• What stamp duty and other charges will I incur on the transaction?

    The purchaser will incur the following stamp duties fees on the purchase:

    Please follow the link to State Revenue Office calculator: http://extranet.sro.vic.gov.au/SRO/SROCalcs.nsf/transfer?OpenForm

    For Contracts Entered Into On Or After 6 May 2008
    Other dutiable transactions and declarations of trust (over dutiable property) for contracts entered into on or after 6 May 2008


    Dutiable Value Range Rate
    $0 – $25,000 1.4 per cent of the dutiable value of the property
    $25,001 – $130,000 $350 plus 2.4 per cent of the dutiable value in excess of $25,000
    $130,001 – $960,000 $2,870 plus 6 per cent of the dutiable value in excess of $130,000
    More than $960,000 5.5 per cent of the dutiable value

     


     

    The purchaser will incur the following land title registration fees on the purchase:

    Please follow the link to Land Victoria lodgement fees:
 http://www.dtpli.vic.gov.au/__data/assets/word_doc/0009/277182/Guide-to-Transfer-of-Land-Act-fees-20152.doc

    Other fees for mortgages; discharge of mortgages; withdrawal of caveats etc will be charged by the Land Titles Office – see above link.

     


     

    The purchaser will incur the following land title registration fees on the purchase:


    Common Fees
    From Section of Act 45
    Paper Transactions Electronic
 Transactions
    Transfer on sale
    (If there is more than one consideration, the highest one applies. The total fee is determined by rounding up to the next whole dollar, if necessary.)
    The sum of $138.90 plus $2.46 for every whole 1000 of the monetary consideration. Maximum fee is  $1369.00 The sum of $114.80 plus $2.46 for every whole 1000 of the monetary consideration. Maximum fee is $1345.00
  • Is GST payable on the contract of sale?

    This depends on the circumstances of the sale.  If the Particulars of Sale is left blank or words such as “inclusive of GST” are used on the Particulars page, then the sale price will be the final price.  But if the Particulars of Sale says “Plus GST”, then it is likely that GST will be charged in addition to the purchase price.

    If it is vacant, commercial property then GST will be charged on the sale of the property.

    If it is a sale of old residential land (ie not a new house and land), then in most circumstances GST will not be charged on the sale price of the property.

    If it is a sale of rented properties, then GST may not be charged as it is a sale of a going concern.

    Advice on taxation effects of GST on the sale of the property should be obtained from your accountant or your taxation adviser.

  • When does the purchaser become officially become registered on title?

    If you don’t have a bank, then Hendersons Legal will collect the signed transfer and original title at settlement, arrange for it to be stamped and for the title to your new property to be transferred into your name.

    If you do have a bank, then your bank will collect the signed transfer and original title at settlement.  It will arrange for the transfer to be stamped at the State Revenue Office and for the title to your new property to be transferred into your name.  It will of course also register the mortgage over your property.

    Finally, Hendersons Legal will contact your local council to advise that you have acquired the property.

  • Who dis/connects the Electricity, Gas, Telephone, Broadband & Foxtel?

    If you are selling, then you need to contact each of your local providers in the week leading up to the settlement date and book in final readings & final bills.

    If you are buying you need to contact each of your preferred local providers in the week leading up to the settlement date and book in connections.


    Electricity & gas company Phone
    AGL 1300 889 315
    Australia Power & Gas 133298
    Click Energy 1800 775 929
    Country Energy / Origin Energy 132356
    Dodo Power & Gas 133636
    Energy Australia 133466
    Neighbourhood Energy 1300 764 860
    Power Direct 1300 307 966
    Red Energy 131 806
    Simply Energy 1800 009 147

    Metropolitan water corporations Phone
    Yarra Valley Water 1300 304 688
    Melbourne Water 131722

    Country water corporations Phone
    Barwon Water 1300 656 007
    Gippsland Water 1800 066 401
    Central Highlands Water 1800 061 514
    Coliban Water 1300 363 200
    East Gippsland Water 1800 671 841
    Goulburn Valley Water 03 5832 0400
    Grampians Wimmera Mallee Water 1300 659 961
    Lower Murray Water 03 5051 3400
    North East Water 1300 361 622
    South Gippsland Water 03 5682 0444
    Wannon Water 1300 926 666
    Western Water 1300 650 422
    Westernport Water 1300 720 711


    Telephone company Phone
    AAPT 138877
    Telstra 132200
    Optus 133345
    Vodafone 131681

    Broadband/internet companies
    There are numerous broadband/internet companies throughout Victoria. The following are some examples available.


    Broadband/Internet company Phone
    AAPT 1300 858 585
    iPrimus 132200
    Optus 1800 780 219
    Telstra 1800 283 407
    TPG 131423
    Westnet 131 960
    Iinet Broadband 1300 362 152
    Vodafone 1300 705 980
    Engin Broadband 1300 721 993
    Dodo 133636
    Foxtel 1300 014 506

    Note 1:  You should speak to your preferred telephone company, but generally you cannot book your broadband in until you have a working telephone line. Hence, it is critical to get your landline installed and working on or shortly after the day of settlement.

    Note 2:  Don’t forget to redirect your mail.

  • Should I settle and sell on the same day?

    If you are buying a new house and selling your old one, then you may want to settle the sale and the new purchase on the same day or, in other words, want a simultaneous settlement. This is complex, but can be done. Specific directions will be given to the purchaser of your property to provide bank cheques for you to use to discharge or pay for your obligations under your Contract of Sale of your purchase.

    There can be pitfalls with this process if something goes wrong with one of the other parties that is relevant to your settlement ie the person buying your house is unable to pay you at settlement, leaving you short of funds for the new purchase. Generally, it is preferable to settle the sale of your property first, but this has complications for your removalists and of course where you will live in the interim.

    Please contact Hendersons Legal if you are contemplating settling both the sale and purchase on the same day.

  • What happens after settlement?

    Hendersons Legal will contact you by telephone to confirm that settlement has occurred. For our vendor clients we will also provide immediate written notification to the real estate agent who holds the keys to the property. Shortly after that (there is no set time but is usually about 30 minutes) the purchaser can contact the estate agent and arrange to collect the keys to your new property from the agents.

  • Who organises the settlement?

    Purchaser

    If you don’t have a bank, then Hendersons Legal will collect the signed transfer and original title at settlement, arrange for it to be stamped at the State Revenue Office and for the title to your new property to be transferred into your name. If you do have a bank, then your bank will collect the signed transfer and original title at settlement. It will arrange for the transfer to be stamped at the State Revenue Office and for the title to your new property to be transferred or registered into your name. It will of course also register the mortgage over your property. Hendersons Legal will also contact your local council to let them know that you now own the property.

    Vendor

    Hendersons Legal will ensure that settlement is booked with your bank (which needs to produce the titles) and will attend the settlement to collect all necessary cheques and documents to be provided by the purchaser.

  • What is settlement? What happens?

    At the relevant time, the solicitors for the vendor and the purchaser will arrange with their clients and their financiers to book in settlement at a mutually convenient time on the agreed settlement date. Cheques then need to be arranged and finalised in preparation for the settlement. Hendersons Legal will attend at the settlement on your behalf. At settlement, all relevant documents (including transfers and declarations) and cheques are exchanged to effect the transfer of the property from the vendor to the purchaser.

  • What will Hendersons Legal do?

    Hendersons Legal has fully qualified and experienced conveyancing lawyers to advise and assist on all issues associated with the sale and purchaser of the property, whether residential or commercial.

    When acting for a vendor, Hendersons Legal will:

    • Carry out a full range of searches and investigations in order to prepare the Section 32/Vendor’s Statement.
    • Prepare the Contract of Sale.
    • Where appropriate, prepare and serve of a section 27 notice on the purchaser’s solicitors seeking the early release of the deposit to the vendor.
    • Review the Transfer of Land, Statement of Adjustments and other documents prepared by the Purchaser’s solicitors.
    • Liaise with the vendor’s solicitors to arrange the settlement which we will attend on your behalf.

    When acting for a purchaser, Hendersons Legal will:

    • Review any prospective Contract of Sale and advise you about the terms and conditions of the sale.
    • Order, after a Contract of Sale is signed, certificates to check that the property is in order and that full and proper disclosure about all relevant matters has been made to you by the vendor.
    • Respond to all communications with the vendor’s solicitors including in relation to the service of a section 27 certificate in an attempt to obtain the early release of the deposit to the vendor including investigate the risks of doing this and advise you accordingly.
    • Prepare the transfer of land and review all of the documents needed to settle the sale of the property.
    • Prepare a statement of adjustments which pro-ratas the rates and owner corporation fees, if any, for the period of ownership up to the proposed date of settlement.
    • Liaise with the vendor’s solicitors to arrange the settlement which we will attend on your behalf.
  • When do I need a solicitor?

    Hendersons Legal have qualified lawyers ready to give you sound and practical advice at any stage of the buying or selling process.

    A vendor will need to engage solicitors to:

    • prepare the Section 32/Vendor’s Statement and the Contract of Sale early on in the selling; and
    • check the real estate agent’s agreement.

    A purchaser may seek legal assistance in:

    • carrying out a due diligence of the desired property; and
    • reviewing the Vendor’s Statement, the Contracts of Sale and other relevant documents before committing to the purchase of the property.

    Once a Contract of Sale has been signed, then both the vendor and purchaser will need to appoint solicitors to start the conveyancing process to ensure that all of the legal steps are ready to be completed at the settlement.

  • What does “subject to finance” mean?

    This means that the Contract of Sale is subject to or conditional on the purchaser obtaining or being granted finance by the financial institution nominated in the Contract of Sale at some time after the contract of sale is signed. In other words, the purchaser only has to proceed with the Contract of Sale if their finance is approved.

    If a purchaser wants the contract to be “subject to finance”, then it is critical that:

    • the name of the financier;
    • the loan amount; and
    • the approval date,

    are completed in the Particulars of Sale in the Schedule at the front of the Contract of Sale. The purchaser must also comply with the terms of the General Conditions or any Special Conditions in the Contract of Sale that apply to the loan approval ie the purchaser must promptly apply for finance and if not obtain, they must give a notice to the vendor that they seek to withdraw from the contract. All dates must be strictly complied with or otherwise the purchaser may lose their right to end the Contract of Sale.

    Hendersons Legal recommends that you seek legal advice should you wish make a Contract of Sale subject to finance.

  • When can a purchaser “cool off” on a Contract of Sale?

    In some circumstances, a purchaser can exercise a right to cool off under section 31 of the Sale of Land Act 1962 giving them an option to withdraw from the sale of the land.

    A purchaser may NOT have a right to cool off if:

    • They buy the property at or within 3 clear business days before or after auction;
    • The property is primarily used for industrial or commercial purposes;
    • The property is greater than 20 hectares and is used for farming;
    • The purchaser previously signed a similar contract in substantially the same terms;
    • The purchaser is an estate agent; or
    • The purchaser is a company.

    If the purchaser doesn’t fit within the above exclusions then they can exercise a right to cool off provided they do so within 3 clear business days by giving written notice to the vendor. It is best to do this by fax or by courier to ensure that you have proof of service of the notice.

    Hendersons Legal strongly recommends that any purchaser intending to cancel a Contract of Sale or exercise their right to “cool off” seeks urgent professional legal advice and assistance before taking action.

  • Can a purchaser withdraw from the contract after signing?

    The answer to this is complex. The short answer is usually no. However, a purchaser may be entitled to exercise the cooling off rights which are set out on the front page of the Contract of Sale depending on the type of contract. If the purchaser does not have cooling off rights, then they may be able to reach agreement with the vendor. However the purchaser may be liable for costs, charges and interest (and possibly the loss of the deposit) if the purchaser has no legal entitlement to terminate the Contract of Sale. Any purchaser in this position should seek immediate legal advice from a fully qualified solicitor. Hendersons Legal is able to give you quick and practical advice should any problems arise. We have successfully acted for purchasers who have sought to terminate a contract after signing it.

  • What happens after the vendor has accepted the offer?

    After the agent tells the purchaser that they have been successful, then the real estate the agent will (usually) give the purchaser or their solicitors a copy of the Contract of Sale.

  • What happens with the deposit?

    The purchaser will pay the deposit which is usually 10% of the purchase price depending on what is agreed, either at the time the Contract of Sale is signed or when the vendor or the real estate agent gives the purchaser the Contract of Sale signed by the vendor.

  • Can I nominate another person to buy the property after the Contract of Sale is signed?

    Yes. The purchaser can nominate another person to purchase the property. However, consideration must be given to the transaction as it may be considered a fresh sale or an on sale and a second lot of stamp duty is due and payable. An application and statutory declaration must be prepared, generally, a minimum of 2 weeks prior to the nominated date of settlement.

  • What if there are changes to the Contract of Sale?

    Any changes to the Contract of Sale, no matter how minor, must be signed by both the purchaser and the vendor. If, for example, the price or date of settlement is changed then the change must be initialed by both parties.

  • What happens after I sign the Contract of Sale?

    Real estate agents generally do one of three things. First, they will indicate to the purchaser that they have been given a strong indication that the vendor will accept the offer. Secondly, they will present the contract to the vendor and ask them to sign the contract. There is no binding contract unless and until the vendor signs the contract and acceptance of the offer is given to the purchaser. Thirdly, the real estate agent might try and get higher offers from other prospective purchasers which is higher than your offer.

  • When should I sign the Contract of Sale?

    Once the purchaser has completed their due diligence (see our Purchaser’s Checklist) and the payment terms are agreed, then the purchaser can sign the contract of sale. At that point of time it is still only an offer to the vendor – it does not become a binding agreement until the vendor signs the contract and the real agent communicates the accepted offer to the purchaser. This usually entails the real estate agent handing giving the purchaser a signed copy of the contract of sale.

    If you are not experienced with property matters or have any questions about the Contract of Sale, Hendersons Legal can quickly review the document for you and provide you with any legal and practical advice needed.


Conveyancing checklists

You can also take a look at our free checklists, or head back to our main Conveyancing and Property page.


Share this page