Selling

If you are selling your property, you will either engage a real estate agent to market and negotiate the sale on your behalf, or you will deal directly with the buyer. There is no requirement that you use a real estate agent. You may advertise your property yourself. Many people prefer to employ an agent to avoid having to negotiate directly with a prospective buyer.

If you engage a real estate agent you will be liable to pay a commission to the agent on the sale of your property. This is usually in addition to marketing expenses. The maximum commission that can be charged by an agent is set by the Real Estate Institute of Tasmania. For details on the recommended commission, go to Helpful Links.

The commission is negotiable so you can agree to a commission less that the recommended scale. The commission is paid on completion of your sale from your sale proceeds.

Beware of double commission - If you have signed an agency agreement with more than one real estate agency, you may risk paying a double commission. We can provide you with a special condition that can be included in your contract which notes that the purchaser warrants that the agent showed on the contract were the ones that introduced the property to the purchaser and no other.

When you find an interested buyer, you will need to arrange a written contract setting out all agreed terms. All agreements for the sale of land (vacant or developed land) must be in writing and signed by all parties. Verbal agreements are not enforceable. For this reason, it is important that a contract is signed as soon as possible. We appreciate this, so if you are selling privately, we can provide a contract fast. If you are selling through an agent, the agent will usually prepare the contract and have it signed by the buyer.

We recommend that before you sign the contract, you or your agent forward the contract to us to check and ensure that the terms and conditions reflect your intentions and are reasonable. Once signed by all parties, a contract is binding and cannot be altered without all parties agreeing. There are no cooling-off periods or automatic rights to withdraw in Tasmanian contracts unless there is some specific provision in the contract.

We recommend you provide details of all chattels to be included and excluded from the contract to avoid any disputes with the buyer. Typically disputes arise over such items as birdbaths, large entrance pots, cubby houses and old property nameplates. Fixtures are part of the land so that items (e.g. built-in shelves) are included without further mention. Any fixtures that will not be included must be specified.

The contract should provide for the payment of a deposit by the buyer on signing. It is in the interest of the seller that a substantial deposit is paid. The amount of the deposit should be 10% of the sale price but is negotiable. The deposit is held until your sale is completed or refunded to the buyer if any conditions are not satisfied and the contract is terminated.

The contract may contain conditions that need to be satisfied by the buyer within specified times. If the conditions are not satisfied within the specified time, either party may terminate the contract. In that case, the deposit is released to the buyer.

Once all conditions have been satisfied, we will contact your bank in order to arrange a discharge of any mortgage you have over the property.

On settlement, the Purchaser will be required to pay you a proportion of charges (Council rates and land tax) from the date of settlement to 30 June next. We will contact the Council and State Revenue Office on the date of settlement to find out whether any amounts are outstanding for the current financial year and if so, we will arrange payment from your proceeds of sale.

We recommend paying any instalments that fall due prior to settlement on time to avoid interest.

You are responsible for ensuring the State Revenue Office applies the correct classification to your property. If your property use has changed and it is now your principal residence or is no longer your principal residence land, primary production land or exempt land, or if you are renting any part of your property, you must notify us and the Commissioner of State Revenue as soon as possible so we can arrange for the classification to be amended prior to your settlement.

We arrange settlement or completion with you, your bank and the buyer. You are not required to attend settlement. On settlement, we will repay your loan to your bank and obtain a discharge of your mortgage. The title deed to your property, together with a transfer signed by you and a discharge of mortgage, are handed to the buyer’s lawyer in exchange for a bank cheque for the balance of the sale price.

We finalise a settlement statement and transfer sale proceeds on the same day as settlement in most cases. Meaning money is in your hands faster.