Legal Considerations

As a vendor, it is important that you understand the legal requirements of selling a property.

Information on this is also available from the Real Estate Institute of Victoria at www.reiv.com.au.
If you have any concerns or queries, please do not hesitate to contact us.

Agent Authority

The appointment of a real estate agent to act on your behalf must be made in writing, with agreement from both parties to the terms prior to signing. Details to be agreed upon include: agent's fee, marketing expenses, length of the agreement, estimated price and settlement period, and whether the property is to be sold subject to vacant possession, or with tenants. Agreements include exclusive sale authority, general sale authority, and auction.

Section 32

The law requires that, prior to a purchaser and vendor entering into a contract for the transfer of real estate, the vendor/s or their representatives must complete and sign a 'Vendor's Statement', also known as a Section 32. A copy of the Certificate of Title (proof of the vendor's right to sell) must be attached to the statement. Other information may include any restrictions on the property, such as easements and covenants, rates and other outgoings, zoning information and any notices, or other documentation affecting the land. If information in the Vendor's Statement is found to contain false or misleading information, the purchaser may rescind the contract at any time before becoming entitled to possession.

Contract of Sale

Contracts of sale cover all the details of the agreed sale, including property identification, purchaser's full names, agreed price, deposit, settlement date and terms of sale, including special conditions, inclusions and chattels. If a property is to be sold by auction, a solicitor will usually prepare the Contract of Sale which will be attached to the Section 32/ Vendor's Statement. If the property is sold under private sale authority, the estate agent will prepare a Contract Note, an abridged but equally binding form of the Contract of Sale. With residential and rural properties of less than 20 hectares, a cooling off period applies whereby a purchaser may withdraw from the contract under certain circumstances. Withdrawal must be in writing to the vendor, their agent or legal representative, within three clear business days from but not including the day the purchaser signs the contract. The vendor is entitled to retain $100 or 0.2% of the purchase price, whichever is the greater, up to a maximum of $500. The balance of the paid deposit is then returned to the purchaser.

Early Release of Deposit Monies

In certain situations, the deposit may be released under Section 27 of the Sale of Land Act. The purchaser has 28 days from the receipt of a detailed Section 27 form, to approve or reject the release of the deposit. All conditions of the contract should be satisfied and the purchaser deemed to have accepted title. Section 27 allows the purchaser to authorise in writing to whoever is holding the deposit, to release it to the vendor.

As soon as the required conditions have been met and the agent has received the written advice, the deposit, less costs, can usually be forwarded to the vendor.

Conveyancing and Settlement

Transfer of property ownership is properly handled by a solicitor or conveyor and is termed conveyancing. We recommend that legal advice is always sought. Settlement means that the balance of the purchase price has been paid to the vendor and the physical possession of the property passes to the purchaser, subject to the terms of any existing lease. Settlement date is set out in the Contract of Sale and may be altered if both parties are in agreement. It is usual for a legal representative to attend to settlement on your behalf and keys may be obtained from the selling agent immediately after settlement has occurred.

Disclaimer

The above advice should be taken as a guide only and in no way replaces qualified legal advice from a solicitor. Great Ocean Properties takes no responsibility for the accuracy of the information and would urge that people selling their property obtain professional legal advice for all legal matters.