Agreement To Transfer Property Between Family Members

The transfer of real estate to another family member is done for many reasons. Perhaps a spouse would like to add his spouse as a co-owner of a property that belongs exclusively to him? or if a parent wishes to offer all or part of a fortune to his or her child? For the past 20 years I have lived in a family foundation and paid rent – the property is transferred in my name – what fees do I have to pay? But it might be worth knowing what to pay attention to when it comes to transferring title to someone else. The next option is the sale of real estate to a family member. This option is most similar to a normal promotion, since a sales contract is concluded between family members. Often, in these situations, the contract price is lower than the market value of the property. For example, a parent can sell their property to their child and make the contract price just enough to pay off their mortgage and maybe a little more for them. However, as we will discuss below, the stamp duty paid and potential capital gains are based on the property on the market value and not on the contract price. In these situations, it is important to get advice from an experienced mediator. According to D`Cruz, different tax considerations apply, depending on the State or territory in which the property is located, whether the property is residential or commercial and the number of properties held by the parties concerned. In the event of death, the property has not been given, the property will be an asset in the estate of the deceased. Depending on the value of the estate (including taking into account the amount of the rebate of R3.500.000 – Feb 2019 Budget – it is exempt from tax), you can have inheritance tax. When real estate is offered to a family member, a deed of gift is appropriate to clearly prove the gift.

SARS requires two independent property assessments if the parties to a transaction are related. Transfer fees must be paid to the transferring lawyers, both for the donation and for the inheritance. You may be able to avoid high fees when transferring or donating real estate in selected situations and in scenarios where the CGT and other fees are not charged. Below are some examples of these situations: A common question asked by first-time homeowners who buy real estate or receive a gift from their parents is whether they are still entitled to their first stamp duty concessions for home buyers. The State Revenue Office`s position is that you must pay the market value to be eligible for stamp duty concessions.. . .