The first step when selling a property is to have a contract for the sale of the property prepared. All you need to do is contact us by phone or email with the property address and your contact details and we can prepare the contract.
The contract is then forwarded to the agent of your choice for marketing.
When preparing to market a property it is handy to think about the following types of information and documents:
- What items do you plan to leave in the property when you sell?
- If structural work has been undertaken to the property in the last 7 years you should advise what work has been undertaken. Do you hold an occupation certificate or final approval from Council and Home Warranty Insurance? These requirements apply to pools as well.
- Does the price at which you plan to sell exceed the amount that you owe on any loan secured by mortgage against the property?
Once a purchaser makes an acceptable offer to purchase the property the agent issues a sales advice. We update the marketing contract the same day that we receive the sales advice and send the contract both to you and to the Purchaser’s conveyancer for signing. The purchaser prepares for exchange by undertaking inspections, obtaining formal finance approval and paying the deposit.
Contracts are exchanged as soon as both the Vendor and purchaser are ready to exchange.
SELLING BY AUCTION
The original and counterpart marketing contracts are sent to your agent prior to auction. At auction if the property is sold the contracts are updated with the purchaser’s information and the purchase price and the contracts are signed and exchanged at the auction. The deposit is paid at the auction. There is no cooling off period for contracts exchanged at auction.
THE COOLING OFF PERIOD
There are 2 common practices with the cooling off period. The first is for purchasers to have a cooling off period if they exchange contracts within a day or two of the issue of the sales advice, before they obtain pre-exchange inspections and formal finance approval. During the cooling off period the purchaser can change their mind about purchasing the property and rescind the contract. If they rescind or pull out of the contract then they forfeit 0.25% of the purchase price. The cooling off period lasts 5 business days from the date of exchange.
The second is for purchasers to waive their cooling off period and delay exchange until they have done their pre-exchange inspections, paid their deposit and obtained formal finance approval.
Vendors do not get a cooling off period. Once you provide instructions to exchange contracts and the contracts have exchanged then you are bound in the contract to sell the property.
You will be asked to sign a discharge authority – this is a letter to your lender to tell them that you have sold the property and requesting them to prepare a discharge of your mortgage. We liaise with your lender to ensure that they prepare for settlement on time. On settlement your lender hands over the certificate of title to your property with the discharge of mortgage. Your lender advises the amount of money to repay your loan in full as at the settlement date just prior to settlement. The lender will not allow you to settle the sale and will not release the certificate of title to you until and unless the loan repayment figure they have advised is paid in full.
Prior to settlement you are asked to sign a Transfer and answer questions the purchaser asks about the property. The Transfer will enable the purchaser to transfer the property into their names after settlement.
In the last few days before settlement the purchaser will provide the settlement figures setting out the calculations of adjustments for rates, water rates and water usage and the balance of the purchase price to be paid on settlement. As the Vendor you get to decide what cheques the balance of the purchase price are to be drawn as. There may need to be cheques to Council and Hunter Water Corporation to pay the rates, a cheque to your lender to pay the loan repayment amount, and the balance can be drawn as you decide. We take you through the calculations and cheque directions prior to settlement.
If the property is sold with vacant possession then on the day of settlement the property needs to be completely empty, all furniture removed, all rubbish removed, and the property left clean ready for the purchasers. Once it is empty you should hand the keys to the real estate agent, prior to the time appointed for settlement. We let you know the settlement time a few days before settlement.
Settlement takes place at a location determined by your lender. You do not need to attend settlement. After settlement we call you to confirm that settlement has been effected. We can bank cheques for you or post them to you. We also send a final letter reporting on the settlement.