A voluntary transfer is where one owner transfers property to another, usually consisting of a parent transferring property/land or farmland to a child or loved one, as a gift during their life time.
A solicitor can no longer act for both parties in such a transaction therefore two solicitors will be required. The Transferor (the person transferring the property) must be independently legally advised by a solicitor to ensure that he or she is engaging in the transaction of their own free will, free from duress or undue influence.
What do I need?
- Copy Title –Land Registry Folio/Original Title Deed.
- A land registry compliant map will need to be prepared marking out the property to be transferred, including any rights of ways or easements to be transferred or retained. This is usually prepared by a property surveyor or engineer.
- A valuation in respect of the property to be transferred will also need to be obtained from an independent valuer.
This valuation is required for stamp duty purposes and will dictate the amount of stamp duty required to be paid on the deed of transfer. The current rate of stamp duty for residential property is 1% and for non-residential property i.e. farmland and site transfers is 6% of the valuation obtained. Certain transfers may be eligible for stamp duty relief or exemption depending on the purpose of the transfer and the nature of the relationship between the parties.
- The Transferor will need to obtain the advices from an accountant in respect of potential Capital Gains Tax liability and the Transferee may require the advice of an accountant in respect of Capital Acquisitions Tax lability depending on the value of the transfer to hand.
- In addition, the Transferor will be required to execute a declaration of solvency, confirming and declaring that as at the date of the transfer he or she is solvent and able to meet their debts as they fall due and have not entered into the voluntary transfer to avoid their debts. The purpose of establishing solvency at the time of the voluntary transfer is to ensure that the document with stands close scrutiny.
We at McElhinney & Associates Solicitors, can provide you with all of the necessary guidance and advice for either party intending to engage in a voluntary transfer. Call us today on 074 9175989.
*In contentious business a Solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement
**This information is for guidance purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this publication. No liability is accepted by McElhinney & Associates for any action taken in reliance on the information contained herein. Any and all information is subject to change.
