We’ve previously written on this blog about gifting a family home and the options to consider when doing so, but we would also like to address the topic of selling a house to a family member. With the familiarity and high-level of trust, do you need to go through all the usual checks or hire a conveyancer?
Read more: Gifting the Family Home: Options to Consider
Can I Sell My House to a Family Member to Save Money?
Whether it’s parent to child or sibling to sibling, selling a house to family can be a great cost saving affair.
There is the question of whether can you save money on the conveyancing process. It is possible to handle the conveyancing process yourself, however parts of the process may only be legally carried out by a trained solicitor, if you are having a mortgage.
Further to this, as the process involves a considerable amount of paperwork many people relinquish this duty in order to ensure this is dealt with accurately by a professional. A conveyancing specialist will ensure that the National Conveyancing Protocol is adhered too and will protect your interests, even with complex cases.
Another way you may try to cut costs is by avoiding a survey, however this can be a useful way of avoiding expensive surprises. At the very least, the buyer should still get a Condition Report, despite being familiar with the property and its quirks.
It is important to note, if you decide to transfer the property as a gift and there’s no consideration, stamp duty may not apply.
Is Selling the Property Under its Value Illegal?
You can sell your property for any amount you wish. However, despite the assumption that selling undervalue is a nice thing to do that can help the buyer out financially, this can cause some complications.
HMRC will look at the value of the property when selling rather than the price that is paid, and therefore selling a high value property well below its market value can be seen as an attempt to avoid capital gains tax, stamp duty and inheritance tax. If you’re selling a property under the market value and you have any tax related queries, we would advise to speak with an accountant.
Selling Property to a Family Member: Do You Need a Solicitor?
In the UK, do you need to use a conveyancing solicitor when you buy or sell a property to a family member or friend? This is a common question that many people ask, especially if they want to save money on legal fees and avoid complications. However, the answer is not as simple as you might think.
What is conveyancing?
Conveyancing is the legal process of transferring the ownership of a property from one person to another. It involves various steps, such as checking the title deeds, conducting searches, drafting contracts, exchanging contracts, and completing the transaction. Conveyancing can be done by either a solicitor or a licensed conveyancer, who are both regulated professionals with expertise in property law.
Why should you always use a conveyancing solicitor?
While it may seem tempting to skip conveyancing when you are dealing with someone you know and trust, such as a family member or a friend, this can be risky and costly in the long run. Here are some reasons why you should always use a conveyancing solicitor when you buy or sell a property, even if it is to someone close to you:
You need to protect your legal rights and interests.
A conveyancing solicitor will ensure that you have a clear and valid title to the property, that there are no hidden defects or issues that could affect your ownership, and that you comply with all the legal requirements and obligations. They will also advise you on any tax implications, such as stamp duty land tax, capital gains tax, or inheritance tax, that may arise from the transaction.
You need to avoid disputes and complications
A conveyancing solicitor will act as an impartial and independent third party who will handle all the communication and negotiation between you and the other party. They will also prepare and review all the necessary documents and contracts, and make sure that they reflect your agreed terms and conditions. They will also ensure that all the deadlines and milestones are met, and that the funds are transferred securely and correctly.
You need to have peace of mind
A conveyancing solicitor will provide you with professional guidance and support throughout the process, and answer any questions or concerns that you may have along the way. They will also protect you from any potential claims or liabilities that may arise from the transaction, and provide you with indemnity insurance in case something goes wrong.
As you can see, conveyancing is not something that you should take lightly or do yourself, even if you are buying or selling a property to someone you know well. It is a complex and important legal process that requires expert knowledge and skills. That is why you should always use a conveyancing solicitor when you buy or sell a property, regardless of who the other party is.
Howells Solicitors have been helping home owners like you for over 25 years
If you are looking for a reliable and experienced conveyancing solicitor in the UK, look no further than Howells Solicitors. We are a market leading law firm providing conveyancing services for home buyers and sellers throughout England and Wales for over 25 years.
We employ teams of qualified and friendly solicitors in all five of our offices who can handle any type of property transaction, whether it is residential or commercial, freehold or leasehold, purchase or sale. We offer competitive fixed fees with no hidden charges, and we guarantee a fast and efficient service with regular updates and online tracking.
Contact us today for a free quote or to find out more about our conveyancing services. We are here to help you with your next property move.
Any Further Questions?
If you have more questions or would like to learn more about conveyancing or memorandum of gifts, please contact our trained solicitors by calling 0808 178 2773.
