Do a full inspection to detect any imperfections in it that may hinder its commercialization.
Among the factors that determine the sale of a house or apartment are the price, the form of payment, the environment where it is located and the conditions of the property, and in all of them, an owner can influence to a greater or lesser degree.
Once you have considered all these aspects and the property is ready for sale, think about whether you have the experience necessary for you to carry out the sale process yourself, that is, if you know the real value of your home, the documentation that You must be up to date with the tax payments that you are going to make and the advertising mechanisms that you will use, among others.
Another option is that you resort to the services offered by real estate agencies, because in addition to selling your house or apartment they give you advice on the behavior of the real estate market and legal aspects. In this way, you avoid cumbersome procedures and waste of time. But resorting to these types of agencies implies paying a certain commission in case they find a buyer. Let’s take a detailed look at the sales process.
DO YOU WANT TO SELL IT YOURSELF?
In this type of transaction, do not neglect the financial and legal procedures. Therefore, do not sign any document, private contracts or promises of sale, without the prior advice of a notary. Take this recommendation into account, because in the event of breach of contract or lack of payment or liquidity, the Federal Consumer Prosecutor’s Office (Profeco) does not intervene to resolve it because it is a matter between individuals. In this case, the affected person will have to hire the services of a lawyer and go to file a lawsuit of a judicial nature before the Superior Court of State Justice.
YOU CAN GO TO A REAL ESTATE AGENT
If you do not have time to carry out the entire marketing procedure, you can use the services of a real estate agent, who will advise and mediate in the sale, purchase, rental and evaluation of real estate.
An agent must identify himself as an affiliate of a recognized real estate system or association, in addition to providing sufficient data to demonstrate the legal capacity of it to promote a property and that he has experience in the area.
Make sure of her experience and capacity, as well as the financial solvency of the agency she represents and, above all, when it is an independent agent. Therefore, check that it is a person with experience in the type of property you are going to sell, that it is duly established, that it provides you with references, both from the agency that it represents, and personal.
Do not forget to ask how much they will charge to sell your house, generally the percentage ranges between 5%, 6% of the total sale price of the house and in some cases up to 10%.
WHAT DOES A NOTARY DO?
The notary public who is going to provide the service must be a collegiate person, that is, belonging to a college or institute of appraisers, engineers, architects or notaries, among others. He plays an important role in the procedures for the sale of a home, because he is in charge of giving legal certainty to both the seller and the buyer according to the following:
- Reviews the validity of the documents presented by the selling party, and in accordance with them, determines the legal capacity of the latter to dispose of the property.
- Obtains from the Public Registry of the corresponding Property and from the different treasuries or Income Administrations, the respective certificates in which it is accredited that the property is free of encumbrances or domain limitation, and that the owner is aware of the payment of your contributions.
- Calculate, collect and pay local and federal taxes caused by the sale.
- Issue a testimony (certified copy of the deed with all its vouchers) and processes its registration in the Public Property Registry where the new owner is registered.
- He collects the rights of appraisals, management and other expenses generated by a deed.
Remember that the notary’s fees are calculated based on what the authority tells you to charge, the so-called “Tariff”, for example, in the Federal District is of the order of one sixth of the total payment made to the notary, according to the Notaries Association of the Federal District.
THE DETERMINANTS OF A SUCCESSFUL SALE
Try to ensure that your home has the most appropriate price for reality, so as not to overvalue it and prevent buyers from looking for other options. For this reason, it is advisable to hire the professional services of appraisers authorized by the different state Treasuries or municipal Cadasters of the places where the real estate is located. A professional valuation will allow you to know the value of the property and set a real price.
There are two ways to find out the true value of a house or apartment. The first is that carried out by an expert, who to assess the street value, that is, the value per square meter of a typical lot. For example, if in a given neighborhood, the standard lot is 10 by 20 linear meters, that is, 200 square meters, any variant of front, background, size or shape affects the value up or down. It also takes into consideration the type of construction, its age and the improvements that have been made to the home, among others.
The second way to know the value of a house or apartment is a comparative market study, which consists of comparing the sale prices that have recently been obtained, at least during the last six months, of similar houses. This study, in general, is carried out by real estate brokers or agencies, who also usually give an “opinion of value” that consists of putting in writing the information and sensitivity of the market at a certain moment.
Another important aspect that you must take into account is the physical condition of the property. That is, before putting it up for sale, clean it, keep it free of debris and garbage, fix the structural problems that the house presents, such as cracks, leaks, ceilings, damage to the plumbing, paint the areas that need it. During the visit of potential buyers, it is important to open curtains and windows to allow in natural light and the flow of fresh air. This will create an environment conducive to the sale.
The location of the property greatly influences its sale. When it is located close to important avenues, recreational spaces (shopping centers, public markets, parks, cinemas, etc.), schools and with access to various public transport, it is easier to market it.
DOCUMENTATION YOU NEED TO HAVE
According to the Council of the Colegio de Notarios del Distrito Federal, A.C., the following documents are required for the sale of a home:
- Property title or notarial deed registered in the Public Property Registry of the place where the property is located.
- Marriage certificate, in case of having acquired the property while married. When the seller of the property acquired it when he was married under the marital partnership, legal or jointly owned with his spouse, he must appear at the signing of all the documentation related to the sale.
- Property and water bills paid, for at least the last five years.
- Electricity or telephone bills for the last two years.
- Lease contract (s) in the event that the property is leased.
- In the case of a property under the condominium regime, the condominium regulations and a certificate issued by the administrator regarding the existence of non-debts in maintenance fees and reserve funds is required.
- Present an official identification.
- Location sketch to facilitate location.
PROMOTION STRATEGIES
To reach the largest number of customers, choose the appropriate mechanisms to promote the home for a suitable time, below, we will mention some:
- Signs visible from the street
- Posters distributed by places near your home.
- Advertisements in magazines and newspapers.
- A sign outside the property
- Use the internet. There are various portals that promote home sales. Here they give you the opportunity to add photos, videos and plans for a better promotion.
- Sign a contract with the real estate professional.
ONCE THE PROPERTY IS SOLD
When you have sold your house or apartment, you have an approximate period of 30 to 45 days to prepare and sign the deed of sale and, therefore, deliver the property to its new owner.
The documentation that you must deliver to the Notary Public that you have designated is the following:
- Water and Property Tickets. The Notary will require proof of payment for the last 5 years.
- Request a detailed receipt from the Notary for each and every one of the documents that you deliver, this will facilitate the control.
- Facilitate access to the property to the appraisers who must participate in the operation, their work is decisive for tax and credit purposes.
- In the contract, a maximum term was established to reach the deed, which means that by that date you must deliver the Property.
- It is important not to neglect the timely payment of electricity and / or telephone, since all services and expenses originated prior to the deed of the property will be at your expense, even if their collection is later.
- If for any reason you consider that you will not be able to personally attend the signing of the deed on the scheduled dates, notify the notary to process a power of attorney well in advance.
- Request at the Notary’s Office several days before the deed, a breakdown of the possible expenses or payments at your expense, so that you know them and are prepared to cover them. Likewise, it ensures that its buyer is informed in a timely manner of those who will be at their own expense.
TO THE SIGNATURE OF THE DEED
- Arrive half an hour in advance for any unforeseen event.
- Participants in the operation must identify themselves with a valid official credential with a photograph.
- Take the keys to the property with you to be able to hand over possession of it to the buyer.
- Give the buyer all the documents that you still have about the property, such as gas, electricity, plans, etc.
- Ask the buyer of your house to pay any outstanding balance of the agreed price, to do so by cashier’s check.
CONTRACTS REGISTERED IN PROFECO
In accordance with article 73 of the Federal Consumer Protection Law (LFPC), the model contracts related to suppliers, be they developers, builders, developers (real estate brokers) and other people who intervene in the advice and sale to the public of homes destined to house, must register with the Federal Attorney for the Consumer.
IF THEY DO NOT COMPLY WITH YOU, FILE A COMPLAINT
When a real estate developer does not respect the price, quantities, terms, terms, deliveries, conditions, modalities, characteristics, guarantees, interests, and other commitments regarding the operation carried out verbally or in writing, a complaint can be filed with Profeco. The requirements to present it are the following:
- Name, address and official identification of the consumer.
- Copy of the contract, voucher or receipt of the transaction.
- Name and address of the supplier that appears in the contract, voucher or receipt. If it does not appear in any of these documents, indicate the place where it can be located.
- Description of the good or service that is claimed and the narration of the events that gave rise to the complaint.
- Fill in the complaint receipt form.
RECOMMENDATIONS
- If you are going to sell a used property, consult a notary so that you are sure that what you are selling is your property, otherwise you would be committing a crime.
- Do not go to a supposed notary who has offices in two states of the Republic, because it is surely a fraud.
- Request information in at least three notaries and ask, according to the characteristics of the home, approximately how much they will charge you for the deed processing.
- Do not acquire a property if it does not have deeds, because you are not sure that the seller is the true owner. Better go with a notary before making any transaction.
GLOSSARY OF TERMS
Fees: Notary fees specify the rate that the notary will charge, according to the value of the property, for an act of transfer of ownership (purchase of a property).
Appraisal: It allows to know the commercial value of the property on which the notary’s hours, taxes and the cost of some procedures will be calculated.
Property acquisition tax or property transfer tax: Tax applicable to individuals and legal entities who acquire a property. It is calculated using a table and its value is a function of the value of the property.
Income Tax: When the value of the appraisal exceeds the price agreed in the purchase, the total of the difference is considered income of the person who acquires and will pay a tax for that profit.
Certificate of existence or non-existence of liens: It is a document that is made in the Public Property Registry by means of which the legal registration status of a property is verified, which has a validity of 30 days.
Right of registration in the Public Property Registry: This procedure allows the registration of documents by which the possession of real estate is acquired, transmitted, or modified, according to Art. 196 of the Federal District Tax Code. There are also laws and regulations that govern the registry function in each federative entity.
Notarial deed: Original document drawn up and authorized by the notary, in which legal acts are recorded (wills, powers of attorney, award of assets by inheritance, contracts for purchase and sale, donations, incorporation of companies, among others).
Notarial certificate: Document that the notary drafts and authorizes, in which he / she records events witnessed by him and to provide certainty and legal security (ratification of signatures, evidence of events, notifications, among others).
Lien: Charge imposed on a property.
Tariff: Official rate that determines the rights to be paid for concepts.
By Orlando J. Gutiérrez