5# TIPS TO ENSURE YOU HAVE A SEAMLESS SALE

Whether you are selling in Queensland, New South Wales, or Victoria, we have listed the top five tips to ensure your sale goes smoothly.

1. SPRUCE UP YOUR PROPERTY

Before you bring valuers and agents through a property, ensure it is presented in the best possible way. This may mean completing any repairs, de-cluttering, having carpets steam cleaned, arranging a fresh coat of paint, landscaping and ensuring the gardens are maintained, lawns mowed etc.

You could even consider having the home staged with a professional styler.

2. CALCULATE THE COST OF SELLING YOUR HOME

Before you decide to sell, you will need to consider if the expected sale proceeds are sufficient to repay any mortgages or charges on title.

If you are selling and buying simultaneously, it is essential to confirm your financial arrangements with your broker/banker and ensure any purchase contract is subject to the sale of your property (if you are reliant on the sale proceeds to complete the purchase).

In calculating the cost of selling your home, you should factor in the agent’s commission (this generally gets deducted from the deposit), staging costs, removalists, marketing/photos/auctioneer fees, rates, water and body corporate levies up until the settlement date, registration fees, and your solicitor’s fees.

If you have a mortgage/loan to be repaid, ensure you request a discharge of the mortgage as soon as possible and obtain an indicative payout figure from your lender as there may be exit/break fees which you are not aware of. If your mortgage is cross-collateralised or used as security for other loans, you may need to restructure your finance which can cause delays with settlements.

Even if you have paid out a loan in full, the lender may still have a mortgage registered on title which needs to be discharged on or before settlement.

You should also consider the tax implications of the sale and obtain advice from your accountant if necessary. In particular, you should consider capital gains tax, land tax, GST and whether you have a payment obligation if you have claimed a grant and/or a transfer duty exemption or concession and are selling shortly after you have purchased the property.

3. PREPARE CONTRACT AND DISCLOSURE DOCUMENTS

In NSW and VIC, it is standard practice for your solicitor to prepare the Contract and necessary disclosure documents. Some certificates can take some time to receive so we suggest you engage a solicitor as soon as possible.

In QLD, most agents will prepare the Contract. It is, however, important to ensure that the correct disclosures are made. You should consider the need to provide a Disclosure Statement if selling in a community title scheme, pool safety certificate or notice of no pool safety certificate and a smoke alarm compliance certificate.

If the purchase price is likely to be $750,000 or more, we recommend you apply for your ATO clearance certificate as soon as possible – each named seller is required to provide this, otherwise a buyer may be required to withhold 12.5% of the purchase price on settlement and pay this to the ATO.

See: https://www.ato.gov.au/forms-and-instructions/capital-gains-withholding-clearance-certificate-for-australian-residents-online-application

4. ENGAGE THE RIGHT AGENT (NOT JUST ANY AGENT)

You should meet with several real estate agents (at least three) to get a good understanding of the value and commission rates (in most cases, commission rates are negotiable).

It is wise to consider appointing an agent with a strong local knowledge base, network of potential buyers and proven sales history. Before signing any engagement agreement with an agent, slow down and check the fine print.

In particular, you should check the following:

The seller details match what is recorded on the title;
The agent’s licence number;
The term of the agent’s appointment and how the agreement can be terminated;
The type of listing (eg. open listing, sole agency or exclusive agency);
The rate of commission and when the commission is payable;
Authorities to incur fees, charges and expenses; and
The property details are correct and the appropriate disclosure is made.

5. PRE-SIGNING REVIEW

In QLD, we offer a free pre-signing contract review service for standard REIQ contracts.

In NSW and VIC, we prepare the Contract and obtain the relevant disclosure documents on your behalf. Our fee for doing so is currently $399.00 including GST, plus the cost of certificates.

When selling one of your biggest assets in life, make sure the contract is completed correctly.

WHETHER OR NOT YOU ARE SELLLING IN QLD, NSW OR VIC, MAP LAWYERS ARE ABLE TO GUIDE YOU THROUGH THE PROCESS OFFERING THE SAME HIGH-QUALITY SERVICE ACROSS ALL THREE STATES.