First published on Smart Property Investor Seriously – we get it. We get...
What Documents Do You Need To Sell Your Home?
Yet another myth that circles around the property industry is that you need a real estate agent to manage the legal side of the sale. This is wrong. Even when using a traditional real estate agent service, the legal aspect of the property sale must be handled by conveyancers or lawyers.
If you have enlisted a solicitor or conveyancer, the first step is preparing a contract of sale. This must be done before the property is listed.
Alternatively, buyMyplace has an online conveyancing business which can help you arrange sales contract, undertake appropriate searches and manage deposit money, exchange, and settlement.
Often conveyancers/solicitors will do all the hard yards for you, but for your peace of mind, we have included a checklist of what you need to get in order. (Note – some documents can vary by State.)
Contract of Sale (NSW) – All sellers need to include specific information in their contract of sale as well as ensure by way of warranties particular information such as:
1. Planning certificate (section 149) to show planning controls which may impact the property like land use restrictions or proposals for road wideningroad widening
2. Drainage diagram showing sewer lines
3. Title Search proving you own the property
4. Any documents showing easements, restrictions, covenants or rights of way
5. Plans of the land such as subdivision or strata plans
6. appropriate certification for swimming pools – certificate of compliance or a valid certificate of non-compliance
7. Permits and final occupation certificates for properties built within the last 7 years
In VIC the seller must provide potential buyers with a Vendor’s Statement (section 32) which includes all of the above information (except for proposals for road widening) plus whether the property is in a bushfire prone area, any mortgages and rates details.
In QLD the Seller and Buyer sign a Contract for Houses or Residential Land (or Contract for Residential Lots in a Community Titles Scheme) which contains some disclosures and warranties about the property as well as sale information. As a seller, you must also supply a Pool Safety Certificate or a Notice of No Pool Safety Certificate and confirm whether there are compliant Smoke Alarms and Residual Current Devices (also known as safety switches) are installed at the property.
In SA vendors must provide the buyer with a Form 1 Disclosure Statement before contracts can be signed. Form 1 is a formal statement that must be served by the vendor to the purchaser when transacting a home. It provides the cooling-off rights and essential details relating to the property.
In WA an offer is made using the Offer and Acceptance Form and the Joint Form of General Conditions for the Sale of Land Form. There is no compulsory seller disclosure form in WA, but the seller may be required to verify information and provide warranties to the buyer about the condition of the property. You may also be required to provide an Electrical Safety Certificate to confirm that the smoke alarm and residual current device legislation has been complied with.
In NT a Contract of Land Sale Form must be used for all property transactions.
In TAS the standard contract of sale is a document in two parts – The Standard Condition of Sale and the Particulars of Sale.
If you are selling strata title property, you will also need to provide a copy of the property certificate for the lot and the common property, a copy of the strata plan showing the lot and any changes in by-law which affect the use of the common property. The required disclosures vary state-by-state
All sellers will need to verify their identity through the Verification of Identity (VOI) process. The VOI process is compulsory in all property transactions to reduce identity theft and land title fraud. Your identity will also need to be verified if you are an agent selling on behalf of someone else or the executor of an estate.
You can’t sell the property whilst it is registered to the deceased person, and one of the executor’s tasks is to arrange transmission of the property into their name, which empowers them to be able to sign contracts and other documents associated with the sale. Please be sure to seek independent legal advice relating to all Estate matters and any documents you may require.
Many sellers also provide building and pest inspection reports to potential buyers, and these can easily be arranged through beforeyoubid.com.au which can provide those reports (and strata reports) for a fee. Where you are selling by auction, these forms can offer peace of mind for buyers, and is beneficial for you both as you can charge the buyer a portion of the total cost (which will likely represent savings for the buyer) and you can be compensated for your initial out of pocket fee for the reports.
Document requirements vary by state, and it is worth consulting with your conveyancer to ensure they provide you with the most up-to-date list for your state and property type. Online conveyancing company myplaceconveyancing.com.au is available in NSW, VIC, QLD and WA and can help you manage the process for a fixed fee of $1,100.