The property transfer deed is the legal document which transfers ownership of a property from one person to another. To change the names on deeds to a property a Solicitor will first obtain the deeds or official copies from the Land Registry and will then begin to prepare the Transfer Deed.
They will notify any third parties and assess if stamp duty is payable (some Transfers of Equity are exempt from Stamp Duty, for example, if the transfer is the result of a court order). A Stamp Duty Land Tax (SDLT) form will be completed and submitted to HM Revenue & Customs and identity checks will be done. The Transfer Deed will be signed by all parties in front of witnesses.
If transferring at market value, the transfer deed will show the price paid for the share in the property. If your transfer is a 'transaction at an undervalue' (transferring for free or at a discount on market price), for example as a family gift, between companies or to avoid losing the property through debt or insolvency, you will also need to sign a Declaration of Solvency. If the person who transfers the property becomes bankrupt within a number of years of the transfer, the law can undo it in order to protect any creditors and the property can be sold off by the Official Receiver to cover debts. You may also need insolvency insurance to cover mortgage payments; your Solicitor can arrange this for you.
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Last Updated: Sunday 12th May 2019
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