Conveyancing process for selling a property in NSW
Selling a property is an important investment decision. Sydney Conveyancing will work closely with you through every step of Conveyancing process for selling a property. The conveyancing process is described below for your understanding.
Before marketing your property yourself or via an agent, a Contract for the sale of land is required, which we start preparing on the same day of receiving your instructions. We aim to have the contracts prepared by annexing the prescribed documents and forwarding the same to you or the agent without delay.
The contract has all the details of the property like the following:
- Settlement period (usually 42 days)
- Description of all the inclusions being sold with the property
- Title Search stating any mortgages, easements, restrictions, etc that effect the use of the property
- Zoning certificate which states the zoning, whether the property is under commercial or a residential zone, the density of the area, etc.
- Drainage diagram which shows if and where the main sewer crosses the property.
You as a vendor sign an agency agreement with an agent to enable them to market and sell your property by auction or a private treaty. We suggest that you do a recent sales study in your area to get a better idea of your property price before entering into the agreement and also shop around to find out about the agent, their commissions, their recent sale history, etc.
You should review their marketing plan to understand that they have a good knowledge of your area and a good understanding of the marketing strategies to be used.
Offer and Acceptance
Once the agent has started marketing your property, the contract for the sale of land is to be available for every prospective purchaser. If an offer is accepted by you, the agent needs to advise our office immediately to enable us to proceed to exchange of the contracts.
Exchanging the contract
Once we have received a sales advice from the agent, we will confirm the same with you. The contracts can be exchanged in two ways: by the agent or by our office. The agent can exchange the contract if authorised by you and the purchaser with a cooling off period. After exchanging the contracts, the agent will forward the contract signed by the purchaser to our office and will forward the counterpart signed by you to purchaser's Conveyancer office.
If you wish for us to exchange the contract, we can exchange the contract as soon as we receive the contract signed by the purchaser with an authority to exchange. We will also advice you of any amendments that the purchaser’s conveyancer will request to be inserted in the contract.
Cooling off Period
Every contract for the residential property has a five business day cooling off period which means that the purchaser has a five business days time to decide whether he wants to proceed with the purchase of the property or not. The vendor does not have the cooling off period and the contract is binding on the vendor once exchanged.
The decision of the purchaser to proceed or not largely depends upon factors like obtaining a final loan approval from the bank, getting pest and building reports organised if not done earlier and relying on those reports, getting the contract reviewed by the conveyancer if not done previously and seeking their advice. The cooling off period also gives time to the purchaser to get hold of 10% deposit payable before 5:00 pm on the fifth business day. The cooling off period can be extended with the consent of both the purchaser and the vendor if required. If the purchaser decided not to proceed with the contracts, the purchaser looses their .25% to the vendor. If the purchaser proceeds with the purchase and the cooling off period expires, the contract becomes binding between both the parties.
If after the cooling off period the purchaser is not able to complete the purchase for some reason and decided to rescind the contract, the purchaser loses his 10% deposit to the vendor. Incase the purchaser waives his right to cooling off period at the time of exchange under Sec 66W certificate, the contracts become binding on both the parties.
Once the contracts have become binding on both the parties, we will contact your lender to prepare a discharge of the mortgage and to provide us with a payout figure for the day of settlement.
Once the settlement date has approached which is usually 42 days from the date of the exchange of the contract or as agreed upon between the vendor and the purchaser and the discharging mortgagee is ready to settle, we will liaise with the lender and the purchaser’s solicitor to book settlement date, time and place. We will confirm the same with you in order for you to arrange the removalist, insurance, etc. We will also inform the agent.
Notice to Complete
If for some reason the purchaser is unable to proceed to settlement, we have a right to issue a Notice to Complete which means the purchaser will have to settle the matter within 14 days, otherwise they will lose their 10% deposit. In addition to this, the purchaser will have to pay interest on the balance of the purchase price which is usually 10%per annum to you starting from the day when the Notice was issued till the day settlement occurs. The purchaser has the same right of issuing the Notice to Complete, incase the vendor is not ready to settle the matter but do not have the right to charge penalty interest.
As soon as the settlement is booked, the purchaser’s conveyancer will draft a settlement statement adjusting the water, council and strata (if applicable) rates for vendor’s approval and request for the information relating to the cheques to be drawn for settlement. On receipt of the information we will request your lender for the payout figure for the day of settlement. We will then request you to provide us with the cheque details as to how you wish the cheques to be drawn if there is a surplus amount after paying off the loan money to the bank. We will request you to provide with bank cheque if there is a shortfall for paying the lender.
We will attend the settlement on your behalf and advice you once settlement occurs. We will forward an “Order on Agent” to the real estate agent which authorises him to release the keys to the purchaser and the deposit to the vendor after deducting their commission. On the other hand, your lender will submit all the documents at the Department of Lands so that the property could be transferred under the purchaser’s name. Department of Lands will advise Council and Sydney Water of the change of ownership. We will after a week, send all the documents and other necessary correspondence to you for your safekeeping in relation to your sale.