If you have your own investment or residential property, and are planning to sell it, you’ll definitely ask several questions that’s related to paperwork.
What documents do I need to comply with? Are there pre-selling notes that I should remember? How much are the fees for each transaction? What is the turnover process? And the list goes on…
Whether you’re a first-time property seller, or one that seeks further info on investment property for sale, here’s your ultimate guide on what documents required to sell property;
But first, assess if you’d go for an agent/ middle person or not. Getting an agent might smoothen the process, but most sellers prioritize maximizing the profits made from the sale of their house. If you sell a property without an agent, it can seem overwhelming, but with tons of research, and a little discipline in organization, you’ll definitely make your sale.
One important tip of having a good organization is making your own to-do list, or constructing a checklist. The house selling process is never easy, and having yourself prepared and equipped is your “alas” in getting your property sold. Although you may have memorized or embodied the whole process of property-selling, it is still essential to make a series of lists. Think about this: If a prospective buyer is eyeing your property, and decides to buy it asap, of course he/she will ask for certain documents pertaining to the property, and if you can’t provide it – you lost your chance.
Many successful home sellers opt to make a checklist that includes not only the documents for the actual sale, but also the file that any prospective buyer may ask while on ocular process. Here’s an example checklist:
- Residential Sales Contract
- Residential Property Disclosure to fill out
- Financing Addendum (Third-party)
- Lead-based Paint Addendum (if built before 1978)
- Bank Information
- List of Chattels
- Rental Agreements (of anything rented in the home)
- Property Tax Information
- Copies of Electric and Gas Bills
- Home Inspection Certificate
- Invoices (of past renovations or repairs)
CATEGORIZE and breakdown the major documents
Remember to print off a few blank copies of offer and counteroffer forms, in case multiple offers come in, or an offer needs to be changed. It may come handy when there are verbal discussions that are needed to write in documentation. Also, present an accurate residential property disclosure form (with all the structural or mechanical defects of the home you’re selling) to avoid lawsuits or terminations of sale.
Of course you will need a residential sales contract, wherein terms of sale are indicated (purchase price, down-payment, date of purchase etc.), and third-party financing addendum if there are financial conditions or mortgages involved. Lead-based Paint Addendum is also required if the property you’re selling was built before 1978.
Add up secondary documents that’ll build trust or motivate the buyer
Create an inventory of chattels for the home, that’s included in the sale like appliances, fixtures, blinds or drapes, equipment, etc. If there are appliances or equipment in the home that is rented, notify the buyer, and agree on the cost and terms of the rental. Invoices, some copies of any hydro or electricity bills, property tax information, home inspection certificate or even your bank information can establish good rapport with the buyer.
Change of Title
After the buyer’s loan is approved, and the sales contract has been signed and completed, you can now proceed to title search then prepare all necessary needs for change of title.