|
|
|
|
|
|
|
| Treating My Clients Like Family |
|
| Upgrades Galore! Stainless steel appliances! Recessed lighting! 2 Car Garage! Beautiful painting throughout! http://www.lauriesteneck.com |
Articles and Advice |
|
 |
|
| What to look for in a final walk-through inspection Property should be in same condition as day you signed contract By Ilyce R. Glink Most home buyers will have at least two opportunities to inspect their property before closing on the purchase. First, most buyers will include a contingency in the contract that allows them to do a professional home inspection by the home inspector of their choice. This inspection typically happens right after the sales price has been agreed to, usually within a week or 10 days. If the home inspector finds anything wrong in the property or decides further inspections (perhaps for radon, heating and air conditioning systems, or mold) are called for, the home buyer will be able to hire specialists to figure out if there is an insurmountable physical problem with the property. Assuming those inspections go well, the second opportunity to inspect the property is just before the property closes. The preclosing inspection, or final walk-through, as it is often referred to, is a home buyer's last opportunity to walk through the property before closing. What you're looking for here is not at the same level as the initial professional home inspection. In a preclosing inspection, you simply want to make sure that the property is in the same condition as it was on the day you agreed to buy it. To avoid getting burned, you schedule the walk-through as close to the actual closing as possible, certainly within the 24 to 48 hours prior to closing. If possible, the sellers should have already moved out. The whole point of the walk-through is to protect yourself and your future property from sellers who aren't as nice as they seem to be or who are actually as nasty as they appear. By inspecting the premises, you're making sure the seller has lived up to his or her agreements in the sales contract. And if he or she hasn't, you want to know about it in advance of the closing so remedies (both monetary and otherwise) can be agreed upon before money changes hands. What should you look for in a preclosing inspection? To start with, you want to make sure that the condition of the home hasn't changed since you signed the contract several months earlier. Believe it or not, a lot can change in the ensuing weeks. To make sure the home is in the same condition, you'll want to turn on every appliance, open every door, make sure nothing's broken (lights, fixtures, windows, etc.), be certain everything the seller agreed to leave is actually there and in good shape, and be certain that when the sellers moved out, they did no damage to the home. Sometimes movers can accidentally scrape a wall or pull up carpet in the process of packing up the contents of a house. If you do your preclosing inspection while the movers are there, you'll have a harder time getting around them to make sure that the property is in good shape. If you get there before the sellers have packed anything up, you might wind up with some nasty surprises on the day you move into the property. I learned the hard way that sometimes sellers just don't want you to find out certain things until you've closed on the property. Nearly 20 years ago, my husband Sam and I bought our first place. It was a vintage co-op built in the 1920s. Our sellers were seniors, and they were a bit quirky. The property hadn't been touched in years. When we did our final walk-through, we noticed that the water was turned off in the kitchen sink. We wanted to run the dishwasher, which was really old, but didn't want to turn on the water if it was off. Looking back, it's hard to imagine why this wasn't a red flag for us. But we were really happy to be buying our first place, which was taking just about all the money we had in the world. We didn't question it. We just bought it and moved in. The first night we unpacked the dishes and decided to run a load in the dishwasher. At well past midnight, my husband turned on the water and we put in the dish soap and turned on the machine. We went to bed. We were awakened early the next morning with pounding on our front door. Our downstairs neighbors came into their kitchen and noticed that the liquid contents of our dishwasher had dripped down through the ceiling into their kitchen, ruining their window shade. My husband and I looked at each other and we knew why the water had been turned off. Too bad we didn't find that out ahead of time. Still, the damage could have been worse. As I recall, it cost us $600 to fix the damage in our neighbor's apartment. |
|
| Security deposit too small to cover pet, smoke damage Can landlord raise deposit or is he stuck paying repair bill? By Robert Griswold Question: I have a rental unit that I have leased out with only a $200 security deposit. I inadvertently rented to a smoker with a small dog. I was aware of the dog, but not the smoking. The tenant seems to be a chain smoker -- when I enter the unit to do repairs it smells like an ashtray. He never leaves the door open and the windows are always closed. He hardly lets his dog out and I also noticed that his dog pees on the carpet. I feel that by the end of his lease the carpet will be totally trashed and the smell unacceptable. The deposit is not enough to cover the replacement of new carpets. In the meantime, is there anything I can do? James McKinley, an attorney for landlords, replies: Since neither the dog nor the smoking is prohibited by the lease, there is little that you can do at this time. However, in order to avoid further damage to your property, you should give your tenant notice that you do not intend to renew the lease 30 days before the lease expires (or a longer notice if required). After you give your tenant notice of termination of the tenancy, you are required to notify your tenant, in writing, of his option to request an initial inspection of the premises and his right to be present at the inspection. You should also consider meeting with the tenant prior to the end of the lease to give your tenant an opportunity to remedy the identified deficiencies, in order to avoid deductions from the security deposit. After the inspection, you are required to give your tenant a statement specifying repairs or cleaning that need to be completed in order to avoid deductions from the security deposit. After the tenant vacates, you should to give an itemized statement showing how the security deposit was applied to rent, cleaning and/or damages, as required by state or local law. The tenant is still responsible for the costs of cleaning or repairs not covered by the security deposit, but you will have to commence a small claims action or general civil action to recover those damages. Steven Kellman, an attorney for tenants, replies: While you are bound by the lease in allowing the tenant to live there with his dog and his cigarettes, you are not forced to allow the continuing damage to your property. Tenants are entitled to many rights, but they must also act responsibly to earn those rights. I would suggest considering taking a course of action now rather than waiting for the tenant to move out. Pet owners and smokers must conduct themselves in such a manner so as not to cause material damage or create such a significant interference with the quiet enjoyment of the other tenants at the property. If this tenant allows his dog to damage the carpet and if he smokes in such a manner as to cause "smoke damage" to the unit, you may demand that he stop both activities right away. This is in the best interests of your property and the neighbors who do not want to be impacted with offensive smells or increased rent to cover damage costs. You may view the tenant's behavior as a breach of the part of your lease that requires the tenant to maintain the unit without damaging it. In that case, you would give him a legal notice to cure that behavior thus saving the property and his tenancy. If you feel the damage is significant, you may then try to view the conduct as a nuisance, which may result in a termination of the tenancy with a different legal notice. In either case, the appropriate legal notices can be tricky so advice from an experienced local tenant-landlord attorney is recommended before taking such action. If you are forced to wait to the end of the lease, you should be sure to terminate the lease without renewal and handle the deposit as James advises. Property manager Griswold replies: The attorneys seem to have covered what to do at the end of the lease, but I think you are also asking what can you do now and I would like to give you an option. While it isn't popular with many tenants, you do have the legal right upon proper notice to increase the security deposit from the current $200 to an amount that would be more likely to cover your anticipated costs of repairing the damage that may be caused by the pet and/or the tenant. Make sure that you comply with any local restrictions or maximum amounts, but in most jurisdictions you can simply raise the security deposit upon lease renewal or by giving written notice if the tenant is on a month-to-month rental agreement. The purpose of the security deposit is not just to have funds to cover damages but it can also be an effective incentive for tenants to maintain the property during their tenancy as well as make efforts to leave the property in good condition. Most tenants really want and need those funds when they move. If you ever want to see what damage can be done to a rental unit, rent your property to a tenant and don't charge a security deposit or, better yet, offer a $99 move-in special! |
|
| New home technology wows builders By Paul Bianchina Each year, the National Association of Home Builders holds its International Builders Show, the granddaddy of all home shows. The IBS is traditionally the launch site for a variety of new or redesigned building and home-improvement-related products, and this year was certainly no different. Here's a roundup of some interesting products that you might find useful, along with Internet links if you want to find out more. Please note that all the information is based on the manufacturer's own product research and claims. Faster Cooking: Looking to get dinner done a whole lot faster? Check out the TurboChef Speedcook Oven, which offers "revolutionary speed with gourmet results." Utilizing patented "AirSpeed" technology, the TurboChef cooks up to 15 times faster than conventional ovens, and will cook a rack of lamb in four minutes or roast a 12-pound turkey in 42 minutes. www.theovenreinvented.com. A More Convenient Seat: Seating Innovations offers a variety of attractive and innovative seats for eating bars, tables, desks and other areas. The seats are suspended from the wall on steel pivots rather than having legs that sit on the floor, freeing up floor space, making cleaning easier, and eliminating floor damage. www.seating-innovations.com. The King of Caulking: Newly introduced from Red Devil is King Kaulk, which the manufacturer guarantees is the only caulk you'll ever need. King Kaulk is a hybrid polymer composition that replaces all of the caulks, sealants and adhesives you currently have around the house, and will bond and seal virtually every construction material. It can be used indoors or out, has low odor, and is completely paintable. www.reddevil.com. Energy-Saving Wall Heaters: Offered by ECO-heaters, these wall-mounted electric panels can heat an entire room while using less than one-third of the energy of regular wall heaters. According to the manufacturer, the heaters use the same amount of electricity as four 100-watt light bulbs, yet will heat an entire room. And the panels can be painted to match any décor. www.eco-heater.com. A Smarter Lockset: Kwikset has introduced its new line of SmartKey deadbolts and locking knobs. The new technology replaces the old standard of pin and tumbler technology with its patented side-locking bar. What that means for you is greater security, and the ability to re-key locks yourself in seconds, without removing the knob or deadbolt from the door. www.kwikset.com. Spray Foam: For larger insulating and sealing projects, Touch-N-Seal offers a two-part expansive spray foam in disposable containers. Compete with gun, hose, tanks and tips, this spray foam is ideal for a wide variety of sealing, insulating and sound-proofing applications, and is more economical and easier to use than traditional spray cans for those larger projects. www.touch-n-seal.com. Steel Beams for Light Residential: There are certainly any number of applications in new building and remodeling where the strength of a steel beam would be a real advantage, but these massive beams had always been too difficult to deal with. The new LiteSteel Beam was developed to provide the greater structural strength of steel in a beam that is light, easy to carry, and can be cut, nailed, drilled and otherwise worked with on the job site using standard tools. www.litesteelbeam.com. Flooding Protection: Flooding from storms or other causes can devastate your home. StormPro offers several innovative, high-capacity pumps with a battery backup, so you can be assured of reliable pump performance even when severe storms knock out electrical power. Their battery backup systems can also be used with your existing pump system. www.sumpro.com. Polypropylene Siding Shingles: Nailite's new Cedar Pride EZ siding shakes and shingles offer some of the most realistic appearing shingles available. Cedar Pride shingles are installed in 6-foot strips for fast application, and have a deep grain and a staggered appearance for a more authentic look. They're available in several standard colors and patterns, and can also be painted. www.nailiteinternational.com. Energy-Saving Bathroom Comfort: The Enerjoy Bathroom Comfort Center is an all-inclusive unit that provides heating, lighting and ventilation for your bathroom. The Enerjoy combines radiant heat panels, a room light, night light and low-noise fan in one unit that the manufacturer claims uses half the energy of conventional units. www.sshcinc.com/BarNone2.htm. |
| I paid those property taxes for nothing? Why recording gift deed ASAP is so crucial By Robert J. Bruss Imagine you receive a gift deed from your uncle to some valuable, vacant, highway-frontage farmland. You pay the property taxes. About a year later, in need of quick cash your uncle sells the same land to a developer who promptly records his deed. Then your uncle dies. Who owns that property: you or the developer? If you failed to record your gift deed, the legal answer is the developer owns the land. The reason is he is a BFP (bona fide purchaser) for consideration without notice of your prior unrecorded gift deed. However, in a quiet title lawsuit to determine ownership, you might have an equitable claim that you are the property owner because you paid the property taxes after receiving the unrecorded gift deed. But in most states the recording laws make your prior unrecorded gift deed ineffective due to your failure to record and you will lose the case. Now let's change the scenario to specify you receive a gift deed to the same property, fail to record it, but still pay the property taxes; then your uncle dies, willing the land to his son instead. Now who owns that land? The answer is you do because your gift deed means your uncle no longer owned the land, making his mention of it in his will ineffective. THE PURPOSE OF RECORDING LAWS. Deeds, mortgages, deeds of trust, mechanics' liens, judgment liens, income-tax liens, leases, trusts, lis pendens and other documents that affect a property title are recordable in every state to give "constructive notice" to the world. In the example above, if you had recorded your gift deed, even though you paid nothing for it, you would be the rightful owner under the recording laws. In a few states, an unrecorded deed is invalid until it is recorded. But an unrecorded deed in most states is valid only between the two parties -- the grantor and the grantee. It is not effective against a BFP because an unrecorded document does not give constructive notice of its contents. "First in time is first in right" is the basic rule and the unofficial motto of the title insurance industry. Each property has a chain of title showing all recorded documents affecting its title, such as deeds, mortgages and liens. Although an unrecorded document might have been executed first, if a later-issued document gets recorded first, that claimant usually wins unless no consideration was paid for it. In other words, the recording laws create a race to the court house to record. ALWAYS RECORD DOCUMENTS TO PROVE PRIORITY AND VALIDITY. When an old, unrecorded deed is presented to the county recorder of deeds, suspicions arise. However, if the document is in proper legal form, no matter how questionable the circumstances might be, the county recorder usually must allow the recordation. Later, in a quiet title lawsuit, the claimants to a property can present his or her claims, and a judge will decide who owns the property or who has a valid claim against its title. Unrecorded documents can be very dangerous. For example, in some home sales the seller agrees to carry back an unrecorded, or "silent second," mortgage. The purpose usually is to fool the first mortgage lender into thinking the buyer paid a large cash down payment. After several months, the seller then records the silent second mortgage. But not recording the document can be dangerous for the seller if the buyer meanwhile obtains and records a home equity loan, which then is recorded like a second mortgage, pushing the unrecorded silent second mortgage into third priority when it is eventually recorded. HOW TO CHECK YOUR TITLE. The best title protection a property buyer or a mortgage lender can receive is a title insurance policy. This document issued by a reputable title insurer shows all recorded documents affecting a property's title, such as the deed, first and second mortgage, mechanics' lien, and perhaps an income-tax lien. If a title insurer makes a mistake, it must pay valid claims as long as the insured or an heir owns the insured property. The result is a title claim might not become known until many years later, such as a defrauded ex-spouse showing up to claim his or her interest in a property where the other ex-spouse forged the absent spouse's signature. Speaking of forgery, that is the biggest cause of title insurance claims. Even the world's greatest title searcher rarely spots a forged signature. Although state laws discourage forged signatures on deeds and other recorded documents, it happens. That's why title insurance is always the best protection to assure you have the title you think you own. When a title insurance claim is paid, the insurance company pays on the basis of (1) the diminished value of the property if the title insurer failed to disclose a recorded document, such as a second mortgage; (2) cost of correcting the error, such as moving an undisclosed but recorded sewer pipeline; or (3) the full policy purchase price limit if the title was completely defective. VERBAL PROMISES ARE USUALLY WORTHLESS. No matter how many witnesses you may have to a verbal real estate transaction, the promises are worthless until reduced to writing and signed by the party to be charged in a lawsuit. If the document is not recorded, it is open to questionability. To illustrate, many property owners have said, "When I die, you will receive all my assets." Those worthless words spoken to their spouse, lover, friend, relative or caregiver have no effect because the statute of frauds in every state requires a written document for valid real estate transfers. Putting such a promise into a written will or a revocable living trust is equally unenforceable because those documents are usually not recorded and can be changed anytime before death. Although there are a few court decisions upholding verbal promises to convey real estate, such as when a caregiver takes care of an ill property owner for many years, those decisions usually are based on detrimental reliance and solid evidence. QUIET TITLE LAWSUITS RESOLVE RECORDING DISPUTES. Title disputes often arise even when the applicable documents are properly recorded. For example, a recorded driveway easement over your land might be indefinite as to its location, size and use restrictions. If you think the easement holder is exceeding the use specified in the recorded easement, a quiet title lawsuit is the best way to let a judge resolve the differences. Other disputes that can be resolved by a quiet title lawsuit include multiple claims of the same property, adverse possession claims, prescriptive easement rights, and property division after divorces. SUMMARY: Recording laws allow claimants to establish their rights to ownership and security interest claims in a specific property. The two basic recording rules are: "the first in time is the first in right," and the first claimant to record their document wins the race to the court house. If conflicts cannot be resolved between claimants, and a claimant doesn't have title insurance protection, a quiet title lawsuit is the best way to determine ownership and title claims. For more details, please consult a local real estate attorney. |
|
| Your Newsletter is Powered by: |
 |
|
 |
