Get Your Paper in Order
Your house is likely the most valuable thing you own – not just in an emotional sense, but a financial one. That’s why you need to make sure you take the correct legal steps when you decide it’s time to sell. Here’s a handy checklist to help you through the process.
When you organise the sale contracts, make sure to include up to date certificates for drainage, zoning and any adverse affectation that can apply to your property. You have to give an accurate representation of sell your house to buyers, and this documentation will put them at ease about making the investment and moving in. If you don’t meet your Vendor Disclosure Requirements, a sale might not be completed – which can be awkward if you’ve already taken steps to purchase your next property.
Remember to have the contract for sale drawn up before you put your house on the market, by the way – failing to do this is breaking the law in some areas, including New South Wales.
Don’t Jump the Gun
It’s crucial to recognise the cooling off period when you make an agreement to sell the house. Buyers can often be hotheaded and make a decision they regret in a couple of days. Before you pop the champagne, wait for this period to end and for the deal to settle. Settlement can take up to six weeks, but the cooling off period is usually only about a week – it varies from state to state, however. The buyer will also forfeit some of their deposit if they withdraw in the cooling off period – usually about 0.25 per cent of the deposit.
Get the Gist of GST
Depending on the use of the property, you may have to pay GST upon its sale. This usually does not apply if the structure is being used for residential purposes, but a commercial building can incur the goods and services tax. Check with an expert to see what taxes will need to be paid when you sell.
There are many legal obligations to be aware of when you sell a home, but contacting an expert can help you work through this smoothly. Once you have your paperwork in order, buyers will feel at ease and be more than willing to take your home off your hands!