Name Mismatches May Cost You 15% of Your Property Sale Price

Clearance certificates are issued under the legal name registered in the ATO’s system, and delays are arising when the name on the Certificate of Title does not align with ATO records. If a clearance certificate is not obtained before settlement, the purchaser is required to withhold 15 per cent of the sale price.

To prevent unnecessary delays, the ATO has provided the following tips:

• Only first and last names are required to match, as middle names are not checked against ATO records.
• If you have changed your name, it is important to update your details with the ATO before applying for a clearance certificate. Australian-issued documents can be updated online, but if your documents are from overseas, they must be sent by post, so allow extra time for processing.
• If your name has changed, you must provide proof to the purchaser, such as a marriage certificate or a legal change of name certificate.
• It is essential to use your legal name, not nicknames or anglicised versions, and ensure it matches official identification documents.

It is advisable to apply for a clearance certificate well in advance. While many certificates are processed within a few days, some may take up to 28 days. If a valid certificate is not available at settlement, 15 per cent of the sale price will be withheld and can only be refunded (if eligible) after submitting a tax return.