| Basic Legal Steps to Selling Your Home
After accepting an offer on your property, several legal processes need to take place, often with the help of your agent and conveyancer during the “settlement period,” which usually takes around 60-90 days. Typically, two legal teams will work on the final settlement of the sale of your home – your conveyancer and the buyer’s conveyancer, in addition to third-party entities such as inspectors, valuers, council, and banks (both yours and the buyers’).
Here are the basic steps involved in completing the transaction:
Contract of Sale
This agreement/contract outlines the terms of the sale between you and the buyer, including the sale price, required deposit, settlement date, contingencies, and what is included in the sale. Both parties sign two identical copies, which are then formally exchanged.
Vendor Statement
The contract of sale is accompanied by a Vendor Statement that outlines any issues the buyer needs to be aware of, such as zoning, flood risks, easements, or outstanding mortgages.
Deposit
When the contract of sale is exchanged, the buyer must pay the required deposit at the same time, which is typically held in a trust account by the buyer’s conveyancer.
Pre-Settlement
The buyer’s conveyancer manages most of the paperwork leading up to settlement, including preparing the initial settlement statement, title search, certificate of title, transfer of land, identification of encumbrances, stamp duty application, electronic advice of sale, and ensuring all conditions in the contracts of sale have been met. Conveyancers also handle various rates and taxes, such as checking for outstanding water or council rates, special government levies, and strata levies. Your conveyancer liaises with your bank to ensure the correct amount of money is paid to release the mortgage on the property.
Final Settlement
During this stage, funds are transacted, and property keys are handed over, completing the transaction. You or the buyer do not need to be present for the final settlement as it is a legal formality. Your conveyancer will advise you by phone that the transaction is complete, and the funds (less expenses and mortgage payout) have been deposited into your nominated account.
In summary, selling a property involves several important legal processes that must be managed carefully with the help of an experienced conveyancer and agent. Understanding these steps can help make the process less daunting and ensure a successful sale outcome.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content. This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever