Contract of Sale and Deposit
Once you have agreed to all terms and conditions, the Contract of Sale needs to be written and then signed by all parties.
Typically a deposit of 10% is paid by the buyer to seller at the time the Contract of Sale is signed and exchanged. This figure, however, is negotiable and should be one of the terms stipulated in the Contract of Sale. As the Seller, your legal representative usually holds the deposit in trust until settlement.
Any Contract of Sale concerning property is usually subject to specific legislation in each state and territory. Hence it is critical that you obtain legal advice on the preparation of both the Vendor’s Statement and the Contract of Sale.
Buyers are entitled to a final inspection within seven days of settlement. This is to confirm that the property is in the same condition as when the Contract of Sale was signed. The timing of the final inspection is often stipulated as one of the terms in the Contract of Sale. Additional interim inspections during the settlement period may also be included as terms in the Contract of Sale.
On the day of settlement the seller and buyer meet with their respective legal representatives to complete the transaction. At this time the balance of the purchase price is paid in exchange for the title to the property. And, unless otherwise agreed, the buyer will take possession of the property on the day of settlement.
At settlement, the following exchanges will likely take place:
The original deposit is released to the seller if this has not already happened.
The balance of funds are paid to the seller by either the buyer or the buyer’s financing institution. the full amount for the purchase of the property in return for the title deeds and the keys to the house.
The title deeds are given over to the buyer (or to the mortgage company).
Other outgoings such as rates and other charges are adjusted and settled between the seller and the buyer as per the terms of the Contract of Sale.
The keys to the house and relevant documents such as owner’s manuals and warranties are handed over to the new owner.
Establishing Your Asking Price
Research recent property sales and listings in your area
Obtain a professional valuation
Determine your Asking Price
Determine your Minimum Acceptable Price
Define your ideal Settlement Period (30, 60, 90 days)
Meet with family solicitor or local conveyancer
Prepare Vendor’s Statement
Prepare Draft Contract of Sale
Prepare Property for Sale
Establish repair and maintenance list:
* house exterior
* house interior
* sheds or other buildings
* fences, gates
* pathways and driveway
Photography Engage Professional Photographer perhaps
Own Website www.yourstreetaddress.com.au listed on the internet on various classified sites and private home sale sites.
Deliver Flyers throughout the local area three times repeatedly
Have ads in local papers on average for 60 days running
Moving Obtain quotes from Removalists
Well that’s it for our June focus on Selling Your Home Privately. I hope that this information assists you to save a few dollars and get your home sold for the price you want. If you do manage to do well, then please donate to the Loving Heart Foundation as a way of saying thanks. Our Donate button is at the top of the page on the right hand side.
All the best!