Question: I have a home that I rent to others. After negotiating a lease with two potential tenants, they disclosed that they were both real estate brokers. Is there a law or guideline which says this couple should have disclosed this information prior to my renting to them?
Answer: In most states real estate brokers and salespeople are required to disclose the fact that they are licensed. State rules vary, but the general idea is that licensure status should be disclosed because it's assumed that someone who is licensed is more knowledgeable regarding real estate than someone who is not and therefore has an advantage in the marketplace.
For specifics in your jurisdiction, contact your state real estate commission or a local real estate attorney.
Question: My husband and I are looking to buy our first home together. We want to find a fixer upper in an area that's starting to experience a good deal of revitalization so that after a few years the completed renovation will earn us a reasonable profit.
Our ideal home would be an older place in need of moderate to major repairs (drywall, light electrical, adding bathroom or addition, kitchen remodel, refinish floors, paint inside and out) because my husband is a carpenter. We'd like to find said home a block or two off of a one of the "historic preservation areas" around our city.
After looking through listings and county records we can see that other people are buying into these areas, and that the down-and-out homes are listed at three times less than those renovated homes a few blocks away.
Our problem is that the real estate agent we've been working with keeps telling us that we don't want to look at these places because the neighborhoods are not very nice (today) or the house needs too much work. He keeps steering us toward split-level ranches in modest subdivisions outside of town that need new paint and appliances, which are not at all what we want.
Does this guy have an ulterior motive to steer us away from what we say we want or does he just not get it? Are we foolish or naive to consider buying a diamond in the rough, or do we just need will help us find what we want? This guy came highly recommended from a good friend.
Answer: There are several issues to review here.
First, brokers have a right to make recommendations and in the case of someone with experience it is often wise to consider what they say. That said, you should ultimately make the choices which in your judgment work best for you.
Second, what is your relationship with this broker? If you have a written buyer brokerage agreement then you must honor your contract.
If you do not have a buyer brokerage agreement then you may want to consider the use of other brokers. Alternatively, if you do have a buyer brokerage agreement then you are the "client" and the broker is obligated to follow your lawful instructions.
As to whether you are "foolish" or not, that seems unlikely. Your husband is a carpenter, a valuable trade for those with an interest in fixing-up homes. While there can be no guarantee of success, at least your home buying approach is logical and reasonable.
Why not sit down with the broker and review what you want and what you do not want.
Question: My long-term (16 year) boyfriend and I bought a house a few years ago, with both of our names on the title and mortgage. He has been out of work for the past six months and is making no attempt to help pay any of the bills.
What can I do? Can I kick him out? I'm so tired of paying for everything, which is now depleting my savings account.
Answer: Financial problems are often terribly difficult for couples to handle. Also, the loss of a job has powerful implications beyond money. Think of such issues as ego, status and image. This cannot be easy for your boyfriend.
You jointly own an asset -- and you jointly can be impacted by late payments, no payments and foreclosures. It is in your mutual interest to get this resolved.
What to do? Have your significant other get a job -- part-time, full-time, short-term, career, whatever. As a place to start, perhaps have him contact a temp agency and ease back into the workforce.
Question: I worked with a buyer for months and showed her several properties listed on local MLS. I showed her one property where the listing agent was married to seller, a property listed at $970,000. The property was overpriced according to comps. We made a $875,000 offer which was rejected.
A month later the buyer drives by house, sees an open house sign, stops and the listing agent gets the buyer to write offer with him at $915,000 and assures him it will be accepted. It is accepted!
The earlier offer that I made was not countered to nor was any bottom line offer discussed. I know the listing agent was not supposed to tell me about a bottom-line price but neither was he to tell this to my buyer, to induce her to write offer with him. He would not have this buyer without my originally showing the house and submitting offer. Can I pursue a claim for procuring cause?
Answer: The matter of "procuring cause" -- the right of a real estate licensee to collect a commission for having set in motion of a chain of events which leads to a sale or purchase -- is often complex and convoluted. One would have to consider the precise facts and circumstances in each situation to determine an answer.
In looking at your note it does not say you had a written buyer brokerage agreement. If such an agreement exists and if it properly covers the transaction, then you may have a claim.
However, without a suitable buyer brokerage agreement what have you got?
You made an offer $95,000 below the asking price, an offer which was not accepted. A seller has no obligation to respond or make a counter-offer. You could have suggested a higher second offer to your purchaser.
The listing agent, you say, assured the buyer that an offer of $915,000 would be accepted. However, we do not know the exact words which were said. It may be that the agent merely said he would recommend the offer to the owner or it may be that he said nothing of the kind. Since there's no transcript we can't know.
Complicating this matter is the fact that the agent is the husband of the owner. By any chance, is the agent also an owner of the property? Does the agent have an "equitable" interest in the home? It doesn't seem likely that the seller wife will complain about the seller agent who got an additional $40,000 for the property.
What did you do with the buyer in the month-long period between when the offer was made and the open house? Were you in contact? Did you offer to follow up with the property? What do your records show?
You certainly can and should discuss this matter with your broker and an attorney. Show them your buyer brokerage agreement. Absent such a document it will be difficult if not impossible to collect a fee.
Question: I just read an article you wrote Realty Times. I was searching information on title insurance, trying to learn as much as I can now, before I sign and return the paper work. I live in NJ. I am doing a refinance again, my second time since 2004. I had a loan that was an 8 percent fixed rate for two years and after two years it adjusted to my current interest rate is 12 percent!
I am so upset about this new interest rate, and the extra $600 payment a month. I did not realize the rate could jump that high. I knew it was tied to the prime rate, and capped, but I did not think it could actually jump from 8 to 12 percent so fast! I thought it would happen gradually over the years, not all at once.
So now I am refinancing to a fixed rate for 20 years. I just received my Good Faith Estimate and in it, the title insurance fee is $1,925. I just paid title insurance two years ago, and that fee was $1,200.00. Is their something that I may not know regarding the payment of this cost again?
Answer: Are you sure the new loan is also not a mortgage product that will adjust in a few years?
As to title insurance costs in New Jersey, since you had a title search two years ago, ask if you're entitled to a "re-issue" rate. That should noticeably reduce your cost.
Question: My home has just been reinstated out of foreclosure. My funds were received on March 30th and overnight tracking confirms delivery was on March 27th. I also overnighted my April 1st payment and delivery was signed on April 3rd. As of today, April 4th, my loan balance has not reflected any payments posted. When I called the representative, it was stated that they do not back date payments.
What can I do?
Answer: You are responsible for delivering mortgage payments by a given date. You have evidence that your payments were received. It may well take the lender several days to post an item, especially if there was a weekend or holiday involved.
For credit reporting purposes, only items at least 30 days late are shown. Even if the lender takes a few days to post your April payment it will not be a credit issue.
Why not give the lender a few days to update your account? If, alternatively, you are contacted by the lender with a claim of non-payment take the matter to a nearby attorney.
As to the payments used to bring the loan current, the issue here is different. You apparently missed one or more earlier payments. Those payments will show up on your credit report as "late" because, in fact, they were.
By re-instating the mortgage you have avoided foreclosure, brought your loan current and made your next required payment. I suggest that you continue to make payments via overnight delivery for the next few months so you have evidence of when payments were made.
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