Question (CA): I've been trying to sell my home FSBO and have been contacted by a company called NHBcorp (National Home Buyers Corporation). They are offering to purchase my home at fair market value. They charge a 1.5 percent fee, take over the deed and my loans and resell the house. They then give us 12 percent interest along with our equity within a year after closing.
I'm in a situation where I don't need my equity right away and it would be great to get my home sold quickly but I'm a little skeptical about this unconventional method of selling my house. Is this a legitimate company? Can you guys shed some light on the positives and more importantly the negatives of selling my house this way? I'm just concerned with losing that equity but they say they've been in business for over 20 years, so they seem legitimate. You can learn more by checking their website at www.nhbcorp.com
Answer: We suggest that you contact the Better Business Bureau (www.bbb.org) and request a report. We did and the BBB has no record of the company in Gainesville, Florida, which is the address it claims is its corporate office. That fact in itself only means the BBB has not received any complaints or other inquiries regarding NHB Corp or NHBcorp.
We then searched the Secretary of State's Office for corporate filings. We found no listing for NHB Corp. or NHBcorp. There was a listing for NHB, Inc. but that corporation has been inactive since November 10, 1983 when it was involuntarily dissolved.
We then searched Dun & Bradstreet (www.dnb.com) and also did not locate NHB Corp or NHBcorp.
You state that NHB Corp claims it has been in business for over 20 years, yet in its online brochure it states it is a "... fairly new company and are growing fast."
Bottom line, once you have sold your home, it is sold. To take a note back for your equity, payable within 13 months -- regardless of the alleged interest rate of 12 percent they claim it will be paying, requires (in our opinion) a whole lot more verification of the company, its officers, the financial viability of the company, customers that have actually received note payoffs from NHBcorp, a favorable BBB report, a Dun & Bradstreet rating and other tools usually offered by firms seeking to borrow money from home owners. Because, that in essence, is what NHBcorp is doing.
This appears to be a scam. How can anyone pay 12 percent profitably? They take over your payments, but how do you know they're being paid and what will you do if they are not? What is your security if they default? This appears to be the old "money mortgage" scam, and we believe two of their officers have been indicted for it. If it's too good to be true, then it usually is too good to be true.
Question (IL): I entered into a contract with a real estate firm here in Illinois. The contract was not signed by the Broker of Record. Is it a law that requires the Broker of Record to sign that contract before it can be entered into the MLS listing?
Answer: A Listing Agreement entered into between an owner of a residential property and a licensed real estate broker can be signed by a salesperson licensee affiliated with that brokerage, on behalf of the real estate broker. The Salesperson is cloaked with the authority to sign the listing agreement on behalf of the broker, subject to the Illinois Real Estate License Act of 2000 (225 ILCS 454/) and the administrative code (TITLE 68: Professions and Occupations, Chapter VIII: Department of Financial and Professional Regulation, Part 1450 Real Estate License Act of 2000).
Question (IN): I recently put a contract on a house along with my $2,500 EMD. We included a home inspection clause. After the initial inspection it was recommended that a structural engineer be called in, again at my expense. Using both professionals' recommendations, I presented a counter-offer to the original offer. My counter was countered and the seller's own company completed part of the work. I did not like that as I wanted my own contractor. So my agent executed the Mutual Release document which the seller has refused to sign and is also holding on to my EMD. What would be my best next course of action?
Answer: Your best course of action is to comply -- and also require that the seller complies, with the terms and conditions of your purchase and sale agreement.
What does your agent say about this? Does your agent represent your interests in this transaction? If the agent does, then that agent must represent your best interests. Turning tail and running is simply not an acceptable option for that agent!
That said, however, no agent -- including the listing agent if there is one, can force an obstinate seller to do what is right and conform to the terms and provisions of a contract. That is one of the reasons why we have courts of law. If the seller is refusing to release your Earnest Money Deposit contrary to the terms and provisions of your purchase and sale agreement, then hire an attorney.
Question (MD): My 83 year old mother, who lives very close to me, had her house assessment raised from $170K to $372K in the past 3 years. There is no way she can sell the house for $372K on the market today.
How should we proceed with an appeal? This house is not in a very desirable neighborhood, but it is assessed for $20K more than my house which is in a very nice neighborhood.
Answer: The appeal process in the state of Maryland can be accessed by clicking here . In addition, you may wish to search for property tax consultants that provide services such as the type you are seeking by entering "Maryland+Prince Georges County+Property Tax Consultants" in your favorite search engine.
We used Google and it returned 210,000 links in 0.11 seconds. These men and women in many cases are former appraisal district appraisers who have found that offering their services to over-taxed consumers is more rewarding than working for the government. Don't get us wrong, please: We believe that everyone who owns any property -- commercial or residential, should pay their fair share of taxes, but only their fair share.
To send us a question visit AskGeorge.net and select the "Ask A Question" button. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George and Chuck are co-authors of Texas Real Estate Brokerage and Law of Agency, published by Thomson Publishing. 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.
