Have you ever wondered if selling two properties together is a smart move? Whether you own neighbouring blocks, a house with a separate granny flat, or two investment properties, selling them as a package deal could be beneficial.
However, this process comes with legal, financial, and logistical considerations. This guide will answer the most common questions about selling two properties together and help you understand how to approach the process with confidence.
I. Can You Legally Sell Two Properties Together in Australia?
Yes, selling two properties together is legally possible in Australia, but there are specific requirements and considerations. The key factor is whether the properties are on separate titles. If each property has its own legal title, you can sell them together in a single transaction or as separate contracts within the same deal.
If they are on one title, they are already considered a single asset, and you will be selling them as one unit.
Key Legal Considerations:
- Zoning and Council Regulations: Some local councils have restrictions on selling two properties together, especially if the land can be subdivided.
- Title and Ownership Structure: If the properties are owned under different names, you may need additional legal agreements to combine them in a single sale.
- Easements and Encumbrances: Ensure there are no legal restrictions that could prevent the sale of the two properties as one package.
- Bank and Mortgage Considerations: If either property has a mortgage, you may need lender approval to sell them together.
A conveyancer can conduct a thorough title search and review any restrictions to ensure the transaction complies with Australian property laws.
II. How Does the Contract of Sale Work for Multiple Properties?
When selling two properties together, the contract of sale can be structured in two main ways:
1. Single Contract of Sale
This option allows both properties to be sold under one contract. The buyer must purchase both properties together at an agreed package price. This is often used when:
The properties are closely related (e.g., a house with an adjoining lot or granny flat).
The seller wants to simplify negotiations and paperwork.
A buyer is specifically looking for a dual-property purchase.
2. Separate but Linked Contracts
Alternatively, you can create two contracts–one for each property–while ensuring they are legally linked. This means:
- Both contracts must be settled together.
- If one contract falls through, the other may also be voided (depending on the terms agreed upon).
- Buyers may have flexibility in financing and ownership arrangements.
Special Clauses to Consider:
- ‘Subject to Simultaneous Settlement’ Clause: Ensures both properties settle at the same time.
- Deposit and Payment Terms: May need to be adjusted to accommodate multiple properties.
- Inclusions and Exclusions: Clearly outline what comes with each property to avoid disputes.
A conveyancer can draft and review these contracts to ensure they protect your interests while meeting legal requirements.
III. What Are the Tax Implications of Selling Two Properties at Once?
Selling two properties together can have significant tax implications, including capital gains tax (CGT) and goods and services tax (GST). Understanding these financial factors can help you avoid unexpected costs.
1. Capital Gains Tax (CGT)
CGT applies when you sell a property for a profit. The amount of tax you pay depends on:
- How long you have owned the properties (a 50% discount applies if owned for more than 12 months).
- Whether the properties were used as your primary residence or investment properties.
- Any improvements or capital expenses you have incurred.
2. Goods and Services Tax (GST)
If you are selling properties as part of a business or new development, GST may apply. However:
- Residential properties are generally exempt from GST.
- If the properties were used for commercial purposes, GST may be payable.
- The Margin Scheme can reduce GST liability in some cases.
3. Stamp Duty Considerations for Buyers
Buyers of two properties may have to pay higher stamp duty fees, which could impact their interest in the purchase. Offering incentives or structuring the sale properly may help attract buyers.
A tax professional or conveyancer can help you calculate these costs and explore any exemptions or deductions available.
Also Read: What Is the Cost of Selling a House in Queensland?
IV. How Can I Attract Buyers for a Dual Property Sale?
Selling two properties together can limit your buyer pool, as many buyers may only need one property. However, with the right strategy, you can make your dual-property listing appealing.
1. Target the Right Buyers
- Investors: Buyers looking for rental income may be interested in purchasing two properties together.
- Developers: If the land is suitable for redevelopment, a developer may see value in acquiring both properties.
- Families or Multi-Generational Buyers: Some buyers look for properties that can house extended family members.
Business Owners: If one of the properties has commercial potential, a business owner may be interested in purchasing both.
2. Highlight the Unique Benefits
- Dual Rental Income: Market the properties as a high-yield investment.
- Development Potential: If zoning laws allow, emphasise the potential for subdivision or construction.
- Convenience and Lifestyle: If the properties are side by side, highlight how they can be used together for a seamless lifestyle.
3. Professional Marketing Strategies
- High-Quality Photos and Videos: Showcase both properties together to help buyers see their combined value.
- Virtual Tours and Floor Plans: Help buyers understand the layout and how the properties complement each other.
- Engaging Descriptions: Clearly communicate why purchasing both properties together is a great opportunity.
Working with an experienced real estate agent can make a significant difference in finding the right buyers for your dual-property sale.
Maximise the Value of Your Dual Property Sale
Selling two properties together in Australia requires careful planning, legal knowledge, and a strategic approach. From ensuring legal compliance to structuring contracts and attracting the right buyers, every step of the process plays a crucial role in achieving a successful sale.
If you’re considering selling two properties together, seek professional guidance to avoid potential pitfalls and secure the best outcome.
Get Expert Advice from CJC Law Today
Selling two properties together can be complex, but you don’t have to handle it alone. At CJC Law, our expert conveyancers specialise in multi-property sales and can guide you through every step. Whether you need legal advice, contract preparation, or tax insights, we ensure a seamless transaction.
Contact CJC Law today for a consultation and let us help you maximise your property sale with confidence.
