You have many responsibilities when you sell a property but I’m going to cover the main ones.
Vacant possession
If you’ve bought an investment property before, you might have heard the term ‘vacant possession’. What does it mean?
Vacant possession means that the new owner has exclusive use of the property. The property doesn’t have tenants or any physical items that would mean hardship for the buyer. This means that, when you sell or settle, you must not leave old furniture, rubbish or personal items for the buyer to deal with. If you’re selling a farm or acreage, vacant possession means you can’t leave non-working farm equipment behind or a barn full of cast-offs. You can read more about vacant possession here.
State of repair declaration
Your buyer will be purchasing your property ‘as is’ but that means, for example, that if you are selling an air conditioner as part of the home sale and it was working when the buyer inspected the property, it must be working when the buyer settles. Or if the guttering has fallen off since exchange, you must repair it before settlement as the buyer is purchasing guttering in good working order.
List of inclusions and exclusions in the contract for sale
Over the years, I’ve found it wise to recommend that sellers create a list of exactly what is included in the sale and make sure all items are included in the contract for sale. Buyers might be entranced by your stunning chandelier and feel cheated when they arrive at the property after settlement and find it no longer there, especially if they believe they’ve paid for it.
It also helps you to be clear on what stays and what goes with you. I’ve heard of a seller claiming ownership of a roof aerial on a property they sold months previously because they said it hadn’t been in the contract and they wanted extra for it.
Once you start itemising all those bits and pieces around your home ‒ like pool equipment and so on ‒ (and total up the cost to you initially and what it would cost to move them), you will get a better idea of what you want to keep and what you think should bump up the home price. It’s no good suddenly remembering that ladder under the house you need now when you sold your house three months ago.
Disclosure documents
Residential property
For a residential property you will need to provide:
- title documents
- drainage diagram
- a current Zoning Certificate (section 10.7) issued by the local council.
If your property for sale has a swimming or spa pool, you must have one of the following attached to the contract:
- a copy of a valid certificate of compliance, or
- a valid occupation certificate (issued in the past 3 years) and evidence that the pool has been registered, or
- a valid certificate of non-compliance.
Your buyer might be able to rescind the contract within 14 days if you haven’t attached one of these documents to your sales contract.
Rural property
While selling a residential property is relatively straightforward, the same can’t be said for rural properties. For these, you’ll need your solicitor to prepare a set of disclosure documents that show in detail:
- the land title (often more than one for rural properties)
- boundary plans of the property
- information of all registered ‘interests’ over the land such as:
- easements
- rights of carriageway
- positive or restrictive covenants
- planning certificates from local Councils (zoning, planning controls and anything else that affects the use of the land)
- water rights and licences
- Crown land affairs
As you can see, selling can be complex so it’s best to engage an experienced real estate agent to help you navigate the sale process.
Need advice on selling your Barrington Coast property?
As a proud local, I’m here to guide you through the process of selling your home. I specialise in lifestyle, rural and residential properties. I’ve done it myself and helped many families over my career. So give me a call; I’m here to help.
