Related Party Transfers
Acting on behalf of both parties
Related Party Transfers are essentially a Transfer of Land where the present owner is related to the new owner. The relationship includes: siblings, parent and child and any other family relation both biological or by marriage. Our office is able to act for both parties.
You need to be aware that stamp duty is likely to be payable on the value of the property transferred, irrespective of any amount that may be paid between the parties. The Office of State Revenue (OSR) requires a market appraisal from a licensed real estate agent where the OSR will assess the duty payable based on the higher amount appraised by the agent. Furthermore, there are exemptions and concessions available to the incoming owner for stamp duty. Please contact our office to obtain advice as to whether you qualify for any stamp duty exemptions or concessions.
Related Party Transfers – no release of mortgage and no new mortgage:
A Simple Transfer is where there is no mortgage on the property and the incoming owner is not obtaining a mortgage. The Transfer of Land is then required to be signed by both parties and the evaluation is to be provided to the OSR by way of a letter from a licensed real estate agent. The Transfer is assessed for duty based on the higher appraisal, the duty is paid to the OSR and the Transfer is lodged at the Queensland Land Registry (Titles Office) for registration.
Simple Transfers are rare as the present owner is required to have a clear Title (no mortgage on the property) and the new owner has sufficient funds to pay to the current owner (if required) and stamp duty.
Related Party Transfers – A mortgage on the property:
If the current owner has a mortgage on the property then their lender will need to be involved with the transaction. Any change in ownership of the land that has a mortgage registered over the Title usually requires the existing mortgage to be released. Therefore, the owner must ensure that he or she is able to pay out the existing mortgage in order to produce a clear Title for the new owner. We will be able to assist in arranging a release of mortgage to facilitate the registration of the Transfer.
Adding Another Owner – A mortgage on the property:
If you require to add another person to the Title of the property (another owner), the existing lender may be prepared to keep the same terms of the mortgage in place. However, the lender will require the current and incoming owner to sign new mortgage documents. Unfortunately, this will result in delay as it is beyond a solicitor’s control. We will be able to assist in producing the Transfer documents and delivering it to your lender as your lender is responsible for lodging the Transfer documents at the Queensland Land Registry.