Selling Property in Victoria: Your Guide to Contractual Obligations

If you’re ready to sell your family home, your investment property or even a holiday house, there are a range of things you have to consider. You might think you’ve done all the hard work once you’ve packed up your possessions and figured out where you’re going next, but there are important responsibilities in selling property too. When people think of property contracts their minds usually turn to the buyer, but as a seller you’re on the other side of that contract. What are the things you need to make sure you do? Well your search for an answer is over because we have compiled a list of your contractual obligations when selling property in Victoria.

Do You Have the Right to Sell?

Just like you can’t take someone’s car and sell it as your own, you need to have the right to sell the land before you can sell it. This means that you must either already be registered proprietor of the property, or prove that you will be able to become the registered proprietor by settlement.

Discharge the Mortgage

While you can include chattels such as furniture or a dishwasher when you’re selling your home, you can’t sell the mortgage too! You need to ensure that your mortgage is discharged either prior to or at settlement.

Own All the Extras

Speaking of selling the furniture, any improvements, fixtures and goods sold with your land need to be owned by you without encumbrance. An encumbrance is an interest of an external party in a particular asset, and if registered, this can be found on the Personal Property Securities Register.

Provide Evidence of Builder Warranty Insurance

If you have a current builder warranty insurance certificate, don’t lose this, because these details may need to be provided to the buyer at settlement.

You Pay the Purchaser?

You will have to reimburse the buyer for the fees for any bank cheques exceeding 3 that you need at settlement.

Don’t Do Any Damage

Just because you’re selling the property it doesn’t mean you can be less careful. Contractually, you still carry the risk of loss or damage to the property until settlement.

After you’ve signed the contract, you have to keep the property in the same condition that it was on the day that the contract was signed, except for fair wear and tear.

Am I Being Exploited?

As you have a range of responsibilities as a seller, you’ll need help and protection. The legal aspects of selling a property can appear confusing and even overwhelming, but an expert conveyancer can guide you through the process. A conveyancer will make sure all your legal obligations are met, and that you’re protected from buyers who could potentially exploit you.

Are you selling around Melbourne’s suburbs? At Glenferrie Conveyancing our team will do all the hard work to make sure that the legal aspects of your sale are handled properly and to the highest standard. This will reduce your stress, and give you the time to take some photos and bid farewell to your home. Contact us today for your property conveyancing concern!