Sale Information Booklet

INFORMATION FOR VENDORS OF RESIDENTIAL PROPERTY IN VICTORIA AUSTRALIA

Who we are

Nevile & Co Commercial Lawyers have more than 35 years experience in property and commercial transactions. Our office is conveniently located in Collins Street, Melbourne, opposite the Grand Hyatt Hotel.

We have positioned our firm at the boutique end of the legal services sector and aim to provide a cost-effective, timely and pragmatic advice focusing on a personal service catered at meeting the needs of our clients.

We have a wealth of experience in acting for Vendors of property in Victoria and have a diverse client base both domestic and international.

What we can do for you as your Lawyer

It is highly advisable to instruct an independent lawyer to act on your behalf in regards to all property and commercial transactions, including the sale of property in Victoria.

Our most important functions are to protect your interests and ensure that the sale of your property is completed in a timely manner and to communicate with you on a regular basis.

Our services include but are not limited to:-

1. Undertaking the necessary enquiries regarding the property to be sold.

2. Undertaking the necessary searches with Government and Statutory Authorities and obtaining the necessary information certificates.

3. Preparation of Contract of Sale and Section 32 Vendor's Statement.

4. Preparation of Section 27 Release of Deposit Statement.

5. Liaising with your selling agent and ensuring all documentation and queries are dealt with in a timely manner.

6. Liaising with your Bank (if applicable) and arranging a Discharge of Mortgage.

7. Preparing answers to enquiries from the Purchaser.

8. Preparation and execution of all necessary documentation to effect the transfer of the property.

9. Perusing Statement of Adjustments.

10. Arranging settlement with the Purchaser, your Bank and any other relevant parties.

11. Attending settlement on your behalf.

12. Reporting to you on a regular basis.

13. Attending to any further or unforseen negotiations or correspondence required by you.

14. Providing timely advice on any matters of concern.

Please note the above is not an exhaustive list of our functions, please do not hesitate to contact our office if there are any other matters in which you may require assistance.

The Sale Process

A typical transaction of a sale of a property in Victoria will proceed as follows:-

Stage 1: Appointing a Selling Agent

It is possible to sell your property without appointing an estate agent. However, we recommend that an agent is appointed to sell the property on your behalf because:-

1. The agent will have knowledge of the market in the area where your property is located and can advise you of the estimated selling price.
2. The agent will attend to advertising the property on your behalf.
3. The agent will attend to queries and inspections of the property from prospective Purchasers.
4. The agent will attend to negotiations with prospective Purchasers as to the purchase price, conditions of the sale and settlement date.

In finding a suitable selling agent to sell your property, you will often find that the agent who originally sold the property to you is an excellent starting point.

The selling agent will ask you to sign a written sales authority which will fully set out details of your agreement with the selling agent, in particular, the estimated selling price, commission to the paid to the agent and advertising expenses.

Stage 2: Selling at Auction or Private Sale

A property may be sold at an auction, by private sale or more unusually by tender.

Auction

An auction is a public sale which takes place at an advertised date, time and place. Prospective Purchasers bid against each other and the property is sold to the highest bidder (provided the bid is acceptable to you).

Private Sale

The Purchaser and yourself agree on a price through negotiation, usually with the assistance of the Vendor's real estate agent.

The selling agent will discuss with you the best method of sale for your property.

Stage 3: Preparation of Contract & Section 32 Vendor's Statement

This is where Nevile & Co as your lawyer will become involved. In order for your agent to sell your property in Victoria, it is necessary to prepare 2 documents:-

1. Contract of Sale
2. Section 32 Vendor's Statement.

Contract of Sale

A contract of sale is a binding legal documents which lets out the terms and conditions of your sale.The standard terms which will need to be negotiated are purchase price, the amount of deposit payable (usually 10% of the purchase price) and the settlement date. It may also be necessary to negotiate what fixtures and fittings are to be included in the sale and if vacant possession is required at settlement.

Section 32 Vendor's Statement

A Vendor of a property in Victoria must provide a Section 32 Vendor's Statement to a Purchaser. This Statement contains information about the property which the Purchaser is entitled to know about before signing a Contract of Sale.

The Vendor's Statement is a legal document and must be factually accurate and complete.
To enable our office to prepare the Vendor's Statement, we have included a 'Section 32 Enquiry Form' for your completion and return to our office.

Stage 4: Payment of Deposit

Upon signing the Contract, the Purchaser will pay a deposit (usually 10% of the purchase price) to the selling agent. By law, the deposit will be held in the selling agent's trust account until settlement. However, access to deposit monies prior to settlement may be possible upon certain conditions being met. Please advise our office if you will require access to your deposit monies prior to settlement.

Generally, the deposit is released upon settlement. The selling agent will deduct from the amount of the deposit their commission and advertising expenses and the balance will be returned to you.

Stage 5: Arranging Discharge of Mortgage

If there is a mortgage over the property, it will be necessary to contact your Lender and arrange for a discharge of mortgage to occur on the scheduled day of settlement. We will arrange the discharge of mortgage with your Lender and will advise you of what documentation needs to be signed.

If there is a clear Title to the property (that is, no mortgage), the Certificate of Title needs to be made available to our office by the scheduled day of settlement.

Stage 6: Signing of Transfer Documentation

Prior to settlement, we will require you to sign the documentation necessary to transfer the property to the new Purchaser. These documents are called 'Transfer of Land' and 'Goods Statement' (or 'Goods Statutory Declaration'). These documents must be signed by yourself and returned to our office prior to settlement.

Stage 7: Statement of Adjustments

Prior to settlement, a Statement of Adjustments will be prepared. This Statement will apportion the outgoings (e.g. Council Rates, Owners Corporation fees) of the property between the Purchaser and yourself as of the settlement date so that each party only pays the outgoings for the period in which they own the property. This Statement will also detail the final amount owing to yourself at settlement.

Stage 8: Pre-settlement Inspection

The Purchaser has a right to undertake a final inspection of the property prior to settlement in order to check the condition of the property and the chattels (if any). The selling agent will arrange a convenient time for the Purchaser and yourself (or your tenants) to inspect the property.

Please note that the property must be in the same condition as at the time the Contract was signed.

Stage 9: Settlement

We will attend settlement on your behalf and will arrange for your Lender (if applicable) to also attend. At settlement, the amount as calculated in the Statement of Adjustments will be provided by the Purchaser in the form of bank cheques payable to either your Lender (to release the property from your mortgage), yourselves or to our trust account.

The Certificate of Title and transfer documents will be handed to the Purchaser in exchange for the settlement monies.

We recommend that the keys to the property are left with the selling agent on the morning of settlement (unless other arrangements have been made).

Stage 10: Post-settlement

After settlement, the balance of the deposit monies held in the selling agent's trust account will be released to you. Our office will also forward you a detailed settlement summary.

Disclaimer:

Please note that the information contained in this Booklet is of a general nature only and should not be used as a substitute for professional legal advice.

We strongly recommend that you consult a Lawyer, before signing any documentation.