Wednesday, April 16, 2014

Condo Sellers, Get Your Act Together

Birds of a Feather
If you are currently or soon to be selling a condo unit, you need to do some paperwork preparation. Rounding up as many of these documents in advance will smooth the selling process. The documents required to be provided to all condo buyers (if requested) include current copies of the declaration of condo, articles of incorporation, the by-laws and rules, the most recent year end financial information, and the frequently asked questions document. If a buyer asks for these documents and they aren't provided then he has the right to cancel the contract right up to day of closing. Buyers will usually also ask for minutes of recent meetings so it's good to have those on hand as well.

If your buyer is getting a mortgage, expect to have to endure requests for other documents from the lender that you may not have anticipated. Those can include, among other things, detailed condo questionnaires, master insurance policies and possibly an elevation certificate. If you want to reach the closing table, you'll have to play along, as frustrating as it can be. A little advance preparation can reduce that frustration. Know who to contact when the requests come and make sure you can trust that person to round up the documents promptly. A slow or non-responsive contact can kill your sale. There is a grumpy, well-known property manager on the beach who will take great pleasure in refusing requests from your buyer's lender and your Realtor if she happens to be your contact. It might be a good idea to go ahead and touch base with the person who will be fielding the requests for documents and ask for cooperation. An advance box of chocolates could pay dividends.

Good luck in your selling. The market is strong but the lenders' current documentation requirements and guidelines for condo loans is making the process more stressful and difficult.

"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong."   ___Thomas Sowell