Property transfers are not as simple as they seem to be, even if they’re between family members. They involve various details that you have to secure. In this case, that includes where the transfer should begin or who should be involved during the process. Meanwhile, the transfer can include giving away some rights or transferring ownership entirely.
Conveyancing involves transferring property to another owner. Even the groups covering apartment investment also undergo such a process for their clients. In most cases, transfers happen with the presence of legal counsel. An attorney lists down the demands of both the buyer and the seller.
A property transfer can take place in various ways. That depends on the purpose of the transfer. In some cases, transfers are easy, while others need to undergo complicated procedures. Read on to find out what methods are available for a property transfer.
Transfer Between Family Members
If the transfer happens among family members, there are three methods to choose from based on the purpose of the transaction. Here’s what to know:
Some families transfer property to serve as a gift. In this case, there is no money involved in the change of ownership. The owner will not receive any payment regardless of the value of the property. Meanwhile, the transaction often happens between the family. They will only need a witness and notarization if it involves a real estate property.
Additionally, the owner has to be gifting the property out of free will. Moreover, the property should not be in any outstanding debts secured against it. It is best to have a legal counsel’s advice before making any transfer through gifting.
It is also possible to sell a property to a family member. However, there will be a need to settle on an agreement. This way, the buyer and the seller both agreed to the transfer process. Aside from that, it is best to have someone as the decision-maker, which can either be the buyer or the seller. In effect, you can prevent any confusion.
Even if it’s between families, it is best to secure all necessary documents. That includes the agreed price after evaluating the home’s value. In this case, having a lawyer around is better to ensure that all terms are agreed upon and acceptable.
3. Changing ownership share
It often happens if different members of the family own the property. In this case, they can decide to split the ownership equally. However, some factors affect the division of ownership. That includes individual contributions or property rights.
These three methods are usual to take place in property transfer with family members. In any transaction, the presence of legal counsel is advisable. As a result, everything in the process will run smoothly. Moreover, all the essential details are in place.
Meanwhile, more transfers take place apart from these three methods. As mentioned earlier, it can either be simple or require a lot of paperwork. That depends on the value of the property subject for transfer.
Other Methods of Property Transfers
Below are additional methods when transferring property. Continue reading to gain more details about them.
- Basic Property Transfers: This kind of transfer happens if it involves low-priced goods. Doing this transaction does not require the signing of any deed of sale or contract. In this case, it only includes an exchange of money and goods.
- Using a Will: In this type, the transfer will only take place once the donor passes away. Meanwhile, nobody in the recipients can proceed with the transfer as long as the donor is alive. Otherwise, the contract will become void.
- Transferring Property by Mortgage or Deed: Some states involve a transfer of title from a mortgagee to the mortgagor. Any failure to pay the debt will allow the mortgagor to sell the property. In terms of a deed, it reflects the new owner and the seller, and the owner has to sign it.
Any transfer of property may or may not require a long process. A long process can only take place if the value of the property is high. Aside from that, an attorney’s presence is vital as well. In terms of basic transfers, you might not need an attorney. You can even prepare the forms that will serve as proof of the transfer.
Keeping records of the transaction is a critical aspect. These records will serve as proof that the transfer is valid. But then again, the records have to be notarized or in public records. It is best to keep records even if the transfer involves family members. It will prevent issues in the future.