BEWARE
OF CRAIG’S LIST, KIJIJI AND OTHER TYPE OF “SELL IT YOURSELF” SITES
Charles Hanes
October 28, 2007
There have been a lot of “For Sale Buy Owners” type alternatives to selling real
estate and historically only about 8% - 10% of sellers have relied on them for a number of
reasons.
First off, you should always consider “SECURITY”. This weekend, I noticed on the
news that a woman responded to an ad for babysitter on Craig’s list and ended up dead
in the trunk of her car! The threat is no less when you invite people who are responding
to your ad to sell your own property, into your home to inspect it.
Professional Realtors usually will check out their clients before introducing them to
properties so if you are contemplating trying it on your own, at the very least require
anyone coming to your home to either fax or email you a copy of their driver’s
license or other picture ID.
When you get a showing, make sure there are at least two people in the home when strangers
are coming over to inspect it.
The big area that I want to address today is “Assignments” as I see a ton of
them on Craig’s List. Assignments are more common place with condos and lofts than
with houses so it’s appropriate to address them here and now!
An Assignment is the original purchaser of a presale condo or loft wants to sell
themselves out of their Agreement with the developer. As the building is many times not
even built yet or at minimum not “Registered” you cannot sell your unit as you
don’t own it. An Assignment is a legal procedure under which you are selling your
position within the Agreement of Purchase and Sale. This is not an easy process and it is
fraught with perils that most people do NOT want to face certainly not under a sell it
yourself program as both parties are wide open for trouble.
The first person you want on your team is a professional Realtor preferably who has done
Assignments before as the Offer is complex and “Conditional” on a number of
factors such as the developer agreeing to allow you to do it.
Conventionally Agreement have clauses to restrict your ability to sell, lease, rent or
advertise the unit prior to title closing (“Registration”) so if you just go out
and try this on your own you had better be able to read and fully understand your
Agreement as doing so without authority |
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constitutes a
“serious Breach of Contract” that can cost you dearly. The wording in most
contract say that your doing so may cause the developer “irreparable damage” for
which they can pursue damages against you including taking back the unit PLUS financial
damages which would include losing your deposits advanced to date, court costs and other
financial damages.
A logical question is if you do find a buyer and/or if you are the buyer of such an
Assignment how is the money handled. Let’s say you find someone and they are prepared
to give you a deposit of $20,000.00. Most people do not have “Trust Accounts” to
protect the deposit so advancing this money could be a good way to “kiss it
off”.
You will also need a knowledgeable condo lawyer and I emphasize knowledgeable with regard
to having done assignments before or your bill will be astronomical due their need for
self education on your tab! I recommend most of my clients to talk with Myles Waxman of
LIPMAN ZENER & WAXMAN as he has worked with a number of my clients buying and selling
assignments and has all of the complex agreements refined to the point of molding them to
your specific situation. This is not an ad but rather an endorsement based on hands-on
experience.
The Internet has introduced new opportunities for buyers and sellers to get together and
some people see this as their opportunity to cut out what they see as the middle man
however, Realtors bring certain resources and protections that cost justify their being
involved.
With over 20,000 registered and licensed Realtors on the Toronto Real Estate Board your
odds of attracting multi-bids on your condo or loft are increased substantially. The
logical fear is selling your property at a price that is less than the market would have
delivered. Usually Realtor fees are offset with this broad spectrum of buyers, not to
mention the security and piece of mind that accompanies working with a professional
Realtor.
With the mls system (“multiple listing system”) available exclusively to
Realtors you can accurately gauge the “true market value” of your unit based on
“comparables” (literal comparisons to all of the sales in your building dating
back years). The only way you can predict the future (price you anticipate getting) is the
past and that what mls uniquely supplies.
I can understand you wanting to cut your costs but when you factor in the risks and skill
required to get the best price and best terms in the shortest time frame you will find
that using an experienced professional Realtor will more than cost justify itself.
If you have questions please don’t hesitate to contact me by email or phone at 416-783-5000. That’s it
for now . . . . I’m Charles Hanes |
