If you have not already done so, you need to update relevant organisations with your forwarding address and cancel any plans or subscriptions related to the sale property. See our change of address checklist featured in part six of our selling your property guide.
If capital gains tax (CGT) applies to the sale then the CGT event date will be the date of exchange of the contract. You will need to calculate your capital gain or loss on the property and declare this as required by the Australia Taxation Office.
If the sale had GST applied then the details of this transaction must be included in your activity statement for the current tax period as well as any GST payable paid.
Home insurance on the property can now be cancelled and a partial refund of the outstanding part of the premium requested. If you have contents insurance, you may wish to keep and roll this over to a new property. Your insurer will advise you as to the requirements to roll over any insurance policy.
If the property was leased prior to settlement and no agreement was made for the tenants to vacate, then the tenants will remain at the property post settlement. On settlement the tenants will be notified of the change of ownership. If you had a managing agent in place you will need to terminate your agreement with the managing agent. You may also have had a tenants/renters insurance policy which you will need to cancel with your insurer.
Given your financial circumstances, and possibly family circumstances, have recently changed, it is important to update your Estate Plan to reflect these changes. You may wish to add or remove beneficiaries in your Will, appoint a new Executor or transfer the power previously granted under your Power of Attorney to someone new. It is extremely important to keep your estate documents up to date to ensure that your circumstances and wishes are correctly reflected.
For more information on Purchasing Property check out our other blogs:
Part 1: Finance and Deposits
Part 2: Stamp Duty
Part 3: Review of the Contract
Part 4: Property Reports
Part 5: Exchange of Contracts
Part 6: Planning your move
Part 7: Final Inspection
Part 8: Settlement
You may also be interested in our Selling Property series:
Part 2: Selecting an agent
Part 3: The Contract for Sale
Part 4: Exchange of Contracts
Part 5: Discharge of Mortgage
Part 6: Planning your Move
Part 7: Settlement
If you have any questions or need any assistance please do not hesitate to contact us at Southern Waters Legal. We offer a free 15 minute, no obligation chat if you want to go through your circumstances.