5 November 2014
Do I need to pay stamp duty if I transfer a property to a family member?
Is stamp duty payable on a transfer of real estate from father to sibling or vice versa?
ANSWER BY MARGARET LOMAS – PROPERTY OBSERVER
Where property is transferred between family members, it’s theoretically possible to transfer property using a ‘transfer’ form and without going to the expense of having a full contract for sale prepared, with appropriate disclosure documents such as title searches and council zoning certificates. You may prefer to use the usual contract for sale however, as this will protect all parties to a greater degree.
In some states there may be an exemption for transfer between family members, although this usually applies only to spousal transfers. Depending on the nature of the real estate some exemptions may apply – property used for primary production (family farm) may be exempt and other real estate might have some exemptions depending upon the circumstances around the transfer.
Also be aware that, depending upon the nature of the property for your father (for example if it was his investment property), there may be capital gains tax to be paid.
Offices of state revenue in each state are very helpful, give them a call and discuss your personal circumstances.
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