Buyer and seller have reached an agreement on the sale of a property but how is the payment actually processed? There is important information and legal details that must be observed for a smooth, safe and reliable process. In this post you will learn more about payment processing when selling real estate. So if you are wondering about how to become a registered iso of Wells Fargo then there are options now open as well. You can make a lot of money there.
Principles for Processing Payments When Selling a House
Considerable sums of money go into selling a house. Therefore, the legal regulations aim to guarantee both the seller and the buyer maximum security. The conditions for processing the purchase price payment are specified in the purchase contract. Most of all, they aim at that:
- The seller only transfers ownership of the property when he has received the full purchase price amount.
- The buyer only makes a payment when it is certain that he will acquire ownership of the property upon payment of the purchase price and the real estate transfer tax.
Details on the Purchase Price Due Date
In order to protect the buyer, the purchase price is only due when certain requirements are met. The commissioned notary monitors compliance with the contractual conditions. These usually look like this:
- A notice of conveyance has been entered for the buyer in Section II of the land register.
- All documents that are required to delete the encumbrances in the land register are available to the notary, unless they are to be accepted by the buyer.
- The municipality in which the property is located has certified that it does not make use of a statutory right of first refusal.
The Notice of Conveyance as a Necessary Requirement for Payment of the Purchase Price
After conclusion of the notarial purchase contract, the notary sends a copy of the contract to the land registry and applies for a notice of conveyance to be entered in favor of the buyer. The notice of conveyance represents a blocking note in the land register, which serves to protect the buyer: After entering the notice of conveyance, any interested third party can infer from the land register that the property has already been sold under notarial certification. This means that a bona fide sale of the property to another buyer is impossible.
Organization of the Deletion Documents by the Notary
The notary obtains cancellation documents for encumbrances in the land register that the buyer is not supposed to accept under the contract. This includes, for example, the death certificate of a deceased beneficiary if the right of residence is secured in the land registry. The cancellation authorization from a financing bank can also be relevant for existing land charges in order to delete land charges. The seller may have to repay the loan in full for this. However, he can also transfer the property liens to another property.
Waiver of First Refusal by the Municipality
From a legal point of view, the municipality in which the property is located has a right of first refusal. She rarely makes use of this. The notary takes care of obtaining the official waiver to secure the formalities.
Start of the contractually agreed payment period: If all the due date requirements are met, the notary sends a request for payment to the buyer. It is often agreed in the notarial purchase agreement that the purchase price is to be paid by the buyer within two weeks of the due date requirements being met.