We spend a great deal of time refining our estimation of the market and more specifically, your local market.

With over 25 years of sales results, MJ Docking has a large database of comparable sales results to base your appraisal upon. We don’t just pull a figure out of the sky, we will actually give you addresses of properties we liken yours to! With histories dating back to 1982 there is a good chance that we have a past sales result on your property!

Our marketing prowess produces great results

Great results are generated by astute marketing put firmly in place well before Auctions or final negotiations commence. Selling property can be stressful for the vendor, but it need not be. We believe that the ability to relieve the vendor of any undue worry or concern is a fundamental part of the service MJ Docking offer. With a well planned and managed campaign conducted by our experienced, skillful agents, vendors are in control and confident of the best possible outcome.

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When to sell?

The importance of this question is often underestimated. Many will tell you Spring is the best time to sell; the flowers are out, the sun is shining, the market is stimulated and buyers are buying. In some cases, these generalisations are correct, but certainly they do not take into account many other contributing factors. Spring is a time when most vendors put their property on the market, this is true. This increase generally creates an over supply of property in Spring. Purchasers don’t limit themselves to seasonal highs; they peruse the market year round until they purchase. By holding off on selling until Spring, you are increasing the supply to demand ratio, and consequently diminishing the competitive environment required to maximize the sale price of your property. There are exceptions to this generalisation. The seasonal attributes of Spring are positive when selling property but we shouldn’t put too much emphasis on this season. Homes can look their best in Winter, Autumn and Summer and a well executed marketing campaign will always produce positive results. Other periods of the year to watch out for are special event days; Grand Finals, long weekends, etc. It is important to consider what effect these days would have on an Auction. Although interested parties would always arrange to attend an Auction, you may not always have as many onlookers present to stimulate the atmosphere.

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Later in this booklet MJ Docking offer advice on how to present your garden and the interior of your home for maximum effect. It is very important to give yourself enough time to adequately prepare your property. By waiting just two to three weeks, so much can be done to your property which could boost the sale price. Talk to us well before you are ready to sell, as we can assist in putting this selling strategy together.

Howto sell?

Auction or Private Sale? The primary benefit of having your property Auctioned is the competitive nature of an Auction which can push the sale price up. Auctions also work well for properties which have broad appeal or for properties which are unique or have features which are highly prized. In the Auction environment, emotion can be raised and increased sales prices achieved. The reserve price is a safety net and the vendor has right of refusal on any bid. Private Sale, or Sale By Negotiation on the other hand, is less stressful on the vendor. A price - or Price Range - is set and the marketing campaign is commenced in the same manner as an Auction campaign. The selling process can create the same level of competitive emotion as an Auction as long as the original asking price is not set too high, which may deter buyers.

Melbourne is the home of Auctions, and vendors and buyers alike have a good understanding of the process. Generally, Auctions conclude sales more quickly than private sales, and the marketing for an Auction can be more specifically aligned to building interest to the day itself. Sale By Negotiation will usually achieve the same result usually in a longer period of time but with much less stress. Private sales can be very relevant to particular properties. In the present environment Auctions are generally achieving better results for vendors than Private Sales. We can advise you on your particular circumstances and which option is best for you.




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Assessing the Market.
MJ Docking has access to the most up-to-date research and databases available in the industry.

We are able to give you an accurate picture of how prices for your type of property and location have performed over the years. Linking this with the information on the current industry and economic climate, we can provide you with an accurate appraisal of how your property is placed.

Return on expenditure.
Don’t get locked into the thinking that your property has a set value. There are many things you can do to your property that can add net profit to the sale price. How much extra would an ensuite add to the sale price? Is it advisable to recarpet, repaint, rewire, replumb? In some circumstances, a small investment can sometimes return handsome rewards.

This is where quality information is vital.MJ Docking can advise you as to which each extra feature within your home is likely to add to the sale price. Again, if these decisions are made well before the selling campaign impressive results can be achieved.

Choosing an agent

This is the most important decision in achieving a successful result. Choose the right agent and you can shoot for the stars. Choose the wrong one and you’ll probably never know what you’ve missed. It can’t be emphasised enough, the importance that your decision on agent selection be based on –

‘WHICH AGENT HAS ACCESS TO THE LARGEST AMOUNT OF POTENTIAL PURCHASERS AND WILL OBTAIN THE HIGHEST SELLING PRICE FOR ME THROUGH THEIR SKILL AND PROFESSIONALISM IN THE MOST ETHICAL MANNER’

Don’t make your selection by ‘which agent gave me the highest valuation or the cheapest commission’. The agent that gives you the highest valuation may just be trying to ‘buy’ your listing. Each agent touts for business with fairly similar claims, e.g. biggest in the area, greatest number of sales in the area, most offices etc. These points are all important to some degree, but primary to this business is achieving maximum net return to YOU, the vendor, with the minimum of fuss.

A good starting point in choosing an agent is checking their industry accreditation. Most importantly, are they a member of the REIV? If not, you should question why not. Further investigation should assess the agent’s sales results, and more specifically, assess their sales results against market expectation. Talking to previous clients of the agent will give you an insight as to how they perform. It’s no good just finding a buyer, you need your agent to find a buyer who will reward you with the highest possible price. As you will be working very closely with your agent, you must feel you can operate
confidently and successfully together.

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Advertising – create a stampede of interest

Advertising is mistakenly seen as an expense, rather than the main arm of successful marketing. A typical campaign includes press advertisements, brochures, signboard and editorial submissions. The total advertising package generates interest in a property, thus delivering leads to the sales force. Advertising is the most important tool in rousing interest and creating an image. Scrimp on this area and you may be scrimping on the image of your property too. In overview, each medium has a different role to play.

Press advertisements lead the campaign and offer a taste of the property to the target buyer. Effective print advertisements do not list every feature of the property, they focus in on the most important aspect of the property and paint a picture to entice enquiry and initiate attendance at ‘Opens’. Advertising alone does not sell
the property.

The sign board.
‘Your 24 hour sales person’. It’s interesting to note that people who are about to begin looking for a home to buy usually drive around neighbourhoods, which they believe to be acceptable to them and they take down the Agents’ phone numbers of homes for sale there. Often a buyer’s first contact with a real estate company is the direct result of having first seen a For Sale sign. Sometimes home sellers will ask their real estate agent not to place a sign on their property because they don’t wish the neighbours or relatives to know they’re moving. The problem is that if the neighbours and relatives don’t know your property is for sale you can bet that neither does the buying public! Experience shows that many calls to our office come from contact with a For Sale sign.

The board offers more information about the property. It also introduces the property to those who have not been exposed to the press advertisements. Again, it is important not to present all the information about the home, it is more effective to build interest and prompt buyer contact with a sales person. Signboards vary in size and level of appointment. Many boards have large colour images of important features within the property. The use of a floodlight for night visibility adds impact to the sale board and increases the overall appeal of the property.

The brochure.
This item is a very important feature of successful marketing. It can be assumed that once a buyer has a brochure, they have seen the property. At this point, the brochure is vital in providing all relevant information to the buyer during the decision making process. A floor plan on the back helps a potential buyer to visually arrange their own furniture in situ.

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Advertising media.
MJ Docking will put together a cost effective plan that will generate quality leads and a high level of interest. As a rule of thumb, the more expensive the property, the larger the advertisement and the higher the budget required to promote it to a wider audience. Small advertisements can do well for a $280,000 block of land, whereas it would seriously undermine the image of a $750,000 property. Larger print advertisements carry up to three images while smaller advertisements may be limited by space to just one external image. Larger advertisements present the property in a more sophisticated light.

Advertising Schedule.
The budget required to drive a successful campaign varies, but the number of advertisements required is usually the same. Most campaigns require around four print advertisements to run each week for four weeks. This may include National publications such as The Age or The Herald Sun and local publications such as The Whitehorse Leader.

Be noticed.
Creativity in advertising is essential if your property is to stand out amongst the flood of similar properties being offered.
Headlines such as, ‘Original home on large block’, adds nothing to the image of the property that isn’t blatantly obvious. But, ‘Selfish little shack, squandering prime land’, paints a picture of opportunity and has some entertainment value... people respond to advertisements that stand out.

Internet.
More and more potential buyers are turning to the internet as their first port of call when looking for newly listed properties.
A ‘Feature Property’ insertion in at least one website location should be your first positive action.

Presentation can make or break a campaign

Accentuate the positives, eliminate the negatives.

Interiors that sell.
First impressions are critical in decision making situations especially when buying residential real estate. Studies have shown that potential purchasers have subconsciously reached their decision about a property within minutes of their first exposure. Bearing this in mind, it is essential that the vendor presents the property in the best possible light so that it will stand out from other available properties, thereby attracting more purchaser interest which could eventually result in greater buyer competition and a higher sale price. Purchasing a home is mostly a lifestyle decision, therefore properties should stimulate buyer senses by creating a warm and welcoming environment. This ensures that purchasers feel comfortable, encouraging them to spend more time inspecting and establishing empathy with the home.

Having prepared thousands of homes for sale, we have established that the following recommendations generally assist in achieving an inviting atmosphere:

• Maximize the use of natural light by opening curtains and window furnishings, cleaning light fittings and windows, installing higher wattage light bulbs in darker areas. Clearing any overhanging branches or bushes that may restrict light entering the home.

• Camouflage any unattractive features; brighten rooms with colourful cushions, attractive prints, adornments, fresh flowers and potted plants. WARNING - Clutter is the enemy of first impressions. Be ruthless when it comes to clutter, only include an item if it adds to the overall positive effect of a room. The more furniture and ornaments in a room, the less the perception of space, so make every item count.

• Dated kitchens can be given an instant facelift at very little expense by adding a brightly coloured platter or a bowl of fresh fruit.

• Ensure that bathrooms and wet areas are thoroughly cleaned, sinks are cleared of dishes, laundry is put away, beds made and all clothes are stored.

• Carpets should be steam cleaned and smell fresh for the selling campaign. Vendors should bear in mind that during an Open For Inspection, many people view their home in a very short period of time, so walkways should be left clear to allow people to flow through the property.

• During the colder months, heat the home and light open fires where possible. At all times, homes should smell fresh, so regularly open windows and doors to help create the impression of space.

• Pets. Although you love your pets, some people are allergic to them and many people are just plain scared of them, especially dogs. To many people, the idea of a dog or cat in the house detracts from the overall freshness and cleanliness of the home, as the scent of some animals are particularly difficult to remove. Remember, you are marketing your home to the masses, and the smallest thing can make a big difference, so consider having your pets cared for elsewhere during the selling campaign.

• When it comes to minor alterations or building work, most properties need to be assessed on an individual basis. As a rule of thumb, a fresh coat of paint always adds to the image of the home, but be warned, this must be completed well before the selling campaign to ensure the smell of paint isn’t prevalent. Neutral colours are preferred as they are likely to be acceptable by more purchasers. Take a risk in your home, but when selling to the public, keep it simple for general appeal.

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Most agents have a good understanding of what features are important in a home and what value each addition will add to the sale price. Again, as a guide, if a home is being offered as fully renovated, then ensure that every room is up to scratch. In this scenario, any rooms which need attention will detract from the initial proposition and cloud the positive image of the home. Those homes which are completely unrenovated should ensure that toilets are serviceable and that bathrooms and kitchens are operable. For those that fall in between, some further generalisations apply. Space is very important; an extra living area, or one in better condition is highly valued. Kitchens and bathrooms are personal areas of a home and carry much of the overall impression of a home. These are the areas that many buyers like to alter or put their own personal stamp on.

Bedroom accommodation is relevant to the type of property but more is usually better and aim to retain the original style and design of the home. Don’t turn a bedroom into a study thinking buyers would warm to a study/home office. We advise against marketing a property that is unfurnished. History shows that well presented, furnished homes achieve higher sales prices than unfurnished ones. A vacant and empty home does not allow buyers to easily judge the size of rooms, nor does it allow for easy visualisation of how furniture could be placed in the room. As buyers become more discerning, the need for a comprehensive interior presentation is becoming more and more important. Selling property is very competitive and a professional interior presentation may mean the difference between a sale and no sale or a great result and an average one. MJ Docking can refer you to a professional presentation consultant.

Exteriors that sell.
When it comes to preparing a property for sale, the gardens and grounds are usually considered at the last minute and only given cursory attention but it should be remembered that first impressions are vitally important and the garden and surrounds are the first sight most prospective buyers will have of the property.

The exterior of a property can often set the tone of an inspection... so better make it a good one! A well presented garden should be part of the overall plan for the sale of a property. It is most important that you give yourself as much time as possible to address the garden prior to the selling campaign.

A good starting point is to walk around the property with pen and paper in hand and make note of what is required in order to make the property look its best. This could include items like removing rubbish or garden refuse lying around the property, pruning requirements, attending to lawns and weeds and, an issue most people tend to overlook, how the garden looks from inside the home. Fortunately, we have control over most of these items and can make the most of existing plantings with a little careful management and timing. MJ Docking are able to offer relevant advice in this regard.

Ensure that all rubbish is removed from the site as soon as possible. Don’t leave this task until the last minute, give the lawn or plants time to recover from the impact of the refuse. This includes building materials, garden refuse, broken play equipment, in fact, anything that no longer serves a useful purpose around the site or fails to add aesthetic appeal. If in doubt, remove it. It is also important to clean out drains, guttering and down pipes to ensure that they are working properly. Algae can be removed from paths with bleach and a stiff broom or by applying copper sulphate (available from most nurseries).

Garden beds should be weed free, well turned over and mulched. Weeds can be removed by hand or sprayed with poison. The lawn is an area which can make or break the look of a garden. The quality of lawns can be greatly enhanced by simply refraining from mowing it too short. An ideal height for a lawn is 25 - 30mm. This ensures that the lawn is green in appearance and will tolerate traffic. In order to achieve a deep healthy green lawn, fertiliser is the answer. Look for a turf fertiliser at your local nursery. The nitrogen in the fertiliser will green up a dull lawn in two to three days. Ensure that adequate water is applied after fertilising to avoid burning. Weeds in lawns can be controlled by the use of weed and feed mixtures and results can be noticed in four to five days.

If the lawn is patchy, scratch up the surface and reseed with Ryegrass. This will germinate in three to four days and will add a lustre to any lawn. Lawn maintenance must be considered specifically for an Auction. The lawn should be mowed the afternoon before the Auction and all edges on paths and garden borders should be clipped.

Pruning is very important. You should look for overhanging branches, particularly those hanging over buildings; ensure these are safe and not likely to obstruct pathways or get in the way of potential buyers. The garden scene should allow uninterrupted views to the home’s positive aspects and should screen negative aspects. The older styles of house lend themselves to masses of colour in the form of annuals, roses and spring flowering shrubs. Prune or remove the spent rose flowers 8 weeks before the commencement of the selling campaign. After pruning, apply a complete fertiliser, water well and the roses will be in full bloom just when you need them.

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Maximize your garden for each season. Numerous annual plants can be used to add colour highlights throughout the year. In Winter and Spring use plants such as Polyanthus, Primula, Stocks and Lobelia. In Summer and Autumn use Petunias, Phlox, Marigolds and, in shady areas, Impatiens are ideal. These annuals should be planted about 8 weeks before they are required. If you don’t have enough time, most nurseries will sell pots of annuals in full bloom. It will be more expensive but the results are immediate. Plant annuals in sufficient numbers to really make an impact and ensure that when they are in full bloom, you should not be able to see bare earth.

When selecting annuals, try to tie in the colours with the colour scheme of the house. Complementary colour strategically placed in the garden will attract the eye from indoors and can add to the sense of space. Annuals in large tubs offer a movable display for different times of the day and can be relocated for an Auction. Some shrubs can also offer an instant solution to a dull or lifeless garden. Some of the fast growing Marguerite Daisies can provide a wonderful colour accent. These range in colour from white to yellow, pink and red. Remember to select colours that complement the existing plantings. Results can be seen within 8 - 12 weeks.

How clean are the exterior walls of the property? There are now cleaning services that wash the exterior walls of your premises. This can make an enormous difference to the presentation of the property, again adding to that vital first impression. In summary, there is much that can be done to have a garden looking its best. With some careful, long term planning, a stunning garden can increase the return on a property quite markedly.

What a building inspector looks for in your home

It is common practice for prospective buyers to engage the services of building inspectors to report on the condition of a desired property. From the vendor's point of view this information is of equal importance and should be considered before presenting your property for sale. Here is a general checklist for vendors to judge their property prior to putting it on the market.

After completing this check list discuss any alterations or fixes you think may be necessary with an MJ Docking agent before proceeding as they may be unnecessary and a waste of money in some instances.

Please take care when conducting this inspection, defective roofs, faulty wiring etc, can cause serious injury. (WHERE YOU HAVE ANY DOUBTS CONTACT A PROFESSIONAL TRADESMAN)

WHAT TO LOOK FOR:
On the roof
Look for a wavy roof line, this may indicate a structural problem. Look for broken roof tiles, loose ridge and valley tiles that would allow possum or bird entry and water leaks. Check that corrugated iron is in good condition and fixed securely. Ensure that valley and eaves guttering are free from holes and rust - expensive to replace. Make sure that flues and chimneys are structurally safe and the flashing around them is secure against water penetration. All of these checks can be carried out from ground level, do not risk injury and climb a ladder unnecessarily

In the roof space
Through the internal manhole look for sagging roof framing, leaking ridges or valleys. A defective roof can be very costly. Check for damaged or defective electrical wire. DO NOT TOUCH. Check for droppings or odour that would indicate the presence of vermin. Note whether the ceiling has been insulated.

Timber floors - above and below
Jump lightly on the floor to detect rotten floorboards, borer infestation or looseness in the floor framing. Look for gaps between flooring and architraves or fireplaces. This can indicate a poor subfloor. Look for props or bricks holding up the floor instead of stumps, piers or dwarf walls. Check for subsiding stumps, brick piers, sagging bearers or floor joists, all are costly to replace.

Concrete floor
Look for dampness, lifting floor tiles or rotting carpet. Ensure ducted heating systems are not holding water, water can render the system useless. Look for cracks, these can indicate major structural problems.

Electrical systems
Check that all switches and power points are serviceable and in good repair. Look for signs of burning around switches, fittings and fuses. If in any doubt contact a qualified electrician. do not attempt any electrical repairs yourself.



Outside walls
Check they are straight. In weatherboards this can indicate stumps have rotted or subsided. Minor cracking in brick houses can be generally ignored but major cracking or bowed walls can mean subsided footings. Repairs in this area can be very costly. Check for rotten weatherboards, veranda posts, windows and doors. In brick houses, check for eroded mortar and look for varying colours of mortar, this indicates a previous repair or a patch up.

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Ceilings/Walls
Check that ceilings and walls are straight and true, and look for cracks or signs of movement. Look for water stains and mould growth on ceilings, or white or brownish deposits on walls or rotten skirting. This would indicate excessive condensation, roof leaks or rising damp. Look for filled cracks or freshly painted areas. These can show a deficient sub floor. Look for cracks beside chimneys and look for doorways and windows that aren't square, or are jamming. These problems usually mean structural subsistence, which is expensive to repair.

Plumbing
Check all plumbing fittings for cracks or leaks. Test water pressure for both hot and cold. Do this with many outlets on. A major drop in pressure, could suggest poor flow and suspect plumbing. Partially fill the bath or laundry tub and observe the drain’s performance. A sluggish flow or gurgling can indicate damaged or blocked pipes, which can be expensive to repair or replace.

What are your legal requirements?

The legal and cost implications of selling property can be enormous. If a mistake is made in the document preparation and consequent transactions, it can seriously affect the outcome of the property sale, sometimes leading to legal and/or financial exposure for the vendor and the purchaser. The process of selling property includes certain legal requirements. The preparation of a Vendor’s Statement (Section 32) and a contract are two very important areas of the conveyancing transaction to consider. Although the industry offers standard forms for both of these areas, it is vital that these documents be considered in the light of your particular circumstance... accuracy and completeness is essential. Conveyancing is an area where the paralegal fraternity is really showing some growth and they provide an accurate and professional service. Unfortunately, if there is a problem, only legal practitioners carry legal indemnity insurance that may cover these contingencies.

The Vendor’s Statement (Section 32)
The vendor’s statement should disclose all matters relating to the property being sold which may in any way affect a purchaser. This includes mortgages, planning information, rates and other taxes, building restrictions, details in relation to recent building work and any agreements (for example, in relation to fencing or building over easements) which you, as vendor have entered into with any other person. This document must be shown to purchasers before they sign a contract and if it is inaccurate in any way, the purchaser may be able either to withdraw from the sale or to take action against you as vendor. It is essential that the vendor’s statement be carefully and accurately prepared and your solicitor will help you do this. When deciding to sell, you should bear in mind that some of the authorities from whom certificates and information have to be obtained can take quite a long time to provide the information required for incorporation in the Vendor’s Statement.
The sooner you notify your solicitor of your intended sale, the easier it will be for a complete and accurate Vendor’s Statement to be prepared in time for the sale to take place.

The contract
When selling a property, it is up to the vendor to prepare the Contract Note or Contract of Sale. Whichever is used, the Vendor’s Statement must be signed and handed to the purchaser before the contract document itself is signed.

If you are Auctioning your property, your solicitor will prepare formal Auction contracts which will incorporate a number of special conditions. These and other conditions are referred to below. As you are the vendor, you can place whatever conditions or limitations you want on your sale. These are usually included in any contract as special conditions and may relate to many things. Generally, the more conditions you put in the contract the more difficult it will be to find a purchaser, particularly if the conditions limit the rights of the purchaser in any unusual way. The following are the usual sorts of conditions incorporated in contracts;

Identity
Your solicitor may include a provision which limits the purchaser’s right to complain if there is a misleading description of the property other than one of a very serious nature.

Planning
A condition may be incorporated that the property is sold subject to all relevant planning laws and regulations.

Auction
If you are selling at Auction, specific conditions will be put in the contract which govern the conduct of the Auction sale itself. These will include requirements that the highest bidder sign the contract, and the right of the Auctioneer to resolve disputes between bidders. These conditions will adhere strictly to the new requirements under The Sale of Land Regulations 2004.

Other conditions
You can cover almost any situation in a contract. If you want to have the right to remove specific chattels which may be regarded as fixtures or specific plants from the garden, this should be set out in detail in a special condition.
Any purchaser interested in your property may also want to add special conditions to the contract of sale; while this may be negotiated between you and the purchaser it is always best to put a specific date which is satisfactory to you so that any purchaser is aware of the time frame within which you are working.

The Cooling Off Period
A person buying a residential property by private treaty is entitled to a 'cooling-off' period of three clear business days commencing on the first business day after the purchaser signs the contract of sale. This means the purchaser is legally able to withdraw from the contract of sale if they change their mind during this time. However, there are some circumstances where the cooling-off period does not apply if:
• The property exceeds 20 hectares in size and is used mainly for farming.
• The purchaser received independent advice from a solicitor before signing the contract.
• The property was purchased at or within three clear business days before or after a publicly advertised Auction.
• The property is used mainly for industrial or commercial purposes.
• The purchaser previously signed a similar contract for the same property.
• The purchaser is a real estate agent or a corporate body.

Written notice of an intention to terminate the contract must be given within three clear business days of signing the contract.

The notice must be given to the vendor or vendor’s agent or left at the vendor’s address as stated in the contract. The vendor is entitled to retain $100 or 0.2% of the purchase price (whichever is greater), if the purchaser decides to terminate the contract. The balance of deposit must be returned to the purchaser.

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The Deposit Money
When a person signs to a contract to purchase a property, a deposit must be paid to the vendor’s agent. A receipt should be given to the purchaser for the deposit, together with a copy of the contract. The agent must place the deposit money in a bank Trust Account which is subject to strict accounting and audit requirements in its capacity as ‘stakeholder’ for both parties.

Vendors can receive most of the deposit money prior to settlement, utilising a Section 27 ‘Early Release of Deposit’ certificate, if the following conditions are met:
• The vendor has advised the purchaser in writing of any caveats on the land and of any mortgage and the amount required to discharge the mortgage.
• The purchaser authorises the agent or the vendor’s solicitor to release the deposit to the vendor OR fails to advise within 28 days of receiving information about any caveats on the land or the mortgage discharge details, that the deposit is NOT to be released.
• All conditions of the contract for the benefit of the purchaser have been satisfied and the title has been deemed to be accepted.

When the above conditions have been met the estate agent can deduct any money owing for commission and other expenses and send the balance of the deposit to the vendor.  The vendor should promptly arrange their legal representative to provide the necessary information to the purchaser in the form of the Statement required under Section 27 of the Sale of Land Act.

Insurance
As vendor, you are obliged to hand the property over in the same condition as when the contract was signed. There is no obligation on the purchaser to insure, therefore, it is essential that you, as the vendor, keep the property fully insured until you have been paid in full. General Condition 2 of the prescribed Contract of Sale of Real Estate provides that the vendor carries the risk of loss or damage to the property
until settlement. MJ Docking will advise the purchaser to take out a cover note as well . . . this will not absolve you as the vendor, your obligation is to keep the property insured. The purchaser has a ‘beneficial’ insurable interest in the property being purchased.

Protection for Purchaser
The Sale of Land Act provides some protection to the purchaser of a house by providing the right to withdraw from the contract if the house is destroyed or damaged so much that it is unfit for occupation. The purchaser or purchaser’s solicitor must serve written notice of cancellation of the contract.

In the event of cancellation all money paid by the purchaser, including the deposit, is refundable.

However, the purchaser’s right to cancel is subject to the vendor’s right to rectify the damage and then insist upon completion of the sale.

The Sale of Land Act as well as the Fair Trading Act and Trade Practices Act provide further protection for the purchaser.

Definitions of Common Real Estate Terms

Caveat
Literally means ‘Beware’. In Real Estate, it is a notice on a land title that a person other than the owner (e.g. mortgagee) has interest in the land. A caveat is lodged at the Land Titles Office which adds it to the title as a warning to prospective purchasers and others that the title is not ‘clear’. The owner usually cannot sell the land until the caveat is removed.

Covenant
An agreement or promise by deed, by which one party pledges to the other that something has been done or will be done, or stipulates for the truth of certain facts. He who promises is called the ‘covenanter’, and he to whom the promise is made to is the ‘coventee’. Covenants are either positive or negative, and relate as a rule to the relationship between vendor and purchaser, or landlord and tenant. A positive covenant is one by which the party binds itself to do some act or carry out some work; and a negative covenant is one by which the party is restricted in its rights in relation to the other party, or promises not to do a certain thing. Covenants are also expressed or implied: express, where they are set out in terms; implied where the mere relationship of the parties automatically creates the covenant.

Easement
A right which a person has to use land belonging to another in a particular manner not involving the taking of any part of the natural produce of that land or of any part of its soil; or a right to prevent the owner of that land from using his land in a particular manner. This right must be appurtenant to (i.e., attached to) another piece of land, called the ‘dominant tenement’. The most usual easements are rights of way, easements for light, easements for the flow of water over and through another’s land, and easements of support.

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Encumbrance
A charge or liability, e.g., a mortgage or a restriction on the type of building which may be erected.

Mortgage
A legal pledging of things movable or immovable, as goods or land, as a security for repayment of money.

Planning Instrument
Includes a planning scheme, interim development order or local development scheme.

Settlement
The event upon which the purchaser becomes entitled to vacant possession or the rents and profits of the property.