Strategically preparing a property for sale
Too often, sellers and their agents focus solely on the financial and aesthetic value of the property, without anticipating the technical, legal or administrative issues that could slow down or even compromise the transaction. An audit carried out by the seller in advance allows the sale to be prepared in such a way as to optimise it, with this work being carried out in conjunction with the estate agent appointed to the project.
Why carry out a seller's property audit?
The seller’s real estate audit makes it possible to identify in advance any difficulties or irregularities that could be raised by the purchaser, its advisors (notaries, lawyers), or even the lending bank during its own acquisition audit.
By anticipating these questions, the seller gives themselves the means to:
- Justify the asking price, relying on objective and verified elements ;
- Optimize the presentation of the property, by correcting or documenting sensitive points ;
- Secure the transaction, by limiting the risks of downward negotiation or questioning of the sale and by speeding up processing times ;
- Reassure the purchaser, by providing clear and documented answers, a guarantee of transparency and seriousness ;
- Limit the sale’s exposure to cases of nullity and the incurring of liabilities.
Key points of the seller's property audit
In particular, the seller and its estate agent must carry out the following checks:
Audit of building permits
This involves ensuring that any work carried out on the property has been duly authorised by the relevant administrative authorities and by any other body whose prior authorisation may be required, such as the general meeting of co-owners.
Audit of the descriptive division statement (EDD) and specifications
In co-ownership, it is important that the EDD accurately reflects the composition of the property, particularly if work has changed the distribution of lots and, consequently, the percentage shares, or if common areas have become private areas as a result of a construction project.
Audit of the rights and obligations attached to the property
In a high-value property market such as Monaco, it is particularly valuable to identify easements and exclusive rights of use (particularly terraces and balconies), as well as to identify, as soon as the property is put up for sale, whether it is subject to any specific status, for example whether it is part of a protected area, which will necessarily impact its value.
Audit of work on common areas voted on at the general meeting
Although it is common practice to stipulate that the seller remains liable for sums owed to the co-ownership until the date of acquisition, the issue of who is responsible for works voted on by the general meeting remains a sensitive one, as certain works voted on or simply discussed at a previous general meeting could generate future expenses for the purchaser.
Audit of the lease in the case of an occupied property
Whether the purchase is made as a property investment or for personal use, analysing the rental conditions is a key factor in the success of the sale, as it provides a thorough understanding of the terms of the current leases: nature of the contract, amount of rent, distribution of charges between the landlord and tenant, duration, renewal conditions, any right of pre-emption or preference, …
It is also advisable to check that the use of the premises authorised by the lease complies with both the co-ownership regulations and the intended use of the building, as well as with the applicable regulations (particularly if the property is located in a protected residential area).
Audit of the ability to sell
This involves verifying and anticipating, where applicable, the legal capacity of the seller (natural or legal person), compliance with legal and statutory formalities, and any need for prior authorisation (agreement of co-owners, general meeting decision, court ruling, etc.). In some cases, it may be advisable to have a doctor issue a certificate of cognitive capacity.
