Process for sellers
Looking to sell your property?
You’ll be required to comply with certain conveyancing guidelines in order to sell your property, which usually involve:
To sell a residential property a contract must first be prepared prior to offering the property for sale. The contract must include the following documents –
- copy of the title search from the Land and Property Information NSW;
- copies of all documents creating easements or restrictive covenants;
- Section 149 certificate from the local council, detailing zoning and other information;
- sewerage diagram;
- cooling-off statement;
- notice directing parties to the Conveyancing Act 1919 (Section 52A) and the Conveyancing (Sale of Land) Regulation 2000;
- if it is a strata unit, copies of the folio of the Register for the lot and common property and a copy of the strata plan;
- Swimming pool compliance certificate, Home Owners Warranty Insurance (if applicable);
The contract will also include details such as improvements, inclusions, settlement time frame, and any specific terms and conditions as required by the vendor.
Exchange of Contracts
Each party signs a copy of the contract and the purchaser pays the deposit. The purchasers’ conveyancer will then receive the contract signed by the vendor and the vendors’ conveyancer will receive the contract signed by the purchaser. The contracts are then dated and are ‘exchanged’.
All contracts for residential property in NSW will automatically come with a 5 working day cooling off period for the benefit of the purchaser (unless the property is being sold at auction where there is automatically no cooling off period). If the purchaser decides to pull out of the contract during the cooling off period they will forfeit 0.25% to the vendor of the purchase price. The Cooling off period does not apply to rural or commercial properties.
The standard settlement period is 42 days (6 weeks) however a shorter or longer settlement period can negotiated between the parties. Generally if settlement is delayed as a result of the purchaser or their bank penalty interest may be charged by the vendor.
On the day of settlement the purchaser is entitled to do a final inspection of the property and if everything is in order settlement will proceed. This occurs once the balance of the purchase price is paid to the vendor and title documents are handed over to the purchasers’ conveyancer.
The agent is then advised of settlement - they will then release the keys to the purchaser and the deposit to the vendor.