Real Estate Practices in Australia
Australian Real Estate Licensing Requirements
For an individual: In Australia, in order to work in Real Estate as a licensed person you need to obtain a Real Estate License from a relevant state/territory licensing authority. Each state has specific licensing requirements that include meeting minimum education criteria.
For a company: For a real estate agency to operate in Australia, the company must obtain a license from their relevant state/territory licensing authority. Each state/territory has specific licensing requirements that include meeting specific criteria.
Australian Association of Real Estate Companies
The Real Estate Institute of Australia (REIA) is the national professional association for Australia’s real estate sector. REIA is a politically non-aligned organisation that provides research and well-informed advice to the Federal Government, Opposition, professional members of the real estate sector, the media and the public on a range of issues affecting the property market.
Australian Real Estate Commissions
The Australian Competition and Consumer Commission (ACCC) promotes competition and fair trade in markets to benefit consumers, businesses, and the community. They also regulate national infrastructure services. Their primary responsibility is to ensure that individuals and businesses comply with Australian competition, fair trading, and consumer protection laws - in particular the Competition and Consumer Act 2010.
Property Taxes in Australia
When you buy land, which may include buildings, you are liable to pay land transfer duty (otherwise known as stamp duty). The duty payable is usually based on the market value of the property or the purchase price, whichever is greater.
Other: Homes are generally exempt from tax. But if you have an investment property, build or renovate for profit, deal in land, or use a property in running a business, there may be implications for income tax, capital gains tax and goods and services tax (GST).
Buyer Acquisition Costs in Australia
Stamp duty (as above) and legal/conveyancing fees. These fees may increase for foreign buyers.
Seller Disposition Costs in Australia
Traditionally conveyancing costs and selling/agent costs including a negotiable commission plus advertising costs.
Property Title Best Practices in Australia
Property legislation in all states and territories is based on the Torrens principle of registration of title. Each state and territory has a central register of all land in the state which shows the owner of the land. The land title is the official record. It can also include information about mortgages, covenants, caveats and easements. Search facilities are provided by state and territory land titles registries.
Closing Procedures in Australia
Closing procedures in Australia are known as settlement. Vendors set the date of settlement in the contract of sale. The settlement period is usually 30, 60 or 90 days. Settlement is the date when the buyer:
- Pays the vendor the balance of the purchase price
- Receives the property title and become the registered owner
- Takes possession of the property, unless otherwise arranged.
This is an official process usually conducted between the vendor and legal and financial representatives of the buyer. At settlement, all outgoings such as rates and other charges are adjusted between the seller and the buyer. The vendor is responsible for rates up to and including the day of settlement. The buyer is responsible from the day after settlement.