When selling your home…

Selling your home (and moving!!) can sometimes seem quite daunting, however if you are aware of what is involved and of the obligations placed upon you as Seller it can make the whole process seem easier.

After going through the motions of finding the right buyer for your home and signing the Contract of Sale, you may breathe a sign of relief that it is mostly over, but there are still a number of other actions you should immediately take.  Those are:-

1.  Retaining a solicitor- Unless you are well versed in conveyancing practices yourself, it is important that you engage the services of a Solicitor to conduct the legalities related to the conveyance on your behalf.  Your Solicitors will protect your interests throughout the transfer process and you should ensure the details of your chosen Solicitor are included in the Contract of Sale so that your Agents can forward a copy of the Contract to them. 
2. Discharging your mortgage - If you have a Mortgage over the property, you must advise your Mortgagee (ie. Bank), without delay, that the property has been sold.  
   
   You should request that the Mortgagee immediately prepare all documentation and paperwork necessary to release the Mortgage over the property and payout the loan.  Your Mortgagee may require you to sign documentation before they commence discharging the loan.
   
   Ensure that your Mortgagee is aware of the settlement date of the Contract and advise them of your Solicitors details also.  This is very important as your Solicitor will need to deal directly with your Mortgagee to arrange for the payout of the loan and provision of a Release of Mortgage at settlement.
3. Insurance - Pursuant to the provisions of the Contract the property is at the Purchaser’s risk from 5:00pm on the next working day following the date of your signing the Contract. However, it would be prudent to maintain your insurance in case something should happen to destroy the property.
4. Transfer documents - During the conveyancing process your Solicitor will request that you sign a Form 1 Transfer.  This document must be signed in the presence of a Justice of the Peace, Commissioner for taking Declarations or a Solicitor.  The Transfer document once registered with the Department of Natural Resources actually effects the transfer of the property from your name into the Buyers name.
5. Payout figure - You should advise your Solicitor of an approximate loan amount to enable them to ensure that the payout figure provided to them by your Mortgagee accurately reflects your anticipated loan payout.
6. Settlement figures - Approximately 1 week prior to settlement your Solicitor will draft up Settlement figures.  In the settlement figures the purchase price will be adjusted in respect of rates, body corporate levies, rental, excess water charges and other outgoings. It can be helpful if you supply your Solicitor with your most recent rates/body corporate notices, rental deposits statements and excess water accounts.
7. Surplus funds - If it is likely that there will be funds in excess of your loan payout figure, you should give specific directions to your Solicitor in relation to the way in which you require those funds to be dealt with.  If you wish for the funds to be banked to your bank account, you will need to provide those details to your Solicitor.
8. Keys - On the day of settlement it is prudent to arrange to have the keys provided to your Real Estate Agents office for collection by the Purchaser after settlement has been completed.
9. Agents - The commission payable to your Real Estate Agent will often be covered by the Deposit monies held in your Agents Trust Account.  Occasionally the deposit monies will not cover the commission payable and your Solicitor will usually suggest that the payment of the agents' commission be made from the balance settlement monies on your behalf in order to simplify your responsibilities.
10. Buyers inspections - After signing the Contract (and with reasonable notice) the Purchaser is entitled to gain access to the property prior to settlement for the following purposes only:-

 (a) to read any meters on the property;
 (b) for the purpose of having the Building and Pest Inspections (if any) conducted);
 (c) for the purpose of having a Valuation conducted on the property;
 (d) to conduct a inspection of the property prior to settlement.