Many families have affected relationships for business! If the amount of times that each of us has heard of bad experiences of others, there would not have been any economic transactions between siblings, cousins or from parents to children.
In most cases, it is an aggravating issue, which is usually accomplished without the intervention of realtors or property dealers who serve well serve as the mediators, and help to mitigate the problems. If you decide to take the risk and make a purchase or sale with a family member, here are some of the recommendations:
Make a contract: Think how you would have signed a contract with a stranger, what terms would you give and what to include to have a legal validity. Be sure that the agreement is signed between the two parties (all sellers and all buyers), and includes a valid date. Any question between the parties should be discussed with an attorney.
Define prices and the enclosures: This will clarify everything about the prices, leaving no doubt about the price of the property. Make it a point to explain this in the contract, which may include household appliances, curtains or furniture, if any. If there is an incentive to buy, and if the seller will be paying for the closing costs, must specify this in the contract.
Specifies conditions of the sale and closing date: Like any contract, you can have flexibility due to force majeure, but it is extremely important that you set a date to complete the sale, and not forget the date of delivery of the property once it has made the closure. If the buyer wants your home immediately, it shall be granted, unless otherwise agreed.
Explain again and again Do not assume that you do not have to give details regarding everything. So it is always advised to respond to all types of queries. Brotherhood and friendships are aside when financial transactions are involved, particularly in case of homes. Better, think it is a business to do with all of the law no matter with whom you are doing the transaction.
Qualifications must be submitted: Buyer must prove more than the good will. Indicate if you are ready to buy the property, where the best way out is banking qualifications. When there are relatives or acquaintances involved, usually filing personal financial documents and a letter from the bank qualification is avoided, but it is mandatory to submit those as such documents eliminate the need to present other data.
Ask for a deposit: Sometimes you think that you can ask for the deposit later on because you have confidence with the buyer, but it is the industry norm to ask for the deposit and then formalize the transaction. Depending on where you live, you can enforce laws that have to do with the deposit. The contract should specify the terms and conditions of such deposit, which include the amount being deposited, and other details of the transaction.
Be honest: One of the most important things while making property transactions is to be honest, especially when it comes to family or friends. Avoid hiding any sort of information from whom you are selling the property, as it may be illegal, depending on the severity of the lie and damage caused to the buyer.
Be respectful: Be serious and respectful towards the buyer as it is the most common curtsey. However, do not divulge personal information or financial credit, or details of the property, which is not the part of the negotiation.
Rashmi Karan is a professional content writer who offers genuine and accurate information about the current real estate trends regarding purchase and sale of both residential and commercial properties across nation.
