Selling a property involves several essential steps, and understanding each one can make the process smoother. Here’s a quick guide to help you navigate the sale from contract preparation to settlement day.
1. Preparing the Contract of Sale and Vendor’s Statement
Your agent or legal advisor will create the contract of sale, which outlines all terms and conditions of the sale. This includes the agreed-upon price, settlement date, deposit amount, and details on included fixtures. The vendor’s statement, also prepared by your legal advisor, informs the buyer about key details of the property title they’re purchasing, such as existing mortgages, easements, and zoning regulations.
2. Exchanging Contracts
Both you and the buyer will have a copy of the contract of sale. After both parties sign, you’ll exchange these copies. The buyer also pays a deposit at this stage, which your agent typically holds in trust until settlement day. Note that the seller is generally bound to the sale at this point, though buyers usually have a cooling-off period.
3. Preparing for Settlement
As settlement day approaches, it’s important to be ready to move out. Leading up to this day, legal advisors and banks representing both you and the buyer work together to ensure that all contract conditions have been met and that necessary financial arrangements are in place.
4. Settlement Day
On settlement day, you’ll hand over the keys to your legal advisor and receive the purchase price, minus any remaining mortgage balance. Your legal advisor generally attends the settlement meeting at your bank. Congratulations, your property sale is complete.
Next step: Want the whole process explained? Our free Home Sellers Course covers every step, or book an appraisal to talk it through.
