Selling real estate for any reason, whether personal, financial, or strategic — evokes many emotions. Happy, sad, excited, and nervous — you experience it all. Yet, during all these ups and downs, it’s critical to ensure the paperwork is on point. Whether you entrust a real estate agent or are preparing to find buyers all by yourself, the first step should be to get all the legal documents in place.
As your trusted conveyancers, it becomes our duty to outline a detailed list of papers required during the process. So, here it is—
Prepare the Contract of Sale
Before handing over your property, you will require a detailed document called “Contract of Sale” that outlines all the necessary information a buyer must have. It must also comprise certain promises or “warranties” you make regarding the asset. Here is a detailed overview:
Title and Ownership Check
The first step is ensuring that the title to the property is clear. If there are any disputes over ownership or if the property has an existing mortgage, these issues must be resolved before the sale can proceed. After this, you must clearly mention the ownership and attach the respective documents to attest to it.
Zoning
If your property is affected by zoning regulations (e.g., if it is located in a flood zone, bush fire or coastal protected area), this information must be disclosed.
Drainage Diagram
The document must showcase the basic layout of the property, including the location of pipes and where they connect to the main wastewater system.
Building and pest inspections
Many buyers will request these reports as a condition of sale. You can either provide them upfront or negotiate with the buyer to have them done after the contract is signed.
Encumbrances
This refers to any restrictions or claims on the property, such as mortgages or easements. Buyers need to be aware of any encumbrances before proceeding with the sale.
Disclosure of Adverse Affectation
Conduct research and ensure there are no government proposals or future developments that will negatively affect the property. After this, add the document to the contract of sale as “warranties.”
What if I Am Selling a Strata Title Property?
If your property is part of a strata title, there are additional considerations. A strata title refers to properties where individual ownership of a lot exists alongside shared ownership of common areas.
When selling a strata title property, you’ll need to provide additional documents as part of the sale. These include copies of the recording:
- Proof of ownership for your individual lot and the common property
- Boundaries of your lot within the strata property
- By-laws that govern the conduct of the strata scheme could include rules on noise, pets, or renovations.
- Special levies to cover major repairs or improvements in common areas
Negotiating and Accepting Offers
After preparing the contract of sale, it’s time to list your property and get into the real deal of finding buyers, negotiating, and confirming you received a fair price.
Each offer will come with its own set of terms, including rate, conditions, and settlement dates. As the seller, you have the right to accept, reject, or negotiate the offers you receive. You can receive assistance from a conveyancer Melbourne or Sydney to understand special conditions that may come your way during the negotiation. A few of these are:
- Subject to finance: The buyer may ask for an offer conditional upon them securing financing.
- Subject to inspection: Buyers often request this condition to allow them to inspect the property and request repairs or concessions.
- Settlement date flexibility: Buyers and sellers may negotiate the date the property title will transfer.
The Settlement Process
Settlement is the last step in selling a property. This is when the buyer pays the rest of the price. The ownership of the property is then transferred. Below are the key terms you will come across during the phase:
- Payment indicates the final amount the buyer pays after the deposit
- Transfer of Ownership when the title moves from the seller to the buyer
- Handing over keys when you give the keys to the buyer
Concluding Words
Selling a property is more than just agreeing on a price. There are many legal steps to follow to make sure the process goes smoothly and both sides are safe. From the sale contract to the settlement process, the right legal help is key to a good sale.
By knowing the legal rules, you can move through the steps with ease and avoid delays. Whether it’s your first sale or you’ve sold before, taking time for these steps will lead to a smooth sale.
Easy Link Conveyancing: Your Trusted Partner in Property Transactions
Easy Link Conveyancing provides expert services to guide you through property sales. Our skilled team makes sure your sale is quick, clear, and secure. With great care and focus, we’re here to support you all the way. Contact us today for expert help that fits your needs.