Selling your home is an exciting experience, the processes associated with it are also quite complicated. Though the process may seem overwhelming, breaking everything down will help you keep your head straight while you look for your next home or adventure. Here are a few points to consider when selling a home in NSW.
Can you afford it?
Prior to selling your home, you need to discern whether selling the property is within your means.
To sell your home you need to make a full loan repayment, is this amount more than how much you
can sell your home for? Have you budgeted for the cost of transfer duty for when you purchase your
next home, for example a property that costs $750,000 the transfer duty payable is $29,105.
When should I see a property lawyer?
You cannot advertise for sale until a contract has been prepared. Contact a property lawyer at least 5 days before you wish to have your real estate agent begin marketing your property. This is to allow time to obtain “Vendor Disclosure” documents from various Government authorities and to properly draft the contract.
Under Australian law, a vendor must disclose certain information to a purchaser when contracting to sell residential property.
- Deposit Plan or Strata Plan
- An Environmental Planning and Assessment Certificate
- A diagram of the sewerage system of your property
- Evidence of any restrictions to the use of your property
For example, if there is a footpath that crosses over your front lawn.
What other factors should I discuss with my property lawyer?
- Have you received any letters or notices from local authorities which affect your property, such as changed traffic conditions, neighbours notice of DA application, acquisition of land etc
- Recent renovations – kitchen, bathroom, or extension, if the costs is more than $20,000 then the vendor is obliged to provide you with a Home Owners Warranty certificate. This would cover structural repair costs for 6 years and non-structural for 2 years.
- Is there a swimming pool? Or a pond that is more than 300 millimetres deep.
When selling, be aware that other people besides prospective purchasers will be attending your property on behalf of the purchaser before or after exchange, such as bank valuers, building and pest inspector, purchasers surveyor, council building inspectors etc.
How much is the Deposit and when is Completion?
Generally, the deposit is 10% of the Contract Price and Completion is 6 weeks from exchange of contracts.
The deposit is held in the estate agent’s trust account until completion. If it suits you better, the settlement time can be longer, such as 8,10 or 12 weeks. However, this may be less desirable for more purchasers.
Generally, the purchaser will request that you accept a lesser deposit, of 5% in lieu of 10% or exchanging with a deposit bond. Please contact our office to discuss further the legal implications
of accepting a lesser deposit or deposit bond. it is a good idea to get in contact with a property
lawyer as soon as possible to get further advice. If you require more information on selling a property feel free to contact us on 9774 3175 or alternatively you can email our office at