SELLING PROPERTY

Appointing a real estate agent and preparation of the contract of sale and section 32 vendor statement
Vendors will generally instruct their property lawyer to prepare a contract and section 32 vendor statement after appointing a real estate agent. Your lawyer will ask you a series of questions that you need to answer about the property, as well as undertake necessary searches that need to be included in the document. At this stage, the vendor will only sign the section 32 vendor statement once it is ready and not the contract of sale. 
Sale/Execution
Once a purchaser has been found, the parties will negotiate the price and settlement date for the sale, along with any other conditions such as finance. This will be recorded in the contract of sale. After everyone has agreed on the terms, the contract will be signed by the purchasers first followed by the vendors. Many contracts are executed electronically and a deposit is usually paid into the trust account of the real estate agent. 
Conditions precedent
Sometimes there will be conditions which need to be met before settlement can proceed. The most common conditions include approval of finance, building and best inspections and in the case of "off the plan" purchases, the completion of the subdivision or construction. Once these are met, the contract can proceed to settlement. 
Adjustments and final inspection
The purchasers lawyer will need to prepare a statement of adjustments so that rates and charges on the property are apportioned fairly between the vendor and purchaser. At this point, the purchaser is entitled to  undertake a final inspection of the property before settlement. A vendor must make sure that the property is handed over in the condition it was in at the time of sale (save for fair wear and tear) and empty of all belongings (if the property was sold as vacant possession).
Settlement

On the day of settlement, the purchaser will pay the vendor the balance of the purchase price plus any adjustments. The title (together with all risks and responsibilities that come with it) will be passed to the purchaser. It is important that a vendor maintain their insurance of the property until settlement is completed.  Settlements in Victoria take place electronically and your lawyer will let you know once it is completed. 

CONTACT OUR 
PROPERTY
LAWYERS
Conveyancing steps for selling property

Generally speaking, your sale transaction will go through the following five steps:


  1. Appointing a real estate agent and preparation of the contract of sale and section 32 vendor statement
  2. Sale/Execution
  3. Conditions precedent
  4. Adjustments and final inspection
  5. Settlement


Legal advice for vendors

The process of selling property might seem intimidating at first since it is not something most people undertake often. Our property lawyers can assist you through the whole process as a vendor. Once the decision to sell a property has been taken, the typical next step is for the vendor to appoint a real estate agent to manage the transaction. The vendor's agent will next request that the vendor have a section 32 (also known as a vendor statement) and contract of sale of real estate drawn out by property lawyers.

Contract of Sale and Section 32 Vendor Statements

It's important to remember that the contract of sale and section 32 vendor statement is the most important document during the conveyancing process. The contract will record the terms of the sale and is a legally binding document. Breaching its terms can have serious legal ramifications. A section 32 vendor statement is a set of documents that must be given to a potential buyer of the property before they sign a contract pursuant to the Sale of Land Act 1962 (Vic). An inaccurate or incomplete section 32 vendor statement can give the purchaser the right to terminate the contract. Your property lawyer will make sure that the contract and section 32 vendor statement meets all the formal requirements of the Sale of Land Act 1962 (Vic). 

Client Testimonials

PERA LAWYERS

Copyright © 2020 Pera Lawyers Pty ltd (ACN 646 048 419) as trustee for the Pera Trust trading as Pera Lawyers (ABN 454 994 910 21) - All Rights Reserved.


LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION