Selling property to family member in q’land

Discussion in 'Legal Issues' started by See Change, 14th Feb, 2021.

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  1. See Change

    See Change Well-Known Member

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    Just wondering what we need to do legally to sell a property ( at market value ) to a family member .

    Is there a simple transfer process we can do ?

    Our pm is happy to draw up a contract at no cost , they volunteered this info .

    cliff
     
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Its a worry when PMs offer to provide legal services. There are many issues to consider in a transfer of property and it likely is best to have a solicitor act and address all these issues. Nothing major. eg OSR will likely want a valuation since the two parties arent dealing at arms length. The conveyance has to be done anyway so drafting the contract is fundamental to that.
     
  3. See Change

    See Change Well-Known Member

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    Already have two valuations . Essential as we're selling from our super . Have run it by our accountant , who works in super and he has no issues with what we're doing .

    I'm fairly certain that sale contracts in Q'land are standard and just fill in the blanks with the specifics . SWMBO normally handles that , but this is different to the standard .

    PM is licensed REA .

    Cliff
     
    Last edited: 15th Feb, 2021
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The PM is not a solictor. Preparing a contract is a legal service adn a prerequisite for a conveyance based on the contract. It may be tolerated under QLD RE law but if anything is wrong then someone will be liable. I suppose you could sue. Can you ?

    Q : Will settlement adjustments occur ? If not, why ? While the vals may stack up the defective adjustment clauses could be a concern.
    Q : Is this a sale of new residential premises with GST clauses ?
    Q : What name and ABN on the contract ?
    Are just some issues I can think of.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Is it residential property? There may be some issues selling off-market to a relative (but I am no SMSF expert)

    Valuation - tick, needed as evidence for stamp duty and helps to agree between the parties.

    Solicitors - each party should by rights have their own independent legal representation
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    Not sure if it's helpful - and it was in SA not QLD, but about 15 years ago we sold our ex-PPOR to our family trust.

    We got a valuation done and then simply had a conveyancer prepare the contract for sale.

    Was all pretty straight forward once finance had been arranged - conveyancer did all the work for us.
     
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  7. See Change

    See Change Well-Known Member

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    residential.

    Cliff
     
  8. cold_chain

    cold_chain New Member

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    When you say you have a valuation, was this a formal private valuation through a valuer or a bank valuation?

    I am looking at being the purchaser in this situation, and trying to work out what my relative needs to do to keep things at arm's length for tax purposes for both of us.

    Thanks
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    A market valuation would do that. But a registered valuer
     
  10. cold_chain

    cold_chain New Member

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    Ok thanks - how close to the contract of sale date would the valuation need to be done? Would 1-2 months prior be acceptable?
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You would have to convince the ATO in an audit that the value you used was the market value.
     
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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