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Seller

FAQs

What is a Mortgage Discharge Form? add remove

A Mortgage Discharge Form, also referred to as a Discharge Authority form, is a crucial legal document utilized in real estate transactions to inform the bank about your intention to discharge the mortgage on the property. By submitting this form, you notify the bank that they need to initiate the process of releasing the mortgage from the property’s title. Additionally, the form provides essential details, including the names of the borrower, the property address, the contract date, settlement date, and information about the seller’s representative. If we are managing your sale, our details will be provided in this section.

Once the Mortgage Discharge Form is properly completed, the bank will commence the necessary procedures to prepare for settlement. This preparation phase can take up to 28 business days. Therefore, we strongly advise you to promptly fill out this form and return it to the bank at your earliest convenience. Taking swift action in submitting this form ensures a smoother settlement process for your real estate transaction.

Can my Conveyancer complete my Discharge form? add remove

Your conveyancer is not permitted to fill out your discharge form because it is your legal right to authorize the bank to communicate with your representative regarding your discharge. As the property owner, it is your duty to complete and submit the mortgage discharge form to the bank. While conveyancers can assist and offer guidance, the ultimate responsibility for completing the form lies with you.

Where can I complete my discharge? add remove

You can complete your bank discharge form directly with your respective bank. Typically, banks provide discharge forms on their official website, or you can visit your local branch to obtain the necessary form. It’s important to ensure you are using the correct form specific to your bank and follow their instructions precisely. Your conveyancer or legal representative can also assist you in understanding and filling out the form correctly if needed.

If I am settling via PEXA do I need to sign a transfer? add remove

If you are settling your property transaction via PEXA (Property Exchange Australia), you generally do not need to sign a physical transfer document. PEXA is an electronic conveyancing platform that enables property transactions to be completed online, including the transfer of property titles and funds between parties. Instead of physical documents, the transfer of property ownership and related documents are processed electronically through the PEXA system. It’s essential to follow the specific instructions provided by your conveyancer or legal representative when settling via PEXA to ensure a smooth and efficient transaction.

Am I required to forward my Conveyancer the most recent Rates, Water and Body Corporate Statements? add remove

Yes, it is advisable to forward your conveyancer the most recent Rates, Water, and Body Corporate Statements. These documents contain essential information about the property, such as outstanding payments, fees, and other financial obligations. Providing these statements to your conveyancer ensures they have accurate and up-to-date information, which is crucial for a smooth and accurate property transaction process. Your conveyancer can review these documents to ensure all financial matters related to the property are appropriately addressed during the conveyancing process.

Should I pay my Body Corporate/Rates/Water Prior to settlement? add remove

Before making payments for these utilities, it’s advisable to consult your conveyancer to confirm there won’t be any settlement delays due to bills paid before settlement but not yet receipted.

What is an ATO clearence certificate? Do I need to apply for one? add remove

An ATO Clearance Certificate, issued by the Australian Taxation Office (ATO), confirms that a seller in a property transaction is not a foreign resident for tax purposes. If you’re selling Australian real estate, you may need to apply for this certificate, especially if the property price exceeds $750,000 which is the threshold determined by the ATO.

It’s essential to consult your conveyancer or legal advisor to determine if you need to apply for an ATO Clearance Certificate based on your specific situation and the current tax regulations.

If you are required to obtain an ATO Clearence certificate it is best to apply at your earliest convenience as these certificates can take upto 21 business days to arrive.

My house has compliant Smoke Alarms, do I need to prove this? add remove

Certainly, providing proof of compliant smoke alarms in real estate transactions, especially during property sales, is essential to ensuring a smoother transaction. This documentation verifies that your property adheres to required safety standards and legal obligations, offering assurance to potential buyers and ensuring a seamless transaction process. Maintaining records or certificates confirming your smoke alarms’ compliance is advisable. By having these documents available before settlement, you prevent potential issues such as buyers claiming compensation or exercising rights under Non-disclosure due to non-compliance.

My Contract has 8.1 (Buyers Risk), Can I cancel my insurance? add remove

No, we do not recommend canceling your insurance even if your contract includes clause 8.1 (Buyers Risk). It’s advisable to maintain your insurance coverage until the property sale is completed and ownership is officially transferred. Canceling your insurance prematurely could leave you financially vulnerable in case of unexpected events or damages to the property. Always consult with your insurance provider and legal advisor before making any decisions related to insurance coverage during a property transaction.

What is the Settlement Fee? add remove

The settlement fee encompasses various charges associated with the settlement process, including fees paid directly to PEXA (Property Exchange Australia) or Settlement agent, and subscriptions for using related programs. These fees cover the costs of electronic conveyancing services and software subscriptions necessary for conducting secure and streamlined property settlements. The settlement fee ensures the efficient transfer of property ownership, compliance with legal requirements, and the use of digital platforms like PEXA, enhancing the overall speed and accuracy of the settlement process.

What should I do if I don't understand a document, question. request or have questions? add remove

If you don’t understand a document, question, request, or have any questions, it is important to take the following steps:

  1. Read Carefully: First, carefully read the document or question in its entirety. Sometimes, reviewing the information multiple times can provide clarity.
  2. Ask for Clarification: If you still have questions or find the content confusing, do not hesitate to ask for clarification. Reach out to the person or entity that provided the document or question. They can explain the content and address any concerns you may have.
  3. Seek Assistance: If the document is related to a legal matter, consider seeking legal advice. A qualified attorney can review the document, explain its implications, and advise you on the appropriate course of action.

If you do not request further clarification, ask questions, or state you are not understanding, your conveyancer will not know to explain in more detail. Please note the Conveyancer is unable to make any decisions on your behalf.

Remember, it’s crucial to fully understand any document you are asked to sign or any question you are required to answer, especially in legal or financial matters. Don’t hesitate to seek help to ensure you make informed decisions.

Do I need to read all of the paperwork? add remove

Yes, it’s highly advisable to read all of the paperwork thoroughly. Understanding the details of the documents, terms, and conditions ensures that you are fully aware of the transaction process, rights, and responsibilities, leading to a smooth and informed property transaction.

Do I need to return all pages of the documents or just the ones I've signed? add remove

No, you are only required to return the pages that need information to be completed and signed.

How do we ensure our bank account details are received securely? add remove

Ensuring the security of your bank account details is a priority in real estate transactions. To guarantee secure receipt:

  1. Verification Call: Your conveyancer will conduct a verification call with you to confirm your account details verbally.
  2. Confirmation of Instructions: The account details provided will be cross-checked against your confirmation of instructions and authorization forms.
  3. No Transfer Without Verification: Funds will not be transferred until your conveyancer successfully verifies your account details through the confirmation call and documentation.

This meticulous verification process ensures that your bank account information is received and processed securely, minimizing the risk of unauthorized access or errors in financial transactions.

What is a VOI? Do all Sellers on title need to complete a VOI? add remove

A VOI, or Verification of Identity, is a process used in conveyancing transactions to confirm a person’s identity. It is a crucial step to prevent fraud and ensure the parties involved are genuine.

Yes, all sellers listed in the property transaction are required to complete a Verification of Identity (VOI). This process ensures the authenticity of the involved parties and helps prevent fraud in real estate transactions. Please consult your conveyancer or legal representative for specific requirements applicable to your situation.

What happens if I dont complete my VOI or return my Authorisation documents? add remove

If you fail to complete your VOI (Verification of Identity) or return your Authorisation documents during a property transaction, it can lead to significant issues, delays in the process or termination of representation. Completing the VOI and providing necessary authorisation documents are essential steps in verifying your identity and ensuring the legality of the transaction.

  1. Delays in Processing: Failure to complete your VOI or provide authorisation documents can cause delays in the processing of your real estate transaction. This delay can impact the entire timeline of the sale or purchase.
  2. Legal Compliance: VOI is a legal requirement to prevent fraud and adhere to regulatory guidelines. Failing to comply might result in your transaction not meeting legal standards, which could lead to complications or even cancellation of the deal or termination of representation.
  3. Risk of Identity Theft: Providing accurate identity verification is crucial for your security. Failure to complete the VOI process might expose you to the risk of identity theft or unauthorized transactions in your name.
  4. Impact on Settlement: Incomplete or delayed VOI and authorization documents can affect the settlement process. We are unable to settle the property without receiving the VOI and cauthorisation documents which could place you in breach of contract giving your buyers the rights to terminate the contract and claim damages and compensation.
  5. Possible Contract Termination: Depending on the terms outlined in the contract, the other party may have the right to terminate the agreement if you fail to fulfill the requirement of completing the VOI or providing necessary authorization documents.

It’s essential to promptly and accurately complete your VOI and provide all required authorization documents to ensure the smooth progress of your real estate transaction, comply with legal regulations, and protect your interests in the process.

What are the adjustments at settlement? How come the buyers arent paying the exact purchase price? add remove

Adjustments at settlement refer to the calculations made to ensure that both the buyer and the seller are responsible for their fair share of property-related expenses. These adjustments are necessary because certain costs, such as property taxes, utility bills, and council rates, are typically paid in advance for specific periods.

During settlement, these prepaid expenses are adjusted between the buyer and the seller based on the actual settlement date. For example, if the seller has paid property taxes for the entire year but sells the property halfway through the year, the buyer will reimburse the seller for the portion of the taxes that apply after the settlement date.

The reason buyers don’t pay the exact purchase price without adjustments is to ensure fairness and accuracy in the distribution of costs related to the property. Adjustments prevent either party from paying more or less than their fair share of expenses, making the transaction equitable for both buyer and seller. These adjustments are calculated during the settlement process to reflect the actual period for which these expenses apply, ensuring a balanced financial arrangement for both parties involved in the property transaction.

How quickly will I receive my money after settlement? add remove

The timeframe for receiving your money after a property settlement can vary based on multiple factors, including the payment method and the procedures of the involved financial institutions. Generally, funds from a property settlement are disbursed within a few business days after the settlement date.

Here’s a breakdown of the usual timeline for receiving your money after settlement:

Settlement Type: If you settle via PEXA, your funds are typically cleared faster compared to paper settlements. Paper settlements require bank cheques, which need to be banked and can take a couple of business days.

Bank Processing Time: Once the disbursement is initiated, it might take a few business days for the funds to be processed by the banks involved. Different banks and financial institutions have varying processing times.

Receiving the Funds: As the seller, your money is usually transferred through electronic transfer (EFT) directly into your nominated bank account. The time it takes for the funds to reach your account depends on the efficiency of the banking system. Typically, it takes a few business days for the funds to clear and become available for withdrawal or use.

Communication with Your Bank: If you have concerns about the timing of the funds’ availability, it’s a good idea to contact your bank. They can provide specific information about the status of the incoming funds and any holds that might be placed on the transaction.

Staying in contact with your conveyancer or solicitor throughout the process is crucial. They can offer updates on the disbursement progress and address any concerns you might have about the timing of receiving your money after settlement.

Do I receive the deposits prior to settlement? add remove

The handling of deposits prior to settlement varies based on the terms outlined in the contract. It’s crucial to refer to the specific terms and conditions in your contract. Unless there is a specific agreement, generally, the deposit is held in trust and released at settlement or post-settlement if it is held in the real estate trust account.

Why am I missing funds at settlement? add remove

If you believe there is a discrepancy, contact your conveyancer as soon as possible. Here are a few things to check on your settlement statement:

  1. Bank Fees: Check if your bank has charged break fees. If you believe these fees are incorrect, dispute them with your bank.
  2. Deposit Held in Real Estate’sTrust Account: Verify if the deposit is held in your real estate agent’s trust account. If it is, these funds will be released after settlement, as legal regulations prohibit their release prior to settlement, unless there is a separate agreement in place. Please allow an additional 2 business days for these funds to clear into your account. For more detailed information, contact the real estate agent directly.
Why didn't I receive the deposit held in the Real Estate's trust account at settlement? add remove

The reason you didn’t receive the deposit held in the real estate’s trust account at settlement is due to legal procedures. According to Trust account Laws, the real estate agent must receive confirmation from both legal representatives that settlement has occurred and obtain authority to release the deposit. This confirmation cannot take place until after settlement has happened. All parties involved must provide matching instructions before any funds can be released from the trust account, ensuring compliance with legal regulations.

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contracts@sunstateconveyancing.com.au 07 3828 2069
Brisbane