After searching Craigslist and finding the perfect vintage hi-fi chain or the old steam drink, create a personal property sales contract before handing over your money. This simple agreement, which acts as a receipt when you buy from a single individual, is especially important if it is a new purchase. A personal property sale contract also gives sellers a written record of the transaction. I know a bunch of brokers out there say it sounds great, but buyers won`t be happy to pay for personal property, because they think the purchase price of the property should include personal property. Remember, this is a buyer`s problem. While I fully understand the buyer`s position, it is the buyer`s lender restrictions that require the buyer to pay the fair value of the personal property separately from the property. Of course, the parties will look at the broker to advise them as the betting price, but the broker is not a personal real estate expert and does not need to consult on personal real estate values. My advice, when asked how to calculate a price for personal property, is to tell the buyer and seller that he must choose a price that passes the “Smirk test”. In other words, what price can you put on personal property that you can look in front of an FBI agent and say, “I really believe that the value of personal property was” without smiling. If the buyer and seller always indicate that they want to set a price for personal property that the broker knows does not meet the “Smirk test,” the broker must warn the buyer and seller that credit fraud is a federal offence punishable by up to one year in prison and that the parties negotiate a new compliant price. Note: It will not be $10 for a fully furnished unit in Aspen.
First of all, and above all, the personal real estate contract is a FORM OF COURTAGE PROTECTION. Prior to its creation, many mortgage brokers and initiators believed that the best way to manage personal property in a residential transaction was to “remove it from the contract and make a $0 sale bill” or “simply say that personal property is left to the “seller`s convenience” and is worth $0.” This practice was risky for brokers for several reasons. At least he had the seller`s potential to take away the personal property after closing (after all, he was contract-free) and a buyer who claimed one or both brokers had an obligation to replace the personal property. Or worse, it could mean that brokers supported and supported credit fraud, as many times personal property had real value and the price tag “0” was made to induce the lender to make a loan that really included the payment of personal property.