My father, throughout his lifetime, accumulated an impressive portfolio of property including houses, flats, building lots, shops and his most favorite, garages (individual storage units just large enough for a mini). Some of these he inherited from his mother while others were just too good a deal to pass up. In due course, these properties were passed down to my sister and me and we became landlords, although in my case, a rather reluctant one.
Now you would expect most people would be grateful for such an inheritance. My sister, lived close by and was very familiar with the properties and their tenants but I was an ocean away. Born and raised in England but having left for the USA at 18, when I thought I just about knew it all, I had little knowledge of what had suddenly landed in my lap.
Dad had the foresight to create 2 separate property companies so when the time came, one would go to me and the other to my sister. It didn't work out quite as he had planned as a fair bit of muddling went on in the 7 years between my parents' deaths. Suffice it to say, that by the time it was all sorted, my share was somewhat diminished and I had a huge tax bill.
Slad Properties was now all mine - 4 houses, 5 flats, a pet shop, 22 garages, 32 tenants and a tax bill. In England you are taxed every time you turn around so my first thought was to sell everything as quickly as possible and get out! Now, more than 10 years later, I am still trying.
Already in the real estate business here in Vermont some of that knowledge would surely help, I thought. How wrong I was! There are almost no similarities in the way real estate transactions are handled. Agents in the UK bring the buyer and seller together and then hand off to the solicitors and their job is done.To be fair, their commission percentage is a fraction of what we can expect. Neither party signs any agreement until the day of completion and at any time along the way another buyer can gazump the first by raising the bid. With a lack of a signed agreement and no fixed dates, it seems that the solicitors can move at their own pace, which in my experience is not quick. To slow the process even further snail mail only will do for documents - no electronic signatures or scanned papers.
My holdings are now down to 2 flats and 6 garages and at this time I have an offer on the garages. There is a glimmer of a light at the end of the tunnel but I know better than to get my heart rate up just yet.
Each sale has been an adventure in itself. My next few blogs will take you down that path with me as I recall the events that now can make me laugh.
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1 comment:
Oh how I wish sales transactions in England were as easy as you say. Also, vendors quibble about 2% commissions which is a pittance for the work we perform. We may tie the sales together and pass on to the solicitors but there is no guarantee any of it will happen, no agreed dates beyond which interest is charged, no certainty anything will really happen and when it doesn't we get nothing, when it does 2% or less is sometimes hardly worth it unless I sell a million pound house. The solicitors may appear to handle the sale but believe me we have to be on their toes the whole time, chasing up buyers, their solicitors, our sellers solicitors, finance companies, surveyors, rest of chain which can fall apart at any moment etc etc. If I can be of any help with some of your transactions, then please let me if I can.
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