Before a residential property can be advertised for sale, a comprehensive contract of sale must be prepared. This contract is crucial and must include various documents such as title documents, a drainage diagram, and a current Zoning Certificate issued by the local council. If the property features a swimming or spa pool, specific documents related to compliance or certification must also be attached.

Exceptions to these requirements exist for certain properties, like those in strata or community schemes with more than two lots, or for off-the-plan contracts.

Important: Failure to include necessary documents may entitle the purchaser to rescind the sales contract within 14 days of exchange, unless settlement has already taken place.

To verify compliance related to swimming/spa pools, individuals can visit the NSW Swimming Pool Register website. Property exclusions and details about the buyer’s cooling-off rights should also be included in the contract.

Private Treaty

Selling a property by private treaty involves setting a price and listing the property for sale at that specified amount. This method offers certain advantages:

Greater control over the sale process

Time to consider offers from potential purchasers

Flexibility in extending the sale duration

Offers from buyers without knowledge of others' valuations

However, sellers should be mindful of potential risks, such as setting the price too high, which may impede the sale, or setting it too low, which might undervalue the property. Additionally, buyers in a private treaty sale have a five-day cooling-off period during which they can withdraw from the sale.

Auction

In an auction, the property's price is typically not disclosed to potential buyers, who are encouraged to bid against each other at the auction event. Setting a reserve price is crucial, as it represents the lowest acceptable amount for the property. If the bidding does not reach the reserve price, the property is 'passed in,' allowing negotiation with interested bidders or reconsideration of the sale.

Successful bidders at an auction must sign the sale contract immediately and pay a deposit, usually 10% of the purchase price, on the spot. Notably, there's no cooling-off period for buyers who purchase a property at an auction.

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The exchange of sale contracts marks a significant legal milestone in the home selling process. Both parties sign separate copies of the contract, and upon exchange, the buyer pays a deposit, typically 0.25% of the purchase price.

Key points during contract exchange:

Buyers usually have a five-day cooling-off period after the exchange to withdraw from the sale.

Agents must provide signed contract copies to each party or their solicitor within two business days if they arrange the exchange.

Cooling-off periods can be negotiated, waived, reduced, or extended.

Sellers are bound to complete the agreement once contracts are exchanged.

Settlement, the final stage, generally occurs six weeks after contract exchange, marking the conclusion of the sale transaction.

For more detailed information and specific guidelines, individuals can visit the NSW Land Registry Services website.

Understanding these steps and legalities is crucial for both sellers and buyers in the New South Wales residential property market.