The Steps to Property Selling Done Right
Spring has arrived in Camden, bringing with it the peak property selling season. As our region’s growth continues with developments in Oran Park, Gregory Hills, and established areas like Camden South and Narellan, spring presents the optimal window for vendors looking to maximise their sale price.
However, selling property in NSW involves significant legal obligations that can feel overwhelming. Understanding your responsibilities before you list protects you from costly mistakes, ensures a smooth transaction, and minimises the risk of future disputes.
This legal checklist guides Camden vendors through the four critical areas of selling your property this spring. Preparing a compliant contract, meeting disclosure requirements, choosing a sale method, and navigating settlement.
1. Preparing the Contract of Sale
You cannot legally advertise your property for sale in NSW until you have a properly prepared contract of sale. This legal requirement ensures buyers have access to essential information before making an offer and protects the market’s integrity. Advertising without a contract can result in fines.
Your contract must include specific ‘prescribed documents’ under NSW law.
Essential Contract Components
- Title Documents: This includes a Certificate of Title to prove legal ownership and a Deposited or Strata Plan diagramming the property’s boundaries. Your solicitor obtains these from NSW Land Registry Services.
- Section 10.7 Planning Certificate: Issued by Camden Council, this critical document discloses zoning information, planning controls, and environmental factors like bushfire or flood-prone land classifications.
- Drainage Diagram: This shows the location of the council sewer line and how your property is connected.
- Documents for Easements or Covenants: If your title shows easements or other restrictions, you must provide the documents that created them.
Special Requirements
- Swimming Pools and Spas: If your property has a pool, the contract must include a valid Certificate of Compliance or Non-Compliance.
- Action Step: Arrange a pool safety inspection at least 6-8 weeks before listing. This allows time for any required upgrades to meet safety standards.
- Recent Building Work: For residential building work over $20,000 completed in the last six years, you must provide a Home Building Compensation Insurance Certificate. You must also include council approval documentation, such as an Occupation Certificate.
2. Your Disclosure Requirements
NSW law requires vendors to disclose material facts that could influence a buyer’s decision. Failing to do so can result in the buyer terminating the contract or seeking compensation.
What You Must Disclose
- Natural Disasters: You must disclose if your property has been subject to flooding or bushfire events in the last five years. With parts of Camden affected by flooding, this is a critical local requirement.
- Structural and Building Issues: You must disclose any known defects you are aware of or ought reasonably to have known about. This means you can’t ignore obvious signs, like visible water stains on a ceiling, and later claim you were unaware of a leak. It includes issues like structural cracks, roof leaks, or asbestos.
- Unapproved Structures: Any carports, pergolas, or granny flats built without council approval must be disclosed. Buyers may face council orders to remove them, affecting property value.
- Action Step: If you’re unsure whether work was approved, request a history of development applications from Camden Council.
- Neighbourhood and Legal Issues: Ongoing disputes with neighbours over boundaries, trees, or noise must be disclosed, along with any legal notices you’ve received.
When in doubt, it is always best to disclose. Consult your conveyancing solicitor to ensure you meet all legal obligations.
3. Navigating Auctions vs. Private Treaty Sales
Spring is traditionally auction season, but this method isn’t always the best choice for every Camden vendor.
Auction Sales
An auction is a public sale where your property is sold to the highest bidder on a set date.
- Advantages: Auctions create competition that can drive prices up, provide a fixed sale timeframe, and result in a binding contract with no cooling-off period for the buyer.
- Disadvantages: Auctions have higher marketing costs. A lack of interest also becomes public knowledge, which can weaken your negotiating position if the property passes in.
Private Treaty Sales
A private treaty sale involves setting an asking price and negotiating with interested buyers.
- Advantages: This method offers more flexibility, lower marketing costs, and private negotiations. The standard 5-day cooling-off period can give buyers confidence to make an offer.
- Disadvantages: The sale process can be longer (Camden’s current median days on market is around 43 days). There is also a risk of ‘gazumping‘, where a vendor accepts a higher offer after agreeing to a price with another buyer. The best prevention is to move to a formal exchange of contracts quickly.
4. The Settlement Process
Once you exchange contracts, the settlement process begins. The standard settlement period in NSW is 42 days (six weeks).
Your Obligations Before Settlement
- Arrange Mortgage Discharge: If you have a mortgage, instruct your solicitor to arrange the discharge immediately after you exchange contracts. This process can take weeks and is a common cause of delays.
- Maintain Property Condition: You must ensure the property remains in the same condition as when contracts were exchanged (allowing for reasonable wear and tear) and remove all your belongings.
- Manage Services: Arrange final readings for utilities but do not disconnect power or water entirely until after settlement, as the buyer will need them for their final inspection.
- Pre-Settlement Inspection: The buyer is entitled to a final inspection, usually 1-2 days before settlement. Cooperate fully to avoid disputes.
Settlement Day
Most NSW settlements now occur electronically via PEXA (Property Exchange Australia). In a secure online workspace, your solicitor, the buyer’s solicitor, and lenders verify documents, transfer funds, and officially pass the title to the buyer. Your physical presence is not required.
Once complete, the agent releases the keys to the buyer, and the sale proceeds are transferred to you.
How Family Focus Legal Can Help
Avoid settlement delays and disclosure disputes. Our Camden-based conveyancing team ensures your spring sale is smooth and legally secure. We understand the local property market and provide expert guidance tailored to your situation.
Ready to list your property this spring? Contact Family Focus Legal today for expert conveyancing support.
