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Prepare your legal documents. In all Australian States and Territories the process of selling and buying property is regulated by legislation.
While the specific details differ depending on which State or Territory your property is located in, the common requirement is that you prepare a series of documents specified by law, which require certain mandatory disclosures representations and warranties to be made by the vendor of the property.
It’s critical that the Vendor’s legal documents are prepared in accordance with the relevant legal requirements and that they contain all the required information. If the Vendor’s legal documents are not correctly prepared, a buyer will have certain rights depending on where the property is. In some cases if the Vendor’s legal documents are defective a buyer has the option of walking away from the sale altogether!
One important document is the Contract of Sale. The Contract of Sale captures all of the agreements between the Vendor of the property and the buyer relating to the sale of the property.
This document will include things like:
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The identity of the vendor and the purchaser
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The address of the property
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The title details
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The price
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The agreed deposit
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The length of the settlement period
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Any fixtures or fittings being sold with the property
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Any special conditions such as whether the sale is subject to the purchaser obtaining finance approval by a certain date
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Any other special conditions that the parties agree to
The deposit is paid by the buyer once they have exchanged contracts at the time of sale. It effectively concludes the sale and gives the buyer an interest in the property which can be protected by registering a caveat over the title.
The buyer will give the amount of the deposit to the vendor or the vendor’s solicitor which is usually held in a trust account until the settlement date. The trust account is purely a holding deposit for the purchase of the property. Interest on funds placed in trust are paid to the statutory insurance scheme designed to protect people against any trust account defaults. The seller may ask the buyer to release the deposit money earlier than the settlement date which requires authorisation in the form of a statutory deposit release legal documents. The vendor should get their solicitor to oversee these matters, and ensure all are legal and proper.
Your legal representative’s obligations are as follows:
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To ensure that the sale contract is in your best interests and that the sale is subject to the satisfactory completion of all necessary conveyance, inspections and finance.
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To fully explain the implications of the Sale Contract.
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To make thorough inquiries of local council, water and motor authorities and other government bodies to ensure there are no easements over the property.
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To conduct title searches to ensure that the land titles are clean: for example, that they are owned by who they say they are owned by and will carry no debt upon transfer.
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To ensure any unacceptable caveats are withdrawn by settlement.
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To ensure all rates and taxes are paid when the property is transferred to you.
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To prepare documentation such as the Transfer of Land, Notice of Sale and Requisitions.
The Contract of Sale may also be subject to different State property legislation so it is essential to get the right legal advice on preparation of both the Vendor’s legal documents and the Contract of Sale.
An important part of your preparation process is the presentation of your property for inspections. When the presentation of a property is lacking buyers will be the first to notice and it may well detract from the amount of interest your property receives. The following checklist will help your property achieve its potential appeal:
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Freshen up the paint both inside and out.
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Clean thoroughly including: windows, carpets, blinds, bathrooms, remove odours (smoking, cooking etc), kitchen etc.
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Landscaping and lawn maintenance both front and back. Make sure the lawn & gardens are perfect as this is usually a big part of the first impression.
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Repair holes in walls, leaking taps, squeaking doors, holes in insect screens, loose knobs, broken window panes, hanging kitchen cupboards etc.
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Remove excessive furniture and clutter.
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Turn on the lights and open windows to achieve a light, airated space.
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Rubbish removal is important. Make sure all areas of the property are clear of rubbish, even basements and the garage.
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