It does not matter how many properties you may have sold, it pays to treat every sale like it is your first. As a seller you have the duty to disclose accurate information about the property to the buyer prior to the signing of the contract. In many cases, failure to disclose or defective disclosure can result in the termination of the contract, and sometimes even a legal claim for losses sustained.
It is important that you work closely with your agent during the preparation of the contract. However, if you are selling your property privately (no agent), it is recommended that you seek legal advice and assistance in preparation of the contract. Feel free to contact us for assistance in this regard.
Who prepares the contract of sale?
Cooling off period – what happens when buyer terminates?
The buyer has 5 business days from the date of contract to terminate under the cooling off period. There is however a termination penalty of 0.25% of the purchase price payable by the buyer.
In most cases, this amount is deducted from the deposit held by deposit holder (normally the real estate agent) and the balance refunded to the buyer. Depending on your agreement with the agent, the agent may retain a portion of the penalty paid to account for the time they have spent on your matter, prior to refunding the balance to you.
Selling a property with body corporate- what information do I give?
You need to disclose information about the Body Corporate to the buyer prior to the buyer signing the contract. This is normally done by way of a section 206 Disclosure Statement which include (but not limited to):-
- Admin fees and levies
- Lot details including CTS number of the body corporate.
- Lot entitlement
- Insurance details of the complex
- Body corporate secretary and manager details
Failing to give the Disclosure Statement on time, or by providing a defective Disclosure Statement, gives the buyer the right to terminate the contract at any time before settlement.
I have a mortgage on my property – do I have to inform my bank?
I have tenants in my property. What do I do?
You will need to provide your tenants with a Form 10 notifying them of your intention to sell the property. Further, for every prospective buyer that your agent intends to bring through the property, the tenants need to be given a Form 9 entry notice.
All forms can be found on the Residential Tenancies Authority (RTA) website. Your agent will be able to assist you with these forms.
Can I extend the lease of my tenants before settlement?
What happens if the property I am selling is over $750,000.00?
For contracts entered into after 1 July 2017, seller/s who are Australia residents will need to obtain a clearance certificate from the ATO and provide a copy to the buyer before settlement. Failing which, the buyer/s will need to withhold 12.5% of the purchase price and forward it to the ATO.
If the seller is a foreign resident, the above rules do not apply.For more information, you may click here or contact us at 0756656392.
What are the fees involved
Our professional fees can be found by clicking here.
Other fees to consider are:-
- Agent’s commission
- Fees payable to the body corporate (for information to complete Disclosure Statement).