Upfront information in the home moving process – frequently asked questions – Property Industry Eye
Rob Hailstone, who founded the Bold Legal Group in 2010 after more than 40 years as a residential real estate broker, created the following “advance notice” for the relocation process based on frequently asked questions.
This follows from a recent article in which he suggested that “improving the home buying and selling process at real estate agents should begin”.
Advance information in the relocation process
frequently asked Questions
- Providing information in advance / creating a property transaction package only works when it is mandatory
It will work and some benefits will become apparent right away, but it will take longer to fully work. However, this will happen over time. Granted, it would be faster if there were laws, but we can always do another one and start that process now, as demonstrated by those who already offer the service and deliver shorter transaction times.
- The buyer’s real estate attorney does not accept the research received from the seller or his real estate attorney
Anecdotes show that many real estate attorneys will accept these searches. If a regulated search was originally carried out by a reputable company (e.g. a CoPSO member and PCCB Regulated – look for the “Search Code” logo when searching). This will ensure that the search has been carried out according to certain standards and that there is adequate and adequate insurance in place to protect consumers.
As long as the search is either a regulated or an official search, is current and acceptable to the lender, there is no reason a buyer’s attorney should not accept it – as the CLC endorsement article in its latest newsletter confirms.
- The search will be out of date in 3-6 months
On average, only 1 in 10 is out of date. In addition, regulated searches can be updated cheaply or free of charge. Additionally, it should be noted that even outdated searches contain information that can inform a valuer and reduce assumptions that are delayed by post-valuation queries created by the carrier that need to correct the information in the mortgage instructions.
- Gathering and providing information in advance does not speed up the process
It will and it does. There are already a number of agents and promoters who work together in advance of information. And even without involving the entire chain, time savings of up to four weeks are recorded. In addition, this particular transaction is less stressful for all parties directly involved.
- The conveyor is distracted from more recent work while setting up a file
Initially maybe, but once this becomes the norm, doing this job won’t be much easier and less stressful in the heat of battle, so to speak, and could be done by administrative staff rather than qualified promoters / attorneys who can be exempted from technical reviews and advice to focus.
- The real estate attorney’s workload will increase as there will be a significant number of properties that come on the market that are never contracted to sell
The workload will not increase, the work will simply be carried out in a different way and at a different stage. As transaction times get shorter, diarrhea rates also decrease. In countries that already comply with provider disclosure rules, transaction times are weeks, not months, and drop by less than 2%. If salespeople feel they have some skin in the game, they won’t be the time wasters.
- Why should the agent and / or real estate attorney spend time on a matter that costs time and money when a property is never put up for sale?
Most of the transactions are put up for sale and most sellers return to the same agent and attorney if treated fairly.
- Most sales are held up by an incomplete chain, not searches or other delays
There are a number of reasons why sales are delayed. Providing information in advance will address some of these reasons. Data shows that of the 34% of failed transactions, a significant proportion fail because the buyer realizes after the offer that they cannot use the property as intended or that it does not meet their lender’s lending policy. By providing the information in advance, you will secure more legal buyers than the current “potential” buyers.
- Surveys and mortgage offers can also cause delays
Agreed, but see answer above.
Like providing information up front, technology is only part of the answer. What technology can do is speed up the process and promote transparency, but our profession / industry is a human profession and that is unlikely to change in the near future.
We need a change in mindset – just because we’ve always done something one way doesn’t mean it’s the only way. Buyers and sellers follow the process set for them by professionals and do not have enough experience or confidence to do things differently.
- The entire funding process should be revised
In an ideal world, maybe, but we have to do what we can now. This step of ensuring the advance notice is provided is the first step in overhauling the process.
- Some agents say it is too burdensome to advertise packages to their vendors
All the agent has to do is direct the seller towards a Property Transaction Pack friendly attorney or send a link or form for the seller to fill out. In addition to being able to use the information they receive to sell the property, it also fulfills their legal requirements under the provisions on protecting consumers from unfair trading by telling them the essential facts about the property.
- Charging in advance will postpone something. How much would / should a real estate attorney (if anything) charge to open a file and help put together a package?
Individual companies have to decide that, and ultimately market forces will dictate. Some might charge £ 100, some might charge £ 50, others might not charge anything but just ask about the cost of the withdrawals. Research by the Scottish Government and feedback from Scottish officials shows that sellers are not put off by the Home Report upfront cost, which can be as high as £ 750 – although the median is between £ 300 and £ 500.
- The big real estate agents don’t want to lose the revenue they make from their panel companies ordering searches for purchases (and having to use the search provider chosen by the real estate agents with whom they have a referral agreement).
Speeding up transactions and reducing interest rate cuts should counteract financial losses. In addition, they are now ordering searches on the sales side of the transaction, while searches are currently being bought on the buying side of the transaction.
- It’s a human problem, not a process problem
There are many people who want to see change and are more proactive. Hopefully those who resist change will see the light soon.
- A real estate attorney should work for the entire chain
This is currently not possible, neither lenders, regulators nor insurers would allow it.
- Will the management company / shareholder information (for tenants) be out of date?
It can happen very occasionally that this information can be updated as needed and is essentially information that the owner / administrator would have to provide to the seller.