Thinking of Selling your Property? - Corcoran French Lawyers

Thinking of Selling your Property?

Initial Considerations

One of the key points to consider before you decide to sell your property is whether or not the sale of your property is subject to the ‘Brightline Period’. Generally speaking, this rule provides that you may have to pay tax on a profit if it has been purchased and sold within two years. There are some exceptions to this rule – for instance if your property has been used as a main home. It’s always a good idea to check implications of the Brightline Period with your lawyer and accountant before you enter into a sale and purchase agreement.

Your Warranties

When selling a property, there are a number of vendor warranties that apply unless the standard agreement terms are altered. One example of this is that you (as the vendor) have not received any notice or demand and are not aware of any outstanding requirements from a local authority. A good example of this is the ‘separation of services work’ which is a requirement the Council are enforcing on landowners, requiring them to undertake work to separate the sewer and stormwater infrastructure. Many property owners are still yet to undertake this work.

There is also a vendor warranty stating you are not aware of any matters that may result in legal proceedings or litigation. One example of this could be that you are in dispute with a neighbour arguing over legal access to a property and there are legal proceedings around trespass.

There is also a section in the agreement which lists the chattels (which are items not fixed to the land) that are to be included in the sale. For instance – a stove, curtains, heating units, etc. There is a warranty that the chattels upon settlement are in reasonable working order and do not have any charges or debt attached to them. So, if you’ve purchased a new fridge on finance, or are using rent-to-buy solar panels and intend to leave these at the property, this debt may need to be cleared or otherwise transferred before sale.

There are many other warranties that may apply so you should always seek legal advice before signing an agreement.

Buying at the same time?

Another important aspect to consider is whether your sale funds need to go towards a purchase. If so, you will need to make sure your purchase contract is conditional on you selling your current property. If you do not include such a condition, and you enter the unconditional stage with a purchase contract (i.e., you have confirmed and are contractually obliged to settle) and your sale contract falls through, you run the risk of defaulting under your purchase contract. There are various harsh penalties that can come with a default.

Usually, your real estate agent can help you ensure your contract’s dates line up, but again, we always recommend you seek legal advice before signing.

There are many other important factors that need to be taken into consideration when selling, so it’s important to talk to a lawyer, who can guide you through the process and make sure you are fully informed before entering into any agreement.

All information in this article is to the best of our knowledge true and accurate. No liability is assumed by us for any losses suffered by any person relying directly or indirectly upon this article. You should consult a senior representative of the firm before acting on this information.