The sale of a home or investment property is a joint effort between you, your real estate agent and your lawyer. There are aspects of the property and the deal that only you know and there are other matters which are in the domain of the lawyer to investigate and advise.
Pre-Contract / Vendor Statement Questionnaire:
The Vendor Statement is an essential pre contractual document as it provides the Purchaser with vital information related to the property. A Purchaser will use the Vendor Statement to assist them with making a decision as to whether they should buy your property.
It is imperative that the Vendor Statement is correct. If it is incorrect, the Purchaser may have the right to rescind (end) the contract at any time before settlement. This is an unfortunate scenario as you would be left with an unsold property after having spent money and effort conducting a marketing campaign.
To assist us in preparing the Vendor Statement you will need to advise us in relation to:
- Measurements – we will need to know whether the dimensions of your property accord to the dimensions disclosed in your title / plan of subdivision;
- Encroachments – you will have to advise if any buildings and improvements have been built across any boundaries and conversely you should also advise whether any neighbouring buildings have been built on your land;
- Covenants and Easements – you will have to advise whether your property is affected by any registered or unregistered easements. You will also have to advise whether there has been a breach of any easement or restrictive covenant;
- Permits – you are required to disclose any building permits issued in the preceding seven years and also whether any planning permits have been issued for the property;
- Notices – you have to disclose whether your property is affected by any Council notices or other Authority notices. Examples are fencing notices, pool fence notices, and building notices.
- Owners Corporation – you have to disclose whether your property is affected by an Owners Corporation. Where your property is affected by an Owners Corporation, you are required to disclose specified information in an Owners Corporation Certificate (OC Certificate). This certificate is generally supplied by the Owners Corporation manager. Where the Owners Corporation is not actively managed, you may have to supply an OC Certificate. We can assist you to prepare the Certificate if required.
- Services – you must disclose what services are connected to the property. Connected in the sense of the Vendor Statement means that the service is physically connected and the account is switched on.
Contract of Sale
Once the Vendor Statement is prepared, potential Purchasers will be in a position to make an offer on your property. This may be either a private sale or a public auction. It is ideal that we prepare your Contract (as opposed to using a standard form REIV Contract,) so we can best protect your interests.
To assist us in preparing the Contract of Sale you will need to advise us in relation to:
- Terms of Sale – you will have to advise whether you have any specific terms of your sale that you would like tailored to your property – ie – amount of deposit, settlement date etc.
- GST – You have to consider whether GST will be applicable to the sale. We can advise you in this regard.
- Leases – You will need to advise prospective purchasers as to whether the property is tenanted. You will need to provide us with a copy of any Lease agreement so we can inform purchasers.
- Improvements and Fixtures – any structures annexed (fixed) to the land will be automatically sold with the land. This includes items such as houses, pools and other permanent structures. Any other goods need to be specifically included in the contract of sale. Typical goods include fixed floor coverings, window furnishings and light fittings. You will have to advise whether any goods are excluded from sale. You will also have to advise whether any goods are defective so that this can be disclosed to the purchaser.
- Special Conditions – we have a number of special conditions that we insert into every contract to protect your interests. You will have to let us know whether there is any area that is of specific concern and we will prepare a special condition accordingly.
After the Sale of your property
Following the sale of your property, we will co-ordinate the completion (settlement) of your sale. All settlements are mandated to occur electronically. We will represent you in the electronic workspace and will sign the transfer and financial documents on your behalf. The following steps will occur after the sale of your property:
- Contact your bank: After you sell your property you will have to contact your bank and instruct them to discharge your mortgage. We will also be in contact with your bank to ensure that they are provided with all the required documents and information.
- Verification of Identity (VOI): We are required to verify the identity of all the parties that we represent in a land transaction. You can complete the VOI check in our office, or you can attend an Australia Post outlet, or use our VOI agent – who can attend your home or workplace at a convenient time for you.
- Client Authorisation: Modern conveyancing practice requires us to sign transfer and other documents on your behalf. You will authorise us to act in this regard by signing a client authorisation form.
- State Revenue Office – Duties online form: We will prepare the Vendor’s portion of the duties online form and you will check the answers and sign electronically.
- Statement of Adjustments: As settlement approaches, we will ensure that all adjustable rates (ie- council, water rates, owners corporation fees etc,) are adjusted as at the settlement date to ensure that each party pays their fair share of rates.
At the completion (settlement) of your sale you will receive the balance money owing to you, any bank loans secured by your property will (generally) be paid out and the Purchaser will take possession of the property. We will:
- Co-ordinate settlement with your bank: Settlement will occur electronically on the PEXA platform. We will co-ordinate settlement of your sale with your bank and with the Purchaser’s representative.
- Post Settlement: following settlement, we will notify council, the water authority and the Owners Corporation manager (if relevant,) that settlement has occurred and that you are the no longer the owner of the property.