Question (CA): My husband and I refinanced in April 2004 with a 5/1 ARM Libor at a rate of 4.25 percent. Our home has doubled in value and we are thinking about moving to Orange County, CA, but are uncertain because of the rise of interest rates. However, we must do something in the next 3.5 years since our 5/1 ARM expires at this time. Would you recommend we sit tight for the next 3 years or sell now since rates are still considerably low? We don't know what to do!

Answer: Why are you "thinking" about moving to Orange County? Is it a job transfer, shorter commute, or some other reason? The reason we ask, is that if you intend to move anyway -- interest rates aside, then how long do you intend to live in Orange County?

A 5/1 LIBOR rate of 4.25 is an excellent rate ("LIBOR" stands for London Interbank Offered Rate, which is the benchmark interest rate for many adjustable rate mortgages, business loans, and financial instruments traded on global financial markets).

All other things being equal (i.e. the move to Orange County is just in the "thinking" or "considering" stage and is not a required move) we would recommend sitting on it. However, if you intend to reside in Orange County for an extended period of time, we suggest you consider moving now to take advantage of the still relatively low interest rates.

Question (MS): My husband and I recently purchased a home. We had problems negotiating with the seller because of the condition of the roof. We owned the home only 2 days before hurricane Katrina hit the gulf coast. In the sellers disclosure the seller stated that the roof had no leaks. He would not budge off the price of the house or put on a new roof due to his strong opinion about this issue. Now we are in the process of getting a new roof after the hurricane. The roofers have found numerous amounts of water damage in the roof of our home. Is there anything we can do about this contract?

Answer: A seller of residential property in Mississippi is required to complete a Seller's Disclosure Statement (SEC. 89-1-509 Mississippi Code). If the seller failed to attach the Seller's Disclosure Statement, or knowingly made a material misrepresentation regarding the condition of the property, you should be able to hold the seller legally responsible provided the Seller has enough assets to pay in the event you are successful in your litigation.

You ask if there is "anything we can do about this contract?" If you mean the purchase and sale contract in which you bought your home, you would need to consult a local attorney. If you mean, "what can you do about the seller misrepresenting a material fact about the property's condition," again, you should hire a local attorney to determine your best options.

Question (NJ): I was checking my credit report and I found the following status: collection account/repossession. A popular national servicing firm is trying to collect a debt of $335.00.

I have records stating that I paid the above mentioned debt in 1997. I made a loan for $15,000.00 from the primary lender which is a financial services company, and then another company sent me other paper work stating that it was the new owner of the account and that I should continue by sending my payments to it. I paid $45,000.00 including interest and fees they charge you for an equity loan. I received the last statement from them stating that the balance was zero, unpaid interest was zero, and the amount due them was zero.

Six months later they began calling me stating that I have a balance of $335.00 dollars! I told them I have a monthly statement that says balance zero, interest zero and amount owed zero. They told me "we always send the bill in advance, but you have to pay 335.00 to us." I disagreed with the caller.

They never bothered me again until I found the repossession information in my credit report. I'm disputing this with the credit reporting company. Please tell me if there is anything else I should do.

Answer: You have already taken the first step you need to take by communicating with the credit reporting agency that carried the disputed account. According to the Better Business Bureau report on the company about which you wrote us, that firm is not a member of the Better Business Bureau. However, the report also states that same firm has an "unsatisfactory" customer experience rating.

Make sure that you communicate with each of the big-three credit reporting agencies, Equifax.com, TransUnion, and Experian. Send each of them a written complaint according to their instructions for filing the complaint. Wait for each of them to send you a reply. Follow the any instructions they provide.

Question (TX): I am currently living in Bakersfield, California, but I plan to move back home to Longview, Texas, or possibly Dallas in 2007. I recently graduated from business school and took a real estate course this summer. I plan to start my real estate career in Texas, and to have my educational requirements completed when I move. I have been looking into some online classes, and one in particular has caught my attention. Its web page states that it is "in association" with UT of Arlington.

What does "in association with" mean? How do brokerages feel about these online schools? I am concerned that I might have a hard time finding a job if my credits are not respected because I took courses online.

Answer: In answer to your first question, "in association with the University of Texas at Arlington" ("UT at Arlington") means that your course credits come from the UT at Arlington, although everything from delivery to instruction to live help 24/7 comes from the online provider. Another way of saying this is that while the Texas Real Estate Commission looks to the University of Texas at Arlington for compliance with its requirements for course content, distance learning criteria, and completion certificates, the online provider is the UT at Arlington's delivery vehicle in the state of Texas. Therefore, the online provider’s website states, "in association with" the UT at Arlington.

As to your next question, we do not have any reliable data regarding "how brokerages feel about these online schools," but as the former Chairman of the 75,000 plus member Texas Association of Realtors, my gut feeling is that brokerage operations that wish to remain profitable will add "distance learning" to their list of viable alternatives to a student's physical presence at a proprietary real estate school, college, or university.

Published: December 13, 2005

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

George Stephens, CRB is the Broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas, and a real estate broker in Texas, Georgia, and Massachusetts. Charles J. Jacobus, JD is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law, and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate, Houston Community College, and is an adjunct professor at the University of Houston Law Center. To send us a question visit AskGeorge.net and click the "Ask A Question" button. The answers to questions in this column do not contain legal advice. George and Chuck are co-authors of Texas Real Estate Brokerage and Law of Agency, published by Thomson Publishing. If you wish to obtain legal advice, you should consult your own attorney.