We can help with your Voluntary Transfer Needs
When a person transfers some or all of their property to another person, it is considered a voluntary transfer. An exchange of money does not occur with a Voluntary Transfer, and most transfers go to family members.
The transfer of a family farm to a child/ a site to build a house on is an example of this. If you live in a joint property, you may wish to have your spouse/civil partner recorded as a registered owner.
The Process of a Voluntary Transfer of Property in Ireland?
Transferring property requires a legal document called a deed of transfer. The person gifting the property is called the transferor, and the recipient is called the transferee. There is no exchange of money since the transfer is carried out "for the natural love and affection of the parties."
A solicitor must be retained by both parties for the transfer to be completed. It is done to show that the transferor is not under pressure to transfer the property. Additionally, the transferor should seek independent advice on issues like taxes.
The reason for this is that a tax return must be filed if a person disposes of (transfers) his or her property.
There may be cases where the 'transferor' retains a portion of the property. For this reason, you should have a Land Registry Compliant Map drawn by an Architect to map the portion of property being transferred.
Does the property have mortgages or charges?
The parties can settle the mortgage on the property in full before the transfer process, or they can seek the consent of the institution holding the mortgage. The financial Institution can then be included in the transfer deed.
It is vital to conduct searches on the property you are transferring before you transfer it. Prior to the transfer being completed, this is done to ensure that no charges have been registered against the property. A judgement mortgage is an example of a charge
The definition of a Judgement Mortgage is when a creditor wins a court action against you for a debt you owe them. In order to register the charge granted by the court, they intend to register by way of a judgement mortgage. Whenever you decide to sell or transfer a property, you must first clear that judgement mortgage. There is a 12-year term on a Judgement Mortgage.
Voluntary property transfers and taxes
Make sure you are familiar with taxes, such as stamp duty, capital gains, and capital acquisitions tax. Property transfers will raise all of these taxes. In order to determine which tax exemptions are available to you, you should consult your accountant or tax adviser.
Taxes do not apply to voluntary transfers between spouses and civil partners.
There are various tax incentives available to the farming community, including Young Trained Farmers relief and Consanguinity relief. If you are considering voluntary transfers, we recommend that you seek specific tax advice. By doing so, you will be able to fully understand any tax exposure you may have.