What you need to understand about the process of equity transfer during real estate transactions
Transfer of equity is the process which is followed when a person is removed from or added to the ownership of a piece of real estate property. There are many circumstances which can prompt the need for equity transfer. These include a divorce, adding a child to the property ownership and death. The particular process followed when doing the transfer depends on the type of transfer. However, there are certain general guidelines which can inform a real estate property owner and prepare them for the entire process.
You are allowed to get your own solicitor
What most people think about the process is that they are legally required to work with the other party's team for the process. However, it is possible to hire your own expert in conveyancing to act on your behalf. The most important thing is to make sure that the person that you have appointed for the process understands the process and protects your interests.
The outgoing party may also need a solicitor
If you are the incoming property owner, it may seem a little hard to understand why the person exiting the ownership needs a solicitor. Even though most experts in conveyancing will not demand that the person giving up the equity have a solicitor for the process, the person may decide to have one just to make sure the transfer is done right from their perspective. If the other party decides to go ahead without a solicitor, your legal team will instruct and direct them on the proper process to follow.
You may have to pay various taxes for the property
There are different types of taxes which come with different types of property. For instance, if you are thinking about buying freehold property, buying an existing leasehold, buying through a shared ownership scheme or exchanging the land for a payment, you will have to pay taxes. It is, therefore, important to always make sure that you understand what type of property you are getting equity for so that you can plan accordingly when it comes to taxes.
Equity transfer is a process which is supposed to be very simple and straightforward. However, there are times when lack of the right legal counsel can lead to mistakes and financial losses. When you hire a provider of conveyancing services, you will be assured that the entire equity transfer process will be performed according to process.