Charleston Real Estate Market

Are you thinking of listing your house but hate the paperwork? Curious to see what goes into my listing contract? It all boils down to some common sense agreements and a few legally mandated items that have to be addressed.

In order for me and my company to market your home, the S.C. Legislature and Governor Sanford have decreed that I must be employed by you. We call this Agency. There are three ways this might influence you:

1. Single Agency: When another company/office brings a buyer to us.

2. Designated Agency: when someone in my office brings the buyer.

3. Dual Agency: when I represent both you and the buyer.

When you see the Listing Agreement, you’ll note on the front page a section asking you to agree to any of these situations that arise.

Another section allows us to set a price for your property and a commission. I list residential property at 6%. This goes to my company. They pay me a portion upon closing and also pay 3% to the company whose agent brings the buyer. This is deducted from your proceeds at closing.

Commission is paid either when the property closes, the property is sold to someone shown the property during the protection period after the listing ends, or you go into default.

When a contract on your property is ratified it means everyone has agreed to the terms of the contract. The buyer’s earnest money held by my company, with the buyer’s agreement, is put into an interest bearing account and any interest earned is given to local charities. Our charity committee meets quarterly to choose 5-6 charities to receive the money. It’s a painless way to help those around us less fortunate. We are very proud of this program.

There are certain responsibilities that you have when a property is listed, just as I do. These are spelled out in the agreement. I promise to work as hard as I can to find a buyer for your property. I will work with other agents to find that special someone. I will also keep confidential any information you give me as private knowledge.

You are asked to allow a sign on your property, to be straight up with me as far as any information you give, to let the property be shown, to let me know if you are approached by buyers or other agents and generally do what you can to help me help you. The property must be kept up and you must agree that the property is for sale regardless of the buyers’ age, sex, race, creed, color, religion, national origin, handicap or familial status. If the home was built on or before 1978, I’ll ask that you fill out a Lead Based Paint Addendum, a federally mandated EPA form.

If you have occupied the property, the new law in South Carolina says you must fill out a seller’s disclosure. You must allow me to give buyers and their agent information and take photos for marketing. You must be able to convey a clear and insurable title and allow the attorney at closing to supply copies of the closing statements (HUD 1) to all involved in the closing.

Sounds pretty basic, huh? We’ll also discuss putting your property in the MLS and on the Internet so that agents and buyers can see that it is for sale. We’ll discuss the latest in lockbox technology and how we go about making the appointments to show your property. You will be responsible for paying the taxes for the portion of the year you had ownership. Here, we pay taxes at the end of the year for the year just ended. These will come out of your proceeds at closing. If you reside out of state and are not filing SC taxes this year, 7% capital gains tax will be deducted from your proceeds by the state.

Then, the big question I’ll need answered is, when we bring a good solid contract to you with agreeable terms,

Are you ready to Sell the Property?

Filed under: Real Estate News on April 24th, 2008