This post has been written in collaboration with GlobalX Legal Solutions
Whether you are in the market to buy your first house, or you’re an empty-nester selling the family home in favour of greener pastures, transactions involving property are generally the biggest you will ever make.
There is not only substantial sums of money changing hands, but emotions are high, regardless of which end of the contract you are at. Going through a solicitor is always advisable – it’s their job to take care of all the legal bases you need to cover when purchasing or selling a property and they can make sure that your best interests are covered in the process
While you can simply turn everything over to your solicitor, it is always helpful to have an idea of what is happening behind the scenes – it will give you an idea of what to expect in terms of the timeline of your transaction.
The Vendor’s Statement
Also known as section 32 in Australia, this a document that tells potential buyers details about the property that is not obvious from a physical inspection. This can cover things like mortgages, covenants, easements, zoning, outgoings (like rates) and a declaration if the property is in a bushfire-prone area.
This statement must be provided to interested parties before any contract of sale can be signed. If any information that is supposed to be included is incorrect or omitted, the buyer may be able to withdraw from the sale, so it is important to ensure the accuracy of this document.
Other relevant documents
Make sure you include every document that is necessary for the specifications of your property. Do you need a sustainability declaration? A pool fencing safety certificate? This is the time to ensure you have a clearance certificate for the plumbing to your property if you’ve added an extra bathroom or added an extension. Your solicitor will advise on what documents you will need to obtain and include.
Preparing and negotiating a contract
If you are the seller, then you will generally have your solicitor draw up the contract of sale. If you are the buyer, you and your solicitor may want to negotiate the contract if there are sections or wording that don’t work in your favour or you disagree with.
The contract of sale will clearly state important dates, as well as special conditions of sale and any other relevant information. The Vendor’s Statement will likely be incorporated as well.
It is vital that your solicitor checks the contract before you sign it – once signed, unless something unexpected comes up in the building and pest inspection or both parties agree, you are bound by the contract. You cannot simply change your mind about selling, or decide you like a different house better and withdraw your offer.
Conveyancing a property is an involved process, and definitely not one to try yourself or trust to a real estate agent. A law firm that specialises in property will have dedicated software and settlement agents like leading legal software and conveyancing services firm GlobalX Legal Solutions. Law firms and conveyancers that outsource to GlobalX have access to e-conveyancing and the PEXA platform – meaning that your property will now be transacted quicker with less delays in the new digital age of electronic conveyancing.
Have you bought or sold a property recently? Would you have done anything differently if you could have your time again? I’d love to hear your experiences.
This post has been written in accordance to my disclosure policy.
