Arranging a sale

When you decide to sell your property, you should contact a real estate agent to list the property for private sale or auction.

Vendor’s statement

A ‘vendor’s statement’ or a ‘section 32 statement’ is a disclosure statement you need to give to the purchaser before they sign the contract of sale. It is crucial that this statement is accurate and complete. Any omission or error entitles the purchaser to withdraw from the contract before settlement.

At Sargeants Conveyancing Wyndham & Hobsons Bay, we prepare section 32s often within 24 hours or receiving all required information. This helps to ensure the purchaser is not left waiting to sign the contract - and avoids the likelihood of them signing another property in the meantime.

Contract information

When you receive and accept an offer from the purchaser of your property, that agreement will not usually be binding until you and the purchaser have signed a contract of sale or contract note. The usual process is for you and the purchaser to sign separate copies of the contract. These are then exchanged. At this point, the contract is enforceable.

Cooling off

The Sale of Land Act allows a purchaser to withdraw from a contract within 3 days after signing it. You should not consider the property sold until this period has expired. Note that there is no cooling off period when the property is sold at auction or within 3 days of the auction date. 

Finance

Contracts are often specified ‘subject to finance’. If your sale contract includes information relating to the purchaser’s finance, the purchaser is entitled to withdraw from the contract if the loan amount isn’t received by the date specified in the contract. The purchaser must do all they reasonably can to get the loan approved. They also have an obligation to notify you, the vendor, if they have not received approval for their loan within 2 business days after the approval date. If you do not receive notice, the purchaser is obliged to complete the purchase.

Special conditions

If your sale contract contains any ‘special conditions’ you must read them carefully to make sure you have complied with them. These can include conditions such as purchaser’s finance being approved, building inspection, pest inspection etc. We will update you as soon as these conditions have been met.

Release of deposit & section 27 statements

When you have an unconditional contract, it is common to want the deposit released to you before settlement occurs. The deposit can only be released to you before settlement if:

1. The contract is unconditional
2. You have given the purchaser a notice setting out the amount needed to discharge any mortgage on the property; and
3. Either the purchaser agrees to the release of the deposit OR 28 days have passed and you have not received any response from the purchaser

This applies to house sale conveyancing and commercial property conveyancing. If you have a loan secured against the property, you should also get a letter from your lender confirming the amount required to repay the loan. A section 27 requests the early release of the deposit money before settlement. We can serve a section 27 statement on the purchaser on your behalf. However, a vendor is not entitled to the early release of the deposit if the amount he owes under his mortgage exceeds 80% of the sale price.

Your lender

We will liaise with your lender to prepare all the documentation needed and organise settlement details.

Adjustments

A Statement of Adjustments informs the purchaser and vendor of what rates, taxes, current leases, or outgoings need to be paid. These will be apportioned so you will only pay up to settlement - including any interest you may have incurred.

The purchaser’s conveyancer will serve this statement to us before settlement. We will check these details with you, so please stop all payments relating to these adjustments. Once we have confirmed the amounts are correct, we will work with your lender (if applicable) to get a final payout amount for your loan.

Mortgage

If your property is mortgaged, you need sufficient funds from the sale proceeds or otherwise to discharge that mortgage at settlement. Some lenders charge interest when a mortgage is discharged early. Unless you tell us, we will assume you have enough funds from the settlement to pay out the mortgage. We will coordinate with the lender to discharge the mortgage.

Settlement date

Settlement date is the day the purchaser, takes ownership and possession of the land from you, the vendor. The settlement date is usually specified in the contract. However, if your sale depends on other factors such as a plan of subdivision or granting of a vendors probate, the settlement date will occur based on the terms in your contract.

We will organise a suitable time for all parties to complete the transaction. Note that lenders sometime have strict policies about when they will settle - so it’s not always possible to settle in the morning. You do not need to attend settlement.

Final inspection

The purchaser is entitled to a final inspection in the weeks leading up to settlement. This is done with the agent to make an appointment to inspect the property. Please make sure the property is in the same condition as when you signed the contract (reasonable wear and tear is excepted).

Keys

You should make sure you have vacated the property before the settlement time. You need to give keys and any remotes to the agent so the purchaser can collect them from their office once we have been notified that settlement has occurred.

After settlement

When the change in ownership takes place, we will notify:

• The council
• Owners’ corporation (if applicable)
• Water authority
• Managing agent for existing tenancies (if applicable)

It is your responsibility to disconnect any services in your name.

Communication

You are welcome to contact us by email and phone during office hours. You can expect our team to respond promptly and professionally. Please ask us about any part of the conveyancing sales process you are unsure about - we will explain and follow up with any issue.