Selling your property in New South Wales (NSW) can be an extremely stressful and confusing time if you do not receive the right advice from the outset.
Our property lawyers will make sure that you receive the appropriate advice so that you can understand the selling process from beginning to end when you are selling property in NSW.
Below we have listed a few items which you should be mindful of when seeking to sell your property.
How is the property being sold
When selling a property in NSW, the two main methods of sale are at auction and sale though private treaty.
A sales agent is generally enlisted with the sale of the property. They arrange the marketing campaign and advertising associated with the property.
Contract for sale
Before a property can be advertised for sale, a contract for the sale of the property MUST be prepared. The law in New South Wales dictates when a contract for the sale of property is required and what the contract must contain. The Conveyancing (Sale of Land) Regulation 2017 is an important instrument is the sale of property.
Given that the law regarding sale and purchase of property in NSW is constantly changing, it is essential that you obtain legal advice so as to be aware of the legal implications of selling your property in NSW.
Vendor Disclosure Requirements
The contract for sale must include certificates and information related to the property and prescribed by the law. The certificates are ordered by your solicitor and may take up to 10 business to be received. It is essential that you speak with your property lawyer as soon as possible to avoid delays in marketing your property.
Required Documents
The documents which must be contained in your contract are:
- A recent certificate of title which confirms who owns the property and whether there are any dealing registered on title. This certificate shows whether there is a mortgage on title and/or any dealings registered against the property (eg. easements, caveats, restrictions, rights of way, leases).
- If the certificate of title shows any dealings on the title, then they must also be provided in the contract. If you have a mortgage on title, it does not need to be in your contract.
- The deposited plan of the land which shows where the land is located and the size of the land. If the property is strata titled, then you must provide a copy of the strata plan. The strata plan shows where the strata lot is located, its entitlements and the size of the lot.
- If the property is strata titled, you must also provide a copy of the common property title, by-laws, any amended by-laws, the details of the strata manager and all dealings registered on the common property title.
- A zoning certificate from your local Council. This shows the zone of the land, any planning restrictions and the general planning of the area.
- Sewer service diagram and sewer location diagram which show the location of the sewer service lines and mains.
Further certificates may be required (eg. final occupation certificate, certificates regarding swimming pools, etc.). It is best to consult your property lawyer to determine whether any additional certificates are required.
Exchanging Contracts
If the property is being sold by private treaty, a purchaser may sign a contract placing an offer. The contract is only binding once the vendor also signs the contract. If the property is being sold by auction, then the property is deemed as sold if the highest bidder makes an offer that the vendor accepts.
Cooling off period
If a property is sold by private, you may agree to a cooling off period. The cooling off period is used by the purchaser to finalise their finances and obtain a pest and building inspection/strata report on the property. The cooling off period is generally a 5-business day period. The vendor may request the purchaser have their solicitor provide a Section 66W Certificate which waives the purchaser’s cooling off entitlements.
If purchaser rescinds the contract during the cooling off period, then the vendor can relist the property for sale and retain the purchaser’s holding deposit. If the purchaser is unable to complete the sale after the cooling off period expires then you will require legal advice to determine your rights.
What’s next?
Once a contract is unconditionally exchanged, the vendor will need to prepare a discharge of mortgage. If the property is unencumbered, the vendor will need to provide their property lawyer with the certificate of title. There will also be other forms which need to be completed such as foreign capital gains withholding declaration form.
Your property lawyer will then confirm with you the steps to follow.
We charge low fixed legal fees to avoid any uncertainty and surprises when it comes to your property lawyers fees.
If you are wanting to sell your property, contact our property lawyers today to see how we can assist you.
