Selling your residential property is one of the most significant financial transactions you will ever make.
Conveyancing laws govern the sale of property. These laws can feel complex and overwhelming if you have not dealt with them before.
It is important to appoint a professional early. They help you understand your obligations as a seller and the terms in the contract of sale and related documents.
I want to sell my property, what is the first thing I should do?
Most vendors (sellers) appoint a real estate agent to sell their property.
Real estate agents operate under strict legislation. They must meet specific legal obligations. Before they act for you, they must provide key information in writing.
You can often negotiate advertising costs and parts of the agency agreement. You may also request changes to the contract with the agent.
Agents can handle many tasks for you. These include marketing your property, arranging inspections, running open homes, and coordinating auctions.
Your rights and obligations when selling your home
Conveyancing transfers ownership of property from one person to another. Small mistakes can create major legal issues later.
To reduce risk, seek advice from an experienced conveyancer or property lawyer early. Make sure you have a compliant written contract before you list the property.
A conveyancer or property lawyer will explain your rights and obligations. They will also help you understand disclosure duties and the Section 32 vendor statement.
What steps do I need to take if I want to sell my property?
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Prepare and provide a Section 32 vendor statement before signing a contract
The vendor statement must include all relevant property details. These may include title searches, council certificates, planning information, and contaminated land notices.
This information helps buyers make informed decisions. It also discloses details that are not always visible during inspections.
Missing important information can lead to serious legal consequences.
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Have a contract of sale prepared before marketing the property
Victoria uses two main contract types: private sale contracts and auction contracts.
You must understand all terms before you sign or provide the contract to buyers.
A contract of sale usually includes:
- property details
- vendor and purchaser details
- lawyer or conveyancer details
- purchase price
- special conditions
A contract becomes legally binding once both parties sign it.
The buyer usually pays a 10% deposit. However, this amount can be negotiated.
If a buyer breaches the contract after the cooling-off period, you may terminate the agreement and keep the deposit.
Cooling-off period
A three-business-day cooling-off period applies to most private residential sales in Victoria. This right applies only to the buyer.
However, the cooling-off period does not apply to auction sales.
If a buyer withdraws during this period, they usually lose $100 or 0.2% of the purchase price (whichever is greater).
What happens after my property is sold?
The time between exchange and settlement usually ranges from 30 to 90 days. However, both parties can negotiate this timeframe.
At settlement, the parties adjust rates and other outgoings. The buyer then pays the balance of the purchase price. In return, they receive transfer documents and the certificate of title.
After settlement, your lawyer or conveyancer notifies the relevant authorities and completes the transfer.
Key considerations
Selling property involves many legal steps. It requires careful attention to detail.
If you do not meet legal requirements under the contract or disclosure laws, you may face legal disputes later.
If you or someone you know wants more information or needs help or advice, please contact us on (03) 9422 5439 or email [email protected].