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Selling your shared ownership home

There may come a time when you want to sell your home. If you have a shared ownership home loan, the process for selling is different as there are two owners for your home, you and the Housing Authority. We’ve put together a guide to help you prepare.

Do you have a fixed or flexible shared ownership home loan?

If you have a fixed shared ownership loan, you’ll only be able to sell your shares in your home back to the Housing Authority.

If you have a flexible shared ownership loan and the Housing Authority still has a share of your home, as co-owner, it has the first right of refusal to buy your home from you at the current value of your shares. 

If the Housing Authority decides to buy your home, Selling your shared ownership home back to the Housing Authority provides steps relating to this.

If the Housing Authority decides not to buy your home, you can follow the below steps to sell your home on the open market. We'll help you through this process to make it as smooth as possible for you.

Get in touch if you’re not sure if your loan is fixed or flexible. 

Steps to selling your shared ownership home

1. Notice of intent

If you're ready to sell your shared ownership home, the first step is to complete a Notice of Intent form, this form includes an Owner Improvement Checklist and Change of Name form. You can request these forms by emailing customer@keystart.com.au or calling 1300 578 278. Return the completed documents to sharedownership@keystart.com.au

Read Improvements to your shared ownership home for more information on the Owner Improvement Checklist.

We will review your Notice of Intent form to ensure it has been completed correctly. If there is information missing, we'll be in touch to let you know what's required.

2. Valuation

The valuation fee is required to be paid up front. The minimum cost of your share of the valuation is $250. If the cost exceeds this amount we'll pay up to $400 with the balance being met yourself.  The amount required to value your property and the payment details are provided in the Notice of Intent covering letter.

We’ll then arrange an independent valuation of your home. We use this valuation to calculate the value of the Housing Authority's share in the current market. The valuation will remain in place for four months. 

To ensure a fair valuation for all parties, we use independent, qualified property valuers. The valuer does not work for us. The valuer will contact you directly to arrange a suitable time to inspect the property. The valuer will contact you within two working days of receiving the valuation request from us.

While the valuation report is not provided to you, it is used to create your Quote Statement.

The valuer will assess any improvements you've made to your home. Find out more about this process.

3. Property is offered to Housing Authority 

Once all required information has been received, simultaneous to ordering the valuation, Keystart will advise the Housing Authority of your intention to sell.

The Housing Authority will consider the request based on an initial review of the location, size and condition of the property based on information at hand. If it meets the initial criteria, they may contact you to arrange to inspect the property.  

The valuation report is provided to the Housing Authority acquisitions team to finalise their decision on the property buyback. If the Housing Authority decline to purchase, a Consent to Sell letter along with a Quote Statement is issued.  

If the Housing Authority decide to purchase your home, there is a step-by-step guide for this process.

4. Your Quote Statement

The Quote Statement provides you with a breakdown of:

  • the valuation amount, shown as market value
  • the value of any home improvements, or the cost of any maintenance issues,
  • the value of the Housing Authority’s share, 
  • the balance required to pay out your Keystart loan, and 
  • an estimate of the fees and charges involved in the sale (excluding any real estate fees, settlement agent fees or outstanding water or shire rates).

The Quote Statement gives you an estimation of the amount the Housing Authority will ask from your settlement agent at settlement, based on the valuation of the property. If the property sells for more than the valuation, a new quote statement will be issued as the Housing Authority's share is based on the higher of the sale price or valuation.

It can take 3-4 weeks to generate your Quote Statement as we need to liaise with the valuer and the Housing Authority.

5. Choosing a real estate agent

Once you’ve received your Quote Statement and Consent to Sell letter, you can begin the process of listing your home for sale on the open market with a real estate agent of your choice.

6 tips to help you find the right agent to sell your home

6. Listing Agreement

Your appointed real estate agent will draw up a Listing Agreement, this is an agreement between yourself and the agent stating the terms on how you wish the agent to market and sell the property on your behalf.

There are a few points to consider with a Listing Agreement.

Setting a selling price

Your selling price needs to cover the balance required amount shown in your Quote Statement, and any other costs associated with selling a home such as your real estate agent’s commission, marketing fees and your settlement agent fees.

If your real estate agent suggests a sale price that is less than the amount required to cover these costs, this may result in a shortfall. When a shortfall occurs, you’ll need to find funds from elsewhere to cover this amount. If funds cannot be sourced, contact us to discuss further.

You’ll need to complete a Statutory Declaration if you decide to sell your home for a lower price.

You can choose to stop the sale process at this point if you wish and wait until your equity increases.

Housing Authority's involvement

The Housing Authority contributes towards your real estate agent’s commission, based on the shares it has in your home. For example, if the Housing Authority has a 30% share, it will cover 30% of the cost of your agent’s commission. 

However, if you have an agreement with your real estate agent to pay more than 4% commission, the balance will be at your cost. 

Any marketing strategies you agree for the real estate agent to use to help sell the property are at your own expense. Housing Authority do not contribute to these.

We are required to co-sign your real estate agent’s listing agreement on behalf of the Housing Authority before your agent posts the listing. Your real estate agent can send the prepared listing agreement through to us at sharedownership@keystart.com.au for co-signing. This can take 7-10 working days.

7. Offer and Acceptance

The offer and all supporting documents, including the electrical safety certificate, can be emailed to sharedownership@keystart.com.au prior to the valuation expiry date on the Consent to Sell letter.

We will co-sign the offer on behalf of the Housing Authority, this can take 7 - 10 working days.

If the property is sold for more than the valuation an updated quote will be issued, calculating the share on the higher amount.

8. Mortgage Discharge Request

Once an offer has been accepted on your property, you're required to complete and submit a Mortgage Discharge Request. This must be submitted at least 10 working days before settlement.

The Housing Authority will issue documents for you to sign and request an electrical safety certificate to be provided that is no older than 12 months.

9. Settlement

You'll need to appoint your own settlement agent to act on your behalf once the offer has been received from the Housing Authority. Your settlement agent will prepare the documents and ensure sufficient funds are available to hand over at settlement and to disburse any surplus funds. If you are aware of a shortfall of funds at settlement, contact us urgently to discuss.

Your nominated settlement agent will arrange a settlement date with our settlement agent, Housing Authority, when both parties are ready.

10. Loan finalisation 

Once settlement has occurred, the funds will be deposited into your Keystart account. We'll organise to cancel any direct debit arrangements in place, refund any surplus funds and issue a letter and final statement confirming your Keystart loan is now finalised.

Frequently asked questions