How much does it cost to get a contract of sale?

Buying property - get a contract of sale – RM Property & Conveyancing
Selling a home requires smart investment in the right areas, with key expenses including a contract of sale and conveyancing costs.

A contract of sale is essential to sell a property. Whether you sell the property yourself or use a real estate agent, a contract of sale must be prepared before it can be shown to potential buyers.

A contract can be prepared for as little as $350. This will allow your agent to start marketing the property to find a buyer. This initial cost is taken off the total fees paid on settlement.

Conveyancing costs typically range between $1,700 and $2,400. These costs cover various aspects of the property transfer process, including:

  • Managing negotiations with the purchaser’s legal representative after your offer has been accepted.
  • Handling the necessary documents required by the government for property transfer.
  • Organising the bank’s documents for the discharge of mortgage if there is a loan on the property being sold. This includes facilitating the signing of relevant paperwork and coordinating the settlement of the loan.
  • Calculating payments for land rates and water rates at the time of settlement.

The costs relating to the contract of sale preparation include:

  • Certificates: In NSW, sellers are required to obtain a Section 10.7 Certificate from the local council. This certificate provides information about zoning, planning controls, and other matters related to the property. The contract also requires a certificate from the governing water authority showing where the sewer line runs on the land. 
  • Search fees: Additional searches may be required to gather information about the property, such as title searches, deposit plans, land tax searches, and strata searches.
  • If the property being sold has a pool or a spa: The contract will require a compliance or non-compliance certificate if it has a pool or a spa. This can be completed by council or by a private certifier.

Keep in mind that costs can vary depending on the circumstances of the transaction and the services required.

How much does it cost to sell a house?

Whilst the costs to sell a house will depend on the property type and commissions, expect to pay:

  • Real estate agent’s commission – between 1.9 to 2.5% of the sale price, but this can vary.
  • Conveyancer or solicitor fees – about $1,700 – $2,400 for depending on the difficulty of the sale and location
  • Marketing – expect to pay the real estate agent between $5,000 – $8,000 for professional photography, floor plans, advertising copy, a signboard, online advertising
  • Auctioneer’s fees – about $1,000
  • Home staging – starts from $3000 – $6000, depending on the size of the home.
  • Moving costs – about $1,000 – $2000 depending on the size of the home and distance to your new property.
  • Mortgage discharge fees – varies based on the lender but expect to pay at least $300.

Can you sign a contract of sale electronically?

Yes, they can, if the conveyancer or solicitor has the facility to do so.

The biggest advantage of signing contracts electronically is the amount of time it saves you. Contracts can be signed anywhere, as long you have access to the internet and email. Whether you’re on holidays, live in another state, or live overseas, contracts can be signed online securely using DocuSign.

When do you sign the contract for a house?

Exchange of contracts occurs when the buyer and seller swap signed legal contracts and the buyer pays a deposit. Once contracts are exchanged it becomes a legally binding agreement between both the buyer and the seller. Here’s how it works:

Review and negotiation

Before the exchange, both parties review the contract. The buyer’s conveyancer or property lawyer conducts various searches and inspections of the property. If necessary, the terms of the contract are negotiated.

Signing the contract

Once the buyer is satisfied with the review their conveyancer provides them, they will sign the contract and email it to the vendor’s conveyancer. The vendor’s conveyancer checks it and then emails it to the vendors for signing electronically. 

Exchange of contracts

There will be two copies of the sale contract: one for each party. You each sign one copy before they are swapped or ‘exchanged’. This is usually arranged by your solicitor, conveyancer, or the agent. At the time of the exchange, the buyer is required to pay a deposit, usually 0.25% of the purchase price.  Exchange cannot take place until this amount has been paid into the real estate firm’s trust account.

Can a vendor cancel a contract of sale?

A vendor (seller) can cancel a contract of sale under certain circumstances. Some scenarios where a vendor may be able to cancel a contract include:

  • Rescission clause: The contract may include a rescission clause that outlines specific circumstances under which either party can terminate the contract. This clause typically specifies the conditions and procedures for cancellation.
  • Cooling-off period: In NSW, buyers have a cooling-off period of 5 business days for residential property contracts. During this period, only the buyer can withdraw from the contract without providing a reason. However, the vendor cannot cancel or withdraw from the contract during the cooling-off period unless the buyer fails to adhere to the terms of the contract.
  • Failure to meet conditions: If the contract is subject to certain conditions, such as the buyer obtaining finance or completing building inspections, and the buyer fails to meet those conditions within the specified time frame, the vendor may have the right to cancel the contract.
  • Mutual agreement: The vendor and buyer can mutually agree to terminate the contract at any stage before settlement. Both parties would need to consent to the cancellation and agree on any associated terms, such as the return of the deposit.
  • Breach of contract: If the buyer breaches the terms of the contract, such as failing to pay the deposit or failing to settle on the agreed-upon date, the vendor may have grounds to terminate the contract and retain the deposit as compensation, subject to the terms of the contract and applicable laws.

Need help?

Buying and selling property can be complex and stressful, but we help make it a little easier.

From contract review through to settlement, you’ll have complete confidence in our capable and trusted legal team. Every step of your transaction is tracked online so that you can see your matter’s progress anywhere, anytime.

We help customers in Newcastle, Maitland, Central Coast and across NSW.

Call us on 02 4018 7555 or get a quote online.

How can we help?

Let us help you with a free conveyancing quote.
We just need a few details to begin.

Related posts