Selling a property can be very intimidating because of the procedure involved. The long documentation involved in the process makes it more cumbersome and extensive. It is estimated that one document needs 180 papers that include various contracts, forms, and reports.
If you are going through this procedure for the first time, there is a chance that you will find it frightful. What is the best approach in such circumstances? You can spend energy gathering all these papers or developing the essential documents to make your transaction hassle-free.
You need to know that every country or state has its policies and rules regarding property documentation. Before compiling any document, you must check with the real estate attorney and real estate agent. You will have insights that will help you sell your property.
Documents to have before listing your home
- Original Sales Contract
The original sales contract is the one you received when you first purchased the house from the previous owner. It includes the whole transaction process with the previous prices, the agreement made then, and contingency agreements for transferring the deed.
Home Repair and Maintenance Records
In many cases, the purchaser will ask for repair and maintenance records to know the repairs that took place while you owned the house. Additionally, sellers need to keep evidence of pictures of the house as it was when they bought it and the way it is alongside the labor and material receipts.
To ensure transparency with the buyer, you must let them know of any treatments and damages the house has undergone. You must provide information regarding house insurance and details of claims made during your stay.
Launching the home in the market
- A Comparative Market Analysis Report
The comparative market analysis report (CMA) is structured to estimate the house’s value per the trends in the area. The real estate agent will collect and analyze the data to know the home’s worth. Generating the correct report is essential before putting the house up for sale.
- Listing Contract
The listing agreement is yet another crucial document you should have before launching your home for sale in the market. This agreement is a contract between you and your real estate agent. This document outlines that your agent is entitled to sell the home within the allotted time by you.
This agreement includes graphics, videos, photos, and a house description. The company you are involved with will use this data to attract clients. This document will form a basis of all agreements in the future made between you and the agent.
On the Market
- Preliminary Title Report
This report includes all details regarding legal issues and finances relating to the house. It accounts for all outstanding dues that the property has. The obligations and rights refer to insurance requirements, local restrictions, and taxes. The title report needs to be bought from the title company.
- Mandatory Disclosures
After the buyer agrees to buy the house at the asking price, you will disclose all mandatory issues affecting your property. Selling your home is very sensitive; therefore, you must ensure that you are thorough and transparent. The buyer needs to know of any existing issues with the house.
Once Offer Received
- Purchase Offers and Counter Offers
What will happen after receiving an offer when the house is on the market? You must be present to the potential buyer with the purchase offer. The proposal is the basis of the purchase agreement you will outline shortly. It includes a list of prices you have offered your buyer and a description of the listing info and the house.
- Final Purchase Agreement
Once all parties have settled on a final price, lawyers from both sides will draft the final purchase agreement. The contract will include the amount alongside with terms and conditions of the purchase and the contingencies taken care of.
- Appraisal Form
This form is compiled in case a buyer is buying through a financier. In such a situation, the lender of the money will use the property appraisal to analyze the property’s market value. If there are variations, there will be negotiations made on price.
- Home Inspection Report
The buyer will carry out property inspection through professionals. The review will ensure the home is free from insect and pest infestation, defects, and other damages.
- Final Purchase Agreement
If the report is free of defects, a contract will be made between the seller and buyer. The document will include the last purchase price that both parties agreed on, the closing date and final contingencies.
The last step of these transactions is the deed, which many call the sale deed. It is the final document drafted on non-judicial stamp paper. After executing the deed, you cannot reverse it. It is legal proof of transfer of ownership for the property from a buyer to a seller.
Proof of Ownership
After getting the title register and plan, you must prove you own the house. The conveyancer will seek proof of identification. You will prove to be the same person in the title register. If other individuals are on the title, you will require them to prove their identities.
In other cases, you will have to produce added documents, for instance, if you are selling a deceased parent’s home. In such a scenario, you will require a probate grant confirming that you have the mandate to administer the estate of your dead parents. If you are in such a situation but are unsure how to get the grant of probate, look for an attorney to help you get it.
Energy Performance Certificate
Each house needs to have a valid energy performance certificate. You must have gotten one when you bought the house. Maybe it has expired. You need to give this certificate to the new buyer.
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This list is incomplete, but most of your requirements are covered. If you pool these aspects together, you will know what you need in a short period. The other documents you need to sell your house include previous papers and insurance policies. Warranties are also required to ensure that the house has the right utility coverage.
If you have concerns about how long the sale will take and want to assess the documents you will need to speed the process, reach out to a real estate attorney who will guide you through the process.