Selling your home is exciting and emotions can run high!

The purpose of this Guide is to provide clients with an outline as to what is involved in a conveyancing transaction and offers recommendations to help ensure a smooth process for both yourself and for us. We recognise that selling a property is a major financial and emotional event, so we aim to simplify the process and encourage your active involvement to keep you informed and reduce communication issues. This information is provided to you to assist with the settlement of your sale and is not intended to constitute legal advice. We recommend you contact us to obtain advice specific to your circumstances.

Your Obligations

You have an obligation to bring to your Conveyancer’s attention any matters that you think may affect your interests in the transaction. Especially if financial information seems incorrect, if you plan to change the settlement date, or give early possession.

It is important that you respond promptly to document signing requests, especially with tight settlement deadlines.
Take prompt action in attending to any special conditions contained in the contract, which have either been stipulated or you may need to satisfy.
If you will be away before settlement, contact us to confirm document signing and provide alternate contact details.
In a contract of sale, it is essential to provide material facts to ensure transparency and protect consumer rights. For more information, you can refer to the Consumer Affairs Australia Material Facts Guideline here.
Preparation of your Contract of Sale and Section 32 statement typically takes 10 business days. This timeline depends on receiving all necessary documentation from you. To ensure a smooth process, please review and return any required documents as soon as possible.

Your Deposit

Most Contracts will specify that a purchaser is required to pay a deposit amount (generally 10% of the sale price) at the time the purchaser signs the Contract or by a specified due date. The deposit must be paid to your real estate agent or our office (if no agent is involved) to be held on your behalf pending settlement unless it has been agreed to by the purchaser to release the deposit to you prior to settlement by way of Section 27.

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Early Release of Deposit

There are specific “particulars” that the vendor must disclose pursuant to Section 27 of the Act, however the purpose of requesting the release does not need to be disclosed.

The vendor must disclose:

The details of any mortgage over the land with supporting evidence from the mortgagee; and
Particulars of any caveat lodged under the Transfer of Land Act 1958 in respect of the land.

Where a vendor knowingly or recklessly supplies false information, they may be found guilty of an offence under the Act and liable to penalties. If the purchaser is not satisfied by the particulars disclosed in a Section 27 Statement, they may object within 28
days of the vendor issuing the Statement.

The purchaser may object if:

The vendor has not provided supporting evidence from the mortgagee as to the particulars of the Statement;
The vendor owes more than 80% of the sale price; or
A caveat has been lodged in respect of the land.

If the purchaser fails to provide a valid objection within 28 days of receiving the particulars, pursuant to Section 27
(7) of the Act, they shall be deemed to have given authorisation to the early release of the deposit.

Discharge of Mortgage

If there is a mortgage currently registered on the title, then you should contact your bank as soon as possible, and take whatever action is necessary to ensure that they are ready with documents to discharge the mortgage by the settlement date. Once the property has sold, we will provide you with an “Authority to Discharge” form for which you must complete and sign without delay. In cases where you are only “partially” paying out the debt, the discharge process may take even longer, (especially if a valuation is required on the remaining security properties). Any questions or concerns about your loan/discharge should be directed to your financial institution.

Certificate of Title

If the property is not mortgaged, and YOU hold the paper title, we will require you to forward or deliver the title to our office prior to settlement. If you are posting the title, please ensure that it is sent by registered mail for security reasons. If the title is being held by another legal representative, you will need to contact them to authorise the release of title to our office.

Insurance

We strongly recommend that you maintain your insurance policy until settlement has been completed. The reason for this is the property remains at the risk of the vendor and the purchaser can terminate the contract in the event of substantial damage or destruction.

Taxation & Financial Implications

The sale or disposal of real estate may cause a Capital Gains Tax event to occur meaning tax may be payable as a result of the sale. If the property has been solely utilised as your main residence you will usually qualify for the Principal Place of Residence Exemption. There may be circumstances where you do not qualify for the full Principal Place of Residence Exemption, if, for example, you have conducted a business from home or worked from home, or not resided in the property for the full period of ownership. Moonee Valley Conveyancing & Darebin Conveyancing are not taxation experts or financial advisors and you should seek appropriate accounting and financial advice concerning the taxation and financial implications of your transaction. Any information that we provide concerning the proposed taxation and financial implications of your transaction should not be relied upon as a substitute for expert advice.

GST

From 1st July 2018, if you are selling a new residential premise or a new title/vacant land property and are registered for GST, the GST will be required to be forwarded by the purchase to the ATO at settlement. Please ensure you correctly completed the GST Withholding Notice attached in your initial documents. For further information please seek appropriate accounting and financial advice.

Utilities

Disconnection of utility connections such as telephone, gas, electricity are your responsibility, and these steps should be taken in advance as there can be waiting periods. We notify all rating authorities (council and water & OC if applicable) that you are no longer the owner of the property immediately after settlement. From that point on, all notices will then be sent to the purchaser by the relevant authorities.

Council Rates, Water Rates, Owners Corp & Land Tax

Generally, you will be obliged to pay the rates on the property and the purchaser is responsible for them after the settlement. The purchaser’s representative will calculate the rates adjustment, and we will double check the amounts prior to settlement. Rates are adjusted by you paying the rates in full for the current financial year and then the purchaser reimburse you at settlement. Closer to settlement, we will provide you with a Statement of Adjustments outlining the amounts payable by you and the balance of proceeds that you will receive from your sale.

If you receive an invoice for payment of your outgoings that are due within 2 weeks of settlement, please do not pay these invoices as it will be apportioned, and payment will be made at settlement.

What You Need to Do Before Settlement

You should ensure the property is empty and cleaned prior to settlement. If you leave belongings at the property or if it is not adequately cleaned, it could lead to issues during the settlement process. If the property has been damaged between the offer being accepted and settlement, it will be your responsibility to repair such damages prior to settlement. The purchaser is entitled to conduct a final inspection of the property in the week before settlement and the purpose of the inspection is to establish that the property is in the same condition as at the day of sale, fair wear and tear excepted.

Settlement

Settlement takes place via an online platform called PEXA (Property Exchange Australia), allowing electronic fund transfers and registration of documents to occur in real time. Transactions completed on PEXA have the transfer and mortgage documentation checked in advance by Land Victoria and duty on the transfer assessed by the State Revenue Office in advance. This system aims to make property transactions more efficient, secure, and less reliant on paper-based processes.

Whilst settlement will be scheduled for a specific time on the due date, it is important to note that settlement is dependent on all parties signing off which may cause settlement to roll over every 30 minutes until all parties are ready. The settlement process can take up to 30 minutes. You do not need to attend settlement.

Handing Over The Keys

Prior to settlement you must hand over all keys, remote controls and other access devices to the selling agent. The purchaser will then collect the keys from the agent’s office. The agent will only hand over keys upon receipt of written authorisation from our office, which will be sent to the agent immediately after settlement has taken place. Where possible, you should leave any with instruction books and household information in the property. If there is no agent, you should arrange collection of the keys with the purchaser direct. Alternatively, you can arrange to deliver the keys to our office, and we can hand them over.