FAQ

REASONS TO SELL YOUR HOME PRIVATELY OR FOR SALE BY OWNER (FSBO)

Why selling a house privately rather than using a real estate agent could be advantageous for homeowners in Australia:

Savings on Commission: Real estate agents in Australia typically charge between 1.5% and 3.5% in commission, depending on the property’s location, type, and market conditions. By selling the property themselves, owners can save significantly on these commissions, potentially accumulating tens of thousands of dollars depending on the property’s value.

Better Knowledge of the Property: As a homeowner, you know your house better than anyone else. This puts you in an excellent position to highlight the best features and improvements of your property effectively to potential buyers. You can also give them an authentic insight into the neighborhood and community, which might be the convincing factor for them.
Full Control of the Sale Process: Selling the property on your own allows you to control the entire process, from deciding on showing times to setting the selling price to negotiating the deal. This can give you peace of mind, as you wouldn’t have to rely on a third party to make decisions in your best interest.
Direct Communication with Buyers: Dealing directly with potential buyers can make the whole process faster and more transparent. There are no intermediaries, so you can answer any questions or concerns immediately. A direct discussion between buyer and seller can also lead to a quicker agreement on the price.
flexibility in Price Negotiation: Without a commission being added to the selling price, you may have more room to negotiate with a potential buyer. This can be used as a leverage point during price discussions.
Using Online Platforms: Buyers will search online platforms for their purchases. We also provide tools and resources to guide you through the selling process.

For Sale By Owner or Private Sales might not be suitable for everyone, particularly if you’re not comfortable with negotiating and handling all necessary paperwork. Always consider your personal circumstances before deciding to sell your home on your own.

DO I NEED A TRADITIONAL “FOR SALE” SIGN?

Traditional “For Sale” signs have been commonly used to advertise homes for sale. However, they aren’t very effective or necessary nowadays, similar to having a sign on your car. Nowadays, most people discover potential homes to buy through online platforms rather than driving by. But if you still want to display a sign, you can create your own. There are local printers or online websites like Vistaprint where you can design a display sign.

HOW WILL BUYERS FIND MY HOME WITHOUT A SIGN?

When potential buyers contact you through the platform, you can provide them with the address. Then, you can arrange a convenient time to meet them for a walkthrough of your home.

IS IT SAFE?

Just like when you open your home with a real estate agent, you will be allowing strangers into your home. It’s important to take precautions to ensure safety. Put away any valuable items, and request photo ID from potential buyers. You can even take a photo of their ID or make a note of their name and address. Avoid sharing personal information such as when your property will be empty or the location of spare keys. Always use common sense and follow safety guidelines when opening your home to visitors.

PREPARING A CONTRACT OF SALE

Preparing a Contract of Sale for a property is a complex task that requires a meticulous understanding of legal obligations, as the contract directly impacts the rights of both parties. It is highly recommended to seek help from a solicitor or conveyancer, especially if you’re selling your property privately. However, the basic structure of the contract includes several essential parts:

Parties Involved: Clearly state the full names and contact details of the seller(s) and the buyer(s).
Property Details: Detailed description of the property being sold, including address, legal description (the lot and plan number from the Certificate of Title), and any fixtures or chattels included or excluded from the sale.
Purchase Price: The agreed-upon price that the buyer will pay for the property.
Deposits: Terms around the deposit, including the amount and when it should be paid.
Settlement Date: The date on which ownership will legally transfer to the buyer and the balance of the purchase price is paid.
Conditions: Any conditions of sale, such as being subject to financing, building and pest inspections, or the sale of another property.
Legal Advices: A statement recommending each party seek independent legal advice and has either done so or waived their right to.
Special Terms: Any unique terms or conditions agreed upon by the buyer and seller.
Signatures: The Contract of Sale must be signed by all parties involved for it to be legally binding.

This is a general guide; real estate laws and regulations are subject to change, depending on the state and time. A Contract of Sale must also often contain mandated disclosure statements such as details regarding the cooling-off period, whether there are any significant development proposals or orders affecting the property, etc.

Remember that each real estate transaction is unique, and there might be additional elements needed for your Contract of Sale. Again, most people will use a professional like a conveyancer or solicitor to prepare this critical document.

PROPERTY LAWS BY STATE

Remember, even though you’re selling your home privately, you may still need the assistance of professionals such as conveyancers, solicitors, and valuers. Be sure to consult with these professionals to ensure you navigate the process correctly.

AUSTRALIAN CAPITAL TERRITORY

Selling a home privately in the Australian Capital Territory (ACT) involves a set of legal processes and paperwork. The specific documents you require may vary slightly depending on circumstances, but most commonly include:

Contract for Sale: A contract for sale of residential property is legally required before a home can be marketed for sale. This is prepared by your solicitor or conveyancer and includes information about the property, title details, zoning certificates, rates and other specific aspects.
Building Inspection and Energy Efficiency Rating Reports: In ACT, it’s legally required to have these reports conducted and available for potential buyers to review before the sale. If your home was built after 1994, it is required to have an Energy Efficiency Rating (EER) report.
Certificate of Compliance: Required for any regulated structures on your property such as swimming pools, spa pools, and safety barriers.
Seller Disclosure Statement: You need to disclose any known issues with the property that could affect the buyer’s decision to purchase.
Proof of Identity documents: Standard proof of identity documents are normally required.
Settlement Statement: This is generated closer to your settlement, outlining the financial aspects to complete the sale.

Remember it’s always good to have a conveyancer to guide you through. It’s crucial to get independent legal advice before selling any property, even when selling privately.

NEW SOUTH WALES

Property laws in New South Wales (NSW), Australia, are detailed and it is essential for home sellers to be aware of these. Here are some key points to consider:

Contract of Sale: In NSW, a Contract of Sale must be prepared. This contract should detail the particulars of the property, the price, and any special conditions of the sale. A solicitor or conveyancer often prepares this contract.
Disclosure Statement: You are legally obliged to disclose some specific things about your property. These include details about the zoning, easements, other rights of way, and any past or present disputes.
Cooling-Off Period: In NSW, the cooling-off period is five business days for buyers of residential and rural property. This can be waived, reduced or extended by negotiation.
Necessary inspections and certifications: Certain inspections are required before the sale, including a pest inspection and a building inspection. If you have a swimming pool, valid pool compliance or exemption certificate is needed.
Stamp Duty and GST: As a seller, you’re generally not responsible for these, but you should include GST in the sale price if you’re obligated to pay GST on the sale.
Capital Gains Tax: You may have to pay Capital Gains Tax (CGT) on the profit from the sale of the property, unless it is your primary residence.

In New South Wales, Australia, it’s typically the vendor’s (seller’s) responsibility to arrange for certain inspections and certifications and to include the relevant documentation in the sale contract. This often includes:

Property Reports: A vendor is required to order a property certificate and a zoning certificate (also called a s.149 certificate). These are often included in the Contract of Sale.

Pest and Building Inspections: While it’s not a legal requirement for the seller to conduct these, many choose to provide these inspections upfront to expedite the selling process.

Swimming Pool Compliance: If the property has a swimming pool, the owner must provide a certificate of compliance or non-compliance.

Please note, this is not a comprehensive guide, and property laws can vary and change over time. It’s highly recommended to consult with a legal professional in NSW to ensure you comply with all applicable laws as they pertain to your specific situation.

Remember that the requirements can vary depending on the specifics of your property, so it’s important to consult with a professional to make sure all necessary inspections and documentation are included. Also, keep in mind that regulations and standards could change, so always check with a local conveyancer or legal professional to ensure you’re up to date.

NORTHERN TERRITORY

Selling your home privately, as a ‘For Sale by Owner’ or FSBO, in the Northern Territory, Australia, is definitely possible. This means you’re taking on the role traditionally performed by a real estate agent. Here are some steps and legal requirements you should be aware of:

Prepare a Contract of Sale: This document outlines the details of the transaction. In the Northern Territory, this usually includes the Certificate of Title, Energy Efficiency Rating statement, and other relevant documents. It’s recommended to have a conveyancer or solicitor assist in preparing this contract.
Settlement: After the contract of sale has been signed by you and the buyer, you’ll need to prepare for settlement. This process usually involves paying any outstanding rates and taxes, canceling utilities, and preparing to turn over possession.
Transfer of Ownership: The legal ownership of the property must be transferred from you to the buyer. This process should be handled by a conveyancer or solicitor, as it involves lodging documents with the Land Titles Office of the Northern Territory.

QUEENSLAND

In Queensland, Australia, selling your home privately (without a real estate agent) involves various legal documents and important procedures. The key documents, according to the usual practice, include:

Proof of Identity Documents: This is required to confirm your identity as the legal seller of the property. You may need photo identification like a passport, driver’s licence, or an official national identity card.
Title Searches/Certificate of Title: This legal document shows who owns the property and other details like dimensions, mortgages, covenants, and easements.
Contract of Sale: The most important document in any real estate transaction. It outlines the terms and conditions of the sale.
Disclosure Statement: This document informs the buyer of relevant, mandatory details about the property. The details required can vary, but usually include any encumbrances or other restrictions.
Rates and Water Certificates: You need to apply to your local council and water authority to get these certificates showing any outstanding rates or water charges.
Building and Pest Inspection Reports: Though not mandatory, many sellers choose to get these done proactively to expedite the sales process.
Pool Safety Certificate: If your property has a pool, you must provide a pool safety certificate from a licensed inspector.
Transfer of Land Document: This document, typically prepared by your solicitor or conveyancer, is used to officially transfer the property ownership to the buyer.

The processes and legalities can be quite complex. Thus, it’s advisable to seek legal advice and potentially hire a conveyancer or solicitor to assist with drafting and reviewing the necessary documentation. There might be additional regional or property-specific documents required, so remember to check with a professional.

SOUTH AUSTRALIA

In South Australia (SA), selling a house involves various legal processes, requirements, and regulations to protect all parties involved. Here are some key legal considerations for selling a house in SA:

Contract of Sale: A Contract of Sale is a legal document which sets out the terms and conditions agreed upon between the buyer and the seller. Contracts must be in writing and signed by both parties before they are legally binding.
Form 1 – Vendor’s Statement: This is a disclosure document that provides specific information about the property to the potential buyer. It must include, among other information, details about the title of the property, including any encumbrances, outgoings, zoning, and notices. It is typically prepared by a conveyancer or solicitor.
Cooling-off Period: In SA, the cooling-off period is two business days if you are selling a residential property privately. Within this period, the buyer can change their mind and terminate the contract.
Deposits: The deposit must be paid to the agent or conveyancer’s trust account until settlement. In South Australia, the maximum deposit is typically 10% of the purchase price.
Conveyancing: Conveyancing is the legal process of transferring ownership of the property from seller to buyer, ensuring that the buyer acquires a clear and unencumbered title of the property. This is usually done by a registered conveyancer or solicitor.
Development Plans: If there are any proposed developments in the area that might affect the value or utility of your property, you must declare these in the Form 1 Vendor’s Statement.
Building Inspections: If the buyer wants to conduct a building inspection, they must arrange this during the contract’s conditional period.

Remember, this is a broad overview, and each property transaction may have unique considerations and requirements. This information is accurate as of July 2023, but we suggest consulting with a legal professional to ensure that you follow the latest regulations.

TASMANIA

Selling a residential property in Tasmania, Australia entails various legal obligations. Here are some key tasks you’ll likely need to deal with:

Agent’s Authority to Sell Agreement: It’s crucial when selling a property to sign an agreement with your real estate agent. This document outlines the agent’s commission, the estimated selling price, advertising costs, and the duration of the agreement.
Vendor’s Statement (Section 32): Also known as the Vendor Disclosure, this document includes details about the title, council, zoning, outgoings, etc., and any other information that may negatively impact the property. It’s essential to provide this when selling property.
Contract of Sale: This legal document outlines the terms and conditions of the sale, including the purchase price, settlement date, any special conditions, and more. It gets prepared by the vendor’s conveyancer or solicitor.
Conveyancing: This is required to legally transfer ownership of the property from you (the seller) to the buyer. A solicitor or licensed conveyancer usually conducts it.
Building Inspection Reports: While it’s commonly the buyer’s responsibility to arrange pre-purchase building and pest inspections, as a seller, you could choose to provide these reports to give potential buyers confidence in the property’s condition.
Payment of Council Rates/Utilities: These should be paid up to and including the day of settlement.
Clearance Certificate: No Capital Gains Withholding Certificate is required for properties sold for less than $750,000, but for properties sold at or above this price, the vendor needs to obtain a clearance certificate from the Australian Taxation Office. This certificate prevents purchasers from withholding 12.5% of the purchase price to pay directly to the ATO.
Principal Place of Residence Exemption: If you occupied the house as your main residence and fulfill other eligibility conditions, you’re excused from capital gains tax (CGT) when you sell it.

Remember, regulations may vary, and this information might not be fully comprehensive or may change over time. It’s always best to consult with a real estate agent, conveyancer, or solicitor to make sure you’re following all legal requirements when selling your house.

VICTORIA

Property laws in Victoria, Australia, consist of numerous regulations and legal requirements that guide the sales process. Here are a few key points you should be aware of:

Contract of Sale: It is mandatory to prepare a Contract of Sale for the property. This contract includes details about the property, the selling price, and the terms of the sale. You may need the help of a solicitor or a conveyancer to prepare this.
Vendor’s Statement (Section 32): The seller must provide potential buyers with a ‘Section 32 Statement’ before the contract is signed. It includes crucial information about the property such as:

The title details
Any mortgages or debts on the property
Details of any easements or other encumbrances
Planning information
Outgoings like council rates
Details of services connected to the property

Agent Representation: FSBO (For Sale By Owner) is allowed, it is recommended to consult with a conveyancer for the legal documents and requirements. Search for local conveyancers in your area pricing is approx $1500 – $3000 depending on your needs.
Cooling-Off Period: A cooling-off period of 3 business days applies to private sales where the buyer can cancel the sale. However, this does not apply to properties bought at auction or within three business days before or after a public auction.
Stamp Duty: Stamp duty is a tax on written documents and certain transactions, including the sale of real estate – the buyer usually pays this.
Disclosure Requirements: Sellers in Victoria have a legal obligation to disclose certain information about the property, like if it’s in a bushfire-prone zone.

This is a broad overview, and property law can be complex as well as change so it’s a good idea to consult with a conveyancer to ensure you meet all regulatory requirements when selling your property.

WESTERN AUSTRALIA

It’s always recommended to consult with a real estate lawyer or conveyancer who specializes in WA property law for specific guidance related to your situation. Here are some key aspects to consider:

Disclosure Requirements: As a seller, you have a legal obligation to disclose certain information about your property to potential buyers. This includes providing accurate information about the property’s condition, any known defects, encumbrances, or zoning restrictions.
Contract of Sale: The sale of a property in WA is typically governed by a legally binding contract known as the Contract of Sale. This contract outlines the terms and conditions of the sale, including the purchase price, settlement date, and any special conditions agreed upon by the buyer and seller. It is highly recommended to have a lawyer or conveyancer prepare or review the contract to ensure compliance with the relevant laws.
Cooling-Off Period: In Western Australia, there is no automatic cooling-off period for residential property sales. Once the Contract of Sale is signed by both parties, it is generally considered legally binding.
Title and Ownership: Before selling your property, you must have a clear and marketable title to transfer ownership to the buyer. This typically involves providing the buyer with a copy of the Certificate of Title, which confirms your ownership rights and any encumbrances on the property.
Settlement Process: The settlement is the final stage of the property sale, where ownership officially transfers from the seller to the buyer. It involves the exchange of necessary documentation, payment of funds, and registration of the transfer of title with the Land Titles Office. It’s common for sellers to engage a conveyancer to handle the settlement process on their behalf.

WHERE DO I FIND A CONVEYANCER?
You can search via google or ask for recommendations through friends or family members to find a conveyancer, Everything can be done online these days so you don’t even need to go into their office.

HOW DO I RENT OUT MY PROPERTY PRIVATELY?

Leasing out your property without a real estate agent in Australia is possible and can give you greater control and cost savings. The average cost of rental agreements with estate agents costs between 5 – 10% of the annual income, plus lots of other hidden and unexpected costs.

Here are the key steps to consider when renting out your property privately:

Prepare Your Property:

Ensure your property is in good condition and complies with legal requirements and safety standards.
Conduct necessary repairs, cleaning, and maintenance to make it appealing to potential tenants.
Consider obtaining a rental appraisal to determine a competitive rental price.

Advertise Your Property:

Take high-quality photos of your property, showcasing its best features.
Write a compelling and detailed description highlighting key selling points and amenities.
Advertise your property on various platforms, including online listing websites, social media, local community noticeboards, and word of mouth.

Screen Potential Tenants:

Create a tenant application form requesting necessary details such as employment history, references, and rental history.
Conduct thorough background checks, including credit checks, employment verification, and reference checks.
Meet potential tenants in person to assess their suitability and ensure a good fit for your property.

Prepare a Tenancy Agreement:

Use a standard Residential Tenancy Agreement (lease agreement) specific to your state or territory in Australia.
Include important details such as rent amount, payment frequency, lease duration, and responsibilities of both parties.
Ensure compliance with relevant tenancy laws, regulations, and any specific requirements for your state or territory.

Collect Bond and Rental Payments:

Obtain a bond from the tenant, typically equivalent to a few weeks’ rent, as a security deposit.
Register the bond with the appropriate state or territory authority.
Arrange a secure method for collecting rent payments, such as bank transfers or online payment platforms.

Manage Property Maintenance and Repairs:

Establish clear lines of communication with your tenants to address any maintenance or repair issues promptly.
Decide whether you’ll handle maintenance yourself or hire trusted contractors for repairs and inspections.
Keep detailed records of all communication, agreements, and maintenance activities.

Stay Informed and Compliant:

Stay updated on relevant state or territory tenancy laws and regulations.
Ensure you comply with landlord obligations, including providing required documentation, conducting inspections, and adhering to notice periods for lease terminations or rent increases.

Seek Legal and Professional Advice:

Consider consulting with a property lawyer or seeking advice from a tenancy association specific to your state or territory.
They can guide you through the legal aspects, offer advice on best practices, and ensure compliance with local regulations.

While leasing out your property without a real estate agent requires additional effort and responsibility on your part, it can be a rewarding and cost-effective approach. By following these steps and staying informed, you can successfully navigate the process and manage your property leasing independently.

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