Selling a property

 

Selling

Once you’ve decided to sell your property and appointed an agent we recommend you have your Section 32/Vendor Statement and in some cases a Contract of Sale prepared prior to commencement of the marketing campaign.

The contract will include not only the legal terms and conditions of sale, but will also specify what items are included or excluded from the sale, and any other special requirements you might have like a longer or shorter settlement than usual. It’s important to discuss your situation in detail with your solicitor or conveyancer prior to placing your property on the market.

You also need to know your disclosure responsibilities, as failing to disclose certain things may result in a sale falling over prior to settlement.

 

Signing of the Contract

Once a purchaser has been found and the contract has been signed and is legally binding, a deposit is generally paid by the purchaser and is either held in the trust account of the selling agent or your legal representative.

 

Section 27 Deposit Release

In Victoria you may wish to access your deposit that has been paid on your property to use the funds for another purchase or invest the monies prior to the settlement taking place. This can be prepared by your legal representative prior or post sale and generally takes up to 28 days to execute. Please note that the agent’s fees and marketing normally come out of the deposit amount and the balance is refunded to you.

 

Settlement

Settlement (the day that the money is exchanged for the property and keys handed over) is scheduled in accordance with the contract, and can vary in time frame. During the wait for settlement your legal representative will liaise with your bank in relation to releasing any mortgage held on the property. In this time you should arrange disconnection of all essential services out of your name on the date of settlement or the date you vacate the property.

Before 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 be other adjustments, based on the Contract for Sale.

Once settlement takes place, the real estate agent will be authorised to release the deposit to you, less their fees and marketing unless a Section 27 has previously been executed.