What Qualifies as Commercial Property?

Commercial property refers to real estate that is used for business purposes, instead of as a residence. These properties can have a wide range of purposes, including examples like:

• • Office buildings
• • Retail shops
• • Medical centres
• • Industrial facilities
• • Warehouses

These assets are valued for more than the property itself. They are valued for their potential income, length of lease, and long-term investment potential.

Key Differences: Residential vs. Commercial Property

The primary difference between residential and commercial property is their use. But there are several other ways commercial property differs from residential property.

• • Lease Terms: A lease for commercial property is usually much longer than leases for residential properties. For establishments that offer stable, long-term income, leases may be three to 10 years or longer.
• • Finance Complexity: Lenders often require larger deposits and more rigorous financial checks before issuing a commercial loan.
• • Tenant Responsibility: Tenants of a commercial lease usually retain responsibility for maintenance and operational costs. This reduces the day-to-day responsibilities for the property owner.
• • Income Potential: Commercial properties typically deliver higher rental yields compared to residential investments.

Pros and Cons of Investing in Commercial Property

Due to the nature of investing in commercial property, it’s important to understand the benefits and possible pitfalls that can come with the investment. You’ll want to make well-informed decisions.

Benefits of Investing in Commercial Property

• • Long-term income potential. Longer leases and regular rent reviews help protect cash flow.
• • Higher yields. Commercial property usually delivers better returns than residential.

Risks Associated with Investing in Commercial Property

• • Higher upfront costs. Commercial investments require much larger deposits along with legal and acquisitional expenses.
• • Market sensitivity. Income can be affected by vacancy rates and economic shifts.
• • More complex. A commercial investment is much more involved both financially and legally than residential investments.

Key Considerations Before Making a Commercial Purchase

Before purchasing commercial property, you’ll want to take a serious look at various factors. You’ll need to know what to expect, which helps you navigate your purchase and your profit.

Set Clear Investment Goals

What do you hope to achieve from your investment? It’s essential to answer this question before beginning your search or signing on the dotted line.

• • Do you want a steady income through rental returns?
• • Are you looking for capital growth over time?
• • Would you prefer using a property manager as opposed to actively managing tenants yourself?

Setting these goals early will help you shape your strategy, finance choices, and the type of property to purchase.

Research Market and Location

Location matters. This is especially true when investing in commercial property. Location can literally make or break a business.

• • Look for areas that already have strong transport links, infrastructure, and steady business growth.
• • Research the rental and vacancy rates in the locale.
• • Analyse the demand for the type of property you are considering.
• • Ensure the zoning allows your intended use of the property.

Working through market and location aspects of a property can help you choose properties that are more likely to deliver strong returns.

Financing a Commercial Property Purchase

There are several differences between commercial property loans and residential ones.

• • Larger Deposits: When purchasing commercial property, the deposit is often 20 to 30% of the property value.
• • Stricter Lending Criteria: Lenders assess tenant strength, lease length, and income potential.
• • Additional Costs: There may be more costs expected when purchasing commercial properties, including accounting fees, legal fees, insurance, and GST.

Mortgage brokers can help you compare your loan options and find terms that are suitable for your situation.

Due Diligence and Things You Cannot Skip

If you do not do your due diligence, you can find yourself in a financial and legal strain. Make sure you check these aspects of your target commercial property before starting the purchasing process.

• • Title and Zoning Check: Make sure the property and land use match your financial plan.
• • Lease Agreements: Review the existing tenant contracts.  This can be carried out by our associated Law Firm, Philipoff Legal.
• • Property Condition: Inspect the property for structural soundness, regulatory compliance, and future maintenance needs.
• • Independent Valuation: This will confirm the property’s true market value.

Professionals, such as conveyancers, lawyers, and accountants, can help find hidden issues before you make a big commitment you can’t get out of.

Tax and Cost Considerations

There are many layered tax and other financial implications associated with owning commercial property.

• • Stamp Duty: A major upfront cost that varies by state.
• • GST: Only applies to certain properties, but if you choose to sell later on, you might be liable for GST.
• • Depreciation Benefits: Plant/equipment and capital works deductions can improve cash flow.
• • Ongoing Costs: You’ll need to budget for potential vacancies, repairs, insurance, and council rates.

Planning for these types of costs ensures you understand your total investment.

Finalising the Purchase

Once you have done all your research, you can negotiate a fair price and terms for your commercial property purchase. Conduct final inspections and confirm your financing is in place. Then, you’ll work with your Settlement Representative to settle the funds and transfer ownership.

Owning commercial property isn’t “done” once you have made the purchase. You’ll need to establish and maintain good tenant relationships, perform regular maintenance to protect your asset’s value, and make any renovations or updates to increase your rental income. You may find it useful to invest in a property management company that can handle your daily operations.

Is Investing in Commercial Property Right for You?

Buying and maintaining commercial properties isn’t for everyone. But if it’s the right fit for you, it can deliver higher rental income, tax benefits, and diversify your portfolio, leading to long-term wealth.

If you prepare well, seek the right advice, and align your goals with a smart strategy, commercial property can be a valuable part of your investment journey. To learn more about purchasing commercial property in Western Australia, contact the team at Vicki Philipoff Settlements today and Settle With Ease®️.

Disclaimer: The information in this article is intended to provide guidance and an overview of general information. It is not intended to be an exhaustive source of information and is not intended to constitute legal or tax advice in any way. Please seek the advice of a professional for legal advice and assistance.

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WA Stages of Conveyancing

Here is what you can expect as you begin the process of owning property in WA.

Stage 1: Pre-Purchase Contract Review and Offer

When you make an offer for property in Western Australia, and the seller accepts it, a binding contract is formed. The contract will include terms detailed in two parts.

• • Contract for Sale by Offer and Acceptance
• • Joint Form of General Conditions

The contract isn’t just “necessary paperwork.” It provides a legally binding outline for the sale or purchase of property. The same standard contract format is used for most residential properties, but there can be specific stipulations added. Some examples include the offer being based on approved finances or setting a date for the settlement.

You can add your own specifications, such as the contract being subject to a structural defect report or pending a pest inspection. There is no cooling off period for real estate contracts in Western Australia.  Once the contract is signed by both parties (seller and buyer), it’s legally binding.  We strongly recommend you seek legal advice on the draft contract before you sign it.

We suggest you obtain a Property Interest Report from Landgate.

This report currently costs $73.50 and once you have it, please contact Landgate or the relevant department with any queries you may have.

We also suggest you obtain an updated Certificate of Title Search, and if the Title Search you have been provided is more than one month old, you can order from here at a cost of $32.60. We suggest you order a Sketch Title and Certificate of Title.

Our sister company Philipoff Legal, can offer a contract review service where they will review your contract and provide you with legal advice.  Please contact us to arrange for a quote.

Since there can be numerous possible details, it’s prudent to have the contract reviewed before you present the offer. You will want to make sure you are happy with the terms of the offer and the acceptance document before making an official offer. Your acceptance of the terms constitutes a binding contract.

Stage 2: Securing Finances

If you are making a cash offer, this step will not apply to you. But if you need financing to purchase your WA property, you will need to get approval from the lender by the date specified in your Offer. You’ll need to make sure that the lender can transfer the funds at your settlement. In Western Australia, it is now required that funding be transferred electronically, so that there are no delays. The only exception to this is when it is physically impossible, or if the particular contract is not eligible for an electronic transfer.

Stage 3: Pre-Settlement 

Once the finances are in order, your conveyancer will make enquiries to determine the current status of the property owner’s accounts and get up-to-date information on rates and fees pertaining to the property. They will make enquiries with:

• • Water Corporation
• • Office of State Revenue
• • Local shire and strata company (if applicable)

If there are any overdue accounts, they will need to be paid at settlement by the settlement agents to clear any debt. This ensures you are not liable for them in the future.

Your conveyancer will contact your lender to and book in settlement with them.  If you are paying cash, you will need to deposit the balance as previously agreed. This deposit is made into our trust account so that your funds will be safe until the completion of settlement.  We will provide you with a PEXA key for the details and communicate further with you in this matter during the settlement process.

You will also find that a moving checklist is helpful. Please see our Ultimate moving checklist here.

Stage 4: Thorough Property Inspection

Prior to settlement, you should make sure the property is inspected thoroughly. You are entitled to inspect the property on one occasion within 5 business days before the Possession Date.  This will be your opportunity to check that the Seller has complied with the Seller’s obligations under the Contract.  The Buyer may be accompanied by 2 persons on an inspection.  You will also want to check things like fixtures and fittings. If they are not in good condition, you’ll need to determine what needs to be done about the issue before settlement. Your offer can be conditional on the issues being fully addressed by the current owner before settlement.

Stage 5: Settlement

At settlement, all money and documentation are exchanged, and property ownership will pass from the seller to the buyer. The property will be registered in your name as you become the legal owner of your new home.

If you are buying a house in Western Australia, it is standard for the settlement agent to make the arrangements and notify you in writing once it has been completed.

Stage 6: Post-Settlement

After settlement, you should receive several things, including:

• • Contract of Sale including Transfer Duty Certificate: This paperwork outlines the terms and conditions of the purchase and provides proof of transfer duty paid.
• • Evidence from Landgate: confirmation of change of ownership
• • Settlement Statement: A general breakdown of the payments and adjustments made at settlement.

If you will be using the property for your main residence, now is the time to complete your change of address forms and contact utility companies to open your new accounts.

These are the typical stages of conveyancing when purchasing property in WA. But the process can differ based on unique aspects of the transaction. Please ask your Conveyancer for any possible distinctions or differences in advance.

As Perth’s leading conveyancing and settlement agency, we have conducted over thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

Disclaimer: Please note that this article in no way constitutes conveyancing advice. It is not intended to be substituted for conveyancing advice and should not be relied upon as such. See conveyancing advice or other professional advice regarding any matters you may have. Please contact us for more information.

The post Stages of Conveyancing: A Step-by-Step Guide for Western Australia appeared first on Vicki Philipoff Settlements Perth.

At Vicki Philipoff Settlements, we take protecting our clients extremely seriously. We use clear, secure systems and consistent processes so you always know what to expect, what will never change, and what to verify before transferring funds safely.

We’ll explain how cyber risks increase during settlements, how we communicate with you, how payments are handled, and the simple steps you can take to stay protected.

Vicki Philipoff Settlements’ Commitment to Cyber Security

Cyber security is not just an afterthought. It is a real threat, therefore it is a core part of how we operate.

Property settlement scams often rely on impersonation, email interception, or last-minute “changes” to payment details. These scams are sophisticated, but they are also predictable. They rely on confusion, urgency, and unfamiliar instructions.

That’s why we are focused on:

• • Consistent communication
• • Secure systems for sensitive information
• • Clear rules around payments
• • Encouraging clients to verify information before taking action

If you ever feel unsure, uncomfortable, or rushed, that is your cue to stop and contact VPS directly.

Be Aware of Scam Emails Requesting Funds

One of the most common settlement scams involves emails that appear to come from a conveyancer or law firm, asking clients to transfer funds to “updated” or “urgent” account details.

It’s important to know:

• • We do not send emails asking you to change payment details
• • We do not notify clients of last-minute account changes
• • Any email requesting funds outside our normal process should be treated with caution
• • If you ever receive an email from us requesting any funds, always call us first on a trusted phone number (not the one on the email you received) to check before making any payment.

Scam emails can look convincing. They may include correct names, property details, or signatures copied from real correspondence. This is why verification matters more than appearances.

Verified Communication Channels You Can Trust

To help clients identify legitimate communication, we follow strict rules around how we contact you.

Official Email Domains

All emails from our office are sent from an official @vickiphilipoff.com.au email address.

If you receive a message that:

• • Uses a different domain
• • Includes spelling variations
• • Comes from a personal email account
• • Feels unexpected or inconsistent

Do not respond or click any links. Instead, contact our office directly using the phone number on our website.

When in Doubt, Call Us

We actively encourage clients to pick up the phone if anything feels unclear. Verifying information is never an inconvenience. It’s the safest step you can take.

Secure Payment Processes You Can Rely On

One of the most effective protections against cyber fraud is consistency. Our payment processes are deliberately designed so that key details do not change.

Trust Account Details Never Change

From 14 November 2024 onwards, we moved to Commonwealth Bank – our trust account details remain the same. You will never receive an email advising that these details have been updated or replaced.

Any request suggesting otherwise should be treated as suspicious and verified immediately.

Secure Exchange of Sensitive Information via PEXA Key

Whenever sensitive information needs to be shared, we use the PEXA Key App.

PEXA Key:

• • Is encrypted
• • Is specifically designed for property transactions
• • Reduces reliance on email for sensitive details
• • Is widely recognised and recommended within the property industry

Using PEXA Key adds an extra layer of protection and helps keep your information secure throughout the settlement process.

BPAY Payments: What to Expect

For clients using BPAY, the details are simple and consistent.

• • BPAY Biller Code: 9209
• • Reference Name: VICKI PHILIPOFF SETT

Important points to remember:

• • You will not receive notifications advising of BPAY detail changes
• • The reference name will always display as VICKI PHILIPOFF SETT
• • Any message suggesting a change to BPAY details should be verified immediately

Best Practice Advice for Clients

Cyber security works best when everyone plays a role. These simple steps can significantly reduce risk.

Always Telephone Before Transferring Funds

Before transferring any settlement funds, call your conveyancer using a known, trusted phone number. Never rely solely on email instructions.

Attend the Bank in Person (Where Possible)

Visiting your bank allows an additional level of checking. Bank staff are familiar with settlement fraud and can help confirm details before funds are released.

Cross-Check Details via Our Secure Website

Always cross-reference payment instructions with the secure payment information provided on our official website.

Confidence Through Clarity at Vicki Philipoff Settlements

Property settlements should feel exciting, not stressful. By keeping our systems clear, consistent, and secure, we aim to remove uncertainty and protect our clients at every step.

If something doesn’t look right, feels rushed, or doesn’t match what you’ve been told before, always pause and contact us directly. We are always here to confirm, clarify, and support you.

At Vicki Philipoff Settlements, your peace of mind matters to us, so you can settle with ease.

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1. What is your role at Vicki Philipoff Settlements?

I’m a licensed conveyancer, and I’ve been with Vicki Philipoff Settlements for five years.

2. Why did you choose VPS?

I admired the strong company values and team culture. I like learning from my experienced peers. The positive work environment and flexibility stood out to me.

3. What are your favourite parts about working in the settlement industry?

Solving real-life problems, the ability to continue learning, and helping clients achieve their property goals are my favourite parts. I also like that no two days are exactly the same.

4. What does the perfect morning look like for you?

The best days start and end with music. I like getting my day started with some good beats, and after work, I enjoy mixing and producing my own music.

5. What is your favourite food?

Comfort food, especially creamy pasta dishes!

6. When and why did you move to Perth?

In 2020, I moved to Perth to be closer to my family.

7. What is your favourite part about living in Perth?

The WA beaches and laid-back lifestyle.

8. Do you have any favourite pastimes or hobbies?

I’m an avid golfer. Mosman Park course in the springtime is my favourite.

Check out our other team members on our Meet The Team page.

The post Meet the Team: Zachary Nuske appeared first on Vicki Philipoff Settlements Perth.

Different types of POA can cover decisions such as operating bank accounts, paying bills, managing investments, and handling real estate transactions. Some can extend to health or lifestyle decisions, but it remains crucial to ensure your financial affairs are handled according to your wishes if you cannot do so for yourself.

Types of Powers of Attorney

Understanding the different types of Powers of Attorney available in Western Australia is critical for making informed decisions regarding your future financial management. There are two primary types of Powers of Attorney involved with Real Estate Power of Attorney under the Transfer of Land Act and Enduring Power of Attorney.

Power of Attorney under the Transfer of Land Act

This Power of Attorney is appropriate in situations where you need someone to manage your financial affairs temporarily in regard to real estate. This type of POA is only valid while you have the capacity to make your own decisions. It is often used for specific time periods, such as when you are travelling overseas or recovering from an injury. The donee can act on your behalf only for the time period, task, or circumstances you have specified. For example, you might authorise your donee to handle your purchase of sale of your property whenever you are out of the country. However, this Power of Attorney ends if you lose decision-making capacity, making it ineffective and not suited for long-term planning.

Enduring Power of Attorney

An Enduring Power of Attorney differs from a Power of Attorney under the Transfer of Land Act in that it remains in effect even if you lose legal capacity. This makes it critical for long-term planning, by allowing you to appoint someone to manage your financial and property decisions when you can no longer do so.

You can only create an Enduring Power of Attorney while you still have decision-making capacity, and you can specify when it should come into effect whether that be immediately or only upon losing capacity. The flexibility that an Enduring Power of Attorney offers ensures that your financial affairs are managed according to your wishes. This provides peace of mind that your interests are safeguarded even in the event of incapacity.

What is Capacity, and why is it important?

In this context, the term ‘Capacity’, refers to the ability to make your own decisions. It is a critical concept in the context of Powers of Attorney, as both types require the donor to have decision-making capacity at the time of creation.

Generally, you have decision-making capacity if you can understand the information relevant to a decision, retain that information, weigh it as part of the decision-making process, and communicate your decision.

Loss of capacity can occur due to accidents, illnesses, or the effects of ageing. By executing an Enduring Power of Attorney you can ensure that your financial matters are managed appropriately even if you do lose capacity.

Understanding Powers of Attorney

Who Can Be Appointed?

In Western Australia, you can appoint anyone over the age of 18 who has the legal capacity to make their own decisions as your donee. This can be a family member, friend, lawyer, accountant, or trustee agency. It is crucial to choose someone reliable, who understands the responsibilities involved and agrees to take on the role.

Can I Have More Than One Attorney?

Yes, you can appoint up to two donees to act on your behalf. You can also nominate a substitute for each donee in case one of them is unable to continue. When appointing multiple donees, you can authorise them to make decisions jointly, individually, or a combination of both, depending on your preferences and the nature of the decisions to be made.

What Happens If You Lose Capacity and Don’t Have an Enduring Power?

If you lose capacity without an Enduring Power of Attorney in place, the State Administrative Tribunal (SAT) can appoint a guardian to make personal decisions for you and an administrator to manage your financial matters. This is a last resort, as SAT prefers to use the least restrictive option available. The appointed guardian or administrator may be a family member, trusted friend, or, if necessary, the Public Advocate or Public Trustee.

A Power of Attorney is an essential legal tool for ensuring your financial and property decisions are managed according to your wishes in Western Australia. By understanding the types of POAs available, the concept of capacity, and the responsibilities involved, you can make informed decisions about appointing a trusted individual to act on your behalf. For more information about this visit the Western Australian Government site.

This foresight can provide peace of mind and protect your interests, ensuring your affairs are handled appropriately even in unforeseen circumstances.

For further information, Vicki Philipoff Settlements is here to help, feel free to contact us today!

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

The post The Importance of Power of Attorney in Western Australia appeared first on Vicki Philipoff Settlements Perth.

For buyers, sellers, and agents alike, understanding these differences is not just helpful but crucial in navigating the real estate market effectively. It’s about more than just making a transaction; it’s about securing the best possible outcome tailored to individual needs and circumstances.

Now, let’s delve into 5 distinctive features that shape the real estate scenes on both sides of the country.

How Properties Are Bought and Sold

One of the fundamental contrasts between buying and selling in WA versus the East Coast of Australia lies in the methods of property sales. In Western Australia, private treaty sales reign supreme, backed by standardised contracts endorsed by the Real Estate Institute of Western Australia (REIWA). This process, favoured for its consistency, allows buyers to include conditions such as subject-to-finance or subject-to-sale clauses in their offers, fostering negotiation flexibility and transparency.

Conversely, the Eastern States employ a mix of auctions and private treaty transactions. Auctions, a popular choice, provide certainty by mitigating the risk of ‘gazumping’, a tactic absent in WA. In these auctions, both buyers and sellers understand that once the hammer falls, the deal is sealed, offering assurance and clarity throughout the transaction process. This distinct difference in sales methods underscores the unique dynamics shaping real estate transactions on both sides of the country.

Availability of Cooling Off Periods

A fundamental discrepancy between buying and selling in Western Australia versus the East Coast of Australia revolves around cooling-off periods. While the Eastern States commonly incorporate a five-day “cooling off” window in private treaty sales contracts, such provisions are notably absent in Western Australia.

In states like New South Wales and Victoria, buyers often benefit from this grace period to reassess their decision and financial standing post-contract signing.

However, in WA, once the ink dries on the contract, both parties are irrevocably bound, providing sellers with a sense of certainty and security. Exceptions to this rule are only made when the buyer fails to secure financing, leading to the termination of the conditional sale.

This disparity underscores the distinct regulatory frameworks shaping real estate transactions on opposite ends of the country, influencing buyer and seller dynamics accordingly.

How Contracts Are Prepared

A significant distinction between buying and selling in Western Australia compared to the East Coast of Australia lies in the preparation of contracts.

In WA, the Real Estate Institute of Western Australia (REIWA) has developed standardised contracts widely adopted throughout the market. These contracts are regularly updated to reflect legislative changes, ensuring a streamlined and transparent process for both buyers and sellers.

On the contrary, the Eastern States often see sellers enlisting solicitors to create personalised contracts with terms favouring them. These seller-centric contracts may contain clauses that catch buyers off guard. To navigate these differences, WA buyers exploring eastern markets are advised to seek assistance from professionals familiar with the local contract nuances. This divergence in contract preparation underscores the unique approaches to property transactions on both sides of the country.

The Variance in Deposit Amounts

Deposit requirements serve as a notable point of divergence between property transactions in Western Australia and the Eastern States. In WA, buyers benefit from the flexibility of offering smaller sums as deposits, typically ranging between $10,000 to $20,000 in private treaty sales. This flexibility empowers buyers to maintain greater liquidity throughout the sales process, enhancing their financial maneuverability.

Whilst in Victoria or New South Wales, substantial deposits are often required, and this is commonly set at 10% of the property’s purchase price. For instance, on a $600,000 property, this would translate to $60,000, presenting a significant financial commitment upfront.

This is a rather significant difference, and demonstrates the varying financial obligations faced by buyers across state borders, with the deposit requirements in WA offering a more accessible entry point for prospective buyers, particularly for first-home buyers navigating their buying journey.

Return on Investment for Rental Properties

Rental returns serve as a crucial factor in investment decision-making, and the disparity between Western Australia and the East Coast is significant. WA’s rental market presents lucrative opportunities, particularly enticing for investors from the East.

Perth’s robust rental yields, fueled by remarkably low vacancy rates, attract investors seeking favourable returns. For instance, a property in Perth’s CBD fetching $650 per week in rental income may be valued at $450,000 to $500,000, whereas a similar property in Sydney could command well over $700,000.

This variance is significant and underscores how attractive investing in WA is, especially where investors can potentially secure higher returns on their investments. Understanding these nuances is essential for investors evaluating opportunities across regions, as rental returns play a pivotal role in the overall investment viability and financial outcomes.

Summary

In summary, while Australia’s real estate markets share some commonalities, the differences between WA and the Eastern states are evident and highly impactful. From sales methods to deposit requirements and rental returns, understanding these differences is pivotal for anyone navigating the real estate landscape.

Whether you’re a seasoned investor or a first-time buyer, being aware of these differences will empower you to make well-informed decisions and achieve your real estate goals confidently.

For further information, Vicki Philipoff Settlements is here to help, feel free to contact us today!

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

The post 5 Differences in Buying and Selling in WA compared to the East Coast appeared first on Vicki Philipoff Settlements Perth.

In this article, we’ll explore the basics of strata living in WA, including the laws governing it, the concept of strata living, the various types of strata, and what they entail.

What is WA Strata Law?

All registered strata properties in WA fall under the Strata Titles Act 1985 (STA), administered by Landgate on behalf of the Western Australian State Government.

The STA regulates the subdivision of land into strata titles schemes, the creation of strata titles, and the governance and operation of strata titles schemes.

This legislation outlines the rights, authority, and obligations of lot owners, occupiers, strata companies, strata councils, and strata managers. The Strata Titles Act 1985 and the Strata Titles (General) Regulations 2019 are accessible on the Western Australian Legislation website.

What is Strata Living?

Strata living involves individual ownership of parts of a parcel of land (known as lots) and shared ownership of other parts (known as common property).

Strata titles schemes are established as small, self-governing communities, operating democratically. Owners collectively decide on managing the parcel, including establishing and enforcing by-laws to regulate behaviour and maintain common areas.

Each lot owner has voting rights on scheme decisions and shares responsibilities for common property upkeep. Strata companies may engage strata managers to perform duties, subject to legal obligations and contractual agreements.

What are the different types of Strata?

• • Strata Scheme: In a strata scheme, individuals own lots (e.g., apartments, villas) and share ownership of common property (e.g., external walls, foyers). Boundaries are defined by buildings shown on the strata plan.
• • Survey-Strata Scheme: This scheme comprises lots with boundaries marked by a licensed surveyor, shown on the survey-strata plan. Unlike strata schemes, survey-strata plans don’t depict buildings, resembling freehold parcels of land.
• • Single Tier Strata Scheme: In this scheme, no lot exists above another, meaning one lot’s floor can’t form part of another’s ceiling. Multi-storey blocks are only one tier, but two-storey units like townhouses or villas can be part of this scheme.
• • Leasehold Scheme: Leasehold schemes involve fixed-term leases of 20 to 99 years. Lot owners are lessees, and the scheme owner is the lessor. Lessees have rights to deal with the land during the lease, such as selling lots without the lessor’s permission.

Understanding how strata works in WA is crucial for both current residents and potential buyers. The Strata Titles Act 1985 governs strata properties, ensuring fair treatment and effective management.

Strata living offers a unique community-based approach to property ownership, with various types of strata schemes catering to different preferences and needs.

Whether you’re navigating by-laws, participating in scheme decisions, or engaging with strata managers, being informed about strata laws and practices is essential for a harmonious living experience in WA.

For further information, Vicki Philipoff Settlements is here to help, feel free to contact us today!

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

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In this blog article, we’ll delve into the intricacies of ATO clearance certificates, exploring why they matter, who is affected, and how to obtain one.

What is an ATO Clearance Certificate?

The ATO clearance certificate serves as a crucial document, signalling both to the purchaser and the government that the property seller is an Australian resident. It allows the seller to bypass the 12.5% foreign resident capital gains tax withholding for properties valued over $750,000. Valid for 12 months, the certificate can be used for multiple property sales during this period.

Foreign Resident Capital Gains Withholding Tax Explained

Implemented on 1 July 2016, the foreign resident capital gains withholding requires buyers of properties valued at $750,000 or more to set aside 12.5% of the purchase price for the ATO if the seller is a foreign resident. This tax aims to ensure proper payment of capital gains tax by foreign residents and address housing affordability concerns. Before the law change, the threshold was $2 million, with a 10% withholding rate.

Who does Foreign Resident Capital Gains Tax affect?

The changes impact over half of the Australian real estate market, affecting all sellers and buyers of properties valued at or over $750,000. This shift is significant, especially for Australian resident property sellers.

The impact on Australian property owners

Australian resident property sellers can be exempt from the foreign resident capital gains tax if the property is below $750,000. Otherwise, they must provide an ATO clearance certificate to the buyer. Failure to produce the certificate results in the seller being treated as a foreign resident, leading to a 12.5% withholding of the property’s value.

If multiple vendors are involved, each must obtain their clearance certificates. While settlement may be delayed for certificate procurement, this requires an agreement between the seller and the purchaser.

What Happens to Foreign Resident Property Sellers?

Foreign resident property sellers face a 12.5% withholding by the buyer, which is remitted to the government as part of the foreign resident capital gains tax. They cannot apply for an ATO clearance certificate, however, variation of the tax rate is possible based on individual circumstances, but early application is crucial.

Effects on Property Buyers

Regardless of the residency status of the buyer, if the seller fails to provide an ATO clearance certificate by settlement, the buyer must withhold 12.5% of the purchase price for the ATO. Non-compliance may attract additional interest, emphasising the importance of adhering to the regulations.

How to Get an ATO Clearance Certificate

The application process for an ATO clearance certificate is free and can be initiated online on the ATO website. The certificate is issued to signify the seller’s Australian residency, enabling the buyer to forgo withholding the foreign resident capital gains tax. Tax agents or legal practitioners may assist in the application process, potentially incurring additional fees.

When to Apply for an ATO Clearance Certificate

Applying as soon as possible is crucial to avoid delays in settlement. Online applications typically have faster processing times, roughly half of all applications are automatically processed. The ATO sends certificates within days for online applications. However, mail applications, manually processed, may take 14 to 28 days, with potential delays for complicated cases.

Key Summary Notes:

• • ATO clearance certificate indicates Australian residency.
• • Foreign resident capital gains withholding at 12.5% for properties over $750,000.
• • Changes impacts approximately 60% of the Australian real estate market.
• • Australian resident sellers must provide a clearance certificate to avoid withholding.
• • Foreign resident sellers face a 12.5% withholding; exemptions based on main residence status until June 2019.
• • Buyers withhold 12.5% if no clearance certificate is provided.
• • The application is free, online, and requires key information.
• • Apply early to avoid settlement delays.
• • The best agents can guide you through the application process swiftly.

Understanding the nuances of ATO Clearance Certificates is essential for smooth real estate transactions in the evolving landscape of Australian property laws. By grasping the intricacies of these changes, sellers and buyers can confidently navigate the process and ensure a seamless settlement.

For further information, or should you require an ATO Clearance Certificate or need help navigating the complexities of the buying and selling process, Vicki Philipoff Settlements is here to help, feel free to contact us today!

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

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Reflecting on the year that was 2023

This year has been a testament to the resilience and dedication of our team at Vicki Philipoff Settlements. We’ve successfully navigated the intricacies of the real estate landscape, facilitating seamless settlements and ensuring our clients experience the highest level of professionalism. From property transactions big and small, we take pride in being the trusted partner for our clients’ settlement needs.

Our Wonderful Clients

As we approach the festive season, we extend our heartfelt gratitude to the wonderful clients who have entrusted us with their settlements. Your trust is the foundation of our success, and we cherish the relationships we’ve built. Each transaction is not just a deal for us; it’s an opportunity to contribute to your journey, and we are honoured to have played a role in your endeavours.

A Promise of Availability Throughout the Holiday Period

At Vicki Philipoff Settlements, we understand that the holiday season doesn’t pause for property transactions. We are committed to being there for you, offering unwavering availability throughout the festive period. Our dedicated team is ready to navigate the unique challenges that may arise, ensuring that your settlements proceed smoothly, regardless of the holiday disruptions.

Why Choose Vicki Philipoff Settlements During the Holidays?

Our expertise goes beyond the standard expectations of a settlement agent. We bring a wealth of experience, a commitment to clear and proactive communication, and the ability to adapt to the nuances of the holiday season. With a track record of successfully handling seasonal transactions, we are well-prepared to overcome delays and ensure a hassle-free experience for our clients.

Wishing You a Joyous Christmas and Settle With Ease®

From the team here at Vicki Philipoff Settlement we want to extend our warmest wishes for a joyous Christmas and a prosperous New Year. We express our deepest gratitude for the trust you’ve placed in us throughout 2023, and we look forward to continuing our journey with you in the coming year, navigating the real estate landscape with the same dedication and expertise that defines Vicki Philipoff Settlements so you can Settle With Ease®.

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, email us today or apply for a free quote and Settle With Ease®️.

The post Seasons Greetings: A 2023 Recap & Conveyancing Needs Over Christmas appeared first on Vicki Philipoff Settlements Perth.

This yearly event serves as a tribute to the remarkable achievements of conveyancing firms, individual conveyancers, and industry members, those who have left an indelible mark on the field. Here we show respect to field members, honour them for their excellence in the conveyancing profession and acknowledge their contributions that have shaped our industry over the last year.

This year, the Gala Awards Ceremony will be taking place this November at Crown Perth, and Vicki Philipoff Settlements has been nominated and announced as a finalist of the 2023 Betty Quelch Award, which is awarded for excellence in the performance of a Settlement Agency.

Betty Quelch was an extraordinary woman who, after serving in the Air Force during World War 2, became a War Widow in 1952. She returned to the workforce, where she excelled as a Conveyancing Clerk at Kott & Wallace, and then later founded the “Quelch Settlement Agency” in 1974.

Operating with an all-female staff of 30 employees, Betty’s business thrived, a huge testament to her resilience and dedication. She was recognised as a “Fellow” of the Law Society in the 1980s and left an indelible mark in the settlement industry. Despite her passing, Betty is remembered for her business acumen, fairness, and infectious sense of humour, leaving a lasting legacy.

This is the second time in as many years, that Vicki Philipoff Settlements has been nominated for the Betty Quelch Award, and would be honoured to accept such a prestigious award named after such an important and influential figure of the industry who many look up to and admire.

As Perth’s leading conveyancing and settlement agency we have conducted thousands of settlements for our satisfied clients. If you’re interested in our conveyancing and settlement services, contact us today or apply for a free quote and Settle With Ease.

The post 2023 AICWA Gala Awards Ceremony appeared first on Vicki Philipoff Settlements Perth.