Before you sell
Before placing any property on the market, the seller must have a copy of the Contract of Sale prepared by a Solicitor or Licensed Conveyancer.
The Contract for the Sale of your property will contain the terms and conditions of the sale as well as all information and searches that the law requires the seller to provide. The most common documents include:
- A section 10.7 Certificate from the Local Council, detailing zoning and other information;
- A sewage diagram;
- A copy of the title folio from the Land Titles Office;
- Copies of all documents creating easements or restrictive covenants;
- A notice directing the parties to section 52A of the Conveyancing Act Sale of Land Regulations;
- Home Owners Warranty Insurance (for any work completed by a licensed builder worth more than $12,000 (started after 1 May 1997) your builder should have insured the work against building defects under a policy of insurance and given you a certificate of insurance;
- If the property is strata unit, the seller must attach copies of the folio of the Register for the lot and common property and a copy of the strata plan as well as the By-Laws; and
- If the property has a swimming pool or a spa pool, a current Swimming Pool Compliance Certificate (mandatory from 29th April 2016).
If after the exchange the purchaser discovers that the seller’s information is incorrect or misleading, or if the seller does not attach the disclosure information (the prescribed documents), the purchaser may be entitled to rescind (terminate or cancel) the contract.
We organise the full preparation of your Contract for Sale and ensure that the terms included in your contact comply with your legal obligations. Once we have completed the agreement, we will send a copy of the Contract of Sale to your designated real estate agent in order for them to put your property on the market.
Exchange of Contracts
Once a purchaser is found, the Agent should advise us of the sale price, the full name and address of the purchaser and the name and address of the purchaser’s Solicitor or Licensed Conveyancer.
We hold two copies of the draft contract and we are able to complete the contract and make one copy available to the purchaser’s Solicitor or Licensed Conveyancer on the same day that sale details are provided to us. The other copy of the contract must be signed by you. The sale becomes legally binding on you and the purchaser when the contracts are exchanged; the time to exchange contracts depends largely upon how quickly the purchaser and their legal representatives act.
Cooling off Period
You should be aware that unless a purchaser waives the cooling off period, the purchaser has “Cooling Off” rights which allows them to withdraw from the contact at any time before 5pm on the fifth business day after the day of exchange of contract (or longer by negotiation between the parties). If they do, the purchaser forfeits to you 0.25% of the purchase price.
Before agreeing to proceed on this basis, you should be completely satisfied with the sale price because although the purchaser can withdraw, you the seller are bound to proceed with the sale if they do not exercise their “Cooling Off” rights.
On expiry of the cooling off period, the purchaser will then pay (if they haven’t already) the balance of the 10% deposit to the deposit holder (which is usually the agent).
After exchange, we will attend to all requirements in relation to acting on this matter in order for it to proceed and to settle.
“Settlement” is the conclusion of the transaction between the seller and the purchaser and is the day which ownership of the property is transferred to the purchaser and the remainder of the purchase price is paid to the seller.
Settlement normally occurs 6 weeks (42 days) after exchange, however, the settlement period can be altered to suit the transaction or to suit the needs of the parties.
For example, you may be purchasing another property and require both the sale and purchase to happen on the same day. We can organise the settlement dates for both contracts to happen simultaneously.
Our 7 steps to selling your property:
- Engage a licensed conveyancer;
- Engage a real estate agent;
- Your licensed conveyancer will commence preparing your Contract of Sale;
- Accept an offer on your property;
- Exchange of contracts – 0.25% will be payable to you by the purchaser to provide them cooling off rights – you do not have any such rights;
- Cooling Off period commences; and finally
- Settlement – usually 6 weeks (42 days) after exchange, where the balance of the property price owing will be payable to you.
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