Ask George & Chuck: Questions from Consumers

Written by Posted On Monday, 12 November 2007 16:00

Question (FL): My husband and I are in the process of buying a home. We are approved for the loan but I have a judgement against me. It is from back in 1999 for $8,000 with interest. Now it's over $13,000. The company wants a zero balance before we close. Don't some mortgage companies add that amount in and pay off the $13,000? The lender wouldn't be losing any money. Do you know of any way that this could be resolved with the mortgage company? I desperately need some help.

Answer: The only suggestion we have is for you to talk with the lender that has approved you for the loan. Generally speaking, however, the judgement exists because you defaulted on a loan and lenders do not want to make a loan to someone who has an outstanding judgment against them and has a history of not paying their debts.

Question (GA): I, as the selling broker, produced an able buyer and obtained a binding agreement with the seller of a property listed with another broker. An inspection of the house discovered that the house (5000 sq ft) has no insulation installed. The owner had a contractor build it in 2005 but did not have insulation installed nor did he disclose this fact.

The buyers have asked the seller to fix the problem, but they refuse. Am I entitled to my commission on the grounds that the seller knew of a defect in the house that would stop it from being sold and failed to disclose it?

Answer: Your question as to real estate commissions is between you and the listing broker, not the principals. Did the listing broker receive a commission on this transaction? If he or she did, then a commission is most likely due to you according to the rules of the MLS of which you and the listing broker are both members. Any claim you may have to your portion of the commission probably comes from the listing broker being paid a commission on this transaction.

As to the misrepresentation of a material fact by the seller regarding the Seller's Property Disclosure Statement such misrepresentation or concealment does not affect you unless you had actual knowledge of it. The fact that the buyer's inspector called it out and the seller refused to correct it indicates that it was an item of negotiation, unless it violated a Georgia law. Even if that were the case, it would not affect your right to receive a commission any more than a seller's breach of the contract would.

Question (LA): I am retired NOFD with a disability pension. I am a Viet Nam vet and retired USAFRES. I would like to move from the Lafayette, LA, area where I now pay less than $1,000/yr property taxes. The homes I have interest in all have Property taxes around $10,000/yr. Are there any tax reductions I may be eligible to apply for? Also, how can I find out about real estate taxes in Texas? Thank you for your reply.

Answer: By "NOFD" we assume you mean "New Orleans Fire Department." If we are correct in that assumption, then we suggest that you perform some research dealing not only with property tax rates and applicable exemptions, but also with disability benefits that might be available to you. For example, the New Orleans Fire Department has a Firefighters Pension and Relief Fund into which an active firefighter can accumulate deposits to a Deferred Retirement Option Plan or "DROP" account for which you might qualify. See also Arnold, HB No. 425 at. Enter "New Orleans Fire Department+Disability Benefits+Retirement" in the search bar of your favorite search engine for additional sources. There are some sources that lead to other states, but generally the search provides pertinent data.

The property tax question is a little tougher to provide a meaningful answer to as you stated you wished to move out of Lafayette, Louisiana, but you didn't state into which parish you wanted to move, or if the anticipated move is to Texas, into which county in Texas. Property taxes, both in Louisiana and Texas, are assessed in accordance with state property tax codes but at the county/parish and various other local levels. We suggest you view this link for Louisiana, and Taxpayers' Rights, Remedies and Responsibilities by clicking here .

Question (NJ): How do agents arrange residential property showings in Texas? Do they just call the owners direct and use the lock box or is there a 3rd party showing service employed? If a 3rd party is used, do the homes have lock boxes or does the agent have to get the key by some other means?

Answer: There are a variety of ways that real estate agents arrange showings of properties, but each way is dependent upon the particular MLS to which the agent's firm subscribes and to the Texas Real Estate Commission's ("TREC") Rules and the statutes it enforces.

For example, many agents who are members of the Houston MLS, the McAllen MLS, the San Antonio MLS, or the Dallas/Forth Worth MLS (NTRIS), use Centralized Showing Service . Others who don't use it maintain property desks that receive and schedule calls from showing agents and consumers. Most of the Texas agents use lockboxes, and most of the lockboxes are manufactured by Supra.

However, in Texas it is a violation of the Real Estate License Act (Chapter 1101, Texas Occupations Code) for a real estate licensee to instruct another real estate licensee to directly or indirectly violate Section 1101.652(b)(22), the section that essentially prohibits a licensee while acting as a broker or salesperson, from "negotiating" with an owner, landlord, buyer, or tenant when the licensee knows that person is a party to an outstanding written contract that grants exclusive agency to another broker. Just contacting an owner, however, to set up a showing is only a potential risk if the agent who shows the property or who sets up the showing, gets trapped into performing an action that TREC would interpret as "negotiating." The bottom line is that it is risky business to call on owner direct whom you know is represented by another agent.

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