Vendor disclosure legislation in New South Wales requires you to have a Contract for the Sale of Land ready and available before marketing the property and this Contract must include all necessary documents as set out in the relevant law.
It is illegal for you or your selling Agent to advertise your property for sale unless a complete Contract is available to any interested purchaser to look at. There is in fact a penalty for failure to have a Contract available when a residential property is offered for sale.
As a seller you are also required to make certain warranties (promises) to the buyer about the legal ownership of the property, whether it is affected by any Government proposal, whether any Court action is pending or any disputes are in progress, the legality of renovations and many other items.
At Prompt Conveyancing we will go through these requirements and warranties in detail to make sure you comply with your legal obligations under the current legislation.
What is a Contract?
The Contract is an important legal document which sets out information about the property you are selling and also sets out the terms on which you are prepared to sell the property to the buyer – for example:
The legal description of the property (title)
How much deposit you are willing to accept
How much time you will give the buyer to pay the final amount (the settlement date)
Any special terms you wish to include in the sale
What is included in the sale (inclusions and exclusions)
And much more....
What is exchange?
Exchange is the point in time when the deal becomes legally binding.
What should I do between exchange and settlement?
As the seller of the property, you have an obligation to maintain the property in the same order and state of repair as it was at the time of exchange. You should also continue your insurance cover until settlement. You will need to continue to pay all rates and taxes forthe property. On settlement, Prompt Conveyancing will ensure that any rates and taxes paid by you past the settlement date are refunded to you by the buyeron a pro rata basis.
What is settlement?
Completion (usually referred to as settlement) is the final step in the conveyancing process. This is when the full balance of the payment owing to you is made.
This is the moment you cease to be the new legal owner of the property and your name is taken off the title deed (ownership document).