This quick guide to the types of real estate transfers will be useful for those who wish to transfer their properties or benefit economically through any of these procedures. Keep in mind that here at Conveyancing in Melbourne you will find all the relevant information related to this legal process.
A transfer of ownership is a process in which a person grants the use rights and obligations of a property to a third party. This procedure, also known as real estate transfer, is an option for those people who want to transfer their assets while living, who have a mortgage that they cannot continue paying, or for those who seek to diversify their investments in areas other than real estate.
There are different ways to carry out the transfer of a property; everything will depend on the main objectives of the owner and who receives the rights.
Types of real estate transfers
The beneficiary cannot continue paying their mortgage, they have the option of transferring both their debt and the property acquired to another person who does have the capacity to pay this obligation.
In this case, the real estate transfer must be authorized by the financial institution that originally granted the loan, and for the process to be legal, it must be done through a contract and in the presence of a notary public.
Likewise, it is recommended that a representative of the financial institution be present at the time of making the agreement-
Requirements for a mortgage transfer:
- Be up-to-date on mortgage payments and housing services.
- Whoever receives the rights must comply with the requirements imposed by the financial institution.
- The buyer, that is, the person who receives the rights, must pay the acquired mortgage monthly, as well as pay in cash the difference between the agreed sale price and the amount of the mortgage debt. The price is determined based on the real value of the house.
A will is a document in which a person expresses her last will. In it, an owner can transfer the rights of a property to any person she wants, whether she is a member of her family or not.
Making a transfer of property through a will is one of the smartest ways for investors to avoid jeopardizing their assets, as well as to avoid future personal or financial problems.
By means of a will, an owner can ensure that any real property that he has acquired in life will pass to the right people without risk of being lost or stolen unfairly.
Requirements for a real estate transfer by means of a will:
- The will must be made and validated through a notary public.
- The fee established by the notary public must be paid.
- Whoever makes the will must be the owner of the property and have the deeds of the house.
- In order to be awarded the property, the beneficiaries must make a probate judgment. This process can take from one to two years and in it a judge decides, based on different documents and evidence, if the will is valid and when the property will be delivered.
- Whoever inherits must be 17 years old or older, present their identification documents and designate an executor to protect the assets until the testamentary succession sentence is released.
This transfer of ownership process is similar to the process of receiving an inheritance, however its main difference is that a donation is made when the original owner is still alive.
This property transfer option is useful for those who wish to personally supervise the process of delivery and reception of their real estate; Likewise, since this procedure does not have higher costs, more than the payment of taxes corresponding to Income Tax, it is a viable option for those who need to carry out the donation quickly.
In the event that a person wishes to donate a property, but does not have plans to stop using it in the short term, they may be protected by a clause of “life usufruct”, which will give the donor the ability to continue using the property until the moment of his death and without running the risk of being unfairly evicted.
Requirements to make a real estate transfer through a donation:
- Like any legal process, it must be validated by a notary public
- The donation can be total or partial; in some cases it is also reversible, so the beneficiary of it must be correctly decided.
- In the event that the donation is made to a spouse, from a parent to a child, or from children to parents, the Income Tax must not be paid, if it is made to a third party, 20 percent of the total must be paid. of property value.
- The donor must be the owner of the property, that is, the sole owner of the property to be transferred.
Buy and sell
This type of real estate transfer is one of the most common in the area of real estate. It is carried out when the owner of a property offers her house and the total transmission of her rights of use, in exchange for a specific amount of money or a good of similar value.
The amount to be paid is determined based on different aspects of the property, for example, the time of its construction, the physical state in which it is located, its location and the use it has been given.
When a seller finds a buyer, he must close the deal by means of a sale contract validated before a notary public. The document must stipulate all the conditions of the real estate transaction, from the sale price and the personal data of both parties involved, to the date on which the debt and the rights that the buyer obtains when signing the contract must be paid.
Requirements to carry out a sale:
- Both parties must agree to the sale price.
- The process must be carried out by means of a notary public and signing a contract of sale.
- The property must be in good condition. If not, the buyer must agree to this situation.
- The seller must deliver the property deeds to the buyer. The buyer must register them in his name with the help of a professional or by attending the Public Registry of Property and Commerce.
Protect your assets by making a property transfer taking this information into account! Avoid real estate fraud and unexpected situations that endanger your personal finances, with this short guide that will allow you to transfer your properties without risk of losing them. Here at Conveyancing in Melbourne we will help you.