Property Sale Compliance: Some Tips For Confused Investors And Developers
Selling a property is quite different from most transactions. You have to go through multiple steps and jump through various hoops before you can sell units or houses.
Fortunately, this post is here to help. It’s a guide to assist you with compliance in the UK, helping confused investors and developers work out what to do when they want to get rid of a property in their portfolio.
Here’s what to do:
Get To Grips With The Regulations
The UK government imposes various rules and regulations on property developers. Therefore, you’ll need to follow these if you plan on selling real estate in the country.
You’ll want to check properties that meet various building regulations relevant to your area. Ensuring safety and construction standards is essential.
You’ll also want to check the zoning is correct, something that should have been done as part of the planning process. If you are selling listed or historically significant buildings, then you may need to follow extra rules.
Learning about UK property certificates is another essential task. You need to check you have the proper paperwork to place listings on auction sites.
Prepare For Sale
Before you sell the property, you will need to make additional arrangements. These are essential to ensure the transaction goes through.
Start by gathering title deeds. These prove you own the property and have the right to sell it.
You may also need an Energy Performance Certificate to market the property online. These tell buyers how energy efficient the property is so that they can take this into consideration when deciding to buy it. This requirement usually requires an expert to come to your home to take measurements and provide you with a rating from A to G.
Finally, it’s often worth writing up a fixtures and content form. Spelling out what’s included in the sale (if there is any furniture coming with the home) can prevent arguments and disputes later on.
Find A Legal Representative
Once you’ve done that, you’ll want to find a legal representative. Having somewhere there during the transaction who understands how it works can be enormously helpful and protect your interests.
Solicitors can do things like draft contracts and negotiate with other parties on your behalf. They can also do various searches and other tasks to ensure buyers have the documentation they need to go ahead with the purchase. These tasks can be time-consuming if you try to do them on your own.
Sometimes you’ll need solicitors to ensure you adhere to disclosure laws. These ensure you provide buyers with relevant information that might affect their decision to purchase the property. You don’t want to sell them anything for which they might later claim against you.
Consider Capital Gains Tax
Finally, if you’re an investor, you’ll need to consider the capital gains tax implications of selling the property. Most sellers must pay these levies upfront quickly after receiving the money into their accounts. It’s not a tax you file later on.
Check with your accountant what you need to do.
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