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selling property?

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  1. #1

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    selling property?

    So the government website on this is next to useless.

    Can I just run past the geo experts what the procedures for selling a property are:

    - List property [with agent]
    - Offer made
    - Provisional S&P signed, 5% deposit handed over [ps&p drafted by property agent]
    - formal S&P signed, drafted by lawyers, another 5% deposit handed over [done 14 days after ps&p signed]
    - completion date set, normally 1 month after formal s&p date
    - money comes to you, send some to bank to settle mortgage, rest goes to you
    - pay off lawyer and property agent

    Have I missed anything?

    Only docs one would have to sign are the ps&p, formal s&p, lawyer engagement.

    Anything else??


  2. #2

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    90% does not come to you. Your lawyer receives the money. pays off the mortgage, pays himself.checks with building management if any dues pending. Rates must be paid up to date. utility deposits must be collected.

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  3. #3

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    Probably missed the bit about stamp duties. Forget when they get paid. Been a while forgotten if the seller has a stamp duty.

    Also, I don't think you ever see the full amount. Funds are sent to the lawyers client account and distributed from there.


    Sometimes the buyer may want a longer completion date and may walk away from the property. Not always 30 days which is very. Very tight.

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  4. #4

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    Quote Originally Posted by shri:
    Probably missed the bit about stamp duties. Forget when they get paid. Been a while forgotten if the seller has a stamp duty.

    Also, I don't think you ever see the full amount. Funds are sent to the lawyers client account and distributed from there.


    Sometimes the buyer may want a longer completion date and may walk away from the property. Not always 30 days which is very. Very tight.
    Pretty sure stamp duty is buyer side.

  5. #5

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    One other thing to keep in mind. Make sure your contract with the estate agent ensures that you pay them AFTER the completion and not the provisional.

    Last edited by shri; 10-09-2015 at 08:11 AM.

  6. #6

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    sure it is - buyer -pays the stamp duty

    I have sold 9 so far. #10 goes thru next week

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  7. #7

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    Thanks guys.

    So we have received one offer. However what they are saying is that 1% paid when provisional is signed and then the remainder (i.e. the 99%) paid on completion (set at around 45 days after signing provisional). The reason being that the buyers money is tied up abroad and can't get it until completion date.

    I'm under the impression that the normal procedure is x% paid on the provisional, then on the formal 10 - x% is paid, with the balance (being 90%) paid on completion.

    Be wary of this offer? Is offering within asking range.

    I guess the risk is if the buyer pulls out we only get the 1%, while in other situations if a buyer pulls out you would get the 10%.


  8. #8

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    I guess the risk is if the buyer pulls out we only get the 1%, while in other situations if a buyer pulls out you would get the 10%.
    Potentially locks you out of making another deal at a higher price and gives the buyer the flexibility to renegotiate or pull out, if something happens in the next 45 days. They may have a deal going with the estate agent and might not be liable for fees - would you be, if they pulled out?

    Mind fuck games ...

  9. #9

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    Quote Originally Posted by shri:
    Potentially locks you out of making another deal at a higher price and gives the buyer the flexibility to renegotiate or pull out, if something happens in the next 45 days. They may have a deal going with the estate agent and might not be liable for fees - would you be, if they pulled out?

    Mind fuck games ...
    We would not be liable for agent fees if the buyer backs out. But would probably be on the hook for lawyer fees.

    Hmm, might have to pass on this offer.

  10. #10

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    - Provisional S&P signed, 5% deposit handed over [ps&p drafted by property agent]
    - formal S&P signed, drafted by lawyers, another 5% deposit handed over [done 14 days after ps&p signed]

    As you have noticed with the buyer who made the offer, this is entirely negotiable. You can ask for 20%, or be happy with 1% (which apparently you are not).

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