Foreign buyer crackdown as new identity rules applied to Sydney property market

Buyers and sellers of real estate will have to prove their residency and citizenship status to the NSW government before a sale is completed, under new rules targeting foreign buyers that will apply from July.

The Baird government will collect the first comprehensive data about the real level of foreign ownership of NSW houses and apartments, and whether restrictions on foreigners buying established dwellings are being complied with, according to a recent The Sydney Morning Herald story.

For the first time, a land tax certificate showing whether any money is owed must be supplied to a home buyer by a vendor before settlement.

The vendor must disclose their residency status and nationality when applying for the certificate.

Foreign buyers will have to provide citizenship and visa details, as well as Foreign Investment Review Board clearance, through the stamp duty process.

A federal parliamentary inquiry last year heard that foreign buyers were prepared to breach rules on seeking Foreign Investment Review Board approval for real estate purchases because it was perceived the risk of being caught was low.

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