Legal Considerations When Selling Your Home

August 22, 2020
first home buyer tips

Selling your home can be difficult and stressful. A lot of the time, it’s your largest asset and getting a good price for it is likely going to play a big part in your future financial plans.

If you don’t have much experience with selling property, then you might not be entirely aware of all the legal considerations and steps involved in selling your home.

Here are some of the most important legal considerations when selling your home.

Your estate agent

Most people choose to sell their home through an estate agent. While you don’t have to do this, there are a lot of benefits to using an agent especially if you don’t have much experience.

The agent you choose is obviously a very important decision, but it’s also worth remembering that you have a legal relationship with your agent which is regulated.

Your estate agent has a legal and professional responsibility to act in your best interests at all times. They will be able to advise you and help you with a range of different things, including:

  • Advising you on the best method of sale
  • Organise inspections
  • Conducting the auction, if there will be an auction

Vendor statement

The vendor statement, also known as a Section 32, is the legal document that contains information about the property. A potential buyer must be given the vendor statement before they sign the contract of sale.

Some of the information in the vendor statement includes:

  • What services are connected and supplied to the property
  • Information about the zoning of the property and any easements
  • Any information about an owners corporation
  • A statement of the title and a copy of the plan

Because it is a legal document, it is best to have a lawyer or conveyancer prepare the vendor statement for you.

Contract of sale

When a property is sold, a written contract is used to formalise the sale. If you sell your property at auction, you will have an auction contract instead. In either case, the contract of sale will include:

  • The terms and details of the purchase
  • The details of both parties
  • A description of the property and any chattels
  • Any additional terms that you and the buyer have agreed to

It’s essential that your contract has all the necessary clauses to protect your interests. A property lawyer can help you ensure that all the details of your contract are correct.

Renovations completed by an owner builder

If you have done any renovations to your home as an owner builder and you sell it within six and half years of completing the work, there are a few legal requirements. You must:

  • Provide a defect inspection report
  • Take out domestic building insurance for work over $16,000

Conveyancing

Having a conveyancer handle the transfer of ownership is essential. They will ensure that all necessary documents are ready and correct and will liaise with banks and the purchaser.

A conveyancer will make sure the whole process goes smoothly. This part is very important because even small mistakes in conveyancing can end up being very expensive.

Author bio:

Rose Lawyers and Conveyancers have been helping people in Melbourne with their property law matters since 1977.

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