Selling your shared ownership home back to the Housing Authority

There may come a time when you want to sell your home. If you have a shared ownership home loan, the process 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.

Selling your home

If you have a flexible shared ownership loan and the Housing Authority still has a share of your home, as co-owner, they have 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, your selling time will be reduced as you won’t need to list your property on the open market. You’ll also avoid paying real estate agent’s commission, marketing fees and property listing fees.

If the Housing Authority decline to buy the property see Selling your shared ownership home for information on this process.  

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.

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

Steps to selling your shared ownership home back to the Housing Authority

1. Notice of intent

The first step is to complete a Notice of Intent form, this includes the Change of Name form and Owner Improvement Checklist. Read Improvements to your shared ownership home for more information on the Owner Improvement Checklist. You can request these forms by emailing customer@keystart.com.au or calling 1300 578 278.

Return the documents to sharedownership@keystart.com.au along with any receipts or shire approval documents.

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

2. Valuation

Next, 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 will 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. If you have a fixed shared ownership loan, your valuation is valid for three months.

To ensure a fair valuation for all parties, we use independent, qualified property valuers. The valuer will contact you directly to arrange a suitable time to inspect the property. They'll 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. 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.

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

4. Housing Authority inform of their intention to buy back the property

The quote statement is issued with confirmation the Housing Authority will purchase the property.  You will need to respond to either accept or reject the offer for the Housing Authority to buy your property, based on the quote statement provided. 

Please note: if you decide to decline the option to sell to the Housing Authority, you are not permitted to then sell your house privately or on the open market.

If you agree, we will advise Housing Authority and they make contact to arrange an initial inspection of the property. The Housing Authority can decide to not purchase the property after the inspection.

5. Offer and Acceptance

The Housing Authority will then send you an official Offer and Acceptance and arrange for any due diligence items under the contract to occur. This typically includes requesting a building and timber pest report and gaining relevant buyers’ approval.  Once the contract becomes unconditional, the Housing Authority will also arrange for the Electrical Safety Certificate and Electric Gas and Plumbing Certificate that is required under the contract. 

A pre settlement inspection will be conducted within 7 days prior to settlement. 

The contracts will include the standard ‘Buyers approval clause’ of 45 days to ensure all required documents and approvals have been received, including Ministerial approval.  

6. Mortgage discharge request 

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

7. Settlement 

You will need to appoint your own settlement agent to act on your behalf once the Offer has been received from 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 Keystart urgently to discuss.

Your nominated settlement agent will arrange a settlement date with our settlement agent, Housing Authority, when both parties are ready. We encourage you to maintain contact with your agent to ensure settlement occurs on time.  

8. Loan finalisation 

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