Step 1 | Pre-Contract
The first step in selling your property typically commences with engaging a Real Estate Agent (Agent). This formally occurs when you have execute an agency agreement. An agency agreement can either be a sole agency (gives one agency the exclusive right to market and sell your property), or general agency (gives more than one agency the right to market your property).
Key details will include:
How they recommend selling your property (advertised price, tender, auction or deadline sale);
What commission you’ll pay (including how this is calculated);
What expenses you’ll pay for (what marketing is free and what isn’t); and
When the agency agreement ends (and what circumstances you might have to pay commission after the agreement ends).
You can read more about what is included in an agency agreement here.
Step 2 | Offers
Once you have determined which Agent(s) to use, it is time to start preparing your property for marketing and sale.
You should also discuss with the Agent and your Solicitor any defects or issues with the property. The standard template for sale and purchase of real estate (Agreement) includes a number of warranties and undertakings that vendors give in relation to both the state of the property and condition of the dwelling e.g. that all appliances, security systems specified in the agreement are in reasonable working order.
It is recommended that your Solicitor review and approve the form of Agreement prior to offers being submitted.
Otherwise, the main priority of this phase is to review and execute the most favorable Agreement. Whilst price is typically the most important consideration, keep in mind that there are a host of other factors available to negotiate, including the:
timing and amount of the deposit;
conditions;
list of items or chattels included within the Agreement;
settlement date.
Step 3 | Signed and Conditional Agreement
Once you have a signed Agreement, the Agent will immediately forward a copy to your Solicitor.
Both the Agent and your Solicitor will monitor the satisfaction of the conditions (if any) recorded within the Agreement. Once the conditions are satisfied, the agreement is deemed “unconditional”, meaning settlement is now effectively locked in.
Step 4 | Un-conditional Agreement
At this point, there is typically no chance for either party to exit the contract. All that is left is for the settlement to actually occur on the agreed settlement date.
Prior to this point, you should make all necessary arrangements to ensure that come settlement you can provide the property in a clean and tidy condition.
Before settlement, you will also need to:
contact and advise your insurance provider to cancel your insurance policy from the settlement date;
book an appointment with your Solicitor to execute the necessary documentation; and
make the property available for pre-inspection.
Step 5 | Settlement
On or before (ideally) the settlement date you must vacate the property. Your Solicitor will be busy:
obtaining authority from your Lender to discharge the mortgage over the property;
awaiting confirmation of receipt of the balance of the purchase price;
repaying the Lender; and
releasing the electronic dealing set up in Land Information’s online work-space.
Once the above steps have been accomplished, your Lawyer will notify the Agent and pay the balance to your nominated account.
Step 6 | Post Settlement
Your lawyer will provide a full report to you:
highlighting the movement of funds in and out of their trust account;
enclosing your outgoing Lenders' repayment statement breaking down how the final settlement figure was calculated; and
enclosing their Tax Invoice highlighting both their fees, disbursements and any reasonable office expenses.
If you haven’t yet obtained a fee estimate, you can obtain an instant estimate of fees by trying our automated online fee calculator here.