When do I need a property valuation?

Are you asking yourself when you need a property valuation? First, let’s talk about stamp duty.

Stamp duty is calculated on the dutiable value of the property.

This is the greater of:

• The consideration (if any) that was paid for the property.  This includes any GST, if this is part of or is added to the price of the property.
• The market value of the property.

If the seller and the purchaser are associated or related persons, then you must provide evidence of the market value of the property:

• A letter of appraisal signed by a licensed real estate agent.
• A valuation by a certified practising valuer who is a member of the Australian Property Institute or by a member of the Real Estate Institute of Victoria who holds sworn valuer accreditation.

Evidence of market value is thus needed whenever a property is being transferred between associated or related persons, except when the transfer itself is exempt from stamp duty, e.g. a breakdown of a relationship, a transfer in accordance with the provisions of a will, or a transfer to or from a trust where the beneficial interest is unchanged.

For more information about transferring property between related parties and valuations, please contact Glenferrie Conveyancing in Northcote on 03 9815 2351.