STEPS IN THE SALE OF YOUR HOUSE
You decide to sell your property.
You go and ask a real estate agent to market your property for you. This involves deciding which agent to use, and then signing an agency agreement with them.
You ask us to prepare the Sale Contract which is the document required for the estate agent to market the property and which governs the sale of the property to a purchaser. This contract is required by law to disclose certain information to buyers. It includes various certificates of different government authorities, for example a local council zoning certificate. The Contract outlines such important details as the sale price, the length of the settlement (which is usually 42 days), and items which are remaining with the property.
A buyer makes you an offer that you cannot refuse!. The Sale Contract is signed and dated and each parties’ representative is given the copy signed by the other party. This process is known as the ‘exchange’ of the contracts. From this time you are bound to sell the property to the purchaser on the terms set out in the contract. From the time of exchange you generally have only six weeks to move out of the property, so if you don’t have somewhere to go, start looking quickly!
Cooling-off period. This is a time which runs for 5, 10 or sometimes more days (subject to you agreeing) after the exchange of contracts. In this time the purchaser finalises their finance (which requires things like valuations to be done of the property), and also has inspections made of the property usually by a builder, a termite controller, and sometimes a land surveyor and the local council to check council compliance. During this time, if the finance does not come through for some reason, or the purchaser discovers something that they are not happy with the purchaser can end the contract.
End of Cooling-off period. The purchaser pays the deposit. This is usually 10% of the purchase price. It is sometimes paid in the form of a cheque. Sometimes the purchaser will provide a ‘deposit bond’ instead of an actual deposit. This is a guarantee issued by a large financial institution like a bank which says that if the purchaser does not proceed then the bank will pay the deposit on behalf of the purchaser. After the cooling-off period ends the purchaser can not end the contract without forfeiting 10% of the purchase price to you.
Transfer. The purchaser’s solicitor prepares a Transfer document normally around two weeks after the end of the cooling-off period. This is the formal document transferring the house and land to the Purchaser. You generally will need to come to our office to sign this document.
Settlement! Normally, unless otherwise agreed, you are required to vacate the property prior to the settlement. The purchaser does a final inspection of the house usually the night before or the morning of the settlement. They are checking to make sure that you have not left the premises untidy, taken something that was supposed to stay, or damaged the premises since the exchange. The settlement process is the formal hand over of the property’s Certificate of Title and other necessary documents to the purchaser. It normally takes place in the city. The purchaser’s representative hands over bank cheques to pay the balance of the purchase price and we or your lender on your behalf hand over the Title documents.