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Navigating the Property Sales Process

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At ViVid Land, our dedicated team will implement the best campaign and strategy to market your property sales, ensuring you achieve a premium price. Here’s what you need to know:

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Comprehensive Property Listing Before advertising your residential property for sale, it is vital to prepare a contract of sale. This contract must include essential documents such as title deeds, drainage diagram, and a current Zoning Certificate (s 149) issued by the local council. If your property has a swimming or spa pool, additional requirements apply, including attaching a valid certificate of compliance, a valid occupation certificate with evidence of registration, or a valid certificate of non-compliance.

Exceptions to these requirements exist for certain property types. Failure to include these documents may grant the purchaser the right to rescind the sales contract within 14 days of exchange, unless settlement has already taken place. To verify the compliance of your swimming/spa pool, you can visit the NSW Swimming Pool Register website. Additionally, it is crucial to include property exclusions and provide a statement outlining the buyer’s cooling-off rights. For more detailed information, please visit the NSW Land Registry Services website.

Agency agreements For the sale of residential property

Agency Agreements for Residential Property Sales Should you choose to sell your property with the assistance of an agent, you will enter into a legally binding contract. To ensure a successful partnership, NSW Fair Trading offers valuable tips on selecting an agent and gaining a comprehensive understanding before committing:

Choosing a Real Estate Agent

Take the time to research and consult with at least three agents. Confirm that they possess a valid license, which can be checked through the licensing authority. Obtain a clear breakdown of their fees, inquire about their knowledge of the local area, and ascertain whether they adhere to a code of ethics. In NSW, agents must hold a real estate agent’s license issued by NSW Fair Trading to sell homes.

Signing an Agency Agreement

Prior to marketing your property sales, an agency agreement must be signed between you and the agent. This agreement is legally binding, so it is vital to read and comprehend its terms. Seek legal advice if you have any uncertainties.

Key Elements of the Agency Agreement

The agreement should specify the services the agent will provide, including the agreed-upon fees or commission. It should outline the circumstances under which the agent is entitled to payment, typically upon the Property Sales. Clarify the method and timing of payment, such as whether the agent can deduct their commission from the buyer’s deposit. The agreement should also highlight scenarios in which you may be required to pay commission to multiple agents. As of 1 March 2015, there is a warning about commission payment if the sale is not completed.

The agreement should define the agent’s authority to act on your behalf, such as exchanging sale contracts or making changes to the contract. Furthermore, the agent should provide an estimated selling price for your property, which may be a single price or a price range. Note that if a price range is used, the highest price cannot exceed the lowest price by more than 10%. The agent is obligated to adjust their estimated selling price if it is no longer reasonable and provide written notification and an amended agreement.

Your consent is not required for this change, but the agent must present evidence justifying the revised estimate. You have the right to negotiate the agreement’s terms and conditions and request any legally permissible changes. Any modifications to the agreement should be signed by all parties, unless the agent revises the estimated selling price for your property.

Termination of the Agreement

Agency agreements can be either open-ended or for a specified period (a “fixed term”). The length of the fixed term is determined through negotiation between you and the agent, with no minimum or maximum set term. The duration depends on the projected time required to sell the property. If you wish to terminate the agreement, you must provide written notice according to the terms outlined in the agreement.

Carefully review your agreement to determine the required notice period. If you are dissatisfied with the services provided by an agent, it is crucial to properly terminate the agreement before engaging another agent. Failure to do so may result in both agents charging you commission upon the property sale.

Exclusive Agency Agreements

Exclusive agency agreements are commonly utilized for residential property sales. Under this type of agreement, you grant exclusive rights to one agent to sell your property. This means that even if you or another agent sell the property during the fixed term of the agreement, the agent with exclusive rights may still be entitled to commission. The agent may also be eligible for commission if the property is sold to someone who initially expressed interest through the original agent.

Sole Agency Agreements

A sole agency agreement resembles an exclusive agency agreement. In this case, you grant rights to one agent to sell the property, but you retain the ability to find a buyer on your own. If you secure a buyer who has not been introduced by the agent, no commission is payable to the agent.

Cooling-Off Period

Once you and the agent have signed the agency agreement, it becomes binding. However, a cooling-off period of one business day is provided during which you can cancel or “rescind” the agreement. The cooling-off period starts upon your signing of the agreement and ends at 5pm on the next business day or Saturday.

For example, if you sign the agreement on a Friday, the cooling-off period concludes at 5pm on Saturday. If you sign up on Saturday, the cooling-off period typically extends until 5pm on Monday, unless that day is a public holiday, in which case it would end at 5pm on Tuesday.

The cooling-off period allows you ample time to review the agreement, carefully consider the agreed-upon terms, including the agent’s fees, and seek independent advice if needed. If you decide to cancel the agreement during the cooling-off period:

Provide a Notice of Rescission

Deliver a written notice or letter addressed to the agent (using their name as stated in the agency agreement) indicating your intent to rescind the agreement. The notice must be signed by you (and any other principal/vendor named in the agreement) or your solicitor. You can deliver the notice in person, send it by mail, email, fax, or leave it at the agent’s office or the specified address in the agency agreement. Remember to retain a copy for your records.
Once the agreement is correctly rescinded, the agent cannot charge you any fees or costs related to the agreement. Any funds already paid to the agent must be refunded to you.

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In summary, by following these crucial steps, you can maximize your property sales. Prepare a comprehensive contract of sale, including all necessary documentation. When engaging an agent, carefully select one with a valid license, understand the agency agreement terms, and negotiate where necessary. Should you decide to terminate the agreement, ensure proper notice is provided. Finally, take advantage of the cooling-off period for additional review and seek advice if required. Contact us to buy and sell your property.

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