Buying a property from our parents (in law)

Posted elsewhere but realised this might be a better place...........

Hi there

Not sure if this is the correct place, if not please direct me elsewhere

My wife and I are purchasing a property from her parents. The house has a market value of $440,000.00 and they are selling it to us for $400,000.00

Our mortgage broker has advised us that we need a solicitor to prepare:
- A favorable purchase agreement
- Letter stating the property will be transferred to our name
- Transfer document

Having contacted a local solicitor we have been quoted $1000 +GST for the above. This seems a little expensive to me. Can anyone advise if this is a fair rate and if we are likely to need any other legal services?

Thanks

Tony

 

Dangerous advice from a mortgage broker.

You should have legal and taxation advice on this. I would suggest a full contract of sale and probably market value purchase with a gift back to you of $40k

Why would $1000 seem excessive?

 

Maybe because at $20 p/h that is 50 hours worth of work .

To the OP if you feel it is excessive go get another 2 quotes.

 

So you have a qualified solicitor who works for $20 an hour ??
Marg

 

Nope, I was having a dig at it the thread, hence the face and replying to Terry who is a Solicitor.

Someone is not going to spend all those years of studying, insurance, leases, continual learning all for $20 p/h. Better off just getting a job at Maccas for this return and no have all that risk and effort.

My other comment of go get more quotes if you believe it is unreasonable is to actually help the OP as they think they maybe getting ripped off.

 

For a related party transfer:
1. You will need a valuation or a CMA for transfer duty purposes and will pay duty on market price.
2. The inlaws should get taxation advice unless it was solely PPOR

 

Yep, Govco are going to want as much as possible
Not "just" the actual sale price revenue/fee's