Make sure you get a clearance certificate if you are thinking of selling, especially if it goes for more than $750,000.
Homeowners selling after July 1, can do one simple thing to ensure they are not at risk of losing tens of thousands in the transaction.
From that date anyone selling a property in Australia for more than $750,000 will have to provide a clearance certificate to the buyer to prove they are Australian.
If that certificate is not provided the buyer is forced by the Australian Taxation Office to withhold 12.5 per cent – which on a $750,000 sale would equate to $93,750.
Currently the rules apply only to transactions for more than $2 million and only 10 per cent is with held.
The aim of the certificate is to capture foreign owned property transactions.
Real Estate Institute of Queensland CEO, Antonia Mercorella is concerned not enough vendors know about the pending changes, which were just announced a few weeks ago.
Antonia Mercorella is warning all sellers they could lose tens of thousands if they don’t follow new processes for sellers.
The REIQ is quickly changing its contracts to reflect the changes and alerting its agents to make sure no vendors end up significantly out of pocket.
She is concerned with the substantial drop in the threshold that many more property owners will be caught up and it could take longer to gain a certificate than at the moment.
Her advice for anyone selling or thinking of selling is to apply now.
Mrs Mercorella said the certificate was valid for 12 months and could be done on line for free.
While the law is aimed at foreign residents it could impact Australian residents.
“The REIQ is advising all agents to get their clients to apply as soon as possible to avoid risk of delay.
BY Michelle Hele