We recommend that a building and pest inspection be conducted by an independent professional inspection. These inspections will verify the severity of defects (if any) and may even reveal unreported problems. Depending on how the Contract of Sale is worded, the Contract can be rescinded if the building/pest inspection report shows major structural defects or that there is an active pest infestation.
It is very important to have a complete understanding of the Contract prior to making an offer. Once the offer is communicated and the vendor accepts the offer, the Contract is made, and it is very difficult (if not impossible) to get out of the purchase by rescinding the Contract without penalty unless Special Conditions are included.
It is very important that you have the correct wording on Special Conditions relating to your offer prior to making the offer. It is highly recommended that you seek your Conveyancer’s assistance in the drafting of your offer and the conditions of purchase.
Once all Special Conditions are satisfactorily completed, and your finance has been formally approved in writing, you are bound by the terms of the Contract and must continue to settlement.
If you have not already done so, you will now need to contact a Conveyancer or Solicitor to assist you with the paperwork and settlement.
Your representative will liaise with the vendor’s conveyancer or solicitor and your lender to arrange settlement.
To sell a property, your real estate agent will require a Section 32 Statement and a Contract of Sale.
The Section 32 Statement provides prospective purchasers with information about the property. The Sale of Land Act sets out what information must be provided, and any relevant warnings that must be given to potential buyers. For example, the statement must include:
Your Conveyancer will prepare the Section 32 Statement on your behalf. Ideally the Statement should be prepared prior to advertising the property as your agent will be unable to sell your property without it. You should review the Statement very carefully after it has been prepared by your Conveyancer. False, incorrect or misleading information in the Statement causes it to be defective and can result in the purchaser having the right to terminate the Contract.
In most circumstances your Certificate of Title is held by your bank, the lawyer who acted on your behalf when you purchased the property or by yourself.
If you are unable to locate your original Certificate of Title, you will need to inform your Conveyancer immediately to make arrangements to have the Title replaced. To replace a lost Title is time consuming and expensive. If you do not give your Conveyancer sufficient time to replace the lost Title, settlement of the sale may be delayed. Therefore, the original Certificate of Title to your property is a very important document and you should be fully aware where the document is at all times. We advise our clients to store their original important documents with us to avoid such documents being misplaced. We do not charge any fees to store documents in our Deed Safes.
The majority of settlements and property transactions are now on Property Exchange Australia (PEXA). Very few transactions now occur manually. The advantages of settling on PEXA are:
If you are buying and selling a property at the same time, it is possible to coordinate the settlements to coincide. This process is much simpler if the same Conveyancer is managing both transactions.
In some cases the buyer may wish to move into the property before settlement under a Licence Agreement. A Licence Agreement must be prepared detailing the arrangement, which needs to be signed both by yourself and the purchaser.