Q. When do you require Stamp Office Valuation for a residential property transaction?
A. In most cases stamp duty is simply paid on the purchase price shown in a Contract for a residential property transaction. In some cases, for example, where the transfer is by way of a gift, the Stamps Office will not just accept the purchase price and they will require a valuation to be submitted.
Basically, a Stamp Office Valuation Report will be required where:
- Both the Seller and Buyer are members of the same family
- Where the Seller and Buyer are corporations and are associated or related
- In transactions where there is no consideration
- Where the consideration cannot be ascertained.
For residential purposes, the Stamps Office generally accepts evidence of market value submitted by either a Registered Valuer or a Real Estate Agent who is competent to assess the value of the property and who is able to support their opinion by evidence of 3 comparable sales and who is independent of the transaction.
The valuation report must:
- Clearly identify the property being valued by giving correct real property description and street address;
- Give a short description of improvements on the property, if any;
- List at least 3 recent comparable sales. If it is not possible to give at least 3 recent comparable sales because the residential property is located in an extremely remote area where sales are highyl infrequent, the Stamps Office will consider the evidence of market value submitted and determine whether further evidence is required.
The stamps office will, in most circumstances, accept evidence of value dated up to 3 months prior to the date the parties signed the transfer of the residential property.
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