Contract and Settlement
The Contract of Sale
The terms of a property sale are assembled in the Contract of Sale. When you sell property, this contract will also stand in addition to standard legal terms and conditions in a real estate transaction.
It will include agreed terms that relate specifically to the transaction including price, deposit, date of settlement, the inclusions and exclusions and other special conditions. Once an agreement is reached, the agent will normally take a deposit.
In Queensland, the contract of sale is prepared by the agent - once the contract has been signed by both the seller and the purchaser, a deposit is accepted by the agent on behalf of the seller and held in trust until the settlement date.
The agent will under normal circumstances hold the original contract and forward a certified copy of the contract to both the sellers and purchasers solicitor or conveyancer.
Settlement of the Property
The settlement date is the date on which the balance of the purchase price is made and the title to the property is transferred to the purchaser. Here are some things to consider about the settlement of your property sale:
- The settlement occurs once the contract of sale is signed by both parties, the cooling off period has expired and all special conditions have been satisfied.
- The solicitor or conveyancer for the seller will prepare transfer of title documents and settlement statements.
- This will include the adjustment of outgoings such as council rates.
- They will also establish communication with the buyers solicitor or conveyancer and the lending body if applicable.
- All parties, solicitors, conveyancers and lenders if applicable will meet on the date of settlement to exchange funds for signed mortgage documents and the title to the property on which the mortgage will be registered.