Some Legal Issues to Selling House for Cash - Here's How To Avoid Them

When we attempt to ‘sell my Austin house fast’, there is an understanding that we need money quickly and are willing to get a lower price. However, the buyers still expect the land and the house to be in good condition on all fronts. Here is what we should not do:

Failure to Disclose Property Defects

A defect in your property can be of a few different kinds. 

Failure to disclose known issues can lead to lawsuits later on when the buyers claim they were kept in the dark about the history of your property. In the end, this can damage your reputation and even the voiding of the sale or renegotiation of the price. You might have to return all the cash money you get.

These defects can be structural or environmental. Cosmetic defects can also create dissatisfaction which is why the new buyer must know about them beforehand. 

Additionally, the buyer needs to know about any history of disease, crime, and dispute on the property.

Inaccurate Property Valuation

People have a tendency to overvalue things that they are emotionally attached to. We also have a compulsion to price things higher than they actually are in the hope that we will still get a profit after negotiation.

But in reality, property cannot be valued like that. This needs to be taken into consideration to reach an understanding of how much someone can pay for that property. This can include factors like locality and building strength aesthetic appeal etc.

If the buyer ends up paying more than they should for your house and then later realize that the valuation was done wrong, they can take you to court and you can be charged with a fine.

Call a licensed property valuation agent and have them draft documents before contacting the buyer.

Improper Execution of Sales Contracts

Contract frauds have become really common these days. 

Contract fraud can result if you are selling a house under someone else's name and not disclosing the fact. It can also happen if you are getting into a verbal contract of sale but your legal document mentions ‘tenancy’ instead, for example. 

To avoid contract fraud, we should move with transparency and honesty throughout the transaction process. We should work out the contract drafting under the guidance of the other party so that both sides can be satisfied. 

Regular communication and a paper trail can also help prevent misunderstandings and fraudulent activities.