Dear George: "I am a first time homebuyer in Athens, Georgia. I have heard that there are discounts and grants for first time homebuyer. But I can find no information on how to get the money. Is this just a myth or is it true?" -- Searching

Dear Searching: The U. S. Department of Housing and Urban Development at http://www.hud.gov/local/atl/atlhmbuy.html shows three local agencies in Athens that provide assistance. Each of these programs provides down payment assistance. They also provide homebuyer education as well as credit counseling services.

In addition, see the Realty Times' article, Feast of Loan Choices Now Available To First-Time Buyers.

Dear George: "A real estate agent showed me a property in August. It turned out that she worked for the same agency that had listed the property for sale. We made a bid anyway. It appeared to us that this agent worked more for the seller than she did for us. She also seemed to be somewhat inexperienced. It is now October.

That same house is still on the market. However, we are working with a different agent who is with a different agency. I do not wish to work with the first agent. I do wish for my current agent to get paid. Is there some sort of edict that determines a period of time required before a purchaser can change agents?" -- Wishing

Dear Wishing: Most states require that an agent deliver a form that provides information about brokerage services. These forms vary from state to state. However, each form provides information to the consumer about the different ways the consumer can work with a real estate licensee in that state.

The first agent was affiliated with the agency that listed the property. If your state permits a form of "dual representation," you might have signed a contract whereby the same agency that listed the home for sale also represented you as a prospective buyer. If that were the case, then your contract would specify the terms and conditions of such representation. If your state does not permit dual representation, then the first agent did not represent you. Additionally, there was no written agreement binding you to that agent. However, all Realtors are bound by the National Association of Realtors Code of Ethics. It is possible, though not likely, that the first agent could file an arbitration hearing based upon "procuring cause."

Have you asked your present agent for their view?

Dear George: "I am a Texas seller, represented by a Realtor, who was involved in a transaction that did not close. Another Realtor represented the buyer. The buyer did not terminate the contract under the Option Period. She had inspections that turned up two areas conducive to toxic mold. I have since performed recommended remediation procedures upon both areas. I noticed the Title Company requesting the earnest money. It responded that the matter would have to be resolved in the Justice of the Peace Court. In the meantime, the buyer sent a letter to my Realtor threatening to hire an attorney. The attorney is supposed to point out to me that I cannot sell a "mold infected property."

Why does this have to go to the JP Court when the contract clearly states that the buyer has forfeited her earnest money?" -- Clearly Stated

Dear Clearly Stated: You've raised two different issues. Let's look at them generally:

One question deals with the option language in the Texas contract. Exact timing of the notice to you to terminate is critical. According to your note, the buyer did not provide timely notice.

That option period, by the way, is not conditioned upon inspections or any other action of the buyer. It is an "unrestricted right to terminate." It appears to me that the buyer lost the unrestricted right to terminate.

The second issue concerns the earnest money. The Title Company has the right (and in your situation even perhaps the obligation) to refuse paying one party the earnest money unless both parties agree.

Please contact an attorney or legal clinic to review the specifics of your situation.

Dear George: "Why do so many real estate agents not post the asking prices for their listings in realty periodicals? Within the next six months I plan to purchase a home. I am interested only in the homes priced within the range of loan for which I am qualified. I ignore the homes with no prices because I do not want to waste my time. In talking with others I find I am not the only one to do so. Do you not think these agents are missing opportunities to sell?" -- Prequalified Buyer

Dear Prequalified Buyer: There are certain agents who believe the primary purpose of a real estate ad is to "make the phone ring." The agent can then engage the caller in a conversation regarding not only the advertised property but also the caller's other purchasing criteria. If the subject property is not priced within the caller's price range, the agent then has the opportunity of offering to show many other properties.

I do not personally subscribe to this method of marketing. However, the real estate agents who have used it successfully for many years believe in it. Obviously, it does not begin to meet your requirements.

For more articles by George Stephens, please press here.

George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: December 14, 2001

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.