SOUTHERN HIGHLANDS PROPERTY CONVEYANCER MITTAGONG, HILL TOP, NSW

When looking to sell a property, people will generally contact their Real Estate Agent as the first step in selling their home.  However, your Real Estate Agent cannot market your property or show it to any buyers until they have a Contract for Sale.

Getting your Contract started as one of the first steps will put you on the front foot and get your property on the market sooner.

It can take around a week to obtain all the necessary Contract searches so it’s best to get the wheels turning as soon as possible.

If you’re selling a property with a Swimming Pool or an Spa Pool then your pool or spa must be registered on the NSW Swimming Pools Register.

You must also attach to your Contract for Sale one of the following certificates:-

• A valid Certificate of Compliance; or
• An Occupation Certificate less than 3 years old and evidence that the swimming pool is registered; or
• A valid Certificate of Non-compliance.

If you do not have either of the above Certificates, then you must get your Swimming Pool Inspected before the Contract can be issued.

If you sell your property with a Certificate of Non-Compliance then the Purchaser has 90 days from the date of settlement to make the pool or spa compliant.

In NSW, the Contract for Sale of residential property (under 2.5 hectares in area) provides the Purchaser with a standard cooling off period of 5 business days where they can change their mind after entering into the Contract.  During this time the Purchaser will carry out their ‘due diligence’ on the property.  Although the Contract provides for 5 business days, it is quite common for a Purchaser to negotiate an extension of this cooling off period to 10 business days.

The cooling off period does not apply to the Vendor and the Vendor is locked into the Contract from exchange.  During the cooling off period, a Vendor cannot sell the property to anyone else.

If the Purchaser rescinds the Contract during the cooling off period, they will forfeit the sum of 0.25% of the purchase price to the Vendor.

Under a Contract for Sale a Purchaser is required to pay a deposit on exchange of contracts, typically being 10% of the purchase price.

It is becoming increasingly common for a Purchaser to request to pay a reduced deposit of 5%.

There was, and to some extent still is, a commonly held assumption that where a  Vendor accepts a reduced deposit, adding a Special Condition to the Contract will secure the balance of the 10% deposit to the Vendor if the Purchaser cannot settle.

These conditions have been tested by the Courts and in most circumstances have failed.  Therefore, as a Vendor you need to think twice about whether you accept a reduced deposit and if you do, be satisfied with that amount.

If you require finance for your purchase, we recommend that you have your loan pre-approved before you go house-hunting.

Not only will it ensure that you keep within your budget, it will also speed up the process of final approval once you’ve found a property.

Pest and Building Inspections are part of the Purchaser’s Due Diligence when buying a property and should be carried out before committing to the purchase.  It is best to have someone who knows what they are doing inspect the property for you.  You may be paying a few hundred dollars up front to save yourself potentially thousands of dollars and potential heartache down the track.

Transfer Duty, formerly known as Stamp Duty, is a tax charged by the State Government on property transfers.

Rates vary depending on the purchase price and exemptions and concessions on duty may be available in some circumstances, for example eligible First Home Buyers.

If you’re considered a Foreign Purchaser you may also be liable for Surcharge Transfer Duty.

From time to time an unexpected situation can arise which causes either party to delay settlement.  If the parties are unable to reach an agreement to extend the settlement date then the delay may result in significant legal and financial implications for the defaulting party pursuant to the terms of the Contract.

Vendor delays are often caused by the Vendor, or Tenant, being unable to fully vacate the property on time or a delay with the Vendor’s  discharging mortgagee not being ready to discharge the mortgage in time.

Purchaser delays are often caused by not having sufficient funds ready in time for settlement or by the Purchaser not satisfying their incoming mortgagee’s requirements in a timely manner.

While we are Southern Highlands conveyancers, we can assist with Conveyancing Mittagong, we’re Bowral conveyancers, Hill Top or further afield. We are experienced property conveyancer in Campbelltown / Macarthur and in fact can assist you with your Property Conveyancing needs as a buyer or vendor anywhere in New South Wales.