Definition: Costs of transfer of ownership

Category: National accounts

The costs of transfer of ownership of assets constitute gross fixed capital formation by the acquirer, even if some of the costs are paid by the seller. They comprise the expenditure incurred in order to take possession of the assets (installation and transport charges, etc.), fees and commissions of intermediaries (solicitors, experts, etc.) and taxes to be paid on intermediary services used in the transfer of ownership of assets.
The gross fixed capital formation of the acquirer comprises the value of the goods acquired (exclusive of transfer costs) plus the total transfer costs involved in the acquisition. Conversely, the gross fixed capital formation of the seller only includes the value of the goods sold (exclusive of transfer costs)( ). In the case of non-produced assets (such as land, or patented assets such as production rights) which are not included in gross fixed capital formation, these costs must be separated from the acquisition/disposal of these assets and recorded under a different heading as gross fixed capital formation of the acquirer.
Eurostat, "Manual on the economic accounts for agriculture and forestry EAA/EA 97 (Rev. 1.1)", Luxembourg, 2000