Related Party Transactions

Q: What is not a related party transaction?

A transfer of property is not considered a related party transaction when it is made between two parties who were previously known, or have no relation to each other. Most property transfers in Australia are made by non-related parties.

Sell Your Property Privately To A Relative

If you’re planning to purchase a property or sell a property to a relative, this transaction is referred to as a ‘related party transaction’.

Related-party transactions can be a cost-effective way to transfer ownership of your property, however, if done incorrectly, could be very costly in the future. If you’re planning to make a transaction between related parties, speak to West Perth Property Settlements today and have the transfer handled properly.

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(08) 9481 2444

Trust West Perth Property Settlements For Related Party Transactions

There are many reasons for a related party transaction to occur, from an agreement between siblings, parents passing over ownership to their children or a transfer from a deceased estate. Regardless of your reason, the team at West Perth Property Settlements are here to assist. We have over 20 years of experience and understand the laws and requirements around the sale of the property to a related party.

We Handle The Required Documents

When completing a related party transaction, there are a few key forms and documents you’ll require including seeking an assessment of Duty from the Office of State Revenue. West Perth Property Settlements can help handle this process to ensure it’s completed correctly.

We Understand Stamp Duty

While stamp duty is often paid when completing a related party transaction, there are some cases where an exception or concession applies. Speak to West Perth Property Settlements today for educated advice and guidance on your property transfer.

Confidential & Private

As with all settlement and conveyancing services provided by West Perth Property Settlements, we ensure your details and the details of your property transfer stay confidential and private.

Trust Our Settlement Experts

With over 20 years in the industry and a wealth of shared knowledge between our team, when you work with West Perth Property Settlements, you’re dealing with a local, trusted and experienced agent.

Frequently Asked Questions

Have a question for our team? Here are some frequently asked questions that we're commonly asked.

What is considered a related party transaction?

A related party transaction refers to the transfer or process of transferring property to a related party, be that a spouse, child, parent, business partner or personal relationship. According to the Office of State Revenue, a related party transaction is any taxable property transaction that is “closer than arm’s length” between parties.

What is not a related party transaction?

What should be considered when making a related party transactions?

Before committing to a related party transaction, you should consider:

If stamp duty needs to be paid. While it is commonly paid in most cases, there are some exceptions and concessions that could apply.
If there is an existing mortgage on the property then the business or financial institution that provided the funds must be notified.
There are some tax implications involved in related party transactions such as capital gains tax and GST.
Overall costs should also be considered, such as stamp duty, title registration, conveyancing costs, etc.

Have a question? Call (08) 9481 2444

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