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Unit 6. The Real Estate Sales Process - Coggle Diagram
Unit 6. The Real Estate Sales
Process
GOALS
● Transmit the conditions for the intermediation of the operation to the
potential clientele of the real estate product.
● Schedule trade negotiation processes to achieve the closing of the
trade operation.
● Select the essential parameters in the visits to the properties that
best suit the interests of the potential clientele.
● Formalize visit forms, pre-contracts, contracts and attached
documentation.
● Inform the clientele clearly and effectively about the characteristics
and prices of the previously selected properties.
● Monitor operations through a continuous communication system capable
of planning new visits and recording variations in supply data.
● Select properties in line with the needs and wishes of the potential
clientele, and present the information in the form of a file.
THE REAL STATE OFFER
Classification:
Free housing:
Those built by a developer/builder and sold freely to
individuals at the market price, without any legal restriction for its
access, use or legal transmission.
Housing cooperatives
Groups of people who share a common need (the
construction of a house), and who autonomously manage its construction
and promotion.
Subsidized housing
[Viviendas de protección oficial-VPO]: dedicated to
habitual and permanent domicile with a maximum useful area of 90 m2 and
special conditions regarding price and quality, according to RDL 31/1978,
RD 727/1993 and regional regulations. They can be of public or private
promotion, depending on who builds them.
Housing policy:
Due to the basic and strategic nature of
housing, State intervention is justified, based on the
principles of social and territorial cohesion, economic
competitiveness and sustainability.
Listing a property:
Once the client acquisition is done and the
properties most suited to their needs are offered, it is necessary to
know the methodology to carry out the sale process:
Preparation of the visit
The sales plan
The listing brochure
CONTRACTUAL PROCEDURES
Pre-contractual procedures
Guarantees
Content of a contract:
Identification of the property
Quantity handed over as deposit and total amount of the
sale, date, place of Register, other expenses and who will
defray them (capital gains tax, notary expenses,...).
Identification of the parties
Earnest money contract
Contractual procedures: rent
Content of the contract:
beginning date and length,
extensions agreed; lessor, tenant, property data (address,
land registry reference, inventory), rental amount, deposit,
payment method and terms, who bears the expenses.
Rights and obligations:
Landlord/Landlady
Tenant
Prior to contract signature:
● Physical verification of the property: to detect hidden
defects. If <10 years it is the seller’s responsibility.
● Legal status of the property: simple note to the Real
estate registry to know owner identity and burdens.
● Tax check: real estate tax paid, be up-to-date on
community expenses.
ADMINISTRATIVE PROCEDURES AFTER SIGNING THE CONTRACT
The deed of sale:
● Attest to the transaction
● Provide legal security
● determine the maximum price of the property [VPO]
● Check in the Registry that the property is free of
burdens.
● Check that it is up-to-date on expenses and taxes
payment.
● Check the energy efficiency certificate and license
● Verify payment method (property and VAT).
After the signature:
● Tax of asset transactions and documented legal acts
[ITPAJD] in the next 30 days (progresive: 0,5%-6%-10%).
● VAT [IVA] in the developer’s invoice
Financing in the purchase of real estate
Mortgage loan:
● Master loan agreement: reflects the amount paid.
● Mortgage: real guarantee offered by the debtor (it will
respond with the property in case of non-payment, the
bank being able to sell / auction the property to cover
the debt, expenses and the surplus, where appropriate,
will be delivered to the debtor.
Principal amount:
Consider
other expenses to ask for a
larger amount of money
(taxes, notary, registry,
management, appraisal,
study, insurance,…).
Conditions:
● Commissions: opening,
early repayment,
cancellation.
● Interest rate: fixed /
variable, TAE to compare
● Other obligations:
direct debit of
receipts, insurance, ...
● Return period