Do You Want To Transfer A Property To A Family Member Or Related Party?

What does a related party transfer entail? 

A related party transfer involves transferring a property or a portion of property ownership to a related individual. Related parties include spouses, family members, or individuals and entities in business relationship.

These transactions are not considered “arms length” deals, as the parties involved have an existing relationship and benefit from the transaction differently than in a standard transaction. An obvious example of where a translation is not at arms length is when a property is received as a gift.

Examples of related party transfers include:

• Adding a spouse to the title.
• Change of ownership between related parties for refinancing purposes.
• Property settlements resulting from divorce or de facto separation.
• Transfers between family members as a gift or below market value.
• Transferring property from a deceased estate to a beneficiary.
• Shifting ownership from a trust or company to an individual’s name for tax purposes.

Is a Contract for Sale necessary for a related party transaction? 

In certain instances, a Contract for Sale may not be necessary. For example, when property ownership is being transferred based on a court order, probate or letters of administration, a contract is not required. But in most other cases a contrat is the preferred option. We can assist with the preparation of the contract, where required.