While you can never avoid all obstacles from occurring, you can greatly minimize them. The real Est Merchant is on the front brand of the process. You must function as the general of the transaction and create and execute the battle plan. Selling a property is very stressful for the Sellers. They are looking to you for advice and guidance. They need you to be professional, and to be properly educated in the art of the required steps to sell their home and how to insure a smooth a transaction.
As a careful merchant the first thing you want to do is make sure the property is just about to sell. I really do not mean in the physical sense, While you will have to make sure that the transfer petition property is physically appealing and ready to show, you must not forget the properties legal condition. Problems often arise when issues pop up at the eleventh hour. Often times these eleventh hour issues are merely a problem because they are eleventh hour and it should take a longer period to end them. If these issues were discovered at the beginning of the process they may be taken care of and resolved before a buyer is available or during the normal length of the transaction.
Brokers and sales staff are in the unique position of being the first to know the property is for sale. There are certain questions that can be asked and documents that can be obtained which can disclose potential problems. Every type of property differs from the others. Each has its set of issues that must be considered when taking a listing. Below are issues dealing with the three most common residential property types. This list is not inclusive just a guide. Again each property will have its unique set of concerns. It is the veteran and well trained real estate merchant who will be able to predetermine these issues and resolve them so they do not restrict a smooth transaction.
The first type of property is the Condo Unit. A Condo owner holds “fee simple” title. This is the highest form of ownership under the law and entitles the property owner to full enjoyment of the property, limited only by zoning laws, deed or subdivision constraints or covenants, and in the case of Condominiums, the ownership is susceptible to the Condo Affirmation. The Affirmation is a recorded document which legally secures the structure as a condo. The Affirmation will refer to the offering plan.
OBTAIN A COPY OF THE OFFERING PLAN. The offering plan sets forth all information concerning the condo building including each unit interest and the percentage of the “common elements” associated with each unit. The Offering Plan will also set forth the rules and regulations overseeing the Condo. The Offering Plan will be amended from time to time and you must obtain a copy of all changes. In addition you should obtain at least two years of the buildings financial statements. The customer’s attorney will want to review these documents before the deal proceeds. To avoid any delay in getting the deal to contract you must insure that these documents are positioned for immediate review.
MORTGAGE LENDER’S ARE IMPORTANT. Lender’s have guidelines before they are willing to provide Mortgage financing to a purchaser’s of a condo. The Condo must be looked at and approved. The Lender’s want to insure that the building’s finances are in order and the insurance and bonds are adequate to protect the banks interest. Lenders keep a database on approved projects. To avoid a delay and possible financing denial the listing agent should determine which lenders are currently lending in the building. This information should be fond of a prospective consumer and it the deal should be trained upon consumer applying for loan financing with a lender who has approved the building. This is true with Cooperative Apartments as well. You may have an extremely qualified buyer with a pre-approval from a reputable mortgage lender, however if the building is not approved you can experience a huge delay while the lender obtains all the information they will require to obtain approval. If the building has already been approved by a specific lender, you know that you have already cleared one tremendous hurdle. If you discover a building that’s not approved by any lender, you can contact a lender you understand and see if they will say yes to the building without an active deal. Many lender’s will just pre-qualify a building in order to obtain future deals.
MAKE SURE ANY IMPROVEMENTS HAVE REQUIRED HOME LOAN APPROVALS: Any interior restorations or modifications should have been approved by the Condo Board. You should be familiar with the property and should be able to determine if there have been any improvements to the unit. You should determine early on if the improvements were carried out with board approval and if there were possible structural changes which should have required a big change to the Certificate of Occupancy. It is not that uncommon to find that units have been combined or walls added or moved to reshape or partition rooms. These will always require board approval and often an updated Certificate of Occupancy. Whilst it is difficult to have such work done without condo knowledge, you should get all approval paper work in order. It ought to be made immediately available for the prospective buyers. In the event this work was done without proper home loan approvals, owner can begin work to correct the problem which will avoid taking your time closing.
BE AWARE IF THE CONDOMINIUMS RIGHT OF FIRST REFUSAL:. Since a Condo Owner owns the property in “Fee Simple” the Condo Board can not specifically refute a purchaser’s directly to pick the unit. They can, however exercise their “Right of First Refusal” and get the unit from the seller under the same terms as the prospective buyer. They are given this right under the terms of the Condo Affirmation. The Condo board can, in effect, make use of this to marijuana out what they may consider to be an undesirable friend. simply avoid a transaction they are against such as where they feel they sticker price is too low Most condominiums will require potential buyers to fill out a complete application before they will waive their right of first refusal. Again, this right is not often practiced, but you will not be able to close prior to the waiver is received. Most Condominiums get 30 days to review the applying and issue the Waivers. Any delay in providing this material to the board can cause a delay in closing.