent, specialist legal advice tailored to your situation
- be with you throughout the transferring process
- ensure you you meet all statutory requirements
- order the required Title Searches and optional searches (if required)
- a successful transfer
All you need to do is give us a call on 1800 106 107 and brief us regarding your situation and one of our specialists will handle it from there. We will do all the legwork so you don’t have to and
Where are we located?
Millner and Knight will have a solicitor near you. Our locations include:
- New South Wales
- Western Australia