Reviewing a clearance certificate is the next step. A buyer doesn't have to question whether the seller is a resident or not if they have a valid clearance certificate. Here's when a buyer can rely on a clearance certificate:
The seller's name on the certificate matches the name on the property title.
If there's a mismatch between the seller's name on the certificate and the title (like when the seller is a trustee), the buyer's obligation is still considered fulfilled if the seller proves they're the trustee (for example, by providing the trust deed).
The buyer receives the certificate within the timeframe specified on it.
The certificate is received before the settlement.
Buyers can double-check a clearance certificate's validity with the ATO if they want to, although it's not mandatory.
For more details, refer to the ATO's factsheet on 'Clearance certificates' (QC 48972).
If you need assistance, feel free to contact Tax Ideas Accountants & Advisers at +61 2 8318 1545 or book an appointment through our live calendar.