Sale And Stay Contract - What to be Careful When Signing
A very popular form of selling property today is the sale and stay contract. In Australia, many people are deciding to make this kind of deal because of its many positive sides. However, all good things in business must have a downside too. Here's what you need to be careful about when your signing this kind of deal.
First and most important, we need to know what is a sale and stay contract. In short, it is a deal by which a person is selling its own house, apartment, or other property that he or she is living in, but in return, they not only get money but the right to stay at the same place as a tenant for a fixed amount. This is the first thing a person should look out for. When signing the deal, the seller must be sure that the agreement has a part in which it is written how much time they are going to stay in the house before the new owner has the right to ask them to live. It's good to make a deal in which you have more time to stay in your house. A period of 6 months is normal, but if you can, sign a deal in which you get even more time because you never know what the future brings.
Another important part of the deal is the right to buy back your place if the house is back on the market. Make sure the deal will obligate the new owner to offer the house first to you when they decide to sell it again. Also, if you can, ask for a fixed price that will put you in a better position if you need to buy the house back.
The sale and stay contract means you'll get a lump sum for your place, but you'll have to pay rent each and every month. It is wise to have a place in the contract where the amount of the rent is fixed for a period of time. For example, if you agree with the new owner that they have no right to sack you from the house in the next 6 months, make sure you'll also get a fixed amount on your rent.
Probably something people don't mind too much is the price they sell their property because they need money. Buyers know this fact and they have an advantage in negotiating. Try to show that you're not in a hurry and never tell that you need the money urgent. If you these mistakes, you'll surely get less than the value of the place. It's better to wait for some time and get more offers than to let the buyers sense the urge and pay you less than the house is worth.
Overall, this kind of deal is excellent, but watching out for the details is strongly advised. Read the agreement line for line and you'll be just fine.