Normally, when two parties agree on a price for one to sell their real estate property to the the other, in NSW they enter into a Contract published by the Law Society of NSW and the Real Estate Institute and prepared by a solicitor or a conveyancer. It sets out important terms and is required by law to have attached to it certain documents.
However, it is possible where there is a high degree of trust between the parties, such as between relatives or people in a close personal relationship, to only use a Transfer document which will transfer the legal title to the property once it has been registered. This procedure, if appropriate, will not only save time but also legal costs.
Where only a Transfer is used, the party acquiring the property will still have to pay transfer duty on the market value of the property and Revenue NSW will require a relevant valuation.
October 2022