So you are considering becoming a FSBO ( aka A For Sale By Owner ). You think you have enough spare time & it doesn't seem to be that hard, you just throw a sign on the lawn or an ad on kijiji. Okay!
A lot of members of the public do not appreciate the value of MLS® system nor that of using a real estate agent & assume that they can either purchase or sell a new home/property easily by themselves. I can respect the fact they they are willing to try & many ultimate decide to list with an agent. If you are considering buying or selling your home privately, here are some facts that you should be aware of that could affect the sale from the point of view of your mortgage lender & lawyer:
6 key points to remember regarding private sales:
1. Buyer and Seller cannot use the same solicitor or legal office
2. The purchase and sale agreement is required up-front (fully executed)
3. Appraisals are NOT required upfront (we will condition for the appraisal)
4. Full disclosure required in loan notes as to the nature of the relationship (between the buyer and seller)
5. Copy of current Title confirming ownership - &/or current Tax Statement if unable to pull title
6. If the buyer asks to add a schedule or amendment, asking for money back upon closing, to the purchase & sale that is not listed as being attached, it may be considered mortgage fraud & both the sellers & the buyers could be charged & held liable for it.
Of course, there are a lot of factors & conditions to a sale of property, which is why as real estate agents we are required to take yearly courses in our to maintain our licenses & be able to serve & protect the public from many potential real estate mishaps. We hope that you find this information helpful. Should you decide that you would like to use the services of a real estate agent & team, we would be happy to discuss just what services we can provide to make your purchase/sale as smooth as possible.