Selling Your Property in Western Australia
Step 1: Preparing the contract of sale
The first step is to guarantee that you have your contract of sale drawn up by your lawyer or conveyancer before publishing your property available to be purchased.
This is known as the Contract for Sale of Land or Strata Title by Offer and Acceptance (or O and A for short). A Joint Form of General Conditions for the Sale of Land (the General Agreement) equally has to be provided to the buyer and vendor when an offer is made.
In the 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.
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
Get a paid valuation from an independent property valuer.
Ask for an estimate price or range from a licensed real estate agent.
Step 3: Private 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 an offer
Offers are submitted in the way of a signed O and A. Buyers may add an expiration clause to the sale contract so that the offer lapses after a period of time if the seller has not signed by a specific date. Ensure that your real estate agent, lawyer or conveyancer examines any progressions made by the purchaser to the sales contract.
In the event that somebody makes 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, conveyancers or lawyer’s trust account but must be returned if the offer is rejected.
Step 5: Signing the contract of sale
The following step in the legitimate procedure of offering a property in WA is for you to sign the O and A. Once the document is signed by you and the purchaser is told that you have agreed, it turns into a binding contract of sale. Any progressions or counter-offers can be made on the O and A and initialed.
A copy of the signed contract must be given to the purchaser and seller.
From now on, you may consider your property as “Under Contract” however it is recommended to keep a record of all enquiries from other prospective buyers just in case the deal fall through.
In WA, there is no cooling off period for the purchaser or seller so it can be considered as sold.
You as the seller and the purchaser will agree to a settlement date once the contract has been signed. Settlement is generally 30 to 90 days after exchange however both parties can agree to a different period.
At settlement the purchaser “settles” their purchase by paying the entire amount. They should likewise repay the cost of the building and compliance inspection report, and pest examination report.
In case you’re using a conveyancer or 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 your property, so that the date and time can be incorporated into any advertising.
Upon the arrival of the auction, the base price is set with the auctioneer; this is known as the reserve. 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. The deposit which is usually 10% is immediately payable at the end of the auction.
Settlement happens in a similar manner as for a private treaty sale.
Finally, if you are a near retirement or have 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 at settlement are divested in such a way so as not to compromise your Aged Pension entitlements.