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What is a Contract of Sale, Vendor Statement & Stamp Duty? // Your Local Estate Agents

By Georgia Harrington

You may have heard the terms, but what do they actually mean? Read on to find out…

What is a Contract of Sale?

A document signed by both the seller and buyer. It outlines all of property details including the prices agreed by bother parties.

Usually, the contract of sale is drawn up by the real estate agent on behalf of the seller. However, if the property has been sold at auction of there’s no agent involved the conveyancer will draw up the contract.

What is a vendor statement?

This document sets out details about the property being sold such as:

– Body corporate fees

– Any planning details associated with the property

– Payable taxes

– Any encumbrances on the property

Again, it is recommended that you employ a conveyancer to draw up the contract as any incorrect information can render the contract of sale invalid. As part of their research, they will conduct title, planing and rate searches.

What is stamp or transfer duty?

Stamp duty is a tax imposed on numerous acquisitions, including selling real estate, cars and assets belonging to a business.

In the case of real estate, the purchaser is the one who pays the tax. It is a legal requirement for stamp duty to be paid within 30 days of  the settlement date. All transfers of land, or sales of property, including gifts of property attract a duty, but there are a few exceptions to this, including:

– Pensioners

– Deceased estates

– First home buyers

– Family farms

– Young farmers

– Principle place of residence

– Off-the-plan sales

As stamp duty isn’t a tax levied by the federal Government, the amount of stamp duty paid changes from state-to-sate. It’s worth researching the rate of your home state

Talk to one of our experienced real estate agents today on (03) 9571 6777.

Ray White Carnegie // Your local Carnegie Real Estate Agents // Carnegie, Murrumbeena, Hughesdale, Bentleigh, Bentleigh East

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