Contract Preparation
If you’re selling property before you can advertise your property for sale it is a legal requirement that you have a Contract for Sale prepared for viewing by prospective purchasers.
Penny Fraser Conveyancing can prepare the Contract for Sale on your behalf ensuring that all the mandatory prescribed documents are included in the Contract. These include a title search, deposited plan and other title dealings (eg. easements, rights of ways or covenants), the zoning certificate issued by the local council, sewer diagram etc.
We can prepare a contract usually within 3-5 business days.
Once the Contract has been prepared we will forward a copy to yourself and to your Real Estate Agent for marketing purposes. When you find a buyer we can then assist you with the negotiation of the terms of sale and ensure the Contract is amended accordingly. We will then organise exchange of contracts with the purchaser’s conveyancer or the Real Estate Agent.
Exchange of Contracts
Exchange of contracts is when you sign one copy of the contract and the purchaser signs the counterpart contract. The purchaser usually pays a deposit of 10% of the purchase price at the time of exchange.
Contracts are then checked to ensure that they are identical, then dated. This legally binds both parties to the Contract. The purchaser’s conveyancer will hold your signed contract and Penny Fraser Conveyancing will hold the purchaser’s signed contract.
Cooling off period
Contracts can be exchanged either with or without a cooling off period.
The standard form of Contract for Sale includes a 5 business day cooling off period from the date of exchange of contracts. The cooling off period is for the benefit of the purchaser only. You are locked into selling the property to the purchaser but the purchaser can rescind the contract under the cooling off period if they decide not to proceed with the purchase of the property. If the purchaser does pull out of the contract then the purchaser will forfeit 0.25% of the purchase price to you.
No Cooling off period
Contracts can also be exchanged without a cooling off period.
The purchaser can provide what is known as a Section 66W Certificate signed by the purchaser’s conveyancer waiving the cooling off period. This then means that the purchaser is legally bound by the contract from the date of exchange of contracts.
Auctions
If a property is sold at auction or contracts are exchanged on the same day as the auction then there is no cooling off period and both parties are legally bound by the contract.
After exchange
Once contracts are exchanged Penny Fraser Conveyancing will then liaise with your lender (if required) to initiate the discharge of mortgage on your behalf. We will advise your lender that you have sold your property and request that they prepare a discharge of your mortgage in readiness for settlement. We will arrange for you to sign the Transfer document which legally transfers the ownership of the property to the purchaser at settlement. Prior to settlement we will provide you with a settlement statement outlining the settlement adjustments (such as council and water rates, strata levies) and will arrange for your lender to attend settlement.
Settlement
Settlement is the day that ownership of the property is legally transferred to the purchaser.
Settlement usually takes place within six weeks from the date of exchange of contracts. We will arrange for all parties to attend settlement and we will attend on your behalf – you do not need to attend settlement. At settlement the title deeds for the property will be handed over to the purchaser’s representatives in exchange for payment of the balance of the purchase price to you. We will discuss with you prior to settlement your requirements for the payment of the sale proceeds.
The purchaser is entitled to one inspection of the property prior to settlement. This is arranged between the parties and the Real Estate Agent.
You will need to deliver all keys to your Real Estate Agent prior to settlement.
We will telephone you once settlement has occurred.
Please telephone us on 0416 349 161 to discuss your sale today.