We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it! Show There are many reasons why people are keen to know how to transfer property title between family members. Transferring or gifting property to a family member can be as simple as submitting a property transfer form, but there are costs involved – even when the property is a given as a gift. You generally still have to pay stamp duty on the market value of your property and potentially capital gains tax (CGT) as well. Knowing the proper way to transfer property within your family, and how to avoid being charged hefty fees is essential when thinking about any kind of property transfer. And however you decide to execute the property transfer it is vital to have a qualified conveyancer or solicitor guide you through the process. Ways to transfer the propertyThere are two ways you can transfer a property to a family member: gifting and selling. GiftYou can give ownership of your property to a family member as a gift. This simply requires filling out the necessary paperwork with your state revenue office and title office, including a Transfer of Land. Your conveyancer may advise you to organise a Deed of Gift as well. No money changes hands in this scenario, but you are still liable for the paperwork processing fees and the stamp duty costs. If the property was not the seller's primary residence there will likely be CGT costs as well (more on that below). SaleYou can of course sell your property to a family member. Parents will often sell to a child this way, and may adjust the price to cover their costs while offering their child a better deal than they would have received on the market. But again you will be liable for stamp duty and it will be calculated based on the property's market value and not the sale price (if selling at a discounted price). Also, if the property is not the seller's main residence (say, if it was an investment property) then capital gains tax will probably apply as well. Professional valuationEven when selling or gifting a property to a family member you need to determine the property's market value. The government uses this "true" valuation to determine the stamp duty and CGT costs regardless of the discounted selling price. The Australian Tax Office says, "You should obtain a valuation from a professional valuer, or work out the market value yourself using reasonably objective and supportable data. This can include the price paid for very similar property that was sold at the same time in the same location." What fees will you pay when transferring property to family?Below are a few examples of fees and charges that may apply when you are transferring or gifting property within your family: Fees paid by the original owner
Fees paid by the new owner
Example transaction: selling a property to a family member at a discountVanessa and James own a home in NSW. They sell it to their son Tom for $300,000, knowing that it's true value is higher. Tom pays them $300,000 and Vanessa and James get a professional property valuer to look at the property. The valuer puts the property's market value at $500,000. Tom's costs therefore are:
Vanessa and James have used the house as their primary residence for more than ten years. Therefore they won't have to pay CGT. How to avoid fees and charges when transferring propertyWhen you gift your property you are still charged CGT, even if you sell the property for a small amount to a family member or friend. As the ATO states, the property is calculated at market value if you:
Dealing at arms length refers to both parties in the sale acting independently and having no "influence or control over each in connection with the transaction". You might be able to avoid hefty fees when transferring or gifting properties in some select situations and scenarios where CGT and other charges will not apply. Below are some examples of these situations:
Marc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money. More guides on Finder
Important Information* What does it mean when a house is sold for a dollar?Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.
How do I transfer a deed to a family member in Florida?A person filing a deed for transfer of Florida real estate ownership must do so through the county comptroller's office where the property is located. There is a small fee for filing and a document stamp tax, which is an excise tax on legal documents delivered, executed or recorded in the state.
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