Colin Hamilton/Freelance Photographer
Louise D. Wright (left), senior sales consultant at D.C. Tavares-Finson, shows a project to a client, Sherica Simpson.Anthea McGibbon, Staff Reporter
TIMES ARE getting harder, and it's becoming increasingly difficult to own, sell, or rent property.
Louise D. Wright, senior sales consultant at D.C. Tavares-Finson real-estate company with 16 years' experience under her belt, gives tips on buying and selling houses.
When selling property, it is alwaysrecommended to get an evaluation. While this is being done, it's also important to explore market prices of neighbourhoods.
Though costly, Wright says evaluations establish the real value of a property.
Real-estate companies are not restricted to merely marketing properties. Primary procedures include marketing the property; qualifying the purchaser(s); and advising both parties of needed improvements and procedures before sale.
To avoid major challenges, Wright outlines applicable procedures for both buyer and seller, whether or not a lawyer or agent is involved. These procedures can assist in minimising costs, or workload of the contracted representative.
Use licensed realtors
Sellers need to use a licensed realtor at all times, especially one who inspires trust and acts professionally.
It is, therefore, imperative to establish a relationship with your realtor.
Sellers are expected to produce the sales agreement outlining terms and conditions. Once accepted, the minimum deposit of 15 per cent should be made along with the letter of commitment by the purchaser.
While the seller pays the transfer tax, both seller and purchaser share the stamp duty and registration costs. The seller must ensure the house is vacant when the transaction is complete. If tenants live at the property, the sales agreement should say 'subject to tenancy'. In that case, a notice to vacate, for 30-60 days maximum, should be served.
Purchasers, on the other hand, should contract surveyors to identify boundaries. Valuations often reduce the likelihood of inflated costs.
When sourcing a mortgage, it is important that home buyers liaise with an attorney and mortgage officer. Wright advises clients to choose a lawyer who specialises in conveyance to avoid undue headache.
As noted above, the purchaser, once agreeing to the terms of the sales agreement, must within 90-120 days provide a letter of commitment. Title searches should be done to ensure that there are no encumbrances or unwanted conditions on the property.
'Time is of essence' clause
Wright advises both parties to note the following where the 'time is of essence' clause applies:
Where 'time is of essence', but the purchaser fails to fulfil his 120-day obligation, recourse is available. One option is for the vendor to rescind the contract with specific conditions in the agreement. The purchaser can lose the deposit. Hence, Wright warns against the purchaser accepting the 'time is of essence' in the agreement, which is a critical condition. Where 'time is of essence', and the vendor fails to act with the contracted time, the vendor can apply for an extension. Failing that, he can be subjected to legal action. One option is for the purchaser to sue for specific performance. At times, the vendor, at his/her discretion, may choose to give a letter of possession with condition. Such conditions may be on a 'popcorn rental', for accommodation, for example. Sometimes this is done after a second instalment is paid, providing the property is vacant.
Where the vendor fails to remove any existing encumbrances before title is transferred, it is the vendor's responsi-bility, through his attorney, to apply to the relevant authority for removal of any caveat.Although an attorney or realtor is generally relied on, below are the responsibilities of both buyer and seller in summary:
• Property appraised and evaluated (vendor)
• Probate (in the case of a testate) (vendor)
• Advertisement (vendor)
• Walk through (purchaser)
• Agreement drafted (seller)
Agreement approved (purchaser)
• Mortgage applied, if not a cash sale (purchaser)
• Deposit, usually 15 per cent (buyer to vendor)
• Processing and payment of transfer tax (vendor)
• Payment of stamp duty (shared by both parties)
• Payment of registration costs (shared by both parties)
• Probate processing at Supreme Court, Stamp Office, Titles Office (vendor)
• Title transfer (vendor)
• Final walk through to check for new damages, negotiate addendum to contract (both parties)
• Balance paid for title (purchaser)
GOLDEN LINKS:
http://www.ehow.com/how_111063_sell-house.html
http://www.primelocation.com/guides/selling/how-to-sell-a-house/
http://homebuying.about.com/od/buyingahome/Home_Buying_Tips_Tricks_Techniques.htm
http://www.buy-and-sell-house-fast.com/
Email feedback on The Gleaner's How To feature to anthea.mcgibbon@gleanerjm.com or saturdaylife@gleanerjm.com.
