A Review of The Sale Process from The Seller's Perspective

Caution
The information provided here is not intended to be considered as legal advice. If you wish to obtain information regarding the sale process and how the issues discussed here relate to your specific situation, you should direct those questions to an attorney. License laws do not allow a real estate agent to give legal advice unless they are also a licensed attorney.

This report is a review of the elements that need to be considered when a property is being offered for sale.

Property Description
A complete legal description is unnecessary if the street address adequately describes the property. Do not insert into the contract "Legal description to follow" in the space provided. If the description is not adequate to describe the property as it is being offered for sale, the contract may be voided under Wis. Stat. #240.01 and the seller may not have to pay commission. If the property being offered for sale has more than one tax bill, it would be necessary to use more than the mailing address or a full legal description of all parcels. An "additional lot" may not be included in the legal description of the tax record. If you are selling more or less than what is being offered for sale, use a legal description. If a recorded legal description is not available, use a landmark description, i.e. "the oak tree on the NE corner, etc. Whatever you write, be sure that it fully and correctly describes what is being offered for sale.

Included / Not Included
Be specific. List movable appliances that are not considered fixtures per the preprinted descriptions of "fixtures." Swing sets, invisible fencing, water softeners (even if they are rented, state that they are excluded), landscaping statuary, installed bookshelves, bathroom mirrors... anything that you expect to leave when you vacate the property. If you have a chandelier, or something else, that has a special meaning to you, such as a family heirloom, etc. - remove it before the first showing and have it replaced with something attractive. Leave it there and you may end up having it become a "deal-breaker" if the buyer decides they want it. How about the prize rose bushes? List them as not included, or remove them before the sale process begins. ANY fixture that is rented - exclude it. How about the Reverse Osmosis system? Be specific. Err on the side of caution. A complete list will help to safeguard against inadvertent errors and unfortunate misunderstandings.

Title Issues
Whether you are selling on your own or working with a professional agent, order a "search and hold" title report. Learning early about liens and encumbrances at the outset will avert trouble later on in the transaction. Every now and then a surprise shows up on the "search and hold" report. Someone with your name had a judgment filed against them and it landed on your record; you paid a bill and a satisfaction didn't get recorded; you refinanced and the lender didn't satisfy the loan you paid off at the refinance; someone was unhappy with you and filed a judgment. Discovered early, you have the time to do the homework and paperwork necessary to remove the cloud on the title.

Zoning Issues
Refer to the report regarding Rural And Suburban Issues as a reference. Determine if any of the issues discussed in that report have any relationship to your property. Does your use of the property conform to the laws for the zoning of said property? Are you using the property under the auspices of a conditional use permit? If yes, does that conditional use permit transfer to a new owner or does it expire up0on tour transfer of the property to a new owner. Have you built a deck, changed the plumbing, constructed a pier, moved a wall, put on a roof, done major remodeling... this is a partial list of what you or a previous owner may have done... have you done anything that required a permit without obtaining that permit? Address the situation BEFORE your property is offered for sale - or plan to fully disclose that you have not obtained the required permits to the prospective buyer.

Your Responsibilities When You Are A Seller
The very first and most important responsibility you have, whether you choose to hire a professional REALTOR® to assist you in the sale of your property; or whether you decide to sell it yourself, is honesty and full disclosure!

The licensed agent will take you through the listing contract appropriate for your area/state. A state approved form will cover the bulk of the issues that need to be addressed. Wisconsin state statute requires that sellers provide buyers with a Real Estate Condition Report. If you aren't working with professional assistance, go to a legal forms company or search the internet for a condition report form. The official form provided for use in Wisconsin. Questions stated provide information regarding some environmental issues, condition issues and title issues. Simple "yes", "no", and "unsure" are the response choices. Opportunity is provided for the seller to expand on their responses and explain any "yes" response. In my practice, I have used an additional form that my first real estate company provided to us back in the early 80s, long before it was a law in our state. I have continued to use this form, as an additional informational source. I explain to my sellers that I prefer to use BOTH the state form and the additional form. This form is much more detailed and provides enough information to a prospective buyer to help the buyer make an informed buying decision prior to drafting an offer. This form provides positive as well as negative facets of the property. If there is a disclosed issue that the buyer cannot "live with" the buyer has the opportunity to address it when drafting an offer to purchase. It also provides the seller information regarding what a buyer may wish to have addressed as a condition of the offer - or whether the buyer will accept the stated condition. The more the buyer knows about a property BEFORE the offer to purchase, the fewer problems the offer is likely to encounter AFTER the transaction is on it way to a closing.

Lead Paint Disclosure
Disclosure of the possible existence of lead paint had been an issue since 1996. As of March 31, 2008, new lead paint rules were published by the EPA. The rule contains new requirements for renovators of pre-1978 property and all rental property owners of pre-1978 property. The new rule applies to all pre-1978 property, pre-1978 day care centers, and pre-1978 kindergarten buildings.

Since 1996 home sellers and residential property owners have been required to hand out the pamphlet "Protect Your Family From Lead in your home" at the time of sale or at the beginning of the lease. Since 1999, renovators have been required to hand out that booklet when disturbing more than 2 square feet of residential property. Beginning in April, 2010, renovations in all pre-1978 residential property and child-occupied facilities will rquire the use of lead-safe work practices, the presence of a person on the crew that has completed a one-day Lead Safe Work class and the requirement for a cleaning verification.

Sellers of pre-1978 properties are required to complete a form that discloses anything that the seller knows about the presence of lead paint, and clearly stating that any property pre-1978 may contain lead paint. Prudent sale practice suggests that property built near to the 1978 date should also include the Lead Paint Disclosure form. There are many professional real estate companies that require that form to be included in all properties, even including new construction.

Professional Inspections
Are there issues with your property that may suggest you, as the seller, should get someone to look at the situation? Frequently. Look at your basement floor. Are there web like cracks in the floor? Do they look like pencil lines drawn on the floor or are they wide cracks that are wide spaces rather than thin lines? It is my suggestion you should get a basement expert to take a look for you. Look at the basement walls? Do you see step cracks "walking" down the block's mortar lines? Are they wide-enough to slip a 3 x 5 index card into the crack? That's the guideline I've been told over the years to consider it something that should be checked by a pro. Is the grass greener over the septic field? I think Erma Bombeck wrote a book with a similar title. If the grass is, in fact, greener, call a septic professional. And, if it's wet there - you will likely find you have a problem. Do the electric wires in the basement look like they are tangled and hanging? Time to check it out.

The basic point is - if you think there may be things that should be checked out - do it. Once a buyer sees "issues" they immediately begin subtracting - negative "Ka-ching! Ka-ching! Your offer is written lower because of the chance of trouble. Now the professional inspector says there is trouble. You have an accepted offer that the buyer negotiated while thinking about possible trouble. Then, because the full nature and extent of the trouble is now known, the amendments and notices of defect come your way. To keep the transaction from going south you agree to the repairs. You have, in essence, paid for the repair twice.

My Best Advice
Regarding professional inspections? If the buyer doesn't want to do a professional inspection - have them sign a statement that they understand the value of a professional inspection and are waiving their right to do one. Professional inspections may reveal a situation that the seller doesn't know about... better to find out before the closing rather than after. If you know about something that could be considered a defect, document it on your condition report and be sure the condition report is incorporated into the offer to purchase by reference and signed or initialed by the buyer as acknowledgement of receipt.

Personal Note: with very few exceptions - the transactions where the buyer declined to have a professional inspection are the transactions that came back to bite the participants in the fanny.

Last, But Not Least
If you are a professional real estate agent and also the seller, chances are you know better than to sell your home all by yourself. If you are the seller and not a professional, you know not to sell your home without professional representation.