Selling Your Home in Queensland
Step 1: Preparing the contract of sale
The first step is to guarantee that you have your contract of sale drawn up by a licensed real estate agent, lawyer or conveyancer before advertising your property for sale.
It should contain a warning statement specifically above where the purchaser signs, you can find the wording of this here http://www.qld.gov.au/.
In your agreement, indicate if any chattels are to be excluded, for example, pot plants or machines. Dishwashers, range hoods; curtains and blinds are usually included in the sale.
If there are swimming pools, you should either get a pool safety certificate from a licensed inspector, or give the purchaser a Form 36 – ‘notice of no pool safety certificate’ before selling (accessible from QBCC at https://www.qbcc.qld.gov.au/ ).
A copy of the completed Form 36 must be sent to QBCC before settlement. The purchaser must obtain a pool safety certificate within 90 days of settlement.
Step 2: Pricing
It is illegal to misrepresent the property’s sale price. The selling price cannot be less than that quoted by the agent or the minimum amount you would accept. To research your price, you can:
look for comparable sold properties and for sale properties online at www.realestate.com.au
Get a formal valuation from an independent property valuer.
Ask for a property estimate or price range from a reputable real estate agent.
Step 3: Private Inspections
The third step would be inspections. You will need to allow purchasers to review the property through open homes or private inspections once the property is advertised. Potential purchasers may therefore request a copy of the contract of sale.
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.
Ensurer your real estate agent, lawyer or conveyancer examines any progressions made by the purchaser to the sales contract.
In the event that somebody makes you an offer on your property, you may take a holding deposit of the total or a nominated fractional sum. This ought to be held in your real estate agent’s, lawyer’s or conveyancer’s day trust account and must be returned if the offer is rejected.
Step 5: Signing the contract
The following step in the lawful procedure of selling a property in QLD 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 should sign your copy, and give it to the buyer to sign also. From now on, you could consider marking your property as “Under Contract” on various sites, however it is recommended to keep a record of all enquiries from other prospective buyers just in case the deal falls through.
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 need to happen face to face, it could be by means of mail or by means of a third party, for example, your real estate agent, conveyancer or solicitor.
Remember that you and the purchaser aren’t lawfully bound until all copies of the agreement have been signed and exchanged.
Step 7: Cooling Off
Save some exceptions, in QLD, the buyer of residential property is entitled to a cooling off period of five business days.
The cooling off period commenced from when the purchaser receives a copy of the contract of sale signed by both parties. At this time, the purchaser can cancel the sale but will have to pay the seller a termination penalty of up to 0.25 per cent of the sale price.
The deposit must be reimbursed within 14 days.
There is no cooling off period after a failed auction when:
an offer is acknowledged within two full business days after the auction, or
the buyer was a registered bidder.
To withdraw from a deal, the buyer must notify the seller or their agent in writing, sign it and deliver it by 5pm on the fifth day. They can do so in face to face, by email or fax.
The cooling off period can be cancelled or reduced by notifying the seller or their agent in writing.
The amount of the deposit is payable by the purchaser and is to be held in a trust account after cooling off (e.g. 10% of the purchase price less holding deposit).
Once contracts have been exchanged, the seller or their agent can’t just cancel the sale. Once the deal has cooled off or genuinely exchanged, the property is considered sold.
Step 8: Settlement
Both parties will consent to a settlement date once the contract for sale 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. Your licensed Real Estate Agent, Conveyancer or Lawyer may meet with the purchaser’s solicitor to guarantee they have everything required for the deal to be finalised.
Selling via Auction
If there is high demand for your property you may like to offer it on an auction. It is advisable to book your Auctioneer before marketing your property, so that the date and time can be incorporated into any advertising.
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.
Finally, if you are a near retirement or already retired, ensure that you contact Centrelink, your Accountant or a certified Financial Advisor to ensure that the proceeds from the sale of your property are divested correctly so as not to compromise any Aged Pension entitlements.