SELLING YOUR HOUSE? TIPS ON HOW TO SAFEGUARD SALE PROCEEDS !
Usually property fraudsters are people with extensive involvement
in the selling of houses or real estate for criminal purposes. If you are a layperson
selling his or her property chances are high that you are already beaten by
these people's schemes from the word go. This article endeavors to help you by
giving some tips based on age old practice that lawyers have effectively
implemented, safeguarding sale proceeds even in the face of these hungry
predators.
Before transfer of
ownership the money belongs to buyer and property to seller.
This is an important principle that must not be breached. In order
to be true to it when selling property a third party must be engaged. The
importance of real estate sales will in turn dictate that this third party must
be well versed with the law of conveyancing (involved with the change of
ownership of immovable property) and he must have a trust account that is
regularly audited by an independent auditor. All these qualifications are
necessary because the third party must hold in trust sale proceeds pending
transfer of ownership from the seller to the buyer. The above bluntly put means
you must find a lawyer to avoid the folly of reinventing the wheel.
An agreement of sale your first line of defense.
An agreement of sale gives a framework within which the buyer and
seller will later act. It is therefore, your first line of defense because if
it’s poorly drafted then it will in turn give you a bad deal that will haunt
you for many years to come. As a framework it should specify the above
mentioned role of the conveyancer and other important aspects of the sale so
that if it comes to the worst you will have your agreement of sale standing for
you rather than against you in a court of law. I will therefore, draw your
attention to one important aspect of this document so that you have some kind
of a glimpse into how it’s critical.
Protection against breach.
In its endeavour to be a framework for the sale of your house or
property an agreement of sale includes clauses about breach. The clauses define
what is breach and how the seller can recover damages suffered because of the
breach. This is necessary because sometimes sale proceeds can come by way of installments and under these circumstances late payment of these installments can
constitute a serious breach. Why ? Because you might have negotiated contracts elsewhere
for the purchase of other assets based on the proceeds from the sale of your
house. Late payment by the buyer will have a downstream effect on you in as far
as these other contracts are concerned. The agreement of sale is therefore
important because it gives the seller sufficient protection in the event of the
buyer committing a breach of the agreement.
OTHER EXCITING ARTICLES
OTHER EXCITING ARTICLES
PERIMETER WALLING AND OTHER VALUE ADDITION METHODS FOR PROPERTY INVESTORS
Value appreciation of immovable property is one of the biggest motivators for investing in real estate. It means harvesting good profits through capital gains or higher rental income to property owners and more commission to estate agents. A depreciation in value means the opposite – a lose of equity, profit or commission. Value appreciation being this important therefore, techniques that allow investors to positively influence the perception of value in the eyes of the market are welcome. Here are three worthy of consideration and these are perimeter walling, landscaping and a paint finish called eggshell. MORE...
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