Step 1: the contract before the listing
An agent cannot market a residential property in NSW until a contract for sale is available. We prepare it with the prescribed documents: a current title search, the deposited or strata plan, a section 10.7 planning certificate from the council, a sewerage service diagram and, for a strata property, the by-laws and strata documents. If there is a swimming pool or spa, a compliance certificate or a certificate of non-compliance is attached. Getting the contract right at the start avoids the renegotiation that follows when a buyer's conveyancer finds something missing.
Step 2: disclosure and the questions buyers ask
The contract carries implied warranties about the land, for example that there are no undisclosed adverse affectations, and the buyer can rescind if a warranty is wrong. We talk through anything a buyer might raise, such as an unapproved structure, a boundary issue or a flood or bushfire notation, and decide with you how it is handled in the contract rather than at exchange.
Step 3: offers, exchange and the buyer's cooling-off period
When you accept an offer, contracts are exchanged and the buyer pays the deposit, usually 10 per cent. For a private treaty sale the buyer then has a cooling-off period of five business days; if they withdraw, you keep 0.25 per cent of the price. Many sellers ask the buyer to waive the period with a section 66W certificate so that exchange is unconditional, and we advise when that is reasonable to ask for. At auction there is no cooling-off period and the contract is unconditional on the fall of the hammer.
Step 4: requisitions and enquiries
After exchange the buyer's conveyancer sends requisitions on title, the formal questions the contract allows, and may ask for information about the property. We answer them with you and keep the matter moving.
Step 5: discharging your mortgage
Your lender needs time to prepare the discharge, often two to three weeks, so we lodge the discharge request as soon as contracts are exchanged. The payout figure is confirmed just before settlement and paid from the proceeds on the day.
Step 6: the ATO clearance certificate
Every seller of Australian property needs an ATO foreign resident capital gains withholding clearance certificate before settlement, whatever the price; without it the buyer must withhold 15 per cent of the price and pay it to the ATO. Apply early, as certificates can take weeks, and give it to us when it arrives.
Step 7: adjustments and the settlement statement
Council rates, water rates, strata levies and, where it applies, land tax are adjusted so that you pay only up to the settlement date and the buyer pays from it. We prepare the settlement statement showing the price, the deposit held, the adjustments, the mortgage payout, the agent's commission and our fee, and the net amount you receive.
Step 8: the final inspection and vacant possession
The buyer is entitled to inspect in the days before settlement. The property must be in the same condition as at exchange, the inclusions in place and, unless it is sold subject to a tenancy, empty and clean on settlement day. Keys are left with the agent.
Step 9: settlement
Settlement takes place electronically on PEXA, usually 42 days after exchange. Your mortgage is discharged, the buyer's funds are received, the transfer is lodged with NSW Land Registry Services and the net proceeds are paid to your account, normally the same day. The agent releases the keys to the buyer and accounts to you for the deposit less commission.
After settlement
We notify the council and water authority. If the home was your main residence the capital gains tax exemption usually applies, but that is a question for your accountant; keep the settlement statement and the original purchase records for them.
What it costs
Settle Easy's professional fee for a standard residential sale in NSW is a fixed $1,750 plus GST, agreed before we start. Certificates and government charges are passed on at cost, typically $700 to $900 for a sale. Agent's commission and your lender's discharge fee are separate. See conveyancing fees in NSW, or get a fixed-fee quote.