If you are already thinking about the deed, it means that it is almost done: you have found the buyer and it seems to have all the best intentions to get to the end of this real estate sale. Now, your concern is one: how to get to the signing of the deed without problems? In this Skymarketing guide, our experts will explain, step by step, what are the best practices from the negotiation to the deed, to sleep peacefully?
The phases of the real estate sale
After putting your house up for sale in park view city and starting to receive offers, what are the right steps to take? We list them below, in order to understand immediately the phases of a real estate sale:
- Negotiation (or negotiation) – A delicate phase, in which price and conditions are informally defined.
- Irrevocable purchase proposal – The unilateral act by which the proposer formalizes the purchase proposal at a certain price and under certain conditions.
- Compromise – It is a preliminary deed of sale (also stipulated with a private agreement) with which the parties undertake to sign the next deed of sale. At this stage, the buyer usually pays a deposit or a deposit as a guarantee of the purchase commitment. Furthermore, the date of the deed must be indicated in the compromise.
- Transcription of the compromise – For greater protection of the seller, it is possible to proceed with the transcription of the preliminary contract in the real estate registers. This way, the seller cannot engage with multiple potential buyers at the same time.
- Deed – It is the public deed of real estate purchase that is stipulated in front of the notary and establishes the transfer of ownership of the house.
Let’s go now to see what the advice of our experts are for each phase of the real estate sale.
Negotiation: 5 tips to avoid making mistakes
Negotiation is an important moment in your real estate adventure. An art that professionals in the sector also cultivate thanks to the experience and knowledge of the market in your area. Therefore, having an experienced real estate agent on your side can be a great advantage and relieves you of exhausting negotiations.
In the negotiation it is not only about the price, but also about the conditions and timing of the sale. An experienced negotiator knows how to move all levers well to get the desired advantage.
Do you want some advice on real estate negotiations? Here are four:
- 1. Immediately define the economic negotiation margin: immediately set a limit within which you consider the negotiation dignified. A downside is part of the game and demonstrates flexibility, but you need to be clear about the budget you want to reach.
- 2. Banish Insecurities: There is nothing worse than a salesperson who reveals insecurity. Especially if, on the other side of the table, there are those who know what they want and what they are doing.
- 3. Transparency and fairness: these are the two ingredients of a smooth trade.
- 4. Conformity of the cadastral plan: make sure that the cadastral plan corresponds to the real state of the places. If structural interventions have been carried out on the property over the years, you will need to update the cadastral plan. It is an operation that we advise you to carry out as soon as you decide to sell the house: the lack of this conformity leads to the annulment of the deed of sale and can make you lose some excellent potential buyers, if a verification is carried out during the negotiation phase.
- 5. Rely on a professional: if you do not feel able to deal with a negotiation or are afraid of running into one of the many pitfalls of this market, we recommend that you rely on a professional of Lahore smart city .
Being able to reach the end of the negotiation with a fully satisfactory compromise for both parties means concluding the deal in the shortest possible time, proceeding at full speed towards the purchase proposal.
In this phase, or in any case by the end of the negotiation phase, you will have to make the Energy Performance Certificate (APE) available to the potential buyer.
Real estate purchase proposal and compromise: the deposit and other aspects
The potential buyer seems to be really interested in your property. As proof of this, the real estate purchase proposal arrives. It is a document that does not bind you, but of which it is advisable to carefully check the accuracy of all the conditions proposed by the buyer.
Usually, at this stage, a deposit is paid by the future buyer which gives you the guarantee of a more concrete commitment and protects you from the loss of other potential customers in the period between the proposal that “blocks” the property and the actual deed. The deposit or down payment must be indicated in the proposal, as well as any other detail of the sale.
If what is indicated is correct, you can accept the purchase proposal, otherwise you can propose the adjustments you deem appropriate. What you will have in hand, in the end, is the text of the compromise. If you sign it for acceptance, it will also become binding for you as a seller.
The preliminary sale is a deed that must be registered by law, if the time that elapses between its signing and the deed exceeds 20 days.
An important indication is given in the compromise: the date by which to carry out the deed.
From the compromise to the deed: how long?
How much time must elapse between the compromise and the deed? There is no indication but, clearly, the less time passes, the better. To speed up times, you can advise the buyer to make an appointment with the notary before 20 days, to avoid the obligation to register the preliminary.
Deed without compromise: is it possible? What are the risks?
The compromise is not an act required for the validity of the deed. However, the deed, which must be drawn up in writing, has its importance, given that it aims to protect both parties by making certain aspects of the final contract binding.
In the event that the compromise has not been formalized between the parties, the purchase proposal (unilateral deed) automatically becomes the preliminary sale upon the occurrence of two steps:
- the proposal has been accepted by the seller;
- The proposer is aware of the acceptance of the proposal by the seller.
When these elements are present, the purchase proposal must be compulsorily registered.
In the case of negotiations between private individuals without compromise, the risk for both parties is greater, given that the purchase proposal and acceptance are steps that often lack the necessary formality.
Deed: what it is, how it works and the advice on the final deed of sale
If you have paid the utmost attention to the previous phases (or have benefited from the support of a professional), you can get to the deed without worries.
What does deed or deed mean? The deed is the official transcription of the preliminary deed of sale (compromise) in front of the notary, who signs it.
Here are some important indications to get to the signature without problems.
Deed in case of joint property
If possession of the property you are selling is co-owned, you will need to ensure that all owners are present at the time of sale. If any of the owners cannot be present, it is possible to make up for their presence with a power of attorney to sell the real estate. With this authorization, the represented person gives the representative all the powers necessary to conclude the sale.
The power of attorney is a written document that must be authenticated by a notary and accompanied by a copy of an identity document and the tax code of the person represented.
If the represented person is in community of property with a third person, the power of attorney must be signed by both parties concerned.
The notarial deed of sale in the case of a mortgage
Deed in the event of a mortgage: what to do? If the early repayment of the loan is not in question, the alternative solution is to take over the loan by the buyer. An option that requires the approval of the bank: it will therefore be necessary to move in advance to request acceptance of the assumption by the buyer and the bank.
Obviously, obtaining acceptance by the buyer is more difficult if the loan was contracted at disadvantageous conditions (with a higher rate than the current market average).
The bank may propose a cumulative assumption: in this case, know that you will be obliged in case of non-repayment of the installments by the buyer. The ideal situation is the releasing assumption, which makes the buyer solely responsible for repaying the loan.
The acceptance of the loan is completed with the notarial deed of the deed.
Deed: the documents to be paid by the seller
If you have entrusted the sale of your property to a real estate agency, your consultant will give you a complete list of documents to be presented together with the deed. Below, we report the list of documents you will need to sell your property.
- Deed of purchase: you will need to prove that you have full ownership to sell the property. If you have lost the deed of purchase, you can ask for a copy from the studio that drafted it.
- Certificate of viability: it is a document issued by the Municipality and concerns the existence of the safety and health conditions necessary for the habitability of the property.
- Mortgage certificate: serves to certify that the house is not burdened with mortgages. It is a document that can be requested free of charge online from the Revenue Agency.
- APE: the energy performance certificate is a document that, as we have seen, is already needed in the previous phases. We remind you that the APE is valid for 10 years; after this period it is necessary to carry out a new energy performance assessment of the building.
Get to the deed without worries? Trust a professional
As we have seen, each phase of the real estate sale has its criticalities. And the game at stake is one of the important ones. If you are an expert in the real estate market and in the buying and selling of real estate, you will have no problem uncovering the most insidious aspects. But if you have even some doubts about one of the steps that will lead you to sell your home, do not hesitate to contact a professional to get competent support and get to the deed without missing a step.