Take the Stress out of Selling
Selling your home or business will be emotional time in your life. Moving from a familiar to an unfamiliar place can be stressful. Issues such as managing the sale, making sure your sale goes through correctly in order to be able to buy a new property and transfer of ownership involve difficult legal contracts and processes. If this is all not handled correctly, the Australian dream can turn into a nightmare.
To be sure that your sale goes to plan you will need to understand conveyancing process, your rights as a seller and those of others involved, such as the buyer.
While this article seeks to briefly set out what happens when you set out to sell your property, it is only an introduction. You should consult your legal adviser for information and advise relating to your individual sale.
The Selling Process: Conveyancing explained
When you sell your property you will be entering into a contract with the buyer which is called a ‘contract for the sale of land’. It will set out all the terms of conditions of the sale such as the agreed price, the nature of the property being offered for sale and other special conditions.
What is in a contract for the sale of land?
Your legal adviser will draw the contract up to include the following:
- the identity of the parties (i.e. The buyer and seller);
- the title details of the property being sold;
- the agreed price;
- the date on which the final amount will be paid (the ‘settlement’ date); and
- other rights such as a ‘cooling off’ period and what fixtures are to be included ( such as blinds, aerial, or shed)
- the rights of the parties in relation to matters, such as the adjustment of rates (both council & water) and the provisions of details about title etc.
What is involved in drafting and exchanging contracts?
Generally, the conveyance will proceed in a fairly typical manner.
-
After deciding to sell, the seller lists their property with an estate agent who starts to market the home to prospective buyers. At the same time, the seller will retain a solicitor to draft a contract for the sale;
- After a buyer is found the draft contract will be the subject of negotiation (such as a “cooling-off period”, see below). Your solicitor will amend the contract based on the buyer’s details and include any of the amendments agreed to;
- The buyer will pay a deposit and the contracts will be exchanged.
- The buyer then issues "requesitions" seeking details of the seller's title
- Your lawyer will execute the transfer of the title to the property pending settlement; and
- Upon settlement the remainder of the sale price will be paid and the property will be transferred.
Property Sale Issues
Cooling-off Period
Your contract may include what is called a “cooling-off” clause. This will enable the buyer time to reconsider the purchase. As the seller you may have bought a property based on the contingency that the seller would pay the amount by the agreed settlement date.
If your buyer reneges on the purchase during the cooling-off period then other potential buyers for your property may no longer be interested in your property, having found another property to buy. You may therefore insist that the buyer waive their right to a “cooling off” period. Your solicitor will be able to advise you on this.
Can the seller rescind on the contract?
Yes, according to NSW Conveyancing law.
There are provisions in the contract that allow the seller to rescind the contract in certain defined circumstances.
Your solicitor will be able to help you further with this complex issue.
Getting the right advice
The selling of a property is a complex process. A lawyer will help your sale proceed with a minimum of fuss, and will help protect you if things go wrong, such as "the purchaser fails to complete the purchase".
You may think that you cannot afford the services of a conveyancer, or that you can do it yourself. You should think about selling your property as one of the most important legal transaction you will make in your life. During this period a helpful lawyer who can communicate with you in plain English will become an important ally.
Whether selling a long-term investment property, or moving on to greener pastures, consulting a lawyer will greatly increase your chances of a successful outcome.
If you’re thinking of selling your property, contact the expert property lawyers at Craddock Murray Neumann Lawyers today.