What is a Form 6? The agent wants me to sign one. Should I?
A Form 6 is the contract between yourself (as the seller) and the real estate agent setting out the terms of their acting on your behalf in relation to selling your property. These documents can be complex. Our firm can provide you comprehensive advice regarding the Form 6 as part of our fixed price of acting on your sale matter. Depending on how you are engaging the agent (exclusive or open), there are some things to be aware of. For instance, if a potential buyer contacts the agent during their initial listing, even after the expiration of the agreement and that party purchases the property, the agent may be entitled to a commission.
Another aspect to keep in mind, is if the buyer terminates the contract both yourself and the agent share in the forfeited deposit (depending on the terms of the Form 6).
Contact us for advice that applies to your specific circumstances.
What searches do I need to undertake?
For a sale of a residential property, the main search required is a current Title search. This search is included in our fixed fee. Some other searches may be applicable depending on the property. Please contact us for further details.
What is an Australian Taxation Office (ATO) Clearance Certificate and why do I need one?
On 1 July 2017, the Australian Taxation Office (ATO) introduced requirements for all properties being sold for $750,000 or more; each Seller must obtain a Clearance Certificate prior to Settlement.
The ATO Clearance Certificate is a statement from the ATO confirming that each Seller is not a foreign resident.
How do we apply for an ATO Clearance Certificate?
Applying is easy and there are no fees involved from the ATO. Simply visit the ATO’s website and complete their online application form to get things started.
We suggest you apply as soon as possible as there may be a waiting period of up to 28 days.
If you require any assistance, please contact our office.
Do we need to provide a copy of the ATO Clearance Certificate to you?
Yes. Once you have received your certificate, please provide us with a copy so we can inform the Buyer. 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.
What if I cannot obtain an ATO Clearance Certificate prior to Settlement?
If an ATO Clearance Certificate cannot be obtained prior to Settlement and the purchase price is $750,000 or more, legally the Buyer must withhold 12.5% (current May 2021) of the purchase price and pay this to the ATO.
How do we release a mortgage on the Property we are selling?
If the property is mortgaged, you should immediately provide your financier with a completed mortgage discharge form. These can usually be obtained online or alternatively you can attend a branch to arrange for the release of mortgage. Ensure that you also provide the contact details of your solicitor so that they can arrange for settlement on your behalf.
Please be aware that even if you have paid out your mortgage many years ago a mortgage may still be registered against the title of your property.
How will rates be apportioned at settlement?
A rates search will be done by the buyer to confirm the rates owing/paid for the settlement period. A rates adjustment will be made at settlement either in favour of the buyer or seller depending on if the currents rates balance is paid. This means you will only be paying the rates for the period of time that you are the owner of the property.
I just received my rates notice and payment date is before settlement, what should I do?
If the due date is prior to settlement, ensure payment is made to avoid additional interest. Any rates/water paid in advance will be adjusted at settlement, in which the buyer will reimburse the seller.
When will the proceeds of settlement be available?
The time frame on when funds are available will be dependent on whether the property was settled electronically or manually by paper. If we are able to settle electronically, funds will be available in most cases immediately after settlement. If we settle manually by paper, and no surplus account has been nominated, a cheque will be collected at settlement. Depending on your instructions, we will either deposit the cheque in to your nominated account or it will be available for collection at our office the day after settlement. There is a mandatory three (3) business day period for the cheque to clear. If a surplus account has been nominated, your bank will collect the cheque and disburse any remaining funds after the loan has been repaid and may take up to three (3) business days for the funds to clear.
I am selling my property with a pool, what do I need to provide the buyer?
If you are selling your property and you have a swimming pool, you are required by law to provide the buyer with a Pool Safety Certificate. If you do not have a Pool Safety Certificate, then you must provide the buyer with a Form36 – Notice of No Pool Safety Certificate. A copy must also be provided to the Queensland Building and Construction Commission (QBCC). It is the seller’s responsibility to obtain a Pool Safety Certificate prior to settlement.
Should the seller fails to obtain the Pool Safety Certificate by settlement, the buyer may terminate this Contract and all moneys paid shall be refunded and the Contract will be at an end. The buyer may waive the benefit of this clause.
