The Basic Legal Steps to Selling Your Home

The Basic Legal Steps to Selling Your Home

Selling your home involves several legal processes after you’ve accepted an offer. Most of this is handled by your agent and conveyancer during the “settlement period,” which usually takes around 60-90 days. Here’s a friendly guide to help you understand the steps involved.

Get Professional Legal Advice

Each state has its own set of regulations, so it’s important to get professional legal advice to ensure you’re within the regulations. Normally, there will be two legal teams working on the final settlement: your conveyancer and the buyer’s conveyancer. Other third parties, such as inspectors, valuers, council, and banks (yours and the buyer’s), are also involved.

Basic Steps to Complete the Transaction

1. Contract of Sale

The Contract of Sale is the agreement between you and the buyer that states:

• Sale price
• Deposit required
• Settlement date
• Contingencies
• What is included in the sale

There will be two duplicate copies, both signed by the seller and buyer, and then formally exchanged.

2. Vendor Statement

The Contract of Sale is accompanied by a Vendor Statement. This statement provides any issues the buyer needs to be aware of, such as:

• Zoning
• Flood zones and easements
• Outstanding mortgage

For more details, please see our separate article on what you legally need to disclose when selling a home.

3. The Deposit

When the Contract of Sale is exchanged, the buyer must pay the required deposit at the same time. This money is normally held in a trust account by the buyer’s conveyancer.

4. Pre-Settlement

The buyer’s conveyancer will manage most of the paperwork, which includes:

• Initial settlement statement
• Title Search / Certificate of Title / Transfer of Land
• Identification of encumbrances
• Stamp Duty Application / Electronic Advice of Sale
• Ensuring all conditions in the contract of sale have been met
• Authority to proceed to settlement

These requirements vary from state to state. Conveyancers will work together to handle various rates and taxes, including:

• Ensuring there are no outstanding water or council rates
• Checking for outstanding special government levies
• Ensuring there are no outstanding strata levies

Your conveyancer will liaise with your bank to ensure the correct amount is paid to release the mortgage on the property.

Final Settlement

Final settlement is when the funds are transacted and the property keys are handed over, completing the transaction. You (or the buyer) do not need to be present for this, as it is a legal formality. You will be advised by phone that the transaction is complete and the funds (less expenses and mortgage payout) have been deposited into your nominated account.

Welcome Home

At JKL, we treat you like family, ensuring every step of your selling journey is smooth and stress-free. Our experienced team is here to guide you through the entire process, making sure you feel confident and informed.

Experience our JKL real estate family. We’ll put the welcome mat out for you!