Are you looking at selling your home or property investment? What happens now?
1. Contract Preparation
Before your property can be advertised for sale, it is a legal requirement that you have a Contract prepared so it can be given to any prospective buyers. In order to prepare your Contract, we need to obtain all the mandatory documents that need to be included (such as a council zoning certificate, a copy of the title and other title documents, strata plans, sewer diagram and any other documents). We will also prepare any special clauses/ conditions that may be required for your Contract. Once the Contract is drafted, we will provide a copy to you and your agent. When you have found a buyer and have negotiated the terms of the sale, we will liaise with the real estate agent and the purchaser’s Conveyancer/Solicitor to organise the ‘exchange of Contracts’.
2. Exchange of Contracts
Upon exchange, 2 copies of the Contract are printed. One Contract is signed by you ( Vendor) and the other by the Purchaser(s). These Contracts are then ‘exchanged’ so that each party holds the Contract signed by the other party. Once exchanged and depending on the circumstances of the negotiated sale the Contract with either be provided with a cooling off period where the Purchaser will have 5 business days to arrange their finances and pest/ building etc. The Purchaser will pay the deposit on the final date of the cooling off period and at this time (usually 10 %).This is the point at which the purchaser becomes ‘legally bound’ to complete the transaction.
After the Contracts have been exchanged, we then need to prepare for ‘settlement’, which usually occurs 4-6 weeks after exchange (depending on what is negotiated). If you have a Mortgage on the property, we need to advise the Discharging Mortgagee the property has been sold and confirm the expected settlement date. We will also organize for you to sign the ‘Transfer’ (the document that passes ownership of the property from seller to the buyer). Closer to the settlement date, the buyer’s Conveyancer/Solicitor will send through settlement figures for us to check and we will obtain a payout figure from the Mortgagee. All council and water rates and levies are adjusted as at the date of settlement and if any are unpaid, these will be drawn from the sale proceeds. On the day of settlement, we will attend on your behalf. Your Mortgagee will be paid out and we can bank any surplus funds directly into your bank account.
Every property and transaction/ exchange is unique and most importantly we understand that. Therefore every Contract is tailored to every single owner and their needs. With this being acknowledged our professional fee differs accordingly, we can talk through and provide you with an obligation-free quote.
The scope of works carried out in preparing your property for Sale is as follows:
- Order all relevant title searches, deposited plans, covenants, restrictions all registered dealings, 149 Council Zoning Certificate, Sewer Diagrams. All the mandatory requirements in order to sell your property. Once the Contracts are prepared we provide you and your real estate agent with a copy.
- When you’ve found a buyer, we negotiate any additional terms with their conveyancer/ solicitor and finalise the Contract of Sale.
- We organise the Exchange of Contracts with the buyer’s conveyancer or solicitor.
- Once exchanged, we advise your bank or credit provider (the ‘discharging mortgagee’) that you have sold the property.
- Prior to settlement, we organise for you to sign the ‘Transfer’ (the document that passes ownership of the property from seller to the buyer).
- Closer to the settlement date, we check through the final figures and obtain a payout figure from the mortgagee. We also check that you are up-to-date with all your rates and levies (e.g. council rates, water, strata fees).
- We will arrange and attend settlements with the buyers Conveyancer/Solicitor and your financial institution