Selling your house (or townhouse or condo) is one of the most important legal and financial transactions you'll ever have. Knowing what to expect and understanding each main step in the sales process helps you skip frustration and headaches until your sale closes.
Learn the basics if you're a first-time seller, or take a refresher if you're a seasoned seller. After all, homes are unique, and not all sales are alike.
Using a Real Estate Broker or For Sale by Owner
Selling your home isn't that difficult, but it can be time consuming and there are lots of details to manage, so most home sales are made through a real estate broker or agent. Know the basics of working with these state-licensed sales professionals.
Generally, a sales person is a real estate broker, or a sales agent working under a managing or sponsoring broker's authority.
Working with a Broker or Agent
In Arizona, brokers and agents can represent the seller, the buyer or both (called dual agency). When you contact a broker or agent, you may be given a real estate agency disclosure form explaining all possible roles. Ask questions on items you don't understand. You'll enter into a listing contract to sell your home. You can specify that the broker works for you as a seller's agent alone.
Real estate brokers and agents have what's called a fiduciary duty to the party they're representing. This means they are your legal agents and are held by law to specific duties found in state law, or your listing or brokerage agreement, or other contract. These duties include:
- Loyalty
- Disclosure
- Confidentiality
- Using reasonable care and skill
- Obeying your lawful instructions
- Accounting for all money in the agent's control
Seller's Property Disclosure
Arizona law requires home sellers to disclose known material facts about their property. You can complete a Seller's Property Disclosure Statement to tell buyers about the condition of your property. Complete the form, even if a given item doesn't impact the sale or the final sales price. Items on the disclosure form include:
- Title issues
- Roof defects
- Plumbing and sewage problems
- Property drainage problems
- Foundation instability or cracks
- Heating and air conditioning system defects
- Water leakage of any type, including in basements
- Termites and other insect infestations
- Lead paint (required by the federal Residential Lead-Based Paint Hazard Reduction Act of 1992)
Be accurate and truthful as you complete the disclosure form. Ask your Arizona real estate lawyer for help if you're unsure on how to answer any items. Remember that disclosure helps avoid problems later on, and benefits you and your buyer all around.
Getting an Offer: The Purchase Agreement
When a serious buyer wants to buy your home, you'll receive a written offer, sometimes called a purchase contract, containing all the terms of the sale.
Know what to expect in an offer because you won't have much time to decide to accept or make a counteroffer. Common counteroffer terms are:
- A higher purchase price
- A higher deposit
- Less time for the buyer to remove contingencies, such as getting financing or selling his or her current home
- Excluding items from the sale, such as appliances or window treatments
- Time for your attorney's review of the contract
Legal Title Issues
One key term in the purchase and sale agreement is that you give the buyer clean title, or "clear and marketable" title to the property. This means there aren't any issues or conflicts with the ownership rights you're selling. Examples are possible past owners or mortgage holders who could turn up claiming property rights.
Your Arizona real estate lawyer or title insurance company will do a title search, looking for any problems. A title insurance policy is also issued to cover any title defects that didn't turn up in the title search, such as a mortgage, lien or easement missed or not recorded in public records.
Next: Closing and after the sale