Selling an apartment is nothing like selling a house or suburban residential property. This is because the sheer number of properties available in such a small area, changes how you normally buy and sell real estate.
For example, there are around 26,500 apartments in Auckland’s CBD. When you’re searching for property listings in other suburbs, you might find 30 to 40 depending on the market. At any one time in Auckland’s CBD, there can be up to 600 apartments waiting to be sold.
The commitments and responsibilities that come with strata title property, also know as a unit title, aren’t for everyone, especially those who prefer to keep to themselves. It can therefore be more difficult to sell an apartment, especially considering that owners are also required (by the Unit Titles Act 2010) to provide additional information to buyers—more information than buyers of a regular house or flat require.
Sellers need to provide three disclosure statements
As a seller, you need to provide three disclosure statements, the first being a Pre-Contract Disclosure Statement. This explains general information about strata titles, maintenance, fees or problems.
Once you have entered into an unconditional agreement for sale and purchase you are required to provide a Pre-Settlement Disclosure Statement. This contains all the information around fees and charges for the apartment and any changes that might have been made to the body corporate operational rules.
Last but not least, there is the Additional Disclosure Statement. This can be provided at the buyer’s request and expense. It basically gives a complete official overview of how the body corporate is run. Failing to provide Pre-Settlement or Additional Disclosure Statement in a timely manner, can allow the purchaser to back out of the sale under the Unit Titles Act 2010 with no consequences.
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Over 70 percent of apartment owners don’t live in their property
Therefore it is common with the majority of apartment sales for the owner to be out of the region or country. This can disrupt and slow down the sale of an apartment. Real estate agents who specialise in selling apartments are experienced in navigating these situations. An agent is able to work on your behalf, liaise with the building’s body corporate, ensure the necessary paperwork is complete, facilitate negotiations, and work with property managers and tenants to organise open homes.
Buying and selling an apartment is not the same as a conventional house. Unless you know how to look out for all the little steps that could trip you up, we would recommend consulting an apartment real estate professional.
Want to give your home the best chance of success on the property market? Check out the tips in our free guide:
