1. Prepare the contract of sale and vendor’s statement
Your legal advisor or agent will prepare your contract of sale. This sets out all the terms and conditions of the sale, including the price, settlement date, deposit and what fixtures are included. Your legal advisor will prepare the vendor’s statement, which informs the buyer about the property title they’re about to sign for, such as mortgages, easements and zoning.
2. Exchange contracts
There’s one copy of the contract of sale for you and one for the buyer. You each sign one copy and exchange them. The buyer pays deposit upon exchange, which is usually held by your agent in a trust until settlement day. Sellers are usually bound to the purchase at this stage while buyers have a cooling-off period.
3. Prepare for settlement
You’ll need to be ready to move out by the time the property sale settles. Before settlement day, legal advisers and banks will be in touch on behalf of both you and your buyer to make sure any conditions of the contract have been fulfilled and that financial documents have been prepared.
4. Settlement day
On settlement day, you’ll hand over the keys to your legal advisor and receive the purchase price minus any outstanding mortgage. Your legal advisor usually attends the settlement meeting at your bank.
Congratulations – you’ve sold your property!