Selling a Property: Some new items to be aware of
Selling a property can be overwhelming, especially if you are selling your first home or a property you have lived in for a long time. If it is your first time selling a property or if you have been out of the market for a while it is important to know that the laws and rules regarding property change all the time. Seeking the help of a real estate agent and a legal firm will ensure you stay on top of all the latest rules and regulations.
At Selvaggio Lawyers, our Property Law team are dedicated to ensuring our clients have the most up to date information. Below are three of the latest changes you need to know before selling your property.
Foreign Resident Capital Gains Requirements
Since 1 July 2016, new provisions have been enacted into law in relation to sale of properties over $2million dollars. If your property sells over $2million dollars you will be required to obtain a Foreign Resident Capital Gains Clearance Certificate for each Vendor and this will need to be attached to your Contract or provided to the Purchasers solicitor on your sale prior to settlement.
This certificate is obtained by Vendors lodging an application through the ATO website. It can be applied for by Vendors who are Australian Residents for tax purposes. The Foreign Resident Capital Gains Clearance Certificate will confirm that the Vendor is not a foreign owner and that the Foreign Resident Capital Gains Withholding Tax will not apply to the Vendors sale of property.
If you are a foreign resident, then usually 10% of the purchase price (depending on other circumstances) is forwarded by the Purchaser on settlement to the ATO. The foreign resident Vendor would then need to lodge a tax return at the end of the financial year declaring their assessable income including any capital gain on their sale of property for which the 10% withholding amount is already held by the ATO following settlement of the sale.
Selling a Property with a Swimming Pool
Is it now a requirement that all properties sold with a swimming pool are to attach the following documents to the Contract:
a) Evidence of registration. This registration certificate can be obtained almost instantly here; AND
b) Either one of the following
- Certificate of Compliance; OR
- Certificate of Non-Compliance; OR
- Relevant occupation certificate
These can be obtained by you arranging an inspection with your local council or contacting an approved private certifier. If you need assistance with this then you can contact the Property Law team at Selvaggio Lawyers.
The above requirements also apply to a spa on your property.
3. Verification of Identity
It is now a requirement that all persons in real estate transactions identity is verified to a required standard. This involves this office carrying out what is called Verification of Identity with you at the beginning of your matter. This is a face to face meeting at this office where we view certain required original identification documents of yours and complete a Verification of Identify Report (VOI Report) through IDfy.
The VOI Report is valid for 2 years. The Verification of Identity framework has been introduced to reduce fraud and improper land dealings.
Our Property Law team are happy to help with any legal matters you may have. If you would like to learn more about any of the points mentioned above or would like to arrange a consultation contact Selvaggio Lawyers today.Back