Real Estate Sales: What You Need To Know
If you want to sell your property, you have to be very prepared and follow a well-prepared plan. Here are the key points real estate sellers need to know before and after the sale. Knowing them can bring a lot of benefits to the seller. You need to know this before you can sell real estate.
Terms of the agreement, tax credit, and insurance control
You should clearly state the terms of the agreement with which you will agree to sell your property so that no negative consequences occur. The terms and conditions of the agreement should be written to protect the interests of both parties. Also, you should learn that there is no real estate tax debt on the real estate you are selling, and if there is one, you have to pay it. You should also check if the home you are selling has mandatory earthquake insurance.
Tenant notice and purchase cancellation
If you are selling a home and already have a tenant, tell them about the sale process. If possible, introduce a new landlord and tenant. Don’t forget to cancel bills such as electricity, water, natural gas, internet, or transfer to a new homeowner.
Price notification and money transfer
You must appraise the Land Registry of the actual value of the property. If you do not announce the land registry or at a lower price, you could face criminal action. You can transfer money for this property through a trusted bank.
Check the property value declared in the certificate.
During five years from the date of acquisition, the income from disposal of immovable property is declared to be derived from the definition of real persons, and income tax is levied at the rate of 15 to 35%. Therefore, if the relevant real estate is disposed of in less than five years and its value is declared lower in the title deed, the seller may be charged higher income tax. However, if the property is acquired through inheritance or donation, income tax will not be paid, regardless of the sale price. Similarly, you do not pay income tax on the sale of real estate for at least five years.
Title fees paid during the purchase and sale should not be less than the minimum property tax value. It is calculated more than the cost of transfer and acquisition. The price should be announced as the actual purchase and sale price of the real estate under the property. Announcing the purchase and sale prices in the title deed cannot be less than the minimum real estate tax value for this year.
Notification to the municipality
To avoid future concerns about real estate and garbage collection taxes (for businesses), those who sell their property report the situation to the relevant municipality after the sale. A single notification is sufficient for multiple real estate purchases of the same type. However, real estate must be purchased within that year and located in the same municipality.