The end of a relationship can be particularly difficult to navigate if there is property involved. Such an emotional time is when big financial mistakes can be made. Here is how to avoid the biggest property mistakes people make when a relationship ends.
Try to Sell the Property Without Notifying the Ex-Partner
People often act irrationally when a relationship breaks down. However, should selling your property under the radar while keeping your ex-partner out of the loop sound like a good idea, you need to rethink. If both parties are owners of the property, an agent CAN’T legally sell it without the approval of both.
Sell as Quickly as Possible
Like putting away an old photo, selling your property quickly just to have it all over with may sound like a good idea now. But, it isn’t necessarily the best way to go. Launching into a speedy sale, particularly when the market isn’t right could be a big mistake. Spend the time to think things through, do your research, list your property for sale at a price you are happy with and spend the time getting a favourable outcome that both parties are happy with.
Disclosing to Potential Buyers Your Reason for Sale
When a potential buyer hears the words ‘divorce sale’ they think ‘bargain’! Most end of relationship sellers are in a rush to sell, giving bargain buyers the perfect opening to swoop in. It may even come down to hiring furniture to hide that a separation or divorce is underway, however you may have to go about keeping your reason for sale under wraps we strongly suggest that you do so.
Also, don’t forget to ensure that your selling agent knows not to disclose your personal circumstances to potential buyers. You may assume that they already know not to, and the assumption could cost you. Make it clear so as to avoid any confusion.
Avoiding Your Fair Share of the Bills
There can be some animosity involved at the ending of a relationship, however, that does not mean that your financial responsibilities care about your emotions. It may seem tempting to stop paying the mortgage and bills, but this is a very unwise strategy.
Not only will rates show arrears, but you may also provoke banks into becoming involved with the sale. A mortgagee sale is far more stressful than a divorce-driven sale and quite often a much bigger loss on price. The only thing bargain buyers like better than a divorce sale is a mortgagee sale.
Making bad financial decisions in the event that your relationship ends can affect you for much longer than they ever needed too. It is important that you handle the sale of your property with as much forethought and research as you did when purchasing it.