Selling My Property – The Process

The time has come to sell. Upgrading or just time to capitalise on the booming property market, the steps all sellers take on the road to settlement is as follows:

1. Locate an Agent

To maximise the sale price you need to expose your property to as many buyers as possible. The property must also be presentable, both in person, and on print/online. The person responsible for determining the best way to sell the property, and for negotiating the price for you is the real estate agent. Select an agent who you can work with and has experience in the area. Look at other properties listed by the agent to see if they are well presented. 

Once an agent is located you will be asked to enter into an agency agreement. Make sure you are aware of the agency period, and whether the agreement is exclusive (most are) meaning that you must pay the agent a commission if the property is sold during the exclusive period, regardless of whether the buyer was introduced by the agent.  

2. Instructing your Solicitor to prepare the contract

An agent must not list a property for sale without being in possession of a Contract for Sale drafted in accordance with the Conveyancing Act 1919. For this reason you need a solicitor who will act quickly, but ensure the contract is prepared in accordance with the legislation. We promise to do both. 

3. Negotiating with the Purchaser

Your objective is to sell the property for as much as possible. The buyer has the opposite objective. At this stage vendors will be guided with the advice from the real estate agent. While price is going to be the key consideration other factors should also be taken into account such as the settlement duration (while the standard period is 6 weeks it may be beneficial to shorten or lengthen the period) and inclusions to the contract.   

4. Going to Auction / Accepting an Offer

If the property is sold by way of auction then the sale is binding on the fall of the hammer. By this stage you would have provided instructions to the agent of a reserve price and if exceeded the property will be officially ‘on the market’ and sold to the highest bidder. 

If the property is sold by way of private treaty then it is common for an agreement to be reached with the agent, to be formalised between the respective lawyers. We always recommend the contracts are signed at our office to ensure the contract being signed correctly reflects the parties intentions.   

5. Expiration of the Cooling off Period (If applicable)

If the property is sold by way of private treaty (that is, not at auction), the buyer will have a 5 business day period in which to rescind (pull out of) the contract. If they do so then the ‘holding deposit’, being 0.25% of the purchase price is forfeited. The cooling off period can be waived if the purchaser’s solicitor provides a certificate in accordance with section 66W of the Conveyancing Act 1919. Because of the uncertainty which surrounds the cooling off period it is preferable to require the cooling off period to be waived before the contract is signed, which is another reason why contracts should always be signed in our office, if possible.  

6. Discharging the Mortgage

If the property is being used as a security for a loan (secured by way of mortgage) then the loan will need to be repaid, or alternate security offered, on or before the completion date. To do so the bank will require written notification of the sale, the proposed settlement date and the vendor’s authorised legal representative. As your lawyer we will prepare the appropriate documentation to notify the bank of the sale and liaise throughout the settlement period to ensure the loan is repaid and title returned.

7. Pre-Settlement  

If the property has been sold with vacant possession then it must be delivered in such a state- vacant. The requirement to give vacant possession extends to removing all furniture, debris and rubbish from the property and yard in sufficient time to enable the buyer to conduct a pre-settlement inspection of the vacant property. Unless the contract provides otherwise the property need not be repainted, or professionally cleaned. 

8. Following Settlement

Settlement is attended by the appropriate banks and solicitors, not the parties themselves. The settlement process involves the exchange of prearranged sums of money (in the form of Bank Cheques) in return for documents which will enable the buyer to become the registered owner of the land as maintained by the New South Wales Department of Lands. Once in order settlement is said to have been effected and your proceeds of sale, once the mortgagee has been paid, will be deposited into your nominated account. Council and the Water authority are notified of the sale, but it is a good idea to notify the gas and electricity company of the sale, along with cancellation of any insurance which must be maintained up to and including settlement. 

If you are selling a property then get in touch with one of our property lawyers by contacting your nearest Prime Lawyers office. If you would like a no obligation quote then visit our conveyancing website by clicking here. 

We have property and conveyancing lawyers located at Sydney, Parramatta, Sutherland and Wollongong.