June 25, 2019
Thinking of selling?
There are 5 things you need to know.
- Appoint a good estate agent – there has been a trend over the past few years of some people trying to sell their homes themselves. The motivation is often financial. Any gain that may be achieved by saving on commissions will be lost if you don’t get the best price and some purchasers can be difficult to deal with. There is no substitute for appointing a reputable agent with a proven track record in your area.
- Appoint a reputable solicitor – you will need someone to prepare documents – it is a requirement before selling a property that the purchaser be given a signed copy of a section 32 statement. This is the document that contains all relevant disclosures including the following:
- Any notices received from government authorities, such as councils, water authorities and the Planning Department;
- Zoning restrictions and planning requirements that may affect your property;
- Whether there have been any owner-built works at your property in the past 7 years; and
- disclosures about Owners Corporation matters if your property is subject to an Owners Corporation;
- Don’t take shortcuts with documents. Some conveyancers and solicitors try and take shortcuts by providing section 32 statements that contain some, but not all, of the relevant information. This often becomes a significant issue for sellers down the track if a purchaser wants to pull out. A purchaser may seek to use a defective or deficient section 32 as a basis for doing so.
- Contact your bank ASAP. If your property is mortgaged, get in contact with your bank asap after the sale contract is signed to start the process of discharging and paying out the mortgage. In our experience it takes a few weeks for the discharge process to be finalised. If your property is settling 30 days after a contract is signed, it is crucial that this process is commenced immediately so that there are no delays in settlement.
- Provide vacant possession. It is a requirement that vacant possession of your property be provided before settlement. Although it is not strictly speaking necessary to clean your property before you vacate, we have encountered instances where purchasers complain and try and delay settlement if rubbish or clutter are left behind when vendors vacate.