Buying or selling a property
Buying, selling or refinancing a property and requesting a Section 47 clearance certificate online (land tax in NSW).
Selling a property
If you are selling your property under contract, you must apply for a clearance certificate and give the buyer a copy at least 14 days before the contract completion date. For contracts completing within 14 days, the buyer must be given a copy on the completion date. A clearance certificate is issued under section 47 of the Land Tax Management Act 1956 and provides the current land tax liability status for a selected property.
The clearance certificate must be:
- less than three months old, or
- include any land tax charges for the year that settlement will take place.
The property is ‘clear’ if:
- the land isn’t liable or is exempt from land tax
- all tax to date has been paid
- we’re satisfied there’s no risk of non-payment.
The clearance certificate doesn’t have to be ‘clear’ when given to the buyer.
If you own three lots in one strata plan, they’ll be processed under one certificate. If more than three lots are involved, you’ll need to lodge more than one clearance certificate.
A clearance certificate showing that there is no land tax charged on the land protects a purchaser from any outstanding land tax liability by a previous owner. It does not provide any protection to the owner of the land.
Buying a property
The seller should provide you with a clearance certificate as part of the contract for sale. A clearance certificate provides the current land tax liability status for a selected property. A clearance certificate showing that there is no land tax charged on the land protects a purchaser from any outstanding land tax liability by a previous owner. It does not provide any protection to the owner of the land.
If the seller does not contact you to provide you with a clearance certificate, you can apply for this certificate as the purchaser. We do recommend you do this to ensure the previous owner has paid all outstanding land tax.
Apply for a clearance certificate
A clearance certificate provides the current land tax liability status for a selected property. It details the lot and deposited plan/strata plan number of the land, the land address and will either state:
- There is no land tax charged on the land up to and including the current tax year generally meaning there are no outstanding land tax amount payable to date, or
- There is land tax charged on the property up to and including the current tax year meaning there is an outstanding land tax liability on this land.
A mortgagee can apply for a clearance certificate for land they intend to finance.
To apply for a clearance certificate, you need to have an account with one of these service providers:
Land tax clearance certificates should be applied for as soon as possible in the conveyancing process. If a certificate is received with a land tax charge, the vendor of the property will need to contact us and arrange for the release of the charge.
If a clearance certificate is obtained towards the end of the calendar year and settlement happens in the following calendar year, you should make sure the certificate is for the year in which settlement will happen.
Paying land tax at settlement
You can pay land tax by BPAY during settlement, via an approved Electronic Lodgement Network Operator (ELNO). Once the full amount due has been paid, the charge on the land is considered removed. A clearance certificate is not available until funds have been cleared.
To clear the land tax on or before settlement, you’ll need one of the following documents:
Notice of assessment
The land item must appear on the assessment as 100 per cent owned. It must match the land item on the clearance certificate. Only use this method if settlement is taking place on or before the due date on the assessment notice. Full payment is required for the land tax to be cleared.
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Urgent property settlements
If you require a notice of assessment to be issued urgently for an upcoming property settlement, please refer to Urgent Notice of Assessment for guidance on how to make this request.
Clearance quote
Land tax liability is calculated using land values determined by the Valuer General. In instances where Revenue NSW has not been provided with a value for your land, a clearance quote will be issued in its place so that settlement can proceed. A clearance quote is calculated using the sale price of the property and is an estimate only.
The land item shown on the clearance quote must match the land item on the clearance certificate and the total amount must be paid by the due date on the clearance quote.
Once the land values are received, a Notice of Assessment will be issued which may show an increase or decrease in your liability. You can apply for a refund or finalise any amounts due by the due date on your Notice of Assessment (or at settlement).
To apply for a clearance quote, you will be required to submit a copy of your contract of sale. See our online services guide for information on how to upload your documents.
Settlement letter
If you have a notice of assessment and the due date has passed, email [email protected] to get a settlement letter or call 1300 368 710.
Please allow 10 business days for this to be processed. The land item shown on the settlement letter must match the land item on the clearance certificate.
The total amount must be paid by the due date on the settlement letter.
If paying before settlement, pay the full amount shown on the relevant document before the due date and before settlement. Retain a copy of the receipt as proof of payment.
Request an updated clearance certificate
You can request an updated or existing clearance certificate online. You will need your enquiry ID and correspondence ID from your clearance certificate application.
- Payments made to us are generally processed overnight.
- Please allow 10 working days to process a request and sufficient time for the payment to be processed before requesting a new version of the clearance certificate.