Step 1: Preparing the Contract of Sale
As a property vendor (or seller), the first thing you must do is to have a Contract of Sale drawn up by a Conveyancer. This is not an optional task. To help you do this, we will ask you to provide what are called ‘prescribed documents’. These are specific articles that relate to your property, including copies of the Title, Council Zoning Certificate, Strata Plan(s) and perhaps others.
A skilled and devoted conveyancer is the first person you need to choose for ‘your team’.
Bliss Conveyancing will provide your Real Estate Agent with a marketing contract the same day upon receiving instructions, allowing for an immediate commencement to the marketing campaign of your property.
Step 2: Marketing Campaign and Accepting an Offer
The next important team member is your real estate agent. Their role is to assist in the sale of your property and represent your interests in any negotiations. It can be a time-consuming task. When choosing your agent, a complimentary tool is available to help. It’s a website that compares agents and their performance within your area. The site is called RateMyAgent.com.au.
Your selected agent should inform of any offers received and give you their professional opinion on it. They can communicate your acceptance or rejection of the offer, or your counter offer. They can be a powerful aid when making decisions as well as engaging in negotiations. If you accept the offer, they will then issue all parties with a summary of transaction details and other relevant factors.
Step 3: Deposit
Though strictly speaking, the amount is negotiable, it is common practice is for the deposit to be 10% of the accepted purchase price. If you wish to negotiate this, you should reengage your conveyancer to help.
Step 4: Exchange of Contracts
Once all parties sign the contract and the deposit is paid, the conveyancers will exchange contracts.
Step 5: Cooling off Period
In most cases, a cooling off period exists for the purchaser (not the vendor). In NSW, this period is 5 business days, starting from when contracts are exchanged. During this time, the purchaser can legally withdraw from the contract; however, they are required to pay the vendor a 0.25% compensation (i.e. $250 for every $100,000 in the purchase price).
If the property is sold at auction, there is no cooling off period. Contracts will be signed, the deposit paid and the contracts exchanged immediately after the auction.
The cooling off period can be extended beyond that stated by the legislation – if both parties agree, however the agreement must be in writing and be signed before the original cooling period ends.
The cooling-off period can also be waived if both parties agree. If this happens, the purchaser’s conveyancer will provide a Section 66W certificate.
Step 6: Settlement
This is the conclusion of the purchasing process. At this point any outstanding balance is paid, mortgage are discharged, the Title of the property is officially transferred and the keys are provided. This process is called ‘the settlement’. The vendor and purchaser may choose to attend, however they do not have to: their respective conveyancers can act on their behalf.