The Contract of Sale and VendorStatement
We strongly recommend that once you haveengaged a Real Estate Agent to sell your property, to make sure you arrange fora Vendor’s Statement and contract for sale of land before the marketingcampaign starts, this will ensure that you capture any potential purchaserwhile the property is fresh to the market, before it becomes old and peoplewonder why it hasn’t sold.
A vendor’sstatement also known as section 32. It is a document that tells potentialbuyers’ certain things about the property they should know before signing acontract to purchase. The vendor is legally responsible for the vendor’sstatement. In order to prepare vendor statement, we need to obtain all the“prescribed documents” such as council zoning certificates, a copy of the titleand other relevant documents.
The vendorStatement allows buyers to confidently enter in a contract of sale in theknowledge that there aren’t currently any adverse interests registered againstthe property. If a vendor statement is incorrect, or in complete, it will givethe buyer the right to terminate the contract of sale.
A vendorstatement is therefore an important document in the conveyancing process and inorder to avoid errors it is recommended that you engage us to prepare thedocument on your behalf.
i.Conveyancing.co we will makesure it is our priority to get you the required Contract & Section 32documents to the agent as promptly as possible.
Cooling-off period
Every standardContract of Sale includes a 3 clear business days cooling-off period, startingthe next day the purchaser signed the Contract of sale. If the purchaser backsout from the contract, they required to pay you 0.2% of the purchase price or$100 whichever amount is higher.
Deposit
Ideally, 10% ofthe purchase price is the deposit paid on exchange of contract. However, thismay be negotiated by the parties before signing the contract of sale. Thedeposit may be in cash, bank guarantee or deposit bond. Most cost deposits areheld in an in the real estate agents trust account and will be release to thevendor after the settlement.
Early release ofdeposit
Section 27 (early release ofdeposit)
Section 27 of the Sale of LandAct states that a deposit placed on a property must be held in trust by eithera solicitor/conveyancer or a real estate agent. Under certain conditions, asolicitor or conveyancer can arrange for an early release of the deposit paidby your purchaser. After receiving a Section 27 request, a buyer has the optionto sign and agree to the release or you must wait for 28 days to lapse. Therelease is dependent on a number of requirements, we will discuss this with youshould you require the release prior to settlement.
Settlement
Settlement is the date that your propertyis legally transferred to the purchaser and the balance of the purchase priceis paid to you.