Selling a property
Selling Your Property
SELLING YOUR PROPERTY
Making the decision to sell your home is an extremely exciting process filled with high expectations and anxiety as you patiently wait for buyers to inspect your property and then submit an offer for your consideration.
Every agency you consult with will have differing opinions on the value of your home, the best method to sell the property and will suggest a variety of individual marketing systems that may differ from each other in many ways.
Selling a property is often one of the biggest financial decisions that someone will make during their lifetime, so it should not be taken lightly.
At Coller Rathgeber Property Group we believe that you should have all the information you require to make a fully informed decision when it comes to making such an important decision.
If you have any questions do not hesitate to ask our experienced Sales Consultants for advice.
We trust that this document is able to inform you about the selling process and make it clearer for you should you decide to trust Coller Rathgeber Property Group to market your property.
THINGS YOU NEED TO KNOW
THE VENDOR STATEMENT – SECTION 32 STATEMENT
It is a legal requirement that prior to a buyer being able to sign a contract to purchase your property they must be given a copy of your Vendor Statement or Section 32 Statement signed by the vendor of the property.
Our Sales Consultant will assist you to source the necessary documentation and arrange for your chosen solicitor to prepare this vital document in readiness for the preparation of contracts.
The Vendor Statement or Section 32 Statement includes important information for the purchaser of your property including:
• The vendor’s full details and the address of the property
• The full title particulars of the property and a copy of the title
• Planning information, particularly what zoning the property falls under
• Information regarding the outgoings payable on the property
• Particulars of any mortgages or any ‘other’ charges over the land
• Information regarding covenants, easements and any other restrictions that may affect the property
• Information regarding building permits issued in the past 7 years
• Particulars of owner – builder warranty insurance
• Disclosure of any notices or orders issued by authorities or individuals over the property
• Information on the services connected or available to the property
• If there is access to the property by road
THE AGENTS AUTHORITY DOCUMENT
As part of the listing process our Sales Consultant will ask you to sign an authority document giving them the authority to advertise the property and arrange potential buyers to inspect it. This document is a requirement of Consumer Affairs Victoria and is published by the Real Estate Institute of Victoria and contains details relating to the appointment including:
• The name and contact details of the agency appointed to sell the property.
• The names and address of the registered owner of the property.
• The physical address of the property being sold.
• The number of days that the authority will last.
• If the property is to be sold with vacant procession or with a tenancy in place.
• The asking price agreed to by the vendor.
• The agents estimated selling price.
• The amount of the commission payable if the agent sells the property.
• The amount of any marketing and advertising payable by the vendor when the property is sold.
It is important that you read this document carefully and if you do not fully understand any part of it ask our Sales Consultants to explain it to you. A copy will always be supplied to you for your records.
THE CONTRACT OF SALE.
When negotiations are complete and you have agreed to sell your property to the successful purchaser our Sales Consultant will arrange for the preparation of a Contract of Sale. This document will include all the conditions that you agreed to during the negotiations and be in the form of either a Formal Contract prepared by your solicitor or a Contract Note which will be prepared by our support team.
The Contract of Sale is required to include specific details relating to the agreed sale including:
• The full name and address of the vendor
• The name and address of the vendor’s solicitor / conveyancer
• The full name and address of the purchaser
• The name and address of the purchasers solicitor / conveyancer
• The agreed sale price of the property
• The amount of the deposit and the date it is to be paid
• The final settlement date
• A list of goods (chattels) included in the sale
• Any special conditions relating to the sale
THE COOLING OFF PERIOD
Once the contract has been signed by the successful purchaser of your property they will be entitled to a 3 day
‘cooling off period’ equal to three (3) clear business days. This allows a purchaser to withdraw from the contract by notifying the agent in writing of their intention not to proceed with the purchase. The purchaser is entitled to the return of the full deposit paid less $100 or 0.2% of the purchase price – whichever is greater.
It is important to be aware that a cooling off period does not apply in the following circumstances:
• If the property was bought at Auction, or within 3 business days before or after a publicly advertised Auction.•
If the purchaser is an Estate Agent.
• If the vendor and purchaser have previously entered into a contract of sale for the same property under essentially the same terms and conditions
• If the property is used for industrial, commercial or farming purposes and in the case of a farm, is larger than 40 hectares
SPECIAL CONDITIONS IN THE CONTRACT
During negotiations for the sale of your property the majority of purchasers will need to make their offer on your property with one or more ‘special conditions’ attached. Our Sales Consultants will clearly explain the implications of each ‘special condition’ requested by a prospective purchaser prior to you accepting their offer to purchase.
Common special conditions may include some of the following:
• Conditional on the sale of another property or an existing contract on another property becoming unconditional
• Subject to finance approval from their bank or lending institution
• Conditional on the purchaser receiving a satisfactory report from a registered builder, electrician or plumber not identifying there are no major defects
• Conditional on the purchaser receiving a satisfactory report from a qualified white ant controller confirming the property is free from live white ants
COST ASSOCIATED WITH SELLING.
When selling your property you must make allowance for expenses that will relate to its sale.
These additional costs will vary in each case, but will include some of the following:
• Your selling agent’s commission in accordance with your authority document
• Any marketing and advertising expenses agreed uponat the time of signing the authority
• Your solicitor’s fees and charges for acting on your behalf at settlement
HELPFUL TIPS
• Knowledge is power when it comes to selling your home. It is important that you seek factual sales data from within your immediate area to use when estimating the value of your home. Attend as many relevant open houses as you can, do research on the internet and seek qualified advice from experienced valuers and agents.
• If possible, start preparing your property for sale in advance so that when your marketing campaign commences the property is presented in the best possible condition. You only get one chance to make a first impression and it is important to remember that the first person to inspect the property may be the buyer who ultimately pays the highest price for the property.
• As part of the process to prepare your home for sale, ask a trusted friend or family member to act as a prospective purchaser and pretend to view the property. Listen to their comments about the property because if they are being objective, they will see the same things a real prospective purchaser will see.
• When you are preparing your home for sale you may be tempted to purchase expensive furniture or items to improve the first impression for prospective purchasers. Before you purchase anything ask our experienced Sales Consultants for advice, they can often suggest alternatives such as leasing a single furniture item or borrowing something from a family member or friend.
• We all learn to live with faults in our homes and after a short time do not remember that they need attention. It may be as simple as a sliding robe door that sticks or will not slide easily. Make sure that you repair and replace any little, nagging maintenance items as they will be obvious to a prospective purchaser.
• It is important that your property appears light and bright to a prospective purchaser during the sale process, no one likes a dark home. This is especially important during winter months so it is vital that you make sure that all your lights are in good working order and replace any globes in darker rooms with high wattage globes.
• It is essential that you make arrangements to remove any animal beds, food bowls, litter trays etc from the home prior to inspections being conducted. Not all prospective purchasers like pets or approve of them being inside so they can be deterred by that fact that your pets occupy the home from time to time. Relocate them to the shed or the back porch during the inspection and return them once the inspection has concluded.
FREQUENTLY ASKED QUESTIONS
Q: What happens to the deposit that the purchaser pays when they purchase my property?
A: The deposit paid by the purchaser is held in a Statutory Trust Account by either the vendor’s agent or the vendor’s solicitor. The deposit normally remains in the trust account until settlement occurs. In the case of longer settlements, the vendor may make application to have the deposit released to them prior to the settlement date. There are requirements that need to be met to enable this to happen so ask our Sales Consultants for advice before considering this option.
Q: Why does a purchaser often ask to conduct a ‘pre – settlement’ inspection?
A: The majority of purchasers request to conduct a ‘pre–settlement inspection’ prior to the settlement being effected by their solicitor. This inspection is usually arranged by one of our Sales Consultants and conducted the day before settlement to reassure the purchaser that the property is in the same condition as it was when the contract was signed.
Q: Who arranges for the services to be disconnected when you sell your property?
A: It is your responsibility as the property owner to arrange the final meter readings of your electricity, gas and telephone. Our sales support team will send you a ‘My Connect’ application form following the sale of your property to make this task easier for you. Make sure you don’t forget to contact Austar or Foxtel if you are connected and transfer your subscription to your new address.
Q: Do I need to contact the local council and water authority to tell them we have sold our property?
A: No. Your solicitor or conveyancer will contact the local council and water authority as part of the settlement process and request a final notice calculated to the settlement date. They will then make adjustments so that the vendor pays what is owed up to the settlement date and the purchaser pays the amounts due after the settlement date.
Q: Do I need to pay stamp duty when I sell my property?
A: No. Stamp duty is only payable by the purchaser of a property.
Q: Do we need to have the carpets professionally cleaned for settlement?
A: This is always a tough question. In many cases the carpets may have been professionally cleaned as part of the pre- sale
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While due care and diligence has been exercised in the preparation of this document, it is provided on the basis that Coller Rathgeber Property Group are not responsible for the results of any actions taken in reliance
on it or for any errors or omissions therein and shall not be liable for any loss whatsoever caused whether due to negligence or otherwise arising from the use of, or reliance on the information provided. It is strongly
recommended that persons reading this document consult professionals in each area of the purchase and selling process to ensure that the information is correct and particular to their individual needs.
© copyright Coller Rathgeber Property Group.
