Transferring property within your family

Family transfers we act on

1. A parent transferring land, or a share of land, to a child.
2. Adding a spouse, partner or relative to the title.
3. Removing a name from the title, by transfer to the other owner.

Transfer duty on a family transfer

Transfer duty applies to a transfer of land in NSW, including a gift.

Where no price is paid, or the price is below value, duty is worked out on the higher of the price and the market value.

Duty is due within 3 months of the transfer date, or of the contract date if there is a contract.

Exemptions that may apply

Revenue NSW sets the conditions for each exemption. Each must be met in full.

1. Spouses and de facto partners. A transfer between a married couple or de facto partners can be exempt where the land is their principal place of residence. After the transfer, the couple must hold the land in equal shares. De facto partners must have lived together for at least 2 continuous years. The exemption is not automatic. An application is made to Revenue NSW.
2. Relationship breakdown. A transfer because a marriage, de facto or domestic relationship has broken down can be exempt, where the required documents are in place.
3. Primary production land. A transfer of land used for primary production between family members can be exempt, where the business is carried on by the person receiving the land.

A transfer between a parent and a child, or between siblings, has no general exemption.

Capital gains tax: speak to your accountant

The Australian Taxation Office treats a gift or a transfer below value between family members as if the owner received market value.

This can lead to capital gains tax for the person transferring the land.

The main residence exemption may apply to the person's home.

We ask you to get advice from your accountant before the transfer is signed.

The ATO suggests a valuation from a professional valuer, as at the date of transfer.

Lender consent where there is a mortgage

If the land is mortgaged, the lender has rights over the title.

A transfer of a mortgaged property needs the lender to be involved.

The lender may need to consent, or the loan may need to be refinanced or discharged.

First home buyer concessions

The First Home Buyers Assistance Scheme applies to the purchase of the whole of a property.

Taking a share of a property while a parent stays on title does not qualify.

A person who has owned residential land in Australia before is not eligible.

If a family transfer is part of a first home purchase, we check eligibility with you first.

How the transfer is completed

1. We search the title and confirm who owns the land and what is recorded on it.
2. We confirm duty, any exemption, and lender requirements.
3. We prepare the transfer and the duty documents.
4. The parties sign. Identity is verified.
5. Duty is assessed and paid, or the exemption is approved, by Revenue NSW.
6. We lodge the transfer electronically with NSW Land Registry Services.
7. The new owner is recorded on the title.

Common questions

Related articles

• Property LawTransferring property to a family member in NSW
• Property LawAdding or removing a name on a property title