The Process of Selling Property
Preparation of the contract
In NSW a Real Estate Agent requires a contract for sale prior to marketing a property for sale. The contract will include documents from Council, Water and the Land and Property Information.
Prior to exchange of contracts
Once the Vendor has accepted an offer from a Purchaser, the Real Estate Agent will notify BK’s Conveyanicng and the Purchasers legal representative by way of a sales advice. This is the beginning of the exchange process.
The Vendor should be aware that nothing is binding upon either party until contracts are exchanged.
Exchange of Contracts
In NSW contracts are formed when counterparts are exchanged, meaning that we pass over (hence "exchange") the counterpart signed by the Vendor for the counterpart signed by the Purchaser. A "counterpart" of the Contract is an exact copy of the Contract signed by the both parties.
Cooling-off period
In NSW there is usually a 5 business-day cooling-off period after the exchange contracts. Within this cooling-off period the Purchaser is entitled to withdraw from the contract. If the purchaser withdraws from the contract they will only forfeit the 0.25% deposit they are required to pay upon exchange of contracts. If the Purchaser proceeds then they are required to pay the remaining deposit amount to the agent at the expiration of the cooling-off period.
Unconditional exchange of Contracts
The Vendors can require the Purchaser to waive their cooling-off rights. This is usual and normal where the Purchaser has the benefit of legal advice before the Contract is exchanged. A Section 66W certificate (a certificate which is signed by the Purchaser’s legal representative) needs to be handed over on exchange by the Purchasers legal representative. This certificate will waive the cooling off period and make the contract binding as at the date of exchange.
Post exchange of Contracts
Settlement is usually six weeks from the date of exchange.
Immediately after exchange the Vendor needs to notify their mortgagee of the sale. This enables the mortgagee sufficient time to prepare the discharge of mortgage.
BK’s Conveyancing will then liaise with the Vendors mortgagee and the Purchasers legal representative and book a convenient time for settlement.
Prior to settlement the Vendor will be notified of how the settlement proceeds will be disbursed. All outstanding Council, Water and Strata rates will be paid.
Settlement
BK’s Conveyanicng will attend the settlement on your behalf.
This final step is the process where the Purchaser is required to pay the Vendor the balance of purchase price and the property is transferred to the purchaser.