Transfer of equity explained
Transfer of equity is the process of changing the legal ownership of a property. In this instance “equity” is a legal term meaning the rights of financial ownership rather than the plain English meaning which is used to describe the net property value.
There are different reasons why you may want to transfer equity:
- To add or remove your spouse or partner
- Long-term tax planning purposes
- A court has ordered the equity of the property to be transferred.
- A new trust has been formed.
- To add other family members
- You wish to gift a property to someone else.