Once you’ve made the decision to sell your property, one of the first tasks is to have the Contract for Sale of Land drawn up.
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, or perhaps that the contract be conditional upon another contract for you to buy your next property. There are a lot of ways that a contract can be varied, so it’s important to discuss your situation in detail with your conveyancer.
You also need to know your disclosure responsibilities, as failing to disclose certain things can lead you into a lot of trouble.
The Section 32/Vendors Statement
A Section 32 statement is an information statement that is provided by the Vendor to the Purchaser of the property prior to the signing of the Contract of Sale. The Contract of Sale is not enforceable unless the Vendors Statement has been provided. The effect of the Section 32 Statement is to inform the impending purchaser of certain details that affect the property such as the rates, zoning and any restrictions that might affect the Title.
Once a purchaser has been found and the contract has been signed and is legally binding, then a deposit is usually paid by the purchaser and is usually held in the trust account of the selling agent. A Section 27 Statement can be signed to initiate an early release of your deposit this usually takes up to 28 days to execute. Please note that the Selling Agent will deduct their commission and marketing fees from the deposit and the balance will be release.
Please note that it is not an automatic procedure for the release of your deposit under Section 27 of the Sale of Land Act (1962) please contact our office to discuss further.
Discharge of Mortgage
Once you have entered into an unconditional Sale of your property we will write to your Mortgagee to arrange for a Discharge of Mortgage.
Most banks will require you to complete and sign a discharge of mortgage form and will not commence the preparation for settlement until this is received.
Piror to settlement the payout figure to the bank will be advised to you
Settlement (the day that the money is exchanged for the property and keys handed over) is scheduled in accordance with the contract. The settlement date is negotiated between the parties at the time of signing the Contract. During the wait for settlement your Conveyancer will liaise with your bank in relation to releasing any mortgage held on the property. In this time you should arrange disconnection of electricity and other services.
You will need to deliver your keys to the property to your selling agent the morning of settlement.
Statement of Adjustments
Before settlement the purchasers representative will submit a Statement of Adjustments 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 be authorised to release the deposit to you, less their fees unless a Section 27 Statement has been previously executed.
Contact us to discuss the sale of your specific property.