STRATA PROPERTIES
A strata title enables individual ownership of a unit that is part of a strata complex (i.e. commercial unit) and combined with any shared ownership in the common property of the complex. Important aspects to consider when selling and marketing your strata property are:
- Strata Managers – budgets – annual general meeting minutes
- Common Property By Laws – signage – air-conditioners
- Building Maintenance or Major Works
GST
GST is applicable with selling or buying of commercial property in Western Australia. Where the Seller is registered for GST, the sale will have some form of GST component. It is recommended to seek advice from your accountant in relation to all GST matters and how they impact the selling of your property. Alternatively we refer you to the Australian Taxation Office website.
https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Property/GST-and-commercial-property/
FOREIGN RESIDENT WITHHOLDING
As at the 1st of July 2017 where “real property” is sold at a contracted amount of $750,000 or more the purchaser, or their authorised representative (e.g. settlement agent), must withhold 12.5% of the purchase price and remit it to the Australian Tax Office (ATO). This can be avoided by the Seller obtaining a clearance certificate from the ATO prior to settlement.
The clearance certificate confirms the Seller is not a foreign resident, and if obtained prior to settlement will see full net proceeds of the sale available to the seller in the normal course of business.
It should be noted that clearance certificates are only valid for a period of 12 months and that it must be applied for in the identical name to that shown on the relevant certificate of title/s.
The ATO website link below contains further information
REGISTERED LEASES
Registration of leases varies from state to state. Currently there are no mandatory requirements regarding the registration of leases within Western Australia. Registration costs are borne by the Lessee.
Further information can be found at the Landgate website or alternatively contact your preferred legal counsel.
https://www.landgate.wa.gov.au/
CAVEATS
Caveats registered on title to a property act as a formal notice to advise the public there is an interest on the property for a particular reason.
Further information can be found at the Landgate website or alternatively contact your preferred legal counsel.
https://www0.landgate.wa.gov.au/
SITE CONTAMINATION
Information regarding site contamination in Western Australia can be located at the Government of Western Australia Contaminated Sites Database.
View Site Contamination Information
BOUNDARY ENCROACHMENTS
An encroachment occurs when the neighbouring building or structure intrudes over the boundary of their land.
Information regarding boundary encroachments can be found at the Landgate website or alternatively contact your preferred legal counsel.
https://www0.landgate.wa.gov.au/
LICENCES & UNAUTHORISED STRUCTURES
There are a variety of Local Government licence requirements. These include, but aren’t limited to, signage. Advise your listing agent of licences specific to your property.
Building permits are a mandatory requirement by Local Government Authorities for all structures. Any unauthorised structures will require application for retrospective approvals prior to being sold.
Information regarding unauthorised structures should be requested from Local Government Authority where the property is located.
PROPERTY UNDER LEASE
If your property is currently under lease, formal or informal, please advise your listing agent. Discuss requirements with your listing agent.
OPERATING EXPENSES
A copy of the previous 12 months of operating expenses may be required. Discuss requirements with your listing agent.