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How Homesta can help you with conveyancing

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How Homesta can help you with conveyancing

As a house is a major investment for most people, buying or selling a property is a very exciting milestone. Although it is very exciting, unfortunately, buying and selling a property comes with a lot of paperwork. A big part of that is conveyancing, which is the process of transferring the legal title from the seller to the buyer.

There are a few steps involved in a standard contract for land sale:

  • Finance

It is important that the buyer has the financial capacity to purchase the property, including all other applicable fees, such as land tax and stamp duty.

  • Preparing contract

The seller will need to organize a contract of sale. In some states, you cannot advertise a property for sale unless you have a contract of sale ready.

  • Offer

Potential buyers that are interested in the property can make offer once the property is listed for sale. The offer may have requirements the buyer may have, such as the length of cooling off period or a specific settlement date.

  • Accepting the offer

Once the seller accepts the offer, the buyer needs to act to secure the property, otherwise, the seller might still be able to sell the property to another buyer before contracts are exchanged and signed.

  • Contract exchange

This is when both the seller and buyer sign their copy of the contract and the buyer pays a percentage of the deposit. The signed contracts are then exchanged, and the contracts become legally binding documents.

  • Cooling off period

After the exchange of contracts, the buyer has the right to an agreed upon cooling off period, should they change their mind and not go ahead with the purchase of the property. There are a few circumstances where the buyer doesn’t get a cooling off period, such as if the property was purchased on the day of the auction, or if the conveyancer waives the buyer’s cooling off rights under section 66W of the Conveyancing Act. During the cooling off period, the buyer must have confirmation that their loan is approved unconditionally. If they change their mind within the cooling off period, they will lose their deposit.

  • Unconditional contract

Before the end of the cooling off period, the buyer must pay the rest of the deposit. As a rule of thumb, the deposit is usually 10% of the purchase price. Once the deposit is paid in full, the contract becomes unconditional. If one of the parties defaults after the contract becomes unconditional, then there will be some consequences that the party has to take on.

  • Pre-settlement

Before settlement, there are some actions that both parties need to take. The buyer needs to prepare other paperwork, such as loan documents, stamp duty documents as well as a final inspection of the property. The seller needs to also arrange certain documents, such as discharging any mortgage on the property, among others.

  • Stamp duty

Upon purchase, stamp duty must be paid. Stamp duty is a tax imposed in Australia on property purchases. The price varies depending on the sale price, location, and loan purpose. It also depends if the property will be used as a place of residence or as an investment property, as some states charge different rates based on the purpose of purchase.

  • Settlement

After all the above has been completed, it is time for settlement. In Victoria, the settlement process can be between 30 to 120 days. Once the final checks and documentation has been finalised and the date is up, the sale is then declared ‘settled’ and the seller can handover the keys to the property, and the buyer can move in.

All this looks and sounds quite complicated, especially for first-home buyers as the steps can be confusing and overwhelming, but it really doesn’t have to be.

With Homesta, we will provide you with guidance every step of the way. Selling a house does not have to be complicated. We can help you with electronic conveyancing, an alternative solution which is still legally binding. If you have a contract of sale, all you need to do is upload it with the property you are listing for sale, and we will guide you, as well as your potential buyer with all of the steps, while cutting out the middle man.

Homesta. Be your own agent.