Selling property - the conveyancing process
The first thing to do before putting your home on the market is to instruct a conveyancer or solicitor to prepare a contract of sale. Under law, a residential property cannot be advertised for sale in NSW until a contract of sale has been prepared.
There are a number of disclosure documents that legally must be attached to the contract of sale, such as a zoning certificate, drainage diagram, copy of the title search to the land, registered plan for the land and copies of any documents creating easements, rights of way, restrictions or covenants.
Failure to attach the correct documents can void the contract.
Your conveyancer will ensure that all of the required disclosure documents are attached to the contract before forwarding a copy to your nominated agent.
You must also include any specific terms or conditions you wish to include in your contract such as an extended settlement period. You may also wish to exclude items such as pendant lights, dishwashers or playground equipment.
Exchanging contracts
Once you accept an offer from a purchaser, your agent sends notice to your conveyancer together with the purchaser’s details and any agreed terms.
Your conveyancer will then seek your approval of the sale details and if approved, issue a contract to the purchaser’s conveyancer / solicitor.
Your conveyancer will contact you to ascertain the method that suits you in terms of signing the contract.
The purchaser’s conveyancer / solicitor will usually seek amendments to the contract after consultation with the purchaser and your conveyancer will contact you for instructions on those amendments.
Once the terms have been agreed, your conveyancer will then exchange contracts.
At exchange, the purchaser pays the deposit and the contract becomes legally binding after the statutory cooling off period (unless waived by the purchaser or sold at auction).
In the case of auction, exchange happens immediately after the winning bid is accepted. Your agent will usually effect contract exchange by delivering your signed contract to the purchaser and collecting the purchaser’s signed copy as well as the deposit.
After exchange, there is usually an agreed period until the sale is settled. This period is negotiable between the vendor and purchaser. A standard settlement period is 6 weeks.
Settlement
Settlement is when the buyer pays you the remainder of what they owe to finalise the purchase. There will also be minor adjustments for council and water rates on a pro-rata basis.
If you have a mortgage over the property you’re selling, your conveyancer will ensure you sign the paperwork necessary for your financial institution to initiate a discharge of your mortgage.
Your conveyancer will then direct the purchaser to draw the relevant cheques to your financial institution and the balance as you direct.
For a more detailed description of the sales process, visit the Law Society of NSW’s website where you can download a free copy of Your Guide to Selling a Home
Ms Deeds can help you with preparing a contract for sale of residential and commercial properties in New South Wales. We are mobile and digital – offering conveyancing services for all property transactions in NSW. Call us on 0473 988 648 or email ashley@msdeeds.com.au