Yes! A Clearance Certificate is basically a statement from the Australian Taxation Office that you are not a foreign resident. But it is only required if you sell your property for $750,000 or more.
Previously, sellers were only required to obtain an ATO Clearance Certificate if the property was being sold for $2,000,000 or more.
A clearance certificate is provided to the buyer prior to settlement to confirm that the buyer does not need to pay part of the purchase price to the ATO for Capital Gains Tax purposes. If you don’t provide the buyer with a clearance certificate prior to settlement, then the buyer is required by law to deduct 12.5% from the purchase price and pay it to the ATO. This will mean significant delays in receiving the full sale proceeds for the property.
Our professional fees are paid upon settlement as a deduction from your settlement proceeds. However, should you prefer, they can be paid directly into our trust account and held in escrow until settlement has been effected.
One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants with survivorship, the interest of a deceased owner automatically gets transferred to the remaining surviving owners.
In a tenancy in common, the deceased person’s share will pass to their heirs through a will or through the probate process rather than to the surviving tenants.
Our fees are calculated on a sliding scale as set forward by the Department of Commerce. Naturally, we aim to make our prices as competitive as possible. While we aren’t the cheapest conveyancers in Perth, we do believe that we offer superior value for your investment.
Put simply, there is a legal requirement within the Duties Act 2008 that requires payment of transfer duties prior to transfer. If a transfer hasn’t been endorsed with transfer duty, you place at risk your rights as a buyer under the Joint Form of General Conditions.
A document cannot be stamped without paying transfer duty, so that’s why this particular fee must be prepaid. It’s an annoyance at times for buyers, but there’s simply no way around it. What about the First Home Owner’s Grant – how does that work?
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We know when you buy a property it is an exciting yet stressful time. We take care of the settlement process. Allowing you time to look to other matters whilst we get on with the settlement in question. Begin by requesting a free quote today…
We know selling can be a stressful time. Supreme Settlements priority as your Settlement Agent in Perth is to meet your needs. Our conveyancing team will keep you informed as the settlement process proceeds. Our professionalism ensures a satisfactory completion. Begin by requesting a free quote to start the process…