The Contract
Once you have made the decision to sell your property, one of the first tasks is to have the Contract for Sale of Land and Section 32 Vendor’s Statement drawn up.
The contract will include not only the legal terms and conditions of sale. It will also specify what items are included or excluded from the sale, and any other special requirements you might have, like settlement time, or perhaps that the contract be conditional upon another contract for you to buy your next property. There are a lot of ways that a contract can be varied, so it is important to discuss your situation in detail with CCS Lawyers.
In Victoria a Vendor must provide a Section 32 Vendor’s Statement which is a mandatory legal disclosure document required by the Sale of Land Act 1962 that you must provide to a prospective purchaser before they sign a contract. Preparation of this document early is essential as it discloses critical details like title information, zoning restrictions and outgoings, building and renovation works. It must be prepared accurately to protect you from legal risks, as an incomplete or defective statement can give a purchaser the right to withdraw from the contract even after it is signed, and may expose you to legal action.
The Deposit
Once a purchaser has been found and the contract has been signed and is legally binding, then a deposit is usually paid by the purchaser and is usually held in the trust account of the selling agent.
Settlement
Settlement (the day that the money is exchanged for the property and keys handed over) is scheduled in accordance with the contract. During the wait for settlement, CCS Lawyers will liaise with your bank in relation to releasing any mortgage held on the property. In this time you should arrange disconnection of electricity and other services.
Before settlement, the purchase price will be adjusted to reflect the council rates, water rates and Owner’s Corporation fees that need to be shared between the parties. There may be other adjustments, based on the Contract for Sale.
Once settlement takes place, the real estate agent will be authorised to release the deposit to you, less their fees.
Call Charmain for specific and personalised advice about the sale of your property.
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