Australia – Selling Property

What are the steps involved in selling property in Australia?

The sale of real estate in Australia proceeds through a sequence of legally regulated stages, several of which are compulsory regardless of whether you appoint an agent. The overall framework — built around a formal contract exchange followed by a distinct settlement — is broadly familiar to anyone who has sold property in other developed markets, but Australia’s jurisdiction-by-jurisdiction legal obligations and its particular tax compliance requirements mean that early preparation is not optional; it is essential.

The following is a step-by-step breakdown of the complete process:

1. Get a property valuation. The starting point for any residential sale is obtaining a professional appraisal so you have a realistic picture of what your property might achieve on the open market. Reviewing comparable recent sales in your neighbourhood will help you set a price that is both competitive and grounded in evidence.
2. Engage a conveyancer or solicitor. You are legally required to appoint a licensed conveyancer or solicitor to prepare both the Vendor’s Statement and the Contract of Sale. The contract must incorporate the title documents, a drainage diagram, and a current planning certificate from the local council. This is not an optional step.
3. Prepare the Vendor’s Statement (Section 32). Your conveyancer or solicitor will draft this critical disclosure document, which provides prospective buyers with all material information about the property. Depending on the state, it may be called a “Section 32.” It sets out whether any mortgage exists over the property, any covenants limiting what an owner can do with it, any easements burdening the land, and the relevant council zoning.
4. Obtain an ATO Clearance Certificate. The Foreign Resident Capital Gains Withholding (FRCGW) scheme was primarily designed with non-resident sellers in mind, but Australian residents are equally obligated to act. If no valid ATO Clearance Certificate is presented to the buyer before settlement, that buyer is legally required to withhold 15% of the sale price — even where the seller is an Australian resident. Apply through the Australian Taxation Office (ATO) website as early as possible.
5. Choose a sale method. Auction, private treaty, and expressions of interest each carry different strategic implications and different legal consequences, particularly in relation to cooling-off periods. Auctions are especially prevalent in Sydney and Melbourne and suit properties likely to attract competitive bidding. Choose the method that best fits your property type and personal circumstances.
6. Market the property. Once a sale method is chosen, your marketing campaign begins. This typically involves professional photography, floorplans, online listings across the major portals, and potentially print advertising or property styling. These costs are generally charged separately from the agent’s commission, so clarify the full cost structure before signing an agency agreement.
7. Negotiate and accept an offer. Your agent will relay all offers to you for consideration. When you verbally agree to an offer, the transaction still has no legal force until both parties formalise their commitment by exchanging contracts.
8. Exchange contracts. Each party signs identical copies of the Contract of Sale, which are then exchanged — at that moment, the agreement becomes legally binding. The buyer ordinarily pays a deposit of around 10% of the purchase price into a trust account at this stage, though a lower figure is sometimes negotiated.
9. Settlement. The settlement date, which is typically 30–90 days after contract exchange, is specified in the contract itself. In the lead-up to settlement, both parties’ legal representatives liaise to confirm that all conditions have been satisfied and to coordinate the transfer of funds. Your physical presence is not required — your conveyancer or solicitor will manage the process on your behalf. On settlement day, legal title passes to the new owner, who simultaneously takes possession of the property.

If the property is subject to an existing mortgage, contact your lender promptly. Discharging a home loan takes time and typically involves costs, so it pays to start those conversations before or shortly after you exchange contracts rather than leaving them to the last moment.

It is also worth confirming your land tax position before listing. Any outstanding land tax liability must be resolved prior to settlement, as unpaid amounts can delay or disrupt the process. Your state’s revenue office can advise on the current thresholds and rates applicable to your situation.

Do most sellers use an estate agent, or is private selling common?

The overwhelming majority of Australian property sellers engage a licensed real estate agent. “For sale by owner” (FSBO) or private sales do exist, but they represent a much smaller share of the market than in certain European countries — France, for instance, has a well-established culture of private listings on platforms such as LeBonCoin. In Australia, the legal intricacy of the conveyancing process, the state-specific nature of seller disclosure obligations, and the practical difficulty of accessing the dominant property platforms without an agent all combine to make private selling a challenging path.

The two leading national property portals — realestate.com.au and Domain — are where the great majority of buyers begin and conduct their search. Private sellers cannot post directly on either platform; they must go through a licensed agent or a specialist intermediary service. This gate-keeping effect meaningfully limits a private seller’s organic reach compared with using a traditional agency.

That said, a handful of dedicated private-sale platforms cater to FSBO sellers, and some owners use a minimal-service or “listing only” arrangement through a low-cost agent purely to secure access to the major portals while managing negotiations themselves. For sellers based overseas, using an experienced agent and a knowledgeable conveyancer is especially advisable — familiarity with local market conditions and state-specific disclosure requirements cannot be easily replicated from abroad.

Commission rates are not fixed and differ considerably between states. In metropolitan New South Wales, for example, agents typically charge between 2% and 2.5% of the sale price, rising to 2.5–3.5% in rural parts of the state. In Western Australia, commissions generally fall in the 3–3.25% range irrespective of location. Because commissions are negotiable, it is worth approaching several agents for quotes before committing.

How does capital gains tax work when selling property in Australia?

Australia’s treatment of capital gains tax (CGT) on property is structurally different from countries such as France or Spain, which apply a flat rate to property profits. Rather than imposing a standalone CGT rate, Australia folds capital gains into the seller’s total assessable income, meaning the effective tax rate depends on the individual’s marginal rate for the financial year in which the sale occurs.

For individual sellers, the marginal rate that applies will depend on total taxable income including the capital gain. As of 2025, Australia’s progressive individual income tax scale carries rates ranging from 19% to 47% (including the Medicare Levy). Always verify the current brackets directly with the Australian Taxation Office (ATO), as these can be adjusted by legislation.

One of the most significant features of Australia’s CGT framework is the 50% discount. Where an individual or trust has held a property for longer than 12 months before selling, only half of the resulting capital gain is included in assessable income. This concession was designed to reward long-term investment and to provide some compensation for the inflationary erosion of asset values over time.

The main residence exemption is arguably the most valuable concession available to Australian property owners. Where a property has been your principal place of residence throughout your entire ownership period, any capital gain on sale is fully exempt from CGT. If you have rented out part or all of the property at any point, you may only qualify for a partial exemption reflecting the proportion of time and use that was genuinely residential.

A further concession — commonly called the “six-year rule” — extends the main residence exemption beyond the point at which you vacate the property. Provided you have not nominated another dwelling as your principal residence in the intervening period, you may continue to treat your former home as your main residence for up to six years after moving out, even while it is generating rental income. This provision is particularly relevant for expatriates who have relocated overseas but retained ownership of their Australian home.

Non-residents face a markedly less favourable CGT position. Foreign tax residents are subject to Australian CGT only on “taxable Australian property,” which includes real estate and certain business assets. Critically, non-residents are not entitled to the 50% CGT discount that applies to assets held for more than 12 months — the full gain is assessable.

The Foreign Resident Capital Gains Withholding (FRCGW) regime also changed substantially from 1 January 2025. The withholding rate is now 15% of the gross sale price, the previous $750,000 threshold has been abolished, and the withholding now applies to every sale of Australian property by a non-resident, regardless of the amount involved. This means 15% of the total sale price is automatically deducted at settlement and remitted to the ATO. That withheld amount can later be claimed as a credit when the seller lodges their Australian tax return, but it creates a significant cash flow issue in the interim. In certain circumstances, a non-resident seller may apply to the ATO for a “variation” to reduce the withholding rate.

For guidance tailored to your circumstances, consult the ATO’s property and CGT pages and engage a registered tax agent who has hands-on experience with property transactions, particularly those involving non-residents.

Are there other taxes or costs involved in selling property in Australia?

As a general guide, sellers should budget for total costs of 3–5% of the sale price, covering agent commission, marketing expenditure, and legal fees (as of 2025). This is a more market-driven cost structure than, say, some European jurisdictions where a state-regulated notary charges a fixed statutory fee. There is no seller-side transfer duty (stamp duty is a buyer obligation in Australia), but a range of other costs still fall to the seller.

• Agent commission: As outlined above, rates typically sit between 2% and 3.25% of the sale price, varying by state and location, as of 2025. Commissions are negotiable, so it pays to seek multiple quotes before signing an agency agreement.
• Conveyancer or solicitor fees: Legal fees for the conveyancing work typically range from around AUD $400 to $2,500 depending on the complexity of the transaction and the professional’s location. Always request a detailed quote upfront.
• Marketing costs: Professional photography, floorplan preparation, online listings, print advertising, and property presentation or styling are generally charged on top of the agent’s commission. In prestige markets, these can easily amount to several thousand dollars.
• Mortgage discharge fee: Sellers with an outstanding home loan will typically be charged a discharge fee by their lender. Contact your lender for the precise figure before listing so there are no surprises at settlement.
• Capital gains tax: As described in the section above, CGT is assessed in the financial year the contract is signed — not the settlement date. The taxing point is the date on which the contract becomes binding, so be mindful of year-end timing if you are managing your tax position.
• Land tax: Owners of multiple properties or those whose land value exceeds the applicable threshold may have outstanding land tax obligations. These must be cleared before settlement can proceed. Rates and thresholds are determined by each state and territory, so check with your relevant state revenue office for current figures.

Transfer duty (stamp duty) is borne by the buyer in Australia and does not fall on the seller. For authoritative guidance on the tax implications of your sale, refer to the Australian Taxation Office and the relevant state revenue authority, such as Revenue NSW or the State Revenue Office Victoria.

What legal requirements must sellers meet in Australia?

There is no single national property law in Australia — the regulatory framework is largely a matter for each state and territory, which means that legal obligations for sellers differ meaningfully depending on where the property sits. Unlike some European models where a nationally appointed notary presides over every property transaction, Australia relies on conveyancers and solicitors operating under their respective state’s legislation.

Vendor’s Statement / Seller Disclosure: The Contract of Sale and associated disclosure documents must be drafted accurately and completely. Queensland, for example, is introducing a comprehensive mandatory Seller Disclosure Statement from 1 August 2025, bringing it closer to the more demanding regimes already in place in New South Wales and Victoria. South Australia requires sellers to complete a document known as a “Form 1,” which must set out anything capable of materially affecting the property’s value in the eyes of a prospective buyer.

Cooling-off periods: The existence and duration of cooling-off periods — which apply to buyers, not sellers — is governed by state and territory law and varies considerably. At present, most Australian states and territories provide for a standard cooling-off period on private treaty sales, with Western Australia and Tasmania being notable exceptions. Once you as a seller have exchanged contracts, you are bound — there is no equivalent cooling-off protection for the vendor.

ATO Clearance Certificate (for all sellers): Every seller — resident or non-resident — must supply the buyer with a valid ATO Clearance Certificate before settlement. If none is provided, the buyer has a legal obligation to withhold 15% of the purchase price and pay it directly to the ATO. This requirement applies to all property sales following the changes that came into force on 1 January 2025. Australian resident sellers should find the certificate is issued promptly via the ATO website.

Title and ownership verification: Before exchange, your conveyancer will commission a current title search from the appropriate state titles registry — NSW Land Registry Services, Land Victoria, or Titles Queensland, for example. The resulting title search or Certificate of Title will confirm the registered owner, lot and plan details, and any registered encumbrances such as mortgages, caveats, or easements.

Building and pest inspections: Unlike the energy performance certificates that are legally required of sellers across much of the UK and EU, building and pest inspections are not a statutory seller obligation in most Australian states. However, they are routinely sought by buyers as a condition of contract, and some sellers commission pre-sale reports proactively to improve buyer confidence and reduce the risk of post-exchange complications.

Foreign sellers — additional compliance: Ownership of Australian real estate does not in itself make you an Australian tax resident, and the obligations that flow from non-resident status are considerable. Appointing an Australian solicitor with specific expertise in real estate or conveyancing is strongly advisable. Such a professional can draft and review all necessary documents, manage contract conditions, and guide you away from costly errors. Non-resident sellers should also be aware that the ATO actively cross-matches visa records, land title data, and tax returns to identify non-compliance.

How does the exchange and completion process work in Australia?

The exchange and settlement process in Australia is conducted almost entirely by each party’s legal representatives — a notable contrast to France, where a single notary acts for both sides. In Australia, buyer and seller each appoint their own conveyancer or solicitor, and the transaction moves through two clearly defined stages: contract exchange and settlement.

Contract exchange: Once you have verbally agreed to an offer relayed by your agent, the agreement has no legal standing until contracts are formally exchanged. At exchange, both parties sign identical versions of the Contract of Sale; the buyer simultaneously pays a deposit — ordinarily around 10% of the purchase price — into a trust account, although a smaller deposit is occasionally agreed upon.

The settlement period: The settlement date is written into the contract and typically falls 30–90 days after exchange, whether the sale was achieved at auction or through private treaty. Settlement is usually arranged around six weeks post-exchange and is coordinated by the conveyancers or solicitors on each side. During this window, the buyer finalises financing, completes any due diligence, and both legal teams work to satisfy outstanding conditions.

Settlement day: As the settlement date approaches, each party’s legal representative confirms that all contractual conditions have been met and arranges the transfer of funds. The seller need not be present in person — the entire process is managed by the solicitors or conveyancers. On settlement day itself, legal ownership of the property is transferred to the new owner, who simultaneously takes possession. Your conveyancer or solicitor arranges handover of the keys to the buyer’s representative.

Upon settlement, you receive the net proceeds from the sale — that is, the total sale price less the deposit, the outstanding balance on any home loan (paid directly to your lender), your conveyancer or solicitor’s fees, and the real estate agent’s commission. The vast majority of Australian states now process settlement electronically through platforms such as PEXA, which has made the process faster and more secure than the old paper-based system. For sellers located outside Australia, electronic settlement is particularly practical, as no physical attendance is required at any stage.

Is property exchange or part-exchange an option in Australia?

Direct property exchange — where two parties agree to swap their respective properties rather than selling on the open market — is recognised in Australian law, but it is an uncommon arrangement and does not feature as a mainstream mechanism in the property market. It is sometimes described as a “swap” or a simultaneous settlement transaction.

No dedicated legislative framework governs property swaps in Australia as a distinct transaction category. Instead, they are structured using the same standard contracts of sale used in conventional transactions, with each party simultaneously taking on the roles of both buyer and seller. Both conveyancers negotiate terms on behalf of their clients, and the two settlements are ordinarily timed to occur together so that neither party ends up temporarily without either their property or the cash equivalent.

The practical barriers are considerable. Identifying another party whose property matches your requirements and who simultaneously needs a property of the kind you are selling is inherently difficult, particularly without professional assistance. Both properties must be independently valued to confirm that the exchange is equitable, and CGT consequences arise for both parties as though each had sold their property at its full market value — the ATO treats a property swap as a disposal at the market value of the asset relinquished.

For non-resident sellers, property exchange arrangements add yet another layer of complexity: CGT withholding obligations are assessed on the market value of the property being transferred, and any transaction that does not involve a straightforward cash payment must nonetheless be properly disclosed and assessed by the ATO. Specialist legal advice from a property lawyer experienced in non-standard transactions is indispensable before pursuing this route. For the majority of sellers, a conventional sale and separate repurchase remains far more straightforward.

What should foreign sellers know about repatriating sale proceeds from Australia?

Australia does not impose exchange controls or formal restrictions on moving money overseas — there is no requirement to obtain government authorisation before transferring sale proceeds abroad, which distinguishes it from markets such as China or a number of emerging economies. Even so, there are important tax, compliance, and logistical considerations that foreign sellers must navigate.

Tax obligations before transfer: Any CGT withholding obligations owed to the ATO must be addressed before funds can be freely repatriated. If you are a non-resident for Australian tax purposes, 15% of the total sale price will be automatically withheld at settlement and remitted to the ATO, irrespective of the sale price. In certain circumstances, you may be able to apply to the ATO for a reduced withholding rate before settlement. The withheld amount can subsequently be claimed as a credit when you lodge your Australian income tax return, and a refund may be payable if the withheld amount exceeds your actual tax liability.

Double taxation: If you are tax-resident in another country at the time of sale, your country of residence may also seek to tax the capital gain. In many cases, a double taxation agreement between Australia and your home country will provide relief by allowing you to credit the tax paid in Australia against your liability at home. Given the complexity of cross-border taxation, it is strongly advisable to take specialist advice from a tax professional in both jurisdictions before proceeding with the sale.

Receiving the proceeds: Having an Australian bank account is not a strict legal requirement for completing a property sale, but it is generally the most straightforward way to receive settlement funds. If you prefer to receive funds directly into an overseas account, that may be possible, but check with your conveyancer and financial institution about the mechanics and any associated charges.

Currency transfer: When moving a significant sum from Australian dollars into another currency, exchange rate movements and transfer fees can meaningfully affect the final amount you receive. Specialist currency transfer providers frequently offer more competitive exchange rates than high-street banks on large international transfers. It is worth comparing several providers and considering tools such as forward contracts or limit orders if you want to manage the risk of adverse rate movements between settlement and the date of transfer.

Reporting requirements: Australia’s financial intelligence agency, AUSTRAC, monitors large international transfers, and your bank may request documentation confirming the origin of the funds as part of standard anti-money-laundering procedures. Keeping your contract of sale, settlement statement, and ATO tax clearance documentation readily to hand will help ensure that the transfer proceeds without unnecessary delay. For authoritative guidance, consult the ATO and AUSTRAC, and seek tailored advice from a licensed financial adviser or currency specialist with cross-border property transaction experience.

Frequently asked questions

How long does the whole process take, from listing to completion?

From the time a property is listed to the point at which settlement is finalised, the total timeframe in Australia is typically three to six months. That encompasses the marketing campaign — usually four to six weeks for a private treaty sale, or a more compressed period for an auction — followed by a settlement period of 30–90 days from contract exchange. The precise duration will depend on market conditions, the sale method chosen, and any complications that arise during the conveyancing process.

What happens if the buyer pulls out after exchanging contracts?

Contract exchange in Australia creates a legally binding obligation on both parties. Should the buyer withdraw after exchange without a valid contractual ground — such as a failed finance condition — they will ordinarily forfeit their deposit, which is commonly 10% of the purchase price. The seller may also have grounds to pursue damages beyond the deposit if their actual losses exceed that amount. The precise remedies available will depend on the contract terms and the law of the relevant state, so consult your solicitor promptly if this situation arises.

Can I sell my Australian property remotely without being in the country?

Yes. Neither the exchange of contracts nor settlement requires your physical presence in Australia — both stages are handled by the solicitors or conveyancers appointed by each party. It is also possible to grant someone in Australia authority to act on your behalf through a properly executed Power of Attorney (POA). Where the POA is signed overseas, it may need to be notarised and apostilled before it will be accepted. Your Australian solicitor can advise on the exact requirements for your jurisdiction.

Do I need to file an Australian tax return after selling?

If you are a non-resident and 15% of your sale price was withheld under the FRCGW scheme at settlement, you will generally need to lodge an Australian tax return in order to declare the capital gain, claim the withheld amount as a credit, and either pay any remaining liability or receive a refund. Even where no withholding applied, any taxable capital gain arising from the disposal of Australian property must be reported to the ATO. A registered tax agent with experience in non-resident property sales can manage this process on your behalf.

Is a building or pest inspection required before I can sell?

In most Australian states, building and pest inspections are not a legal prerequisite for vendors — unlike energy performance certificates, which are mandatory in many European countries. That said, buyers frequently include an inspection clause as a condition of the contract, and some sellers arrange pre-sale reports to promote transparency and reduce the risk of negotiations unravelling after exchange. Specific requirements vary by state, so check with your conveyancer about what applies in your jurisdiction.

What is an auction, and is it a good way to sell?

At an auction, registered bidders compete openly for the property, and the highest bid at or above the seller’s reserve price results in an unconditional sale. Auctions are a particularly prominent sale method in Sydney and Melbourne and can drive strong competitive interest that pushes the final price above the reserve. The downside is that upfront marketing costs are incurred regardless of the outcome, and if the property “passes in” — that is, fails to meet the reserve — the seller must then negotiate privately with the highest bidder. Contracts signed on auction day are unconditional, meaning there are no finance or other escape clauses for the buyer.

Can I sell my Australian property if I am no longer a tax resident of Australia?

Yes — non-residents of Australia can sell Australian real estate. However, the tax treatment is considerably less generous than it is for residents. Non-residents are not entitled to the 50% CGT discount that applies to assets held for more than 12 months, and from 1 January 2025, every sale of Australian property by a non-resident is subject to 15% withholding on the gross sale price regardless of the amount. The main residence exemption may also be unavailable if the property is no longer your primary home and you are a foreign tax resident at the time of disposal. Seek specialist tax advice well before you list the property.

Are there any restrictions on selling to a foreign buyer?

From 1 April 2025 to 31 March 2027, foreign persons are prohibited from purchasing established dwellings in Australia unless they qualify for a limited exception. This temporary ban on foreign acquisitions of existing residential property effectively confines your buyer pool for a second-hand home to Australian citizens, permanent residents, and certain eligible visa holders. Different rules apply to new or off-the-plan properties. Consult the Foreign Investment Review Board (FIRB) website and seek legal advice to understand how the restrictions affect your particular property and intended sale timeline.