Nestled within Australia’s property selling process lies a perplexing question. Many sellers often ruminate, “Do we need to keep paying bills after signing the sale contract?” A common presumption is to sustain these payments until the property is transferred i.e., until it settles. Is that the actual scenario? Well, it’s time for an enlightening glimpse into this matter.
Demystifying Payment Obligations
Let’s cut through the confusion. The journey of selling a property is spread across varied phases. The baton of legal title remains with you, the seller, even after you sign the contract of sale, till the settlement date. However, bill responsibilities may alternate based on terms mutually agreed in the contract.
The Locus of Contract of Sale
A contract of sale is a legal agreement that enlists the terms and conditions under which the property will change hands. It sheds light on how the responsibilities for rates, utilities, and sundry expenses are transferred. The contract usually earmarks an ‘adjustment date’, typically the settlement date, after which the buyer takes over the fiscal obligations.
Understanding Expenses and Their Adjustments
Let’s break down how common expenses are managed:
Council Rates and Water Rates: These, customarily, see an adjustment at settlement. The seller holds responsibility for the period leading to settlement, while the buyer takes over thereafter.
Utilities (Electricity, Gas, Internet): Electricity and gas bills are proportional to usage. Sellers are advised to have final metre readings done on or just prior to the settlement date, bearing responsibility till this reading. Internet service, however, should preferably be cancelled as of the settlement date to prevent redundant charges.
Land Tax: Land tax intricacies vary across states and territories. It may be adjusted at settlement, demanding the seller’s attention and professional advice for understanding their obligations.
Seller Benefits: Understanding these adjustments removes the burden of paying beyond your occupancy period. It also aids in effective budgeting during the transition phase.
Navigating with Professional Advice
Considering property transactions’ labyrinthine nature, consultation with professionals like solicitors, conveyancers like Ownit Conveyancing in Toowoomba, and real estate agents is highly recommended. They can offer personalised advice based on your context and assure correct adjustments.
Wrapping Up
The belief that sellers must uphold bill payments till settlement can trigger unnecessary stress. By comprehending how payment obligations can be shifted and leveraging the contract of sale, sellers can smoothly exit their property without incurring additional costs.
No two property transactions are identical, making professional insights invaluable. Stay updated, solicit expert advice, and sail through your property-selling journey with ease. If you are contemplating selling your property and harbour questions about bill payments, your real estate professional is just a call away.
Whatever you do, don’t make the mistake of assuming that all bills must be paid until settlement. Learn what’s true in your case and get expert help when you need it. If you have great conveyancers and real estate agents, you’ll generally get the advice you need anyway!
Denwiz staff