Whose
obligation is it to disclose pertinent
information about a property?
A:
In
most states, it is the seller, but
obligations to disclose information
about a property vary.
Under the strictest laws, you and
your agent, if you have one, are
required to disclose all facts materially
affecting the value or desirability
of the property which are known
or accessible only to you.
This might include: homeowners association
dues; whether or not work done on
the house meets local building codes
and permits requirements; the presence
of any neighborhood nuisances or
noises which a prospective buyer
might not notice, such as a dog
that barks every night or poor TV
reception; any death within three
years on the property; and any restrictions
on the use of the property, such
as zoning ordinances or association
rules.
It is wise to check your state's
disclosure rules prior to a home
purchase.
Q:
Do
sellers have to disclose the terms
of other offers?
A:
Sellers are not legally obligated
to disclose the terms of other offers
to prospective buyers.
Q:
Will
a neighbor problem reduce the value
of my property?
A:
While
it may not reduce the actual value,
a cluttered landscape can detract
from the positive aspects of your
home. Review your local laws, which
should be on file at the public library,
county law library or City Hall.
A
typical "junk vehicle"
ordinance, for example, requires
any disabled car to either be enclosed
or placed behind a fence. And most
cities prohibit parking any vehicle
on a city street too long.
It
also may be worthwhile to check
into local zoning ordinances. An
operator of a home-based business
usually is required to obtain a
variance or permanent zoning change
in residential areas.
In
addition, if a neighbor's repair
work produces loud noises, he may
be breaking local noise-control
ordinances, which are enforced by
the police department.
Before
bringing in the authorities, you
may want to make a copy of the pertinent
ordinance and give it to your neighbor
to give them a chance to correct
the problem.
Most
purchase offers include two standard
contingencies: a financing contingency,
which makes the sale dependent on
the buyers' ability to obtain a loan
commitment from a lender, and an inspection
contingency, which allows buyers to
have professionals inspect the property
to their satisfaction.
As
a buyer, you could forfeit your
deposit under certain circumstances,
such as backing out of the deal
for a reason not stipulated in the
contract.
The
purchase contract must include the
seller's responsibilities, such
things as passing clear title, maintaining
the property in its present condition
until closing and making any agreed-upon
repairs to the property.
Q:
What
repairs should the seller make?
A:
If
you want to get top dollar for your
property, you probably need to make
all minor repairs and selected major
repairs before going on the market.
Nearly all purchase contracts include
an inspection clause, a buyer contingency
that allows a buyer to back out
if numerous defects are found or
negotiate their repair.
The trick is not to overspend on
pre-sale repairs, especially if
there are few houses on the market
but many buyers willing to buy at
almost any price. On the other hand,
making such repairs may be the only
way to sell your house in a down
market.
Q:
How
do I get the real scoop on homes I
am looking at?
A:
Home
inspections, seller disclosure requirements
and the agent's experience will help.
Disclosure laws vary by state, but
in some states, the law requires the
seller to complete a real estate transfer
disclosure statement. Here is a summary
of the things you could expect to
see in a disclosure form:
*
In the kitchen -- a range, oven,
microwave, dishwasher, garbage disposal,
trash compactor.
* Safety features such as burglar
and fire alarms, smoke detectors,
sprinklers, security gate, window
screens and intercom.
* The presence of a TV antenna or
satellite dish, carport or garage,
automatic garage door opener, rain
gutters, sump pump.
* Amenities such as a pool or spa,
patio or deck, built-in barbeque
and fireplaces.
* Type of heating, condition of
electrical wiring, gas supply and
presence of any external power source,
such as solar panels.
* The type of water heater, water
supply, sewer system or septic tank
also should be disclosed.
Sellers
also are required to indicate any
significant defects or malfunctions
existing in the home's major systems.
A checklist specifies interior and
exterior walls, ceilings, roof,
insulation, windows, fences, driveway,
sidewalks, floors, doors, foundation,
as well as the electrical and plumbing
systems.
The
form also asks sellers to note the
presence of environmental hazards,
walls or fences shared with adjoining
landowners, any encroachments or
easements, room additions or repairs
made without the necessary permits
or not in compliance with building
codes, zoning violations, citations
against the property and lawsuits
against the seller affecting the
property.
Also
look for, or ask about, settling,
sliding or soil problems, flooding
or drainage problems and any major
damage resulting from earthquakes,
floods or landslides.
People
buying a condominium must be told
about covenants, codes and restrictions
or other deed restrictions.
It's
important to note that the simple
idea of disclosing defects has broadened
significantly in recent years. Many
jurisdictions have their own mandated
disclosure forms as do many brokers
and agents. Also, the home inspection
and home warranty industries have
grown significantly to accommodate
increased demand from cautious buyers.
Be sure to ask questions about anything
that remains unclear or does not
seem to be properly addressed by
the forms provided to you.
Q:
Do
I need an attorney when I buy a house?
A:
In
some states, you do need an attorney
to complete a real estate transaction,
but in others you do not.
Most home buyers are capable of
handling routine real estate purchase
contracts as long as they make certain
they read the fine print and understand
all the terms of the contract. In
particular, you should be clear
on the terms of any contingency
clauses that will allow them to
back out of the contract.
If you have any questions at all,
it may be advisable to consult an
attorney to avoid future legal hassles.
In looking for an attorney, ask
friends for recommendations or ask
your HomeJoy Real Estate agent to
recommend several. Call to inquire
about fees and to check on their
experience. In general, more experienced
attorneys will cost more, but real
estate fees as a rule are small
relative to the cost of the property
you are buying.
Copyright
2006 Inman News Features
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