The process of selling a property is often misunderstood by vendors. One cause of this is that many Conveyancers and Conveyancing Lawyers consider Conveyancing to be transactional work. This is where Navado's Conveyancers are determined to add value to the process and are comprehensive in their approach, when acting for Vendors.
In order to help elucidate what actually goes on behind the scenes in a sale matter, our Conveyancers & Conveyancing Solicitors have broken down the process into four main stages.
Stage 1. Preparation of the Contract
The Contract is a legal document which creates a legally enforceable agreement between the vendor and the purchaser. Contracts for the sale of land must be in writing, and, in the course of being prepared by the Conveyancer or Lawyer for the vendor, is usually drafted in a way which ensures that the vendor has substantially more rights than the purchaser.
At Navado, we have systems and procedures in place and use state of the art technology and information platforms to ensure that the Contract is prepared as quickly and as efficiently as possible. We also include in each and every Contract our own brand of Special Conditions which are designed to tip the balance of rights and interests in your favour. Our Special Conditions have been refined continuously over the past decade and reflect our experience and expertise in the field of Conveyancing.
We also take an extra step by thoroughly advising you on the effect of each and every provision of the Contract. It is important to us that you understand:
- the rights and obligations you have under the Contract
- the rights and obligations the purchaser has under the Contract
- what has been included in the Contract and why these have been included
- what you are required to disclose to potential purchasers
Stage 2. Exchange of Contracts
It is commonly assumed that when the time comes for the parties to sign the Contract, they sign the same Contract. This is not the case. The standard practice in New South Wales is that each the vendor and purchaser sign separate, albeit identical, Contracts. However, a binding agreement does not come into existence simply because each the vendor and purchaser have signed their own Contracts. The Contracts must be ‘exchanged’ in the literal sense in order for there to be a binding agreement between the parties. This is a physical process, whereby the vendor gives to the purchaser their signed Contract and vice versa. Of course, the process of exchange also necessarily involves the person conducting the exchange (usually the agent but sometimes the vendor’s solicitor) ensuring the Contracts are in fact identical. The date of the Contract is the date of exchange.
Stage 3. Cooling off period
Generally, the law provides for a 5 business day cooling off period as soon as Contracts are exchanged, during which time the purchaser is entitled to terminate the Contract. Usually we request that this right is waived, meaning that there is no cooling off period and that upon exchange, the purchaser is unconditionally bound to the Contract.
In circumstances where the cooling off period is not waived, and the purchaser decides to rescind the Contract within the cooling off period, they will only forfeit 0.25% of the purchase price. For example, if the purchase price for a property is $100,000, the purchaser will only forfeit $250 to you. However, once the cooling off period expires, the purchaser is unconditionally locked into the Contract. If they rescind the Contract at this point, they will likely lose the full 10% deposit and face further ramifications (such as being sued for damages). Note that there are specific circumstances where there is no cooling off period such as if the property was sold at a public auction.
Under the standard terms of the Contract, settlement (otherwise known as ‘completion’) is due on the 42nd day after the date of exchange (though, this can be changed). At settlement, both parties fulfil their ultimate obligations under the Contract, that is, the Purchaser pays to the Vendor the outstanding amount owing on the purchase price and the Vendor provides to the Purchaser legal title and ownership of the property. It is not necessary for the Purchaser or Vendor to attend the settlement.
Overall, settlement is not an overly complex procedure. However, there are many things which can and do go wrong at settlement (a common example is that a bank cheque is incorrectly drawn). It is therefore important that you have a diligent and meticulous Lawyer taking care of your conveyance.
For more information, contact our office and arrange a free first home consultation with a member of our Conveyancing team. We service most areas within the Sydney metropolitan area including Baulkham Hills, Campbelltown and Bondi Junction. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
- We have been operating since 2001
- Fixed Fees - $ 590 plus disbursements
- We have a 'can do culture' - we deliver
- We promptly return phone calls and emails
- We have regular repeat business
- Our staff attend Sydney settlemements
- Our staff are humble and hard working
- Senior staff hold Honours Law degrees
- Senior staff personally oversee your file
- We have state of the art technology
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
Date: Feb 24, 2012
Tags: conveyancing, residential sale, commercial sale
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Tags: conveyancing, residential sale, commercial sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential purchase, residential sale, commercial purchase, commercial sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, conveyancing, residential sale, residential purchase, commercial sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential purchase, residential sale
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Tags: conveyancing, residential sale
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Tags: conveyancing, residential purchase, residential sale
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Tags: conveyancing, residential sale
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If you are buying or selling a property and require Conveyancing services, you should make an appointment to see one of our Conveyancing Lawyers in one of the following locations:
- Sydney
- Parramatta
- North Sydney
- Hurstville
- Liverpool
- Gordon
- Baulkham Hills
- Campbelltown
- Bondi Junction
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