Page 35 - Real estate: a guide for buyers and sellers
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Private sales
GST Cooling-off period
Generally, GST only applies to buying A cooling-off period of three clear business
new homes. It does not generally apply days applies to private sales. This period
to established homes unless the seller is allows the buyer time to consider the offer,
registered for GST. You can check a seller’s and begins from the date the buyer signs
GST status at asic.gov.au. the contract, not from the date the seller
signs it.
Do not sign the contract without checking
whether GST applies. If you’re uncertain, To end the contract within that period,
seek professional advice. the buyer must give written notice to the
seller or the seller’s agent. The buyer will
If GST applies to a sale, it must be clearly be entitled to a full refund of monies paid,
specified in the contract whether the price less $100 or 0.2 per cent of the purchase
is inclusive or exclusive of GST, how it will price, whichever is the greater.
be calculated and who will pay it.
The cooling-off period does not apply
Settlement period where the:
Settlement is the date on which the • property was purchased within three
balance of the purchase price is paid to the clear business days before or after a
seller, and the property title is handed over public auction
to the buyer.
• property is used mainly for industrial or
The seller sets the settlement date in the commercial purposes
contract. Settlement is usually between 30
and 90 days but a buyer may be able to • property is more than 20 hectares and
negotiate an alternative settlement period used mainly for farming
with the seller before signing the contract.
• buyer has previously signed a contract
SELLER’S TIP for the same property with the same
terms
Do not accept a lower offer for the sake
of a quick sale unless you are willing to • buyer is an agent or corporate body.
sell at that price.
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