settlement/taxation questions

Hi all,

My house in sydneys west has just gone under contract. Prior to being sold an electrical fault was bought to my attention, nothing major, just that when they put a globe in the outside light the power would trip. The tennants were particularly difficult throughout the sales process as was the purchasing party. The real estate agent informed me that i must fix this fault prior ro settlement. My question is, if this is not contained in the sales contract am i obligated to do this? I know it only gonna be 2-300 but i already sold below what i was hoping for.

One more question - is the agents commission tax deductible even though i originally claimed the first home owners grant on the property prior to renting it out?

Thanks for your help!

Dan
 
I would suggest that if the power is in the same state at settlement as when they signed the contract, then it's their problem, unless it's a potential hazard. This sort of thing is why people should get a building inspection done. If it is a safety problem, then you should probably repair it.

I suspect the agent's commission isn't tax deductable because the property was your home (and the profits aren't taxed either). The agent may know the answer, but it would be worth verifying with an accountant.
 
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