Transfer 45% ownership of the investment property

[emily983]

Hello,

I would like to know if I need to do a valuation to transfer 45% of ownership of an investment property to my partner. I have 95% and my husband has 5%. We are tenants in common. There won't be any exchange of money. It's just a transfer of 45% for him to have 50% of ownership of the property. Please let me know if I need to do a valuation and pay stamp duty.

Thanks in advance,
Emily

 

[Rob Legat - SBPL]

It may depend on what state you're in, they all have slightly different laws.

In terms of Queensland (where I am): You definitely have to pay transfer duty (stamp duty) on the share of the property being transferred, calculated against the value of the property. There's no way around this, and you wouldn't be able to register the transfer without it. Since you are 'related' parties, either a valuation or a compliant appraisal by a real estate agent in the local area is necessary. The duty is then calculated on the percentage of the assessed value being transferred (in your case 45% of that value).

Also be aware that you will need to negotiate with interest holders in the property, such as mortgagees.