Sale of Residential Property
What is a Contract for Sale of Land?
Before a property may be marketed for Sale to prospective purchasers you must have prepared a valid Contract for Sale.The standard form currently used is the 2005 Edition of the Contract for the Sale of Land and must have attached to it the following:-
- The Title Search which identifies the current owner and notations of affectations of the Land and searches which identify the Land boundaries and any affectations ;
- Zoning Certificate issued by Local Council;
- Drainage / Sewer Diagram;
- Special conditions – drafted to protect you and to cover any additional agreement with the Purchaser;
- Residential Tenancy Agreement in the event the property is tenanted and is to be sold subject to such Tenancy;
- Home Owners Warranty Policy, if required for Building Work undertaken in the last 6 years which cost equal to or more than $12,000.00;
- A Contract for Sale may be issued to you for a Private Sale or to an Agent of your choice for marketing to prospective purchasers.
What happens when the Property is SOLD?
Upon a Sale price being negotiated with the Purchaser the Contract for Sale may be exchanged in 2 ways:-
Exchange - Unconditional
Whereby the Agent provides a Sales Advice to our office and we arrange the Exchange with the Purchaser’s when they are in a position to unconditionally proceed and pay the agreed deposit (usually 10% of Sale price). ;
Exchange - Cooling off period provision
Whereby the Solicitor’s or the Agent will arrange for you and the Purchasers to each sign the Contracts for Sale and the Purchaser will pay a minimum of 0.25% of the Sale price to the Agent as a deposit. Pursuant to the 2005 Contract for Sale a Purchaser receives a 5 day cooling off period in which to proceed or not. The Cooling Off Period is only for the benefit of the Purchaser ONLY. In the event that the Purchaser does not proceed with the Sale then you receive the 0.25% deposit forfeited by the Purchaser.
Once Contracts are exchanged and unconditional both parties are bound to the Terms and Conditions of the Contract for Sale.
How long will it take to finalise the Contract for Sale?
The Standard time frame for a Contract for Sale is 42 days (6 weeks) from the date of exchange (with a cooling off period or unconditional). Such time frame may be shortened or extended by agreement between the parties.During the time between Exchange and Settlement you must maintain your Building Insurance and the property.
SettlementSettlement may be effected on or before the due date as set out in the Contract for Sale (usually 42 days/6 weeks from the date of Exchange).
The Purchaser is entitled to carry out a Final Inspection of the property prior to Settlement and normally this will be arranged with the Agent.
Upon settlement the Purchaser pays the balance of the Sale price which is applied to payout any Mortgage or Caveat upon Title and then the balance is paid at your direction.
Things to consider?
- If you are Purchasing simultaneously as a result of your Sale, please ensure you notify the selling Agent and your Solicitor;
- If there is a Tenant in occupation whether the property is sold subject to such tenancy or may be sold with vacant possession.;
- You have clearly disclosed all Inclusions and Exclusions on the front page of the Contract for Sale;
- All alterations and additions to the property have been disclosed.