Why the rush to sell your home or rental property? Instead of opting for a quick buck, take the time to make sure everything is in order before you put your home on the market. Less haste could mean less hassle. Here’s a handy checklist of what to do before you list:
Get a LIM report so you can check whether all building permits/consents and Code Compliance Certificates have been obtained from the Council since the property was built. This will give you an opportunity to address any potentially tricky issues before you list your home.
For the same reason you’d get that LIM report, get a builder’s report so you can cover yourself and fix things if the builder informs you of any issues.
As a vendor, you must make available the keys to all exterior doors that are locked by key, electronic door openers to all doors opened electronically, and keys/security codes to any alarms. Check they’re present and correct, and in working order.
List the chattels you’re happy to sell with the property. Ensure they work and are not subject to any security interests e.g. heat pumps or house alarms.
Are you registered for GST? If you are, ask your accountant about the differing outcomes of selling to a GST registered or non-registered party, so you can calculate what their price expectations might be.
When you sign a Sale and Purchase Agreement, you give a number of warranties (i.e promises). For example, you warrant that you have let the purchaser know of any notice or information about the property that you’ve received. Or, if you’ve carried out work on the property since you bought it, you warrant you obtained the necessary building consent and Code Compliance Certificates. Any breach of these warranties could result in a claim by the purchaser so it’s important you let the agent and your lawyer know if you’re unsure.
Do you still have a mortgage over your property? Ask your bank if there’ll be additional break costs that you’ll need to repay on settlement.
Have you made any insurance or EQC claims on the property? Even if they’re settled, you should tell prospective purchasers. Dig out any details of the scope of the claim and the work undertaken and give them to your agent.
Bright-line/main home exemptions:
Under Bright-line legislation, you might have to pay taxes on the sale, depending on when you bought the property. Be sure about your obligations by seeking legal advice before putting the house on the market.
If you’re selling a unit titled apartment, you have to provide a pre-contract disclosure statement to any purchasers. Talk to the agent and your Body Corporate manager or committee to arrange this and make sure you pay any outstanding levies.
Do you have a tenant in the property? Be a good landlord and check your obligations in respect of the notice period you must give to your tenant. If it’s a fixed term tenancy you will have to sell the property with the tenancy in place.
By checking these things, you’re covering yourself against future hassles. For more information about selling your property, please download our free “Selling a Property” fact sheet.