Selling your home? Things you should know before signing a contract.

When you accept an offer, The selling process doesn't finish there; there's still a lot to accomplish before you can go on.

Your real estate agent and a conveyancer will be responsible for finalizing the property transaction so you may get the money from the sale while you're packing up your stuff and ready to move into your new home.

Although each state is different, the period after the sale of a home may be split into three stages:

-exchange of contracts,

-cooling-off period,

-and settlement period.

What does 'exchange of contracts' mean?

When the buyer and seller sign a contract once an offer is accepted or an auction is successful, and the property is removed off the market. The buyer will need to be required to pay a deposit, which is typically 10% of the purchase price, though this can be adjusted in some situations. A deposit is frequently paid on the spot at an auction. After the deposit is paid, the process can move on to the following step.

What is a cooling-off period?

A cooling-off period is usually provided to buyers and, in some cases, sellers. The buyer can use this defined period of two to five working days to do any searches and inspections of the property, and it gives both parties time to affirm they are happy with the agreed sale price.

The length of the cooling-off period, whether it applies to both parties or just the buyer, whether it can be negotiated between the parties, and the penalties for terminating the agreement during the cooling-off period are all determined by the laws of the state or territory where the property is located.

The contract is declared "unconditional" (meaning locked-in) once the cooling-off time has expired without protest from any party, and the entire settlement process commences. Property sold at auction is usually unconditional, with no right to a cooling-off period for the buyer.

What happens in the settlement period?

When both parties have completed the property sale, the settlement period begins. This is where both parties' solicitors or conveyancers do the majority of their work, ensuring that the buyers are buying exactly what they were sold, examining inclusions and exclusions, terms, zoning, planning permissions, and boundaries, among other things.

Although this can vary, the normal settlement duration is six weeks. This is when you'll need to shift your belongings into your new home if you're still living there.

The seller receives the money owing, the legal transfer of the property from seller to buyer is completed, and the buyer is given the keys to the property on settlement day. The agent will invoice the seller for the amount required once the transaction is completed, including fees dependent on the ultimate sale price. Verify that any fees on the invoice are in accordance with the contract.

The Bottom Line

Selling a property does not have to be a lonely endeavor, and a trustworthy real estate agent is the ideal companion on your selling journey, making everything simpler, easier, and faster. Still haven't found an agent who understands everything you don't? Perfect Agent can assist you right now!