What are the Legal Expectations When in a Luxury Real Estate Transaction?
The real estate industry has been considered one of the safest investments that embrace various types of lifestyles. In recent years, luxury real estate has been trending, and you could be thinking of investing in this area.
What is Luxury Real Estate?
Most people associate Luxury Real Estate with high price tags. Yet, it isn’t right to exclusively associate these properties with high prices. Many other features characterize these properties.
For instance, the property has to be unique and exclusive. As the name suggests, luxury real estate exists to fulfill luxurious types of lifestyle, which explains why the affluent people in the society are willing to pay the premium rates for the properties.
Therefore, a property can only fall in this category if it is unique, desirable, exclusive, and superior in all aspects. If you have some doubts, you can hire some lifestyle management services to help determine the property’s capabilities.
Secondly, the property must be in a luxurious location. High-end buyers also want strategically located homes that allow them access to high-end dining, shopping, arts, and other luxury homes. Hotspot areas such as Park Avenue, New York, make the homes more valuable in addition to rich historical heritage, beautiful sceneries, and large water bodies. The home should also be automated and have state-of-the-art amenities such as luxury pools, an opulent outdoor living space, and a chef’s kitchen.
Dealing with a Luxury Real Estate Transaction
A luxury real estate transaction isn’t easy whether you are buying, selling, renting, or owning. It involves stringent legal regulations and expectations that you must adhere to for its success. Some of these legalities are:
Get an Appointment in Writing
You must never do anything for the client until you get an appointment in writing. The appointment should highlight the services you will provide, limits, restrictions, and conditions on your services (if any), the commission, fees, and expenses that the client will pay you, and the due and end dates.
Charging Commission for Selling
You must be clear and upfront when charging a commission. There is no limit to how much your client should pay you a sales commission. Your negotiation and selling skills determine what you get in the end. However, the commission must be put in writing at your appointment time and must include GST.
Cooling-off period – For Buyers Only (For Residential Property Contracts)
As a buyer, you are entitled to a 5-business day cooling period. The period begins when the buyer or their representative receives a signed copy of the contract. In case of a dispute, the seller or their rep must prove that they delivered the contract on time.
The vendor may set the reserve price as the property’s minimum price. However, it must be put in writing, and you must confirm from the vendor if they have set the reserve price.
Many other legal regulations govern luxury real estate transactions. These areas include disclosing the property owner’s identity, your interests in the transactions, a warning statement, and conducting property valuations. You may find luxury lifestyle branding services useful here.