Your property cannot be advertised for sale and put on the market by a real estate agent until a Contract for Sale of Land has been prepared and provided to the selling agent.
To allow us to prepare the Contract for Sale we require certain details, such as, the address of the property, title particulars, any inclusion and exclusions. We also require information about any building works that may have been carried out on the property that may require Home Warranty Insurance, a survey or a building certificate.
The Sale Process
The process of selling property consists of the following steps:
Step 1 – Preparation of the Contract for Sale of Land
In order for us to prepare your contract, we need to obtain instructions from you and then order all the “prescribed documents” such as a council zoning certificate, a copy of the title and other title documents, strata plans(if applicable) and sewer diagram. All this can be done online so that the contract is prepared efficiently, usually within 5 working days.
Step 2 – Negotiation of the Contract
Once the contract is prepared and provided to the agent, there may be negotiation with prospective purchasers for amendments to the contract and/or the cooling off period.
Step 3 – Exchange of Contracts
Once all the terms of the contract have been agreed to between the vendor and the purchaser and the original contract is signed by you, the counterpart by the purchaser, contracts are dated, exchanged and the deposit (usually 10%) is invested (if provided for in the terms of the contract).
In NSW, when you buy a residential property, the law provides for a 5 business-day “cooling off period”. This cooling off period allows the purchaser to opt out of (rescind) the contract for sale within that period. The cooling off period begins as soon as contracts are exchanged and ends at 5pm on the fifth business day. If the purchaser backs out, they are required to pay you 0.25% of the purchase price. Cooling-off periods do not apply at auctions or if you exchange contracts on the same day as the auction after the property has been passed in. If both parties agree, cooling off periods can be extended in writing before the expiry of the cooling off period. Cooling off periods can also be waived at exchange of contracts.
Step 4 – After Exchange
After exchange we attend to replies to any requisitions raised by the purchaser, liaise with your discharging mortgagee and generally get the matter ready for settlement.
Step 5 – Settlement
Settlement, also known as completion, is the date that the parties fulfil their obligations under the contract – the purchaser pays the balance of the purchase price, the property is legally transferred to them and they take possession of it.
Step 6 – After Settlement
We report back to you, give you all documentation for your records and arrange for the deposit to be released to you.