The Contract
Once you have decided to sell your property, other than nominating a real estate agent, you need to have a Contract for Sale of Land prepared. Unfortunately, a real estate agent cannot market your property without it. This is where we come in!
We will prepare a Contract for Sale which specifies what items are included or excluded from the sale, special requirements in relation to a settlement date and the legal terms and conditions of sale. You may also require the Contract for Sale to be conditional upon you being able to secure another property. Your Conveyancer will make you aware of items you are required to disclose, as failing to disclose may breach your responsibilities as a vendor.
There are a lot of ways that a contract can be varied, so it's important to discuss your situation in detail with your Conveyancer.
The Deposit and Exchange
Once a purchaser has been found, the purchaser needs to get legal advice, review the contract, arrange inspections and start making loan arrangements before anything is signed.
The contract is signed by both parties, and may be immediately binding, depending on the circumstances of the sale. The Purchaser is normally entitled to a 5 working day cooling off period, so it's important that you know the exact terms and conditions written into the contract.
Once the cooling off period expires, or the Purchaser waives the cooling off period, the Contract for sale is legally binding. The deposit paid by the Purchaser is usually held in the trust account of the selling agent unless your lawyer/conveyancer has negotiated a special condition with the purchaser otherwise.
Settlement
Settlement (or completion) usually takes place 42 days after the date of the contract (i.e. the date of exchange) unless a specific date has been agreed to.
Prior to settlement, the purchase price will be adjusted to reflect the council rates, water rates and strata fees that need to be shared between the parties. There may also be other adjustments, based on the Contract for Sale and we will provide a copy of the adjustments to you.
Unless the property is tenanted, you will need to ensure the property is vacant prior to the allocated settlement time.
On settlement your Conveyancer will complete the settlement electronically through PEXA. This transaction with include the purchasers’ lawyer/conveyancer as well as any lenders involved, and the funds will be handed over in exchange for the title. If you have a mortgage, it is a requirement to discharge the debt on or before settlement.
Once the settlement is complete, the purchaser will be registered as the new owner on the register, and various government bodies will be informed of the change in ownership. The real estate agent will be authorised to release the deposit to you, less their fees.
As buying and selling property is one of the biggest financial decisions you will make, it is important that you get expert advice.
Let's get Connected and let us minimise your stress with our expertise and diligence. Phone us today!
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