Looking to purchase a property with a family member or friend?
It is becoming increasingly more common for relatives and friends to purchase property together in order to gain entry into the property market because they would not otherwise have the financial resources to purchase the property on their own.
Whilst this is common, it can create issues down the track if one party subsequently decides to sell their share of the property, buy out the other party’s share or alter the proportions of ownership. A transfer of property between related parties can be a complex and costly process if not handled correctly.
Related party transactions can also change the amount of transfer duty that is payable and some transactions can even be exempt from transfer duty.
It is also imperative in related party transfers that a valid property valuation is obtained for the purposes of calculating the correct amount of transfer duty which is payable by the party gaining a larger share in the property.
If you are about to enter into a related party transaction, speak to our experienced Conveyancers, Property and Commercial Lawyers today!