What should I do before I sell?
The Vendor disclosure legislation in New South Wales requires you to have a Contract for the Sale of Land ready and available before marketing the property and this Contract must include all necessary documents as set out in the relevant law.It is illegal for you or your selling Agent to advertise your property for sale unless a complete Contract is available to any interested purchaser to look at. There is in fact a penalty for failure to have a Contract available when a residential property is offered for sale.
What is Vendor Disclosure?
The disclosure legislation in New South Wales also requires you to make certain promises to your buyer about the legal ownership of the property. It is essential that all relevant disclosures have been fully discussed with you and that you are well informed about what these promises are and what they mean to you legally before you put the property on the market.
What is a Contract for the Sale of Land?
The Contract is an important legal document which sets out information about the property you are selling and also sets out on what terms you are willing to sell your property. For example, items such as the settlement date (that is the date that the title deed will be legally transferred to the buyer and you will be paid the balance) and your intentions regarding the deposit (for example whether you wish the use this amount to purchase another property).
What is an exchange of Contracts?
This is when the Contracts are checked to make sure they are identical, then "swapped" and dated. At this point they become legally binding, in other words, you are legally required to sell the property and you can no longer market the property or accept any other offers. However, depending upon whether you are selling at auction or by private treaty, the buyer may have a number of days "cooling off" period in which the buyer could change his or her mind and withdraw from the Contract.
It is essential that this is fully discussed with you and that you are aware of all the implications, particularly if you are also looking to buy an alternative property. At Coastwide Conveyancing we will ensure that you make an informed decision.
What should I do between exchange and settlement?
As the seller of the property, you have an obligation to maintain the property in the same order and state of repair as it was at the time of exchange. You should also continue your insurance cover until settlement.
You will need to continue to pay all rates and taxes in relation to the property. On settlement, Prompt Conveyancing will ensure that any rates and taxes paid by you past the settlement date are refunded to you by the Purchaser on a pro rata basis.
What is settlement?
Settlement is the usual end result of the Contract. At this time you receive the balance of the sale price and hand over the title to the property to the buyer who then becomes the new legal owner of the property.
If you have a mortgage on title, Coastwide Conveyancing will arrange to repay your loan from the settlement funds and will then ensure that you receive the balance of your selling price.
Ready to sell?
Contact us to find out more or to arrange an appointment.