Selling Property in Australia: Complete Guide for Expats and Residents

Selling property in Australia typically takes 30-90 days and costs 2.5-6.5% of the property value in agent fees, legal costs, and taxes. For expats and residents alike, the process involves strict documentation requirements, potential Capital Gains Tax obligations, and mandatory clearance certificates for foreign tax residents.

Key Takeaways

• Before you can sell your property in Australia it's important to understand the practical and legal framework
• Getting professional help from a local real estate agent, solicitor, and tax professional can help the process go smoothly
• When selling a property you'll usually pay for property surveys, advertising, staging, and estate agent fees
• Capital Gains Tax (CGT) may apply on any profit made if the property is not your main residence, has been flipped, or has been used to generate income
• Selling a property can take significant time, depending on market conditions, property type, and legal handover

Legal Requirements for Selling Property in Australia

Selling a property can be complex. Before you start, understand all your local and cross-border legal obligations. Key points:

• You are not legally required to have a solicitor, but managing the legal aspects without one can be difficult and risky
• Before marketing your property you may need to have a contract of sale already drawn up (varies by state)
• You will be asked to provide identity and address verification at various points
• The seller is required to prepare a vendor's statement covering any known issues with the property
• Documents may include title deeds, zoning certificate, drainage diagram, and energy efficiency report

How to Sell Your House in Australia: Step-by-Step Guide

Step 1, Get Professional Help and Start Market Analysis

Before putting your property on the market, get a valuation and prepare your local support team. A licensed local real estate agent can help assess market value. Consider whether repairs or renovations would increase property value. Also engage a solicitor to handle the legal aspects and prepare your contract of sale.

Step 2, Preparing Documentation and Advertising

Your agent or legal advisor may recommend professionals to complete necessary checks and surveys, such as termite inspections. Together, create a marketing strategy to help your property sell quickly.

If you're an Australian resident selling a main home and not required to pay CGT, apply to the ATO for a clearance certificate at this stage. Without it, the purchaser must withhold the equivalent amount of CGT.

Step 3, Managing Viewings, Receiving and Evaluating Offers

You can sell by private sale or auction. In a private sale, negotiate with the buyer to agree on price and conditions. In an auction, fix a reserve price you will not sell under. Once a sale is agreed, the buyer usually pays a deposit of about 10% of the sale price.

Step 4, Contract Exchange and Legal Completion

After agreeing a sale, the conveyancing process begins. The buyer's legal team completes due diligence checks and you can agree a settlement date together.

Step 5, Settlement and Fund Transfer

The final step is settlement, where ownership passes to the buyer, usually 30–90 days from the offer being accepted. You'll then receive the net sale proceeds by bank transfer.

Tax Implications for Property Sellers

Property Sale Taxes: Australian Residents

As an Australian resident you may need to pay CGT if the property is a second home or investment property, if you've used it to make income (business or rental), if it's on a large lot of land, or if you 'flip' a property. If it's your main residence, you do not usually pay tax.

CGT is included in your normal ATO filing using the Capital Gains Tax schedule. If exempt from CGT, get an ATO clearance certificate early in the sale process. Without it, purchasers must withhold 15% of the sale price.

Property Sale Taxes: Non-Residents

As a non-resident you're likely to pay CGT on the sale of your Australian property. The rate is 15%, although this may be adjusted when you file your final tax return for the year. You may also need to take tax advice in your country of tax residence, as many countries tax worldwide income including foreign property sales.

How Much Does It Cost to Sell a House in Australia?

Common fees to consider:

• Real estate agent commissions: 1.5%, 4.5% of the property value
• Advertising: 0.5%, 1% of property cost, plus styling or staging fees
• Legal and professional fees: 1,000, 2,000 AUD for an average home
• Optional inspections: Termite reports can cost 500, 700 AUD
• Pre-sale preparation costs: Repairs and improvements before listing

How Long Does It Take to Sell a House in Australia?

Australian authorities suggest it takes around 30–90 days on average to sell a property. The timeline varies based on market conditions, seasonal variations, property type, location, pricing, and marketing effectiveness. Properties in Sydney, Melbourne, and other cities generally move quicker due to higher demand.

Tips for Successful Property Sales

• Get professional legal advice: You'll need local legal advisors to help avoid costly mistakes and ensure compliance
• Bear in mind currency conversion costs: If repatriating funds, find a provider offering low overall costs and good exchange rates
• Price your property carefully: Use recent sales data and get a professional valuation
• Have a diverse marketing strategy: Advertise on multiple channels and use word of mouth