Find out about Stamp or Transfer Duty when transferring property to a family member either by gifting or selling the property.
When there’s a relationship between the vendor and purchaser there’s a requirement by the Office of State Revenue to provide valuation by either a real estate agent or a Registered Property Valuer. The valuation is used to assess the correct market value on which to assess the amount of stamp duty payable. It’s also wise to have a valuation and expert advice simply in fairness to all parties when family relationships are involved.
Some common scenarios
Siblings jointly own a unit and one wants to buy the other out which means their share would need to be transferred to the other sibling.
We see transfers occurring for asset protection, shifting percentages of ownership between spouses e.g. 1% of the house to one and 99% to the other.
Parents gifting property to children. Doing the transfer, they want to be fair and equitable amongst family members.
Transfer of ownership for legal or taxation reasons. These property valuation requests often come from solicitors and accountants.
View some specific examples which may help you decide which path to take in the Residential Property Transactions Public Ruling .
Property Values
Sometimes there’s a pre-agreed value that has been set by the seller and all family members are happy with that value.
Sometimes parents will sell at a reduced rate to help their children.
In all situations there’s a need to know what a property is worth to negotiate the realistic value and pay out and to meet the legal obligations for transfer duty. There’s a need to know the value is fair and whether it is high or low and realistically acceptable by the tax office.
Our expertise
Our expertise in Queensland spans many years
We use actual data and proper market analysis and research to arrive at a figure as accurate as possible – our reputation is at stake!
We are independent with no vested interest in the figure being a certain amount
We’re not real estate agents or selling property, we’re completely unbiased
We really value your business and will remain professional and trustworthy always
Transfer Duty (previously called Stamp Duty) and CGT
Transfer duty (previously called stamp duty) is based on the property value not the transfer amount and is paid by the purchaser. There are exemptions that may apply.
Transferring to a spouse triggers transfer duty and if the property is not your principle place of residence (PPOR) it may also trigger an obligation for the seller to pay capital gains tax or the purchaser to pay CGT if the property is sold at a point in the future. In this case a valuation is required to assess the correct amount of stamp duty payable but also provides an assessment for CGT. In all cases seek independent financial advice.