Selling Your Property to a Family Member: A Guide to Skipping Agent Fees

Selling a property privately to someone you already know, whether a family member or a friend, is becoming an increasingly common choice for property owners who want to manage the transfer efficiently and keep costs down. In many situations, these private property sales can proceed without a real estate agent, which avoids marketing expenses and removes the need to pay commission. 

For many people, selling property privately to a family member or known buyer can feel like a simpler and more straightforward option than listing the property on the open market. 

When an Agent May Not Be Necessary 

In a standard sale, an agent is usually engaged to advertise the property, conduct inspections, negotiate with prospective purchasers, and secure a sale. In a family or known-buyer transaction, these steps are often unnecessary. The parties already have a relationship, the purchase price has usually been agreed, and the terms of the transfer are clear. For these reasons, an agent is not typically needed. 

However, while the sales process may be simpler, the legal process for transferring property remains the same as any other property transaction. 

Why a Conveyancer Remains Essential 

Although an agent may not be involved, the legal requirements for transferring property remain the same. A qualified conveyancer ensures the transaction complies with all legislative obligations and progresses correctly from the contract stage through to settlement. 

A conveyancer’s role in a private property sale includes: 

• Preparing or reviewing the contract of sale 

• Preparing the Form 1 Vendor Disclosure Statement 

• Undertaking title, rates, and statutory searches 

• Liaising with banks regarding mortgage discharges or new finance 

• Preparing settlement statements 

• Finalising the transfer through PEXA 

A private sale must still satisfy the same legal requirements as any other property transaction, and accurate documentation and compliance remain essential. 

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Things to Consider When Selling to Family or Friends 

Even when the parties know each other well, it is still important to treat the transaction as a formal legal process. Selling property to a family member can raise additional considerations, including how the purchase price is determined, whether finance has been formally approved, and ensuring all parties clearly understand their legal rights and obligations. 

Having a conveyancer involved from the beginning helps ensure the transaction proceeds smoothly and reduces the risk of misunderstandings or disputes later. 

The Value of Early Professional Advice 

Even when the transaction appears straightforward, obtaining conveyancing assistance at the outset can prevent unnecessary complications. A conveyancer ensures the sale is completed legally, transparently, and with appropriate protection for both sides. 

Early advice can also assist with preparing the correct documentation, ensuring disclosure requirements are met, and coordinating settlement through the electronic property settlement platform (PEXA). 

If you are planning on selling property privately, including selling to a family member or friend, obtaining professional advice early can make the process significantly smoother.

Read more about conveyancing here

Contact our experienced conveyancing team 

If you are buying or selling property in South Australia, whether through a traditional sale or a private property sale, the conveyancing team at TGB Lawyers can guide you through the process and ensure the transaction proceeds correctly from contract through to settlement. 

Contact TGB Lawyers today on 08 8212 1077 to speak with lawyer Theodora Sevastidis here, or complete our online enquiry form here to get started.