Name transfer

[gldsaucer]

Hi Guys,

I am trying to understand the process of transferring name for a property. Mother in Law would like to transfer the property to my name. There is 200k loan owing on the property. I have asked around to a few conveyancers but the process is still unclear to me.

How I understand it is that a contract must be drawn out like the usual buy and sell transaction. However as the sale amount is only for 200k and the house is probably worth 400k, do I put 200k on the contract? Do I need to get a valuation done?

One other question is that would the 200k sale price be recorded in any database (rp data etc)? I dont want my future buyer to question why the house sold for so cheap.

 

[Terry_w]

You will need to fill in a transfer docuemnt. This will have a section for 'consideration' on it. SRO will probably want to see a valuation for stamp duty calculation purposes. Consideration will show on databases.

You should speak to a lawyer to draw up a contract of sale too. Do it properly even if family.

 

[gldsaucer]

Anyone know anything about this?

"One other question is that would the 200k sale price be recorded in any database (rp data etc)? I dont want my future buyer to question why the house sold for so cheap.
Reply With Quote"

 

[Terry_w]

Anyone know anything about this?

"One other question is that would the 200k sale price be recorded in any database (rp data etc)? I dont want my future buyer to question why the house sold for so cheap.
Reply With Quote"

Yes. I answered it above. What you pay will be recorded.

 

[gldsaucer]

Yes. I answered it above. What you pay will be recorded.

Thanks Terry. If I paid 200k on the property as per contract. However the valuation came back to 400k and I paid the stamp duty on 400k. Would 400k or 200k be recorded?

 

[Terry_w]

Thanks Terry. If I paid 200k on the property as per contract. However the valuation came back to 400k and I paid the stamp duty on 400k. Would 400k or 200k be recorded?

whatever is on the transfer document.
Stamp duty is on the market value, not what you pay.

Think about the ramificiations of paying $200k and putting $400k on the contract.

 

[gldsaucer]

whatever is on the transfer document.
Stamp duty is on the market value, not what you pay.

Think about the ramificiations of paying $200k and putting $400k on the contract.

No I would pay 200k on contract as that what its owing on mortgage. I will pay stamp duty based on valuation of 400k. What would be the consequences you can think of doing it this way?

 

[Jamie_]

Anyone know anything about this?

"One other question is that would the 200k sale price be recorded in any database (rp data etc)? I dont want my future buyer to question why the house sold for so cheap.
Reply With Quote"

The information is useless, anyone with half a brain is going to know what happened, and if you've used RPData/PriceFinder you'll see that this happens all the time.

 

[Scott No Mates]

It is known as a 'related party transaction' & is out of line with other sales. Valuers disregard these. It is only the gumbies who are more concerned about previous sales of the same property who get all worked up about it.

 

[Terry_w]

What would be the consequences you can think of doing it this way?

too many to list. Best to seek legal advice.