Until the 2011 General Conditions are updated you will need a special condition in contracts for sale where the contract is made on or after 1 July 2016 unless the sale price is below $2 million.
The Law Society of NSW and the Real Estate Institute of New South Wales have already updated that state’s edition of the Contract for Sale and Purchase of Land with a new clause to deal with this measure.
Under the measure, where the market value of the property is $2 million or more, the buyer is obliged to comply with a foreign resident capital gains withholding payment obligation ( even if the seller is not a foreign resident) unless the seller provides a clearance certificate from the ATO.
We have developed a special condition for the purpose of dealing with the measure.
*This information serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable legal team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.