New guide helps with selling mum and dad’s home

WHAT COULD be more stressful than selling your own home? Selling your parents’ home.

But that is a prospect many people face when their parents can no longer maintain their home or sell it without their children’s help.

‘‘Selling the home of your parents, particularly if they are in poor health, can be a very fraught time if you’re not prepared for it,’’ the Real Estate Authority warns.

‘‘If your parents are getting to the stage where their much-loved family home is too much for them, it’s a good idea to start talking to them about what they want to do before you start thinking about the steps you need to take to help them out.’’

To this end, the REA has prepared a guide to help simplify and streamline the process.

Firstly, find out as much as you can about your parents’ home and legal affairs.

Do they own the home or a family trust?

They may be of the era when there was only one name - usually the man’s - on the title deed - and it may make things easier longterm if that is updated, the REA says.

If the property is owned by a family trust, talk to the trust’s lawyer about how to proceed.

Are your parents’ wills up to date? Is there a power of attorney in case they become incapacitated?

If your parents haven’t dealt with a lawyer since they bought the house, find one to act on their behalf.

Under the Anti-Money Laundering legislation, confirming the identity of parties is now a more significant step in property transactions, the REA says.

‘‘If your parents don’t have a passport or other modern forms of identification you may need to go through a more involved process with the lawyer.

‘‘It’s a good idea to find out about this earlier in the process so there are no surprises later on.’’

The REA recommends ascertaining the market value of the home by researching online, paying for a registered valuation or ask local real estate agents for an appraisal.

‘‘Be realistic about what can be done to get the best price and consider whether there are time constraints.’’

If family members are interested in buying the house, the REA recommends a registered valuation, especially if they disagree over what it’s worth.

‘‘Do some informal market research about real estate agents in the area and arrange to talk to a couple of them about your parents’ situation.

‘‘Unless they have specifically requested otherwise, make sure your parents are part of this conversation.’’

Many real estate agents will have dealt with families in similar circumstances and will be sensitive to the possible stresses.

‘‘Licensed real estate agents are obligated to act in good faith and deal fairly with both buyers and sellers,’’ the REA says.

‘‘This means they must use their good judgement when dealing with older people.’’

It says if family members live too far away, they should ask a trusted person to accompany their parents to meetings with the real estate agent or lawyer.

‘‘Ask for all meetings to be documented so you are all on the same page. This can be especially useful if you are having to convey information to other family members.

‘‘Any documents requiring signing, such as the agency or sale and purchase agreement, should be reviewed by the lawyer first to ensure your parents are making the best decisions.

‘‘Before you decide to proceed with an agent, ask them how they propose to market the property and arrange any viewings or open homes.’’

For more information, visit settled.govt.nz.