Sell house to sibling

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tracey2018

Active Member
25 April 2018
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Unfortunately my son has lost my job and prospects are not great right now . He also needs to have 2 minor operations that will put him out of action for a few months. Problem is he has a mortgage that he is going to struggle with. Purchased this investment property and today will sell for th exact price he paid for it. Is there any way his sister can purchase the property without her having to pay the stamp duty? She is willing to help as he has a good tenant. Is there any help available to them beside banks holding off on repayments.
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
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Gold Coast, Queensland
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It may not make a difference - but what state is the property in?

In most jurisdictions I'm aware of - and certainly in Queensland - there is no applicable exemption for transfer duty (stamp duty) in the circumstances you've outlined. Not only that, but you need to have to the mortgage released as part of the process. If he's selling for the same price that he paid for it, care must be taken to ensure that there is sufficient equity in the property to cover the expenses of selling and the payout figure to the bank. If they're short, they don't have to release.
 

tracey2018

Active Member
25 April 2018
10
0
31
It may not make a difference - but what state is the property in?

In most jurisdictions I'm aware of - and certainly in Queensland - there is no applicable exemption for transfer duty (stamp duty) in the circumstances you've outlined. Not only that, but you need to have to the mortgage released as part of the process. If he's selling for the same price that he paid for it, care must be taken to ensure that there is sufficient equity in the property to cover the expenses of selling and the payout figure to the bank. If they're short, they don't have to release.
Thank you for your response. So we are in NSW and he will sell for the same price he purchased because thats what he owes the bank. he was on principal only payments. He rushed into it and now it's become a problem.
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
2,356
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Gold Coast, Queensland
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Okay, I practise in Queensland but my understanding is that there will be stamp duty payable. I suggest he gets a payout figure so he can see what the release fees and charges from the bank are going to be. There’s no point going down the track if he comes up short and can’t complete.