There are lots of physical things you should do when you put your property up for sale
There are lots of physical things you should do when you put your property up for sale - cleaning, decluttering, gardens, paint, smoke alarms and all the rest of the hot, sweaty things that we hate to do in Summer but really are worthwhile in the end.
Two things you should definitely make sure are up there on your to do list though are thankfully ones you can do in the air-con, and are quick to organise but sometimes long to deliver, so worth doing early.
One, for those of us blessed with that delightful thing known as a mortgage, is to arrange with your bank for a discharge of mortgage to be prepared. Essentially, this starts the ball rolling to allow for the mortgage to be removed from the title of your property, allowing for the transfer to the new owner (and generally, THEIR new mortgage). Most banks will look for at least 2 weeks heads up on this so they can work out their final payout figure so getting in touch at least once a contract is signed is well worthwhile just in case. If for whatever reason the bank ISN’T ready to discharge come settlement day, then you might find yourself begging the buyer for an extension, or risking default under your contract.
The other bit of soft work to do early in the piece is applying for your Capital Gains Withholding Clearance Certificate (isn't that a mouthful?). Originally applicable only on sales over $2 million, then $750,000 and now since the first of January on ALL transactions, this is a certificate that all owners of a property need to apply for and obtain prior to settlement. Its a quick online process, its free, it lasts for 12 months and for 99% of people its a painless process. But if you DON’T have it, then the ATO will pluck a cool 15% of the total proceeds of your sale at settlement, and the best case scenario from there is you get it back at tax time, and the worst is you wave goodbye permanently.
This is a prime example of applying a rule that inconveniences the many to catch the few naughty sellers (typically non-residents that buy, sell and head overseas with the proceeds without paying tax along the way) but its definitely one to pay attention to. I have had a few clients caught out with delays (thankfully resolved in time) but this can be a very expensive exercise otherwise.
So, put in the hard work on the ground, but don’t forget your paperwork!