Selling Your Home FAQ’s
+ What is a section 32 Statement?
Under the Sale of Land Act 1962, a disclosure document known as a “vendor’s statement” or “section 32 statement” must be given to a purchaser before a contract is signed. The statement must contain certain information about the property being sold. For example, information regarding the location of easements particulars of building approvals given in the last seven years, and details of rates and charges that affect the property are just a few of the things that must be disclosed in a section 32 statement. Simply contact us and we will make arrangements to prepare your section 32 statement.
+ Why do we have to do a title search?
When you are buying a property, we need to ensure that the person with whom you have contracted as the vendor is in fact the registered proprietor of the property, or otherwise ascertain their ability to sell the property. A title search provides the basis for this information.
When you are selling a property, we need to check that you are properly registered as the proprietor to ensure that you will be able to complete the sale.
A title search will also provide other information, such as the existence and particulars of any covenant, registered easements, and other registered encumbrances.
+ What is a covenant?
Covenants are often registered on titles and usually require the land to be used in a certain manner. For example, a covenant may require any dwelling to be built in brick or with brick veneer walls, or might prohibit more than one single dwelling on the property.
+ What is an easement?
Easements are areas of land on a property that are set aside for purposes such as drainage or sewerage mains. Generally these cannot be built over without the consent of the appropriate person or authority.
+ What do I do with the keys?
If you have sold your property through an estate agent, you should provide the keys to the agent on the day of settlement, prior to the appointed settlement time.
If no agent is involved, the keys would normally be provided to us to be handed over at settlement.
+ What time is settlement?
Almost all settlements are now required to be carried out electronically, in a special online “workspace” where all the parties contribute to the settlement information, and ultimately the settlement itself, which takes place on-line. The time will be dictated by the needs and requirements of all of the parties - the purchaser, the seller, the seller’s conveyancer or solicitor, the seller’s bank and the purchaser’s bank.
If you require settlement to take place on a specific time of day, you should let us know of the time, and we will be happy to try and meet your needs.
+ Who pays the rates?
The land and water rates and other relevant charges are usually adjusted at settlement to ensure that you are liable for rates only for the appropriate period that you have owned the property during the current rating period.
+ Can I get the deposit before settlement?
After a property has been sold, it is sometimes possible to obtain a release of the deposit prior to settlement, provided that certain requirements are met.
When your property has sold, you need to tell us that you would like the deposit to be released. We will then send you the appropriate forms.
+ How do I pay the agent's commision on my sale?
It is usual practice for the selling agent to deduct their commission from the deposit held by the agent once settlement takes place. Where the deposit is released the agent also becomes entitled to the commission.
+ What is Settlement?
Settlement is the process where all the parties to a conveyancing transaction come together to complete the transaction. Almost all settlements are now required to be carried out electronically, in a special online “workspace” where all the parties contribute to the settlement information, and ultimately the settlement itself, which takes place on-line.
The parties that are usually involved in a settlement are the purchaser’s conveyancer, the purchaser’s bank, the vendor’s conveyancer and the vendor’s bank.
+ When do I need to be out of the property?
If a purchaser is entitled to vacant possession of the property at settlement, the seller will need to be out of the property prior to the appointed time, as the purchaser is entitled to the property as soon as settlement has taken place.
You should let us know of any difficulties that you might experience in complying with the settlement requirements, so that alternative arrangements can be made.
+ When do I get the sale proceeds?
If the settlement of your sale is taking place on-line as almost all settlements now do, you will normally be able to access the funds in your account within hours after settlement.
+ What happens if the Vendor has not moved out of the house by settlement time?
If a purchaser is entitled to vacant possession of the property at settlement, the seller will need to be out of the property prior to the appointed time, as the purchaser is entitled to the property as soon as settlement has taken place.
You should let us know of any difficulties that you might experience in complying with the settlement requirements, so that alternative arrangements can be made.
+ Who notifies the sale to the Gas and electricity companies, council, etc?
We will send a notice to the local council and water board notifying them of the change in ownership.
You should contact the gas, electricity and telephone service providers prior to settlement to arrange for the services to be read and finalised so that the seller receives a final account and new accounts issue to the purchaser.
+ What is Cooling Off?
A purchaser of residential property may be entitled to bring a contract to an end by written notice, without any specific reason being needed.
This is often called "the cooling-off period". It is available for three clear business days from the date the contract was signed by the purchaser.
There are certain situations where this cannot occur. The purchaser cannot bring a contract to an end if:
The property was purchased at an auction or within three business days before or after the auction date; or The property is used mainly for industrial or commercial purposes, or The property is more than 20 hectares in size and is used mainly for farming; The purchaser and the vendor previously signed a similar contract for the same property; or The purchaser is an estate agent or a company. The seller of a property does not have a right to cool-off after contracts are signed and exchanged.
Buying Your Home FAQ’s
+ How do I pay the stamp duty?
If you are paying cash for your purchase, we will make the arrangements for the payment of the stamp duty and registration of the transfer of your title to you.
If you are borrowing to assist with your purchase, your lender will usually deduct the stamp duty and other government charges from the amount you have borrowed, and will then pay these charges after settlement.
For example, if you are borrowing $200,000.00 on a property worth $300,000.00:
Stamp duty on transfer: $12,070.00
Titles Office registration fee on transfer: $866.00
Titles Office registration fee on mortgage: $105.00
Bank and associated fees: $600.00
TOTAL: $13,641.00
When we ask your bank for the amount available for settlement, they would inform us that $186,359.00 was available ($200,000.00 less government and other charges of $13,641.00).
When we discuss with you the amount required from you, we would in this case be asking you for a bank cheque for $113,641.00 (however, the amount would usually be slightly different from this simple example to take account of rate adjustments).
+ Can I get an exemption from stamp duty?
There are a number of exemptions and concessions available: First Home Buyers can obtain an exemption or discount from stamp duty and other government charges depending on the price of the house. First Home Buyers with Dependent Children and Concession Card Holders can obtain an exemption or discount from stamp duty and other government charges in some limited cases. People buying properties to occupy for themselves may also receive a concession to the duty for properties up to certain prices. The State revenue office provides a number of calculators here:
State Revenue Office Stamp Duty Calculator
+ How much is the stamp duty I will pay?
Please use the State Revenue Office Calculator below
State Revenue Office Stamp Duty Calculator
+ Why do we have to do a title search?
When you are buying a property, we need to ensure that the person with whom you have contracted as the vendor is in fact the registered proprietor of the property, or otherwise ascertain their ability to sell the property. A title search provides the basis for this information.
When you are selling a property, we need to check that you are properly registered as the proprietor to ensure that you will be able to complete the sale.
A title search will also provide other information, such as the existence and particulars of any covenant, registered easements, and other registered encumbrances.
+ What are the certificates we order used for?
When you purchase a property, certificates are obtained from various statutory authorities, such as the local council, water board, State Revenue Office, Vic Roads, and Department of Infrastructure. When you are selling a property, these certificates may need to be obtained for use and display at an auction.
The certificates serve several purposes. For example, a certificate from the local water authority may reveal the location of a sewer main if it transverses the property. Sometimes a sewer main is not laid within a registered easement, so this information is vital to a purchaser, especially when the purchaser proposes to carry out work such as a building or extension on the property.
Other certificates are used to ascertain the rates and charges on the property, to ensure that they are properly adjusted at settlement, and any arrears are dealt with to ensure that a purchaser does not become liable for the seller’s debts on the property.
+ What is a covenant?
Covenants are often registered on titles and usually require the land to be used in a certain manner. For example, a covenant may require any dwelling to be built in brick or with brick veneer walls, or might prohibit more than one single dwelling on the property.
+ What is an easement?
Easements are areas of land on a property that are set aside for purposes such as drainage or sewerage mains. Generally these cannot be built over without the consent of the appropriate person or authority.
+ Why do I have to insure the buildings before settlement?
When you sign a contract or contract note for the purchase of a property, you have what is known as an “insurable interest” in the property. Naturally, you will want to protect this interest.
While the seller of a property usually has certain obligations to provide the property to you as inspected (fair wear and tear excepted), there may be situations where you could be forced to accept a property that has been damaged where that damage may be able to be the subject of a claim under an insurance policy.
(For example, in some cases damage might occur that does not render a dwelling uninhabitable, and you may be forced to settle.)
You will not know whether the vendor keeps their policy current, or if the property has been insured at all, and some vendors might even cancel a policy when the property sells.
A lender often requires the borrower to arrange insurance cover, noting the lenders full name as “an interested party” or “as mortgagee”. Failure to provide a certificate from the insurer with the lender noted as an interested party can lead to a delay in settlement.
It is for these and other reasons that we recommend that you arrange building insurance as soon as a binding contract is signed.
+ What do I do if the finance for my purchase has not been approved?
Call us immediately!
It is usually the purchaser’s responsibility to advise if finance has not been approved by the approval date, or has been declined. Therefore it is essential that you contact us by the approval date specified in your contract regardless of whether or not your finance has been approved.
+ Who pays the rates?
The land and water rates and other relevant charges are usually adjusted at settlement to ensure that you are liable for rates only for the appropriate period that you have owned the property during the current rating period.
+ When should I do a final inspection?
The contract usually allows you to carry out a final inspection of the property within seven days prior to the settlement date.
A purchaser will normally contact the selling agent to arrange a final inspection of the property. If there is no agent, the purchaser will normally contact us to arrange access for the final inspection.
+ What happens if the Vendor has not moved out of the house by settlement time?
If a purchaser is entitled to vacant possession of the property at settlement, the seller will need to be out of the property prior to the appointed time, as the purchaser is entitled to the property as soon as settlement has taken place.
You should let us know of any difficulties that you might experience in complying with the settlement requirements, so that alternative arrangements can be made.
+ What is Settlement?
Settlement is the process where all the parties to a conveyancing transaction come together to complete the transaction. Almost all settlements are now required to be carried out electronically, in a special online “workspace” where all the parties contribute to the settlement information, and ultimately the settlement itself, which takes place on-line. The parties that are usually involved in a settlement are the purchaser’s conveyancer, the purchaser’s bank, the vendor’s conveyancer and the vendor’s bank.
+ When do I provide my funds for settlement?
When you buy a property, we will need to have any funds being provided by you ready for the settlement date and time. If you are borrowing from a major bank, the bank will usually combine your funds with the mortgage funds and make the whole of the funds needed available for your settlement.
In other cases, we may arrange for you to provide your funds electronically and will provide the details on how this will be done prior to settlement.
+ When can I move into the property?
A purchaser can usually move into the property as soon as the settlement has taken place.
We will call you as soon as settlement has taken place. The purchaser can then collect the keys from the selling agent.
+ What time is settlement?
Almost all settlements are now required to be carried out electronically, in a special online “workspace” where all the parties contribute to the settlement information, and ultimately the settlement itself, which takes place on-line. The time will be dictated by the needs and requirements of all of the parties - the purchaser, the seller, the seller’s conveyancer or solicitor, the seller’s bank and the purchaser’s bank.
If you require settlement to take place on a specific time of day, you should let us know of the time, and we will be happy to try and meet your needs.
+ Who notifies the sale to the Gas and electricity companies, council, etc?
We will send a notice to the local council and water board notifying them of the change in ownership.
You should contact the gas, electricity and telephone service providers prior to settlement to arrange for the services to be read and finalised so that the seller receives a final account and new accounts issue to the purchaser.