WINDSOR LEGAL
SELLING YOUR PROPERTY
When you have decided to sell your property you need to follow some important steps. This guide covers all the main steps to be taken, though the actual format you follow may differ slightly from the guide below.
Step 1 - Appoint an Agent
When you make the decision to sell, the first step is to decide on a real estate agent. The agent will discuss their services, fees and suggest a marketing campaign to you. They may suggest repairs or renovations to improve value. Whatever you agree with them will be written into to a Sale Authority which is the contract between you and the agent. That Sale Authority is between you and the agent only and is not part of the conveyancing process.
In certain circumstances you may opt to sell a property without a real estate agent. For example this might happen if you already know the buyer and you have already agreed on a price. If you want to sell without an agent we can complete the legal process for you and we do not need an agent to be involved. We can accept the deposit in our trust account (note that not all conveyancing firms have trust accounts). We will draft contracts, get them signed and complete the settlement.
Once you have appointed an agent and you are sure of the first date of the open for inspection you need to appoint a lawyer/conveyancer to prepare the sale documentation for you (Contract and Section 32 Statement). The agent may suggest a lawyer/conveyancer for you to use. You are not obliged to accept their recommendation. The agent waits for the lawyer/conveyancer to prepare the sale documentation. You can contact us at this time and we will get your sale documentation ready. We usually need a few weeks notice but it can be completed urgently if necessary.
Step 2 - Appoint a Lawyer/Conveyancer
You should appoint your lawyer/conveyancer at least a few weeks before the first inspection date. They will obtain information from you about the property and they will draft the sale documentation. You will need to provide them with your personal details, details regarding the property, its expenses and the mortgage (if applicable), lease details (if applicable) and any unusual or concerning information about the property. They will draft the Contract and order property certificates for the Section 32 statement. If the property is part of an Owners Corporation they will need to order an additional certificate from the Owners Corporation manager for the Section 32 Statement.
The lawyer/conveyancer should be able to draft the sale documentation within one to two weeks (or urgently if required). Choose a good lawyer/conveyancer who can have the documents ready within that time. You may lose momentum if a purchaser is interested in the property and the legal documents aren’t ready. Also, property certificates ordered late attract urgency fees.
The lawyer/conveyancer must ensure that the sale documentation contains all the information required by the Sale of Land Act 1962. If any information is missing from the Section 32 Statement it can become hugely problematic for you because the purchaser may become entitled to cancel a contract as a result of the missing information. You can trust us to complete the sale documentation for you quickly and correctly.
Once the lawyer/conveyancer has completed the sale documentation they will provide it to you and your agent. Your agent can then give the sale documentation to interested purchasers.
Step 3 - Contracts are Exchanged
The agents will open the property for inspections and negotiate with buyers. The agent may ask your lawyer/conveyancer for legal information during the sale process. We make sure that we are accessible and answer agent’s queries quickly.
If the property is sold by private sale or more than three business days prior to the auction, the purchaser may make a conditional offer such as Subject to finance approval or Subject to building/pest inspection by a certain date. Whether you accept those conditions may depend on market conditions at the time of the sale. Purchasers of private sale properties have three business days after they sign the contract to cancel the contract for any reason (known as the ‘cooling off period’). We are happy to advise on those conditions if they arise as part of the negotiations.
Once the agent has completed the sale they will arrange for the contracts to be filled in and signed by you and the purchaser. The agent will collect the deposit from the purchaser and keep it in their trust account until settlement. The agent will provide the completed contract to us and the purchaser’s lawyer and we can then get ready for the sale settlement.
The Contract will become “unconditional” when the cooling-off period has expired AND any finance or building conditions have been satisfied. “Unconditional” means both parties must proceed to complete the purchase and settle on the agreed date. Settlement dates cannot be changed without the agreement of both parties.
If you request it, we can ask for the deposit to be released to you before settlement. This is known as a Section 27 deposit release request. Certain pre-conditions need to be satisfied before the deposit can be released early (we can advise you if this arises).
Step 4 - The legal process is completed until Settlement
The legal process will begin through your lawyer/conveyancer. Their work includes informing the banks of the sale and providing a discharge authority form to them. It also includes preparation of State Revenue Office forms, completion of the Transfer and setting up of the Pexa Settlement workspace. They will check Pexa regularly and make sure that all steps are completed in time. Legal documentation is drafted and financial statements are drafted and checked leading up to settlement. They will advise you on the payments to be made including funds payable to your account on settlement. If you don’t have a mortgage on your property, they will arrange to obtain the original title from you and make sure that all proceeds are paid directly to you at settlement (minus any outgoings and fees). If you have a loan it will be paid out at settlement and proceeds paid to your account on the same day. The settlement also includes completion of registration of the transfer on the title. Your lawyer/conveyancer will inform the authorities and agents (including the rental agent) of the change of ownership. Conveyancing work requires attention to detail and strict adherence to deadlines. If steps are completed too late, it can cause costly delays to settlement.
During this stage you can deal with practical issues relating to your property. For example, you may have agreed to complete certain repairs at the property. You should ensure that you can find the original title (if you have it) and you should find all keys and remotes related to the property. You should ensure that the property stays in the condition it was in when the contract was signed. If you have a tenant in the property, the tenant may need to be given Notice to Vacate the property (if you agreed the property would be vacant on settlement). You don’t need to make the property better than it was on the contract date, but we do suggest to our clients to ensure the property is cleared of any rubbish and presentable on the settlement date. The purchaser will have their final inspection in the week before settlement. If they notice that new damage has occurred since the contract date (which was not a pre-existing defect) they might ask you to fix it before settlement. We will advise you if this occurs.
You should appoint a lawyer/conveyancer who is efficient and trustworthy to complete your settlement. Your lawyer/conveyancer should be organised and responsive. They should ensure that all steps are completed in a timely manner to ensure that you are not exposed to unnecessary risk and costs.
You can trust Windsor Legal to do everything possible to complete the settlement on time and correctly.
Please contact us if you have any questions about your next sale.
When you have decided to sell your property you need to follow some important steps. This guide covers all the main steps to be taken, though the actual format you follow may differ slightly from the guide below.
Step 1 - Appoint an Agent
When you make the decision to sell, the first step is to decide on a real estate agent. The agent will discuss their services, fees and suggest a marketing campaign to you. They may suggest repairs or renovations to improve value. Whatever you agree with them will be written into to a Sale Authority which is the contract between you and the agent. That Sale Authority is between you and the agent only and is not part of the conveyancing process.
In certain circumstances you may opt to sell a property without a real estate agent. For example this might happen if you already know the buyer and you have already agreed on a price. If you want to sell without an agent we can complete the legal process for you and we do not need an agent to be involved. We can accept the deposit in our trust account (note that not all conveyancing firms have trust accounts). We will draft contracts, get them signed and complete the settlement.
Once you have appointed an agent and you are sure of the first date of the open for inspection you need to appoint a lawyer/conveyancer to prepare the sale documentation for you (Contract and Section 32 Statement). The agent may suggest a lawyer/conveyancer for you to use. You are not obliged to accept their recommendation. The agent waits for the lawyer/conveyancer to prepare the sale documentation. You can contact us at this time and we will get your sale documentation ready. We usually need a few weeks notice but it can be completed urgently if necessary.
Step 2 - Appoint a Lawyer/Conveyancer
You should appoint your lawyer/conveyancer at least a few weeks before the first inspection date. They will obtain information from you about the property and they will draft the sale documentation. You will need to provide them with your personal details, details regarding the property, its expenses and the mortgage (if applicable), lease details (if applicable) and any unusual or concerning information about the property. They will draft the Contract and order property certificates for the Section 32 statement. If the property is part of an Owners Corporation they will need to order an additional certificate from the Owners Corporation manager for the Section 32 Statement.
The lawyer/conveyancer should be able to draft the sale documentation within one to two weeks (or urgently if required). Choose a good lawyer/conveyancer who can have the documents ready within that time. You may lose momentum if a purchaser is interested in the property and the legal documents aren’t ready. Also, property certificates ordered late attract urgency fees.
The lawyer/conveyancer must ensure that the sale documentation contains all the information required by the Sale of Land Act 1962. If any information is missing from the Section 32 Statement it can become hugely problematic for you because the purchaser may become entitled to cancel a contract as a result of the missing information. You can trust us to complete the sale documentation for you quickly and correctly.
Once the lawyer/conveyancer has completed the sale documentation they will provide it to you and your agent. Your agent can then give the sale documentation to interested purchasers.
Step 3 - Contracts are Exchanged
The agents will open the property for inspections and negotiate with buyers. The agent may ask your lawyer/conveyancer for legal information during the sale process. We make sure that we are accessible and answer agent’s queries quickly.
If the property is sold by private sale or more than three business days prior to the auction, the purchaser may make a conditional offer such as Subject to finance approval or Subject to building/pest inspection by a certain date. Whether you accept those conditions may depend on market conditions at the time of the sale. Purchasers of private sale properties have three business days after they sign the contract to cancel the contract for any reason (known as the ‘cooling off period’). We are happy to advise on those conditions if they arise as part of the negotiations.
Once the agent has completed the sale they will arrange for the contracts to be filled in and signed by you and the purchaser. The agent will collect the deposit from the purchaser and keep it in their trust account until settlement. The agent will provide the completed contract to us and the purchaser’s lawyer and we can then get ready for the sale settlement.
The Contract will become “unconditional” when the cooling-off period has expired AND any finance or building conditions have been satisfied. “Unconditional” means both parties must proceed to complete the purchase and settle on the agreed date. Settlement dates cannot be changed without the agreement of both parties.
If you request it, we can ask for the deposit to be released to you before settlement. This is known as a Section 27 deposit release request. Certain pre-conditions need to be satisfied before the deposit can be released early (we can advise you if this arises).
Step 4 - The legal process is completed until Settlement
The legal process will begin through your lawyer/conveyancer. Their work includes informing the banks of the sale and providing a discharge authority form to them. It also includes preparation of State Revenue Office forms, completion of the Transfer and setting up of the Pexa Settlement workspace. They will check Pexa regularly and make sure that all steps are completed in time. Legal documentation is drafted and financial statements are drafted and checked leading up to settlement. They will advise you on the payments to be made including funds payable to your account on settlement. If you don’t have a mortgage on your property, they will arrange to obtain the original title from you and make sure that all proceeds are paid directly to you at settlement (minus any outgoings and fees). If you have a loan it will be paid out at settlement and proceeds paid to your account on the same day. The settlement also includes completion of registration of the transfer on the title. Your lawyer/conveyancer will inform the authorities and agents (including the rental agent) of the change of ownership. Conveyancing work requires attention to detail and strict adherence to deadlines. If steps are completed too late, it can cause costly delays to settlement.
During this stage you can deal with practical issues relating to your property. For example, you may have agreed to complete certain repairs at the property. You should ensure that you can find the original title (if you have it) and you should find all keys and remotes related to the property. You should ensure that the property stays in the condition it was in when the contract was signed. If you have a tenant in the property, the tenant may need to be given Notice to Vacate the property (if you agreed the property would be vacant on settlement). You don’t need to make the property better than it was on the contract date, but we do suggest to our clients to ensure the property is cleared of any rubbish and presentable on the settlement date. The purchaser will have their final inspection in the week before settlement. If they notice that new damage has occurred since the contract date (which was not a pre-existing defect) they might ask you to fix it before settlement. We will advise you if this occurs.
You should appoint a lawyer/conveyancer who is efficient and trustworthy to complete your settlement. Your lawyer/conveyancer should be organised and responsive. They should ensure that all steps are completed in a timely manner to ensure that you are not exposed to unnecessary risk and costs.
You can trust Windsor Legal to do everything possible to complete the settlement on time and correctly.
Please contact us if you have any questions about your next sale.
