Conveyancing
5. Tips for Vendors
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 11 Jul 2015
- As a vendor you should ideally consult with a lawyer before listing a property for sale.
- You may also have to enter an agency agreement with your real estate agency when selling a property. It is important to get legal advice on an agency agreement. An agency agreement includes details about:
- agent commissions;
- advertisement details;
- access to property; and
- costs and other important financial matters.
- You can sell a property through two ways.
- The first method is by private sale. Private sales are established on the principles of offer and acceptance between two parties to a contract.
- The second method is by auction. Advertising of a property for sale by auction is usually more expensive than a private sale because regardless of whether the property sells the vendor is liable to pay for:
- an auctioneer’s fees if applicable;
- all advertising and other expenses;
- all legal costs and disbursements relating to the draft contract; and
- the agent's commission if the property sells.
- It is always good practice to have a reserve price on the property when selling by auction. A reserve price is the minimum price that a vendor is prepared to accept for a property. If there is no reserve price then the property will go to the highest bidder.
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