The legal process of transferring ownership of your property is called conveyancing. While Forty Four Degrees regularly dabbles in conveyancing, many property vendors find the whole process strange and unfamiliar. To add to the confusion, the process of selling a property is a very different experience to purchasing one.
To help you understand the process we’ve summarized the six steps to a successful sale.
1. Pick your teammates
Your all-star sale team will consist of a real estate agent, a solicitor and, of course, you! You team will get your property in tip-top shape and ensure you can get the best price, and best negotiating rights for the sale.
2. Decide your terms
It is important to set clear expectations from the beginning of the transaction. How much are you willing to accept? How long are you willing to wait to sell? Will you throw in any extras, like your furniture or the swing set in your backyard?
List out what you want from the transaction and what your priorities are. For example, if you’re willing to accept a lower sale price for a quicker transaction or would prefer to wait to get a better price, you should let the real estate agent know so he can communicate these preferences to any interested purchasers.
3. Prepare the playing field
Your solicitor will prepare the contract of sale and a section 32 Vendor’s Statement. It’s a good idea to have the contract prepared before the property is listed on the market, so that any interested buyers have a clear idea of what they’re buying and what your expectations are.
A Section 32 Vendor’s statement is a document that must be prepared by the vendor of a property and given to the purchaser before a contract of sale is signed.
Important! If the vendor’s statement is incorrect or incomplete, the buyer may be able to withdraw from the sale and pursue legal action. It is crucial that this document is prepared correctly which is why a solicitor with property law expertise is recommended.
4. Pick a winner
Your real estate agent will help you decide whether to take the property to auction, accept private offers, or a combination of both.
When you receive an offer, you should consult with your real estate agent as to whether it is a reasonable price. Setting clear expectations (above) will help you determine whether or not you should accept the offer.
Purchasers will often offer less than what they are willing to pay, and you should be open to negotiating if you think your property is worth more. You should also take into considerations any special conditions requested by the purchasers. Your solicitor can assist with deciphering any complicated special conditions requested by the purchasers.
If you accept an offer, you will be required to sign and date the contract of sale. Once accepted, the purchaser will pay the deposit and the settlement process will kick-off.
5. Prepare for Settlement
Congratulations! You’ve found a purchaser. Settlement dates are usually 30-60 days from the day of sale, which is the day by which both parties have signed the contract of sale.
In the days leading up to settlement your solicitor will work with you to prepare:
Your solicitor plays a critical role in the time between the day of sale and the date of settlement. Make sure you keep in touch with them (us) and provide any information requested by them (us) in a timely manner to ensure that settlement is not delayed.
6. Cha-ching!
On the day of settlement, you’ll need to prepare the property for vacant possession (unless there is a tenant in the property and the sale was subject to a lease). This means moving out, cleaning out the property and leaving the keys with the real estate agent.
During settlement a number of things will happen:
1. Your bank discharges their mortgage;
2. You transfer the title of your property from your name into the purchaser’s name;
3. The purchaser’s bank registers their mortgage and, most often, takes control of the property’s title;
4. The purchaser pays the remainder of the purchase price into the workspace. The purchase prices is used to pay off your bank loan, council rates, water rates, Owner’s Corporation fees (if applicable), land registry fees, bank fees and legal fees; and
5. You pocket the remainder of the purchase price.
