How to Go About Transferring a Property Title Between Family Members
Transferring property title ownership between family members is a fairly common transaction, but as with any legal scenario, it is not without pitfalls and should be conducted with care. Always ensure you have sought legal advice from an expert property conveyancer or solicitor before proceeding with the transfer of ownership.
There are many reasons to consider legally transferring a property title into a family member’s name, ranging from a financial decision to put a property in your spouse’s name, to gifting property as an early inheritance. Transferring property ownership into someone else’s name is a fairly common legal procedure, but it does involve some complicated legal and taxation requirements, so you will need to seek the advice of a property conveyancer or solicitor. Not sure where to find a reliable property conveyancer? Jim’s has branches Property Conveyancing Brisbane and Property Conveyancing Melbourne. Get in touch today on 13 15 46 to arrange a free quote.
If you’re considering transferring a property title between family members, it’s worth exploring your options to work out how to conduct the transaction and what transferral procedure might best suit your particular case. Legal and tax requirements on property transfers between family members can vary significantly depending on which Australian state or territory that your property is located in and whether it is a residential or commercial property, so this will also need to be taken into account by your property conveyancer or solicitor. If you are looking for a security door Melbourne please contact us. Here are the three main ways to transfer a property title between family members:
One option to transfer a property between family members is to sell it, usually for an amount that is far less than its market value. This option is similar to a normal property transfer arrangement, with family members entering into a Contract of Sale.
Changing ownership share
Another option is to change the proportion of ownership of a property that is already jointly owned between family members, or else by adding a family member to the Title of ownership. This often occurs in arrangements whereby a husband and wife jointly own a property and it can be effective from a taxation point of view to adjust the ownership shares.
The most common way to transfer a real estate title between family members is to gift the property. In order to do this, you will need to execute a Transfer of Land document and any relevant State Revenue Office paperwork. The transfer may also need to be protected by a Gift Deed document to formalize the transfer. This can assist the procedure and any future conflict between family members by formalizing the arrangement.
What do I need to consider before transferring a property title into a family member’s name?
There’s quite a bit of information to take into account when making a decision about whether and how to transfer a property title into a family member’s name. Here are some other points to take into account:
- What tax benefits or liabilities might result from the transferral of property ownership;
- How much you might have to pay in capital gains tax;
- Whether the transferral makes sense financially for your retirement plans;
- Whether the transferral could be beneficial in terms of estate planning; and
- Whether the transferral is sensible to support asset protection.
Property transfers between family members will still incur capital gains tax and stamp duty, so there are significant expenses that will need to be taken into account when making a decision about whether to go ahead with the transfer and how to proceed. It’s important to always seek expert advice and guidance, so your first step should always be to hire an expert property conveyancer.