Real Estate in Australian Capital Territory
Step 1: Getting started with the contract of sale
A contract of sale must be drawn up by your real estate agent, a lawyer or a conveyancer before publishing your property available to be purchased.
There are different accompanying reports required based upon the kind of property, in regards to the physical state of the building and a statement of any provisions that may affect the permissible utilization of the house or land.
Refer ‘Reality Check – a real estate guide for purchasers and dealers in the ACT’ to discover which of the following you will require (https://www.accesscanberra.act.gov.au):
The Crown Lease
The Certificate of Title
A copy of any encumbrance shown on the Certificate of Title
A statement about any encumbrance not shown on the Certificate of Title
Asbestos assessment report or asbestos advice
The deposited plan
A Building Conveyancing Enquiry
A Lease Conveyancing Enquiry
An Energy Efficiency Rating Statement
A Building and Inspection Compliance Report
A Pest Inspection Report
A copy of the unit’s plan or proposed unit’s plan
A Certificate of Title for the common property
A copy of the minutes of meetings of the owners corporation and executive committee for the last two years
A Unit Title Certificate
Step 2: Pricing
It is illegal to misrepresent the property’s sale price. The selling price cannot be less than that quoted by the real estate agent or the minimum amount you would accept. To research your price, you can:
You can look for comparable sold properties and for sale properties online such as http://www.realestate.com.au.
Get a valuation from an independent property valuer.
Ask for a property valuation estimate or range from real estate agents.
Step 3: Private Inspections
The third step would be inspections. You will need to allow purchasers or their authorised representatives to review the property through open homes or private inspections once the property is advertised.
Step 4: Receiving the offer
In most cases, offers take the form of a signed contract for sale of residential property. Buyers may add an expiration clause to the sale contract so that the offer lapse after a period of time if the seller has not signed by a specific date.
Have your real estate agent, lawyer or conveyancer examine any progressions made by the purchaser to the sales contract.
In the event that somebody makes an offer on your property, a holding deposit is needed which is usually a percentage of the total or a nominated fractional sum. This is to be held in a trust a account and to be returned to the offerer if the offer is rejected.
Step 5: Signing the contract
The following step in the lawful procedure of selling a property in ACT is for you and the purchaser to both sign the contract of sale.
Two copies of the agreement are required, one for you to sign and one for the purchaser to sign. You must sign your copy, and provide it to the buyer to sign also.
Step 6: Exchange
Exchange implies that both you and the purchaser have signed a copy of the contract of sale and have exchanged the contract with each other.
Exchange doesn’t really need to happen face to face, it could be by means of mail or by means of a third party, for example, your conveyancer. Remember that you and the purchaser aren’t lawfully bound until all copies of the agreement have been signed and exchanged.
The amount of the deposit is payable by the purchaser and ought to be held in trust until settlement happens (e.g. 10% of the purchase price less holding deposit).
Once the is deal genuinely exchanged, it can be marked as sold.
Step 7: Cooling Off
The cooling off in ACT is 5 business days. However this can be changed if both sides agree. To change it you have to get legitimate guidance and a signed certificate from a lawyer to give to the seller.
The cooling off period begins the first business day after you exchanged the agreement. Meanwhile, the purchaser can withdraw from the deal. However, if the buyer makes their offer after bidding at an unsuccessful auction it is generally unconditional with no cooling off period.
On the off chance that the purchaser cancels the deal in this period, they’ll need to forfeit 0.25% of the purchase amount.
You should return any deposits paid, minus the 0.25% – if a deposit hasn’t yet been paid, the purchaser will owe you the 0.25%. The 0.25% is not applicable in the event the buyer has terminated the contract as per the allowable terms of the contract.
After the expiration of the cooling-off period, the amount of the deposit is payable by the purchaser and ought to be held in trust until settlement happens (e.g. 10% of the purchase price less holding deposit). Once the deal has genuinely exchanged, you can go on and mark it as sold.
Step 8: Settlement
You and the purchaser will confirm on a settlement date once the contract has been signed. Settlement is generally 30 to 90 days after exchange yet both parties can agree to a different period.
At settlement the purchaser ‘settles’ their purchase by paying the whole amount. They should likewise repay the cost of the building and compliance inspection report, and pest examination report. If you’re using a real estate agent or a lawyer, they may meet with the purchaser’s solicitor to guarantee they have everything required for the deal to continue.
Selling via Auction
It is advisable to book an Auctioneer before posting a property, so that the date and time can be incorporated into any advertising.
All the required documents including without limitation the auction guidelines, contract for sale of residential property must be on display at the auction for no less than 30 minutes prior to auction start.
The property is considered sold once the reserve price is met or surpassed. If no reserve was set, then the highest bidder wins at any price. There is no cooling-off period for a property sold at auction and the contract of sale is unconditional. Settlement happens in a similar manner as for a private treaty sale.
Selling by Tender
This technique for selling can be used, whereby purchasers are required to present their written offer by a predetermined time, and the seller can acknowledge the highest offer (or not). A holding deposit might be required with the offer. There is no cooling off period under this technique.
If you are a near retirement or already retired, ensure that you contact Centrelink, your Accountant or certified Financial Advisor to ensure that the proceeds from the sale of your property are divested correctly so as to comply with your Aged Pension entitlements.