Selling a block of units sale can be complex, especially when preparing the correct documents. Proper documentation ensures a seamless transaction as missing paperwork can lead to significant delays. For investors using SMSFs or trusts, having comprehensive documents is a must. This guide will lead you to a successful sale.
Key Documents for Block of Units Sale
Compiling necessary documents is crucial for a successful block of units sale. Here’s a comprehensive checklist of essential documents you need:
- Contract of Sale (Specialist version) – Tailor it for individual or multiple title situations, including service easements and tenant clauses.
- Section 32 & Due Diligence Pack – Title documents, subdivision plans, and overlay requirements like heritage restrictions are included.
- Lease Agreements – Document all current tenancies with ledgers and bond records.
- Outgoings Statement – Lists council, water rates, insurance, and Owner Corporation disclosures in detail.
- Rental Schedule – Provides information on rental returns, lease expiries, vacancy rates, and arrears.
- Building Condition Report – Essential for older properties, outlining maintenance requirements or upgrades.
- Compliance Certificates – Includes electrical, gas, and smoke alarm certificates.
- Asbestos Report – Required if construction was done before the 1990s.
- Insurance Certificate of Currency – Confirms ongoing insurance coverage on the property.
The Importance of a Document Checklist
Delays or risks due to inadequate paperwork can jeopardize your block of units sale. Start compiling documents early, ideally during the appraisal stage. Engaging a seasoned lawyer or conveyancer can streamline this process, eliminating roadblocks.
A Practical Example
Consider a recent case involving a 13-unit block, where rental inconsistencies almost derailed the transaction. Fortunately, the agreement included a contract extension, allowing corrections and ensuring the deal went through.
For streamlined transactions, precise documentation for your block of units is crucial. Contact Simon Abbott at Collings to schedule a document preparation session.
Exploring further investment opportunities requires robust document preparation, with the right paperwork essential for successful sales and preventing potential setbacks. Thorough planning and early preparation are fundamental to avoiding pitfalls in the sale of blocks of units.
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