Property ownership is one of the critical aspects of self-actualisation for most people. As such, the real estate market marks one of the most lucrative investment alternatives for most people. You will be investing in property to guarantee the financial security of your loved ones.
At some point, you will pass the property to your loved ones. For most people, this will mean drafting a will to give your property to heirs after your passing. Family lawyers based in Townsville are not just essential when drafting your will.
You can still pass on the property to your loved ones when alive through different means. People, after all, do not need to wait for your demise to enjoy the profits of your property ownership. The following are the methods of property transfer to your family members.
Gifting is defined as the transfer of property ownership where a donor will not receive full consideration in return. You can opt to gift your property to a spouse or offspring. With this option, you will need a “transfer of land” document to show the banks and title office.
This document will transfer ownership from you to someone else. For you to protect yourself as well as the property’s acquirer, you should execute a deed of gift. This document will formalise the property gifting and avert confusion and conflicts between your loved ones in the future.
You can choose to sell the property to your family member in a similar manner as a conveyance. A contract of sale will be entered into in this alternative. In most cases, the contract price will be less than the property’s market value.
A parent will, for instance, opt to sell his/her property to a child or sibling for a price that only covers his/her outstanding mortgage. The potential capital gains and stamp duty paid on your property is based on the property market and not contract price.
To minimise your taxes, it is essential to get a conveyancing lawyer to guide you.
Change of Ownership Proportions
You can change the property ownership proportions in properties that are jointly owned between family members or put family members on your title. If, for instance, you and your partner have 50-50 undivided shares in your property, you can choose to give 50% to your offspring and be left with 25% each.
Alternatively, you can opt to include another name on the property’s title. Both situations will need a transfer of land and the drafting of the relevant state revenue documents.
Relinquishment of real estate ownership rights is considered a valid form of property ownership. The transfer document will be witnessed and notarised for it to be valid. Different jurisdictions nonetheless have different laws for the regulation of property transfer through relinquishment.
A property transfer between family members to most people does not sound like too complex an issue. There are nonetheless different tax and document regulations you will consider during the transaction to meet your state’s laws.
It is thus essential to have your procedure handled by a knowledgeable attorney to guarantee the transfer is not marred with complications.