Hi there. When selling a property, it is up to the individual seller how they carry out the sale and the price involved. The only thing to be aware of is underquoting of a sale price, although this is only likely to be a concern where an agent is engaged to handle the sale. You should do your own market research on prices for comparable properties in the area and consider using an independent valuer to assess your property.

You mentioned using the figure of $280,000 to help calculate your vendor financing (VF) and rent-to-buy options. Rather than using the figure as guidance, you should consider the terms of your VF and rent-to-buy options, including what deposit amount you are seeking and how you prefer the balance to be paid.
Costs commonly associated with selling a property include the agent’s fees and commission, if applicable, fees imposed by your lender if your property is mortgaged, and any government charges such as capital gains tax (CGT).

Each sale option you mentioned involves a degree of financial risk. The main risk is the purchaser defaulting on their repayments. Your exact rights in the event of a default would depend on the terms of the agreement you have entered with the purchaser. You can minimise the risk of losing money and protect yourself by ensuring you enter a professionally drafted and legally enforceable agreement with the purchaser.

You should also consider the possibility of a purchaser subsequently renting out the premises to a third-party tenant. In this situation, the law would recognise a legal relationship forming between you, the buyer and the tenant. This may mean you have certain rights or responsibilities that involve one or both of the other parties.

Suggested way forward

There are many risks involved in selling a property, especially if the sale involves VF or a rent-to-buy option. You should speak to a property lawyer who will be able to advise you on your legal rights and the best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.