Frequently Asked Questions
We understand that selling your property is a big decision.
At Blackshaw, our focus is always on providing great experiences, exceptional service, and achieving outstanding results. We pride ourselves on our continued ability to exceed client expectations. Blackshaw agents strive for excellence, we will always go the extra mile, providing you with the tools, knowledge, and support you need to achieve your real estate goals.
Inside you’ll find answers to some frequently asked questions, along with helpful tips and advice. Your Blackshaw agent is always there to help.
The Roles and Responsibilities of a Real Estate Agent
Real estate agents are licensed professionals who act on your behalf during the selling process. They’re bound by a code of conduct to prioritise your interests and follow ethical practices.
Amongst other things, here’s what the law requires them to do:
- Clearly explain the sales agreement terms.
- Present all offers to you (unless instructed otherwise).
- Provide an estimated selling price in the agreement.
- Disclose seller bids (if allowed by auction rules).
- Follow your instructions.
Here’s what the law prevents them from doing:
- Misrepresenting property values (underquoting or overquoting).
- Keeping advertising rebates without informing you.
- Charging you more than their actual out-ofpocket expenses.
- Exceeding your pre-approved commission amount.
What to Expect From Your Agent
- Estimated Selling Price: They’ll provide a realistic estimate based on market trends.
- Organising the Required Documents: They’ll ensure you have all necessary paperwork for the sale.
- Marketing and Sales Strategy: They’ll recommend a method of sale (private sale or auction) and create a marketing plan to attract buyers.
- Communication and Negotiation: They’ll handle communication with potential buyers, negotiate offers, and keep you informed throughout the process.
- Contract Signing and Auction Management: They’ll guide you through the sales contract and manage the auction process if applicable.
Determining Your Property’s Likely Selling Price
Before listing your property for sale, it’s a good idea to get an idea of a market estimate.
We suggest:
- Attend open houses and auctions in your area.
- Research similar properties listed on property sites platforms such as allhomes.com.au or realestate.com.au.
Your agent will provide you with a property appraisal using recent sales data, their intimate knowledge, and current market trends. Your agent will help you avoid under-pricing or overpricing your property, both of which can hinder a successful sale.
Deciding on the Method of Sale
There are several ways to sell your property, and the best approach depends on your specific circumstances. It often comes down to the type of property you’re selling, its location, desired time frame of sale, and market conditions.
Private Sale (Treaty): Your property is advertised at a set price or price range. Potential buyers submit offers, and your agent negotiates on your behalf to secure the best outcome.
Auction: A public sale event where buyers compete through bidding. The property goes to the highest bidder, subject to your reserve (minimum acceptable selling price).
Tender: This is a less common method of sale. It involves interested buyers submitting their best offers in writing by a deadline. You can then choose the best offer for you, with no obligation to accept any offers. As with an auction, there is no cooling-off period when selling by tender.
Expression of Interest: Like a tender but less formal.
Selling at Auction
Here’s everything you need to know about the auction process, rules, and what you can expect on auction day.
Pre-Auction Preparations
The lead up to an auction is similar to a private sale, it involves advertising, promotion, and open homes for around four weeks before the auction date.
Before the auction, your agent will contact potential buyers to assess their interest levels and estimate bidding range. This gives them (and you) and indication of attendance and bidding range on the day. The auction can be held on-site at your property or off-site as part of a larger event featuring multiple properties.
Auction Conduct and Rules
Strict regulations are in place to ensure a fair and transparent auction process for everyone. Some key points to remember:
- The contract for sale and required documents must be accessible for inspection before the auction starts.
- The Civil Law (Sale of Residential Property) Act 2003 outlines mandatory auction conditions. You can add further conditions, but they cannot contradict the Act’s requirements.
- Auction conditions may allow for a single seller bid made by the auctioneer under specific circumstances. These auction conditions must be displayed for at least 30 minutes beforehand.
- The selling agent is required to maintain a record of all bidders, including their names, contact details, and proof of identity.
- Dummy bids (fake bids placed by the seller or someone acting on their behalf) are strictly prohibited and illegal.
- The auctioneer cannot accept bids from unregistered bidders.
Understanding Seller Bids
A seller bid is a single bid that can be made on your behalf during the auction. A seller bid is legal only when made by the auctioneer and only where:
- Allowed by the auction rules.
- The auctioneer announces before the auction starts that a seller bid is permitted.
- The auctioneer announces before or while making the bid, that it is a seller bid.
- There is one seller bid made during the auction. Seller bids are typically used to raise the property’s price or stimulate buyer interest if bidding stalls. Whether to allow seller bids is a decision you’ll make with your agent, and it must be outlined in the auction rules.
Bidder Registration
Anyone who wants to bid at the auction must register beforehand. This involves providing name, contact details, and proof of identity in exchange for a bidder number. Bidders can register any time before the auction begins but will only be given a bidder number after they present proof of identity on the auction day.
All bidder information is strictly confidential and cannot be disclosed to the buyer, seller, or used for any other purpose after the auction. The agent must securely store these records for three years.
“On the Market” and Reserve Price
At some stage during the auction, the auctioneer will pause proceedings if they understand that your reserve price has been met or surpassed. If you are satisfied that reserve price has been met or are prepared to sell to the last bid offered, then the agent may announce that the property is “on the market”. This means that the property can then be sold.
If the reserve price isn’t met, the auctioneer will continue seeking bids. If it is still not met, then the property will be declared “passed in”. You and your agent may then commence negotiations with the highest bidder to continue the selling process.
When is it Sold?
Once the auctioneer receives confirmation that the property is “on the market,” bidding resumes until a final bid is received. The successful bidder is then legally bound to sign the contract and pay the deposit.
Unlike private sales, auctions don’t have a coolingoff period, meaning the buyer is legally obligated to complete the purchase on the auction day.
The sale is finalised on the settlement day when all checks have been made, the title and transfer documents have been exchanged, the balance of the purchase price has been paid, and a deposit has been released.
Advertising After a Passed-In Auction
If a property is passed in on a seller bid, then an agent cannot quote this passed in amount when advertising and marketing the property without stating that it was a seller bid.
Create a Powerful Marketing Campaign
At Blackshaw, we understand that each property is unique, our agents work with you to develop a property marketing campaign that will showcase your property’s best features and ensure it makes an impact in the market.
The key objective of the marketing campaign is reach as many potential buyers as possible encouraging them to inspect your property. Our agents use a number of successful methods to ensure your property is seen by the right buyers at the right time.
Direct Notification
As a long-established agency, Blackshaw has a large network of current prospective buyers. Our agents broadcast new listings often before launching on the public market. These are people who have contacted the agent asking to be notified of new properties on the market, have attended a recent open home that didn’t meet their needs, or bid at a recent auction and missed out.
Social Media
As a fast growing channel for property sales, our agents actively promote current and upcoming listings through their social media platforms.
Web Portals
Listing on property sites such as allhomes.com.au and realestate.com.au, as well as Blackshaw’s own website, allows your property to be seen by active buyers in the market. It also ensures that interstate or even overseas buyers can view your property.
Ensuring Accuracy in Advertising
Honesty and transparency are crucial. Property advertising must be truthful and avoid misleading buyers with false information, whether verbal, written, or photographic.
- Ensure all information provided to your agent about your property is accurate and up to date.
- Real estate agents are prohibited from quoting or advertising a price lower than the estimated selling price or agreed-upon range in the sales agreement.
Understanding the legal process as a seller
A conveyance of land is the transfer of ownership of land and all structures on that land from the seller to the buyer. This is usually done with the help of a solicitor. Buyers and sellers should be represented by their own solicitors.
Why Use a Solicitor?
While not mandatory, using a solicitor during the sale is highly recommended as it can be a difficult and complex time. The expert advice of a solicitor will:
- Ensure legal compliance and protect your interests.
- Guide you through complexities and potential issues.
- Simplify the process, reducing stress.
Finding a Solicitor
When you’re looking for a solicitor, ensure you engage a solicitor with formal legal qualifications, a current practising certificate and professional indemnity insurance. Some solicitors specialise in conveyancing and property law. If you would like a recommendation, please speak with your Blackshaw agent.
Understanding the Required Documents
There are a number of documents you need to have readily available when your property is listed for sale. These provide the buyer with all the technical and legal details they need to know about the property. Some of the following points relate specifically to the ACT, and broadly to NSW transactions. Talk to you agent to clarify the elements that apply for you.
Contract for Sale: You must have a draft contract of sale ready when the property is first offered for sale. Section 11 of the Civil Law (Sale of Residential Property) Act 2003 describes conditions that must be included in this contract and will be implied into the contract even if not stated.
Crown Lease: This document outlines the conditions upon which the land is leased and how it can be used. For example, residential, rural or commercial use.
Certificate of Title: This document confirms who the legal owner of the property is and in what manner they hold the land, for example, as a joint tenant with another person. It also indicates whether anyone other than the registered owners claim an interest in the property, for example, a bank holding a mortgage over the property.
Encumbrance Details: This includes information about any caveats or restrictive covenants registered on the property title.
Asbestos Advice: As required by law, you must provide written information about any known asbestos presence on the property. To help you provide the information, you may refer to the Asbestos Advice from asbestos.act.gov.au.
Deposited Plan: This plan shows the land boundaries and any easements (defined access rights granted to another person/organisation). An easement normally takes in the land above and adjacent to electricity cables, water and sewage pipes. Easements can impact where structures can be built on the property.
Building Conveyancing Inquiry: This inquiry conducted by Access Canberra provides copies of relevant documents such as occupancy certificates, approved building plans, and drainage plans.
Lease Conveyancing Inquiry: This inquiry conducted by Access Canberra provides information (if any) about:
- Heritage listing.
- Outstanding rent under the Crown Lease.
- Development applications affecting the property.
- Breaches of the Crown Lease.
- Any orders issued against the property.
- The compliance certificate (compliance with provisions of crown lease).
- Applications for dual occupancy.
- A contaminated land search.
Energy Efficiency Rating (EER): This document details the property’s energy efficiency.
Building and Compliance Inspection Report: This report provides information about the property’s structural soundness and whether existing structures comply with relevant regulations.
Pest Inspection Report: This report identifies any evidence of termite or other pest infestations.
Unit Title Documents (if applicable): For unit titles, you’ll need a copy of the Units Plan, minutes of owner corporation meetings from the last two years, and a Unit Title Certificate.
Who Pays for the Documents?
You have the right to be reimbursed by the buyer for the building and compliance inspection report and the pest inspection report, typically this is at settlement. As the seller, you will need to cover the cost of all other documents.
Transfer of Land and Settlement
Transfer of Land: This document officially transfers ownership from seller to buyer. It specifies how the land will be held if purchased by multiple people (jointly or as tenants in common).
Settlement: The settlement date is when the balance of the purchase price is paid to the seller in exchange for the title to the property. This is an official process held between legal and financial representatives of the buyer and seller. The settlement date is also when the buyer takes possession of the property.
At settlement, all charges such as rates or land tax will be adjusted between the seller and the buyer. The seller is responsible for charges up to and including the day of settlement. The buyer is liable from the day after settlement.
Disclaimer: Whilst all care has been taken in the preparation of this information, no warranty is given, and potential home sellers should rely solely on their own enquiries.
It’s Sale Time
Once you’re ready to sell, here’s what to expect.
Open Homes
Holding open houses for 30-45 minutes, once or twice a week, allows potential buyers to personally inspect your property.
Anyone who enters an open home is asked to leave a contact name and number with the agent. This is necessary for security and also gives the agent a list of potential buyers to contact for feedback.
It is not a legal requirement for a person to leave their details with an agent at an open house. However, you can make this a condition of entry to your home by stating this in the sales or listing agreement.
Receiving and Negotiating Offers
All offers are made through your agent, who is legally obligated to present them to you. Offers can be verbal or written, however, they are not legally binding until contracts are exchanged.
You are not obligated to accept the first (or any offer). Consider multiple offers and negotiate through your agent to reach a price that satisfies everyone involved. There are usually multiple parties interested in purchasing a property. Your agent will negotiate between the interested parties to obtain the best possible price for you.
Exchanging Contracts and Taking a Deposit
Once you accept an offer, you need to advise your agent. You will then be required to sign and exchange contracts with the successful buyer. The contract is legally binding once contracts signed by you (the seller) and the buyer are exchanged.
Upon exchange of contracts, the buyer pays their deposit. The deposit amount is negotiable and will be outlined in the contract of sale. The agent or solicitor will hold the deposit funds in a trust account until the day of settlement.
Settlement Period
The settlement date is the day the remaining purchase price is paid to you and the property title transfers to the buyer. The seller is typically the party to set the settlement date in the contract (usually 30-90 days after exchange), although buyers can propose adjustments before signing.
When is it Sold?
While the signing and exchange of contracts is legally binding, the sale is only finalised at settlement when all checks have been made, the title and transfer documents exchanged, the balance of the purchase price has been paid, and the deposit has been released.
Source: Reality Check a real estate guide for buyers and sellers in the ACT.
Disclaimer: All care has been taken in the preparation of this material, no warranty is given and potential sellers and buyers should rely on their own enquiries.