Residential Property Transactions and Valuations – written by Rachel Clutterbuck Lawyer.
If you are acquiring residential property in Queensland, you will generally have to pay transfer duty. Transfer duty on a dutiable transaction involving residential property is calculated based on the higher of the following:
- The unencumbered value; or
- The sale consideration (the amount you agree to pay).
In certain circumstances, the Commissioner of State Revenue will require that evidence of value be lodged for the purposes of assessing transfer duty. Some of these circumstances include:
- The residential property is being transferred between related or associated parties;
- There is no consideration being paid for the residential property being transferred; or
- The consideration cannot be ascertained when the liability for transfer duty arises.
For the evidence of value to be accepted by the Commissioner of State Revenue, it must generally be a valuation made by an independent registered valuer or real estate agent who is qualified and competent to assess the value of residential property.
The Commissioner of State Revenue must also be satisfied that the valuation meets acceptable standards. Generally, the valuation must be less than three months old and must identify at least three recent (within the past three months) comparable sales of residential property.
Depending on the circumstances of the dutiable transaction and the value range given in the valuation, different principles may apply in relation to how transfer duty is assessed. For example, if there is no consideration being paid, transfer duty will be calculated based on the highest value in the valuation. However, if there is consideration being paid and the consideration falls within the value range given in the valuation, transfer duty will be assessed based on the consideration.
For further information, please contact Rachel Clutterbuck, Lawyer on 07 5444 4750 or rclutterbuck@millersockhilllawyers.com.au.
Located in Maroochydore on the Sunshine Coast, Miller Sockhill Lawyers regularly advise clients on property law matters.
