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Do I need an attorney
when I buy a house?
Do sellers have to
disclose the terms of other offers?
How do I get the real
scoop on homes I am looking
at?
What are the standard
contingencies?
What repairs should
the seller make?
Whose obligation is it
to disclose pertinent
information about a property?
Will a neighbor
problem reduce
the value of my property?
Question:
Do I need an attorney
when I buy a house?
Answer:
In some states, you do need an
attorney to complete a real estate transaction, but in others you do
not.
Most home buyers are capable of handling routine real estate purchase
contracts as long as they make certain they read the fine print and
understand all the terms of the contract. In particular, you should be
clear on the terms of any contingency clauses that will allow them to
back out of the contract.
If you have any questions at all, it may be advisable to consult an
attorney to avoid future legal hassles. In looking for an attorney, ask
friends for recommendations or ask your real estate agent to recommend
several. Call to inquire about fees and to check on their experience. In
general, more experienced attorneys will cost more, but real estate fees
as a rule are small relative to the cost of the property you are buying.
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Question:
Do sellers have to
disclose the terms of other offers?
Answer:
Sellers are not legally obligated
to disclose the terms of other offers to prospective buyers.
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Question:
How do I get the real
scoop on homes I am looking
at?
Answer:
Home inspections,
seller
disclosure requirements and the agent's experience will help. Disclosure
laws vary by state, but in some states, the law requires the seller to
complete a real estate transfer disclosure statement. Here is a summary
of the things you could expect to see in a disclosure form:
* In the kitchen -- a range, oven, microwave, dishwasher, garbage
disposal, trash compactor.
* Safety features such as burglar and fire alarms, smoke detectors,
sprinklers, security gate, window screens and intercom.
* The presence of a TV antenna or satellite dish, carport or garage,
automatic garage door opener, rain gutters, sump pump.
* Amenities such as a pool or spa, patio or deck, built-in barbeque and
fireplaces.
* Type of heating, condition of electrical wiring, gas supply and
presence of any external power source, such as solar panels.
* The type of water heater, water supply, sewer system or septic tank
also should be disclosed.
Sellers also are required to indicate any significant defects or
malfunctions existing in the home's major systems. A checklist specifies
interior and exterior walls, ceilings, roof, insulation, windows,
fences, driveway, sidewalks, floors, doors, foundation, as well as the
electrical and plumbing systems.
The form also asks sellers to note the presence of environmental
hazards, walls or fences shared with adjoining landowners, any
encroachments or easements, room additions or repairs made without the
necessary permits or not in compliance with building codes, zoning
violations, citations against the property and lawsuits against the
seller affecting the property.
Also look for, or ask about, settling, sliding or soil problems,
flooding or drainage problems and any major damage resulting from
earthquakes, floods or landslides.
People buying a condominium must be told about covenants, codes and
restrictions or other deed restrictions.
It's important to note that the simple idea of disclosing defects has
broadened significantly in recent years. Many jurisdictions have their
own mandated disclosure forms as do many brokers and agents. Also, the
home inspection and home warranty industries have grown significantly to
accommodate increased demand from cautious buyers. Be sure to ask
questions about anything that remains unclear or does not seem to be
properly addressed by the forms provided to you.
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Question:
What are the standard
contingencies?
Answer:
Most purchase offers include two
standard contingencies: a financing contingency, which makes the sale
dependent on the buyers' ability to obtain a loan commitment from a
lender, and an inspection contingency, which allows buyers to have
professionals inspect the property to their satisfaction.
As a buyer, you could forfeit your deposit under certain circumstances,
such as backing out of the deal for a reason not stipulated in the
contract.
The purchase contract must include the seller’s responsibilities, such
things as passing clear title, maintaining the property in its present
condition until closing and making any agreed-upon repairs to the
property.
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Question:
What repairs should
the seller make?
Answer:
If you want to get top dollar for
your property, you probably need to make all minor repairs and selected
major repairs before going on the market. Nearly all purchase contracts
include an inspection clause, a buyer contingency that allows a buyer to
back out if numerous defects are found or negotiate their repair.
The trick is not to overspend on pre-sale repairs, especially if there
are few houses on the market but many buyers willing to buy at almost
any price. On the other hand, making such repairs may be the only way to
sell your house in a down market.
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Question:
Whose obligation is it
to disclose pertinent
information about a property?
Answer:
In most states, it is the seller,
but obligations to disclose information about a property vary.
Under the strictest laws, you and your agent, if you have one, are
required to disclose all facts materially affecting the value or
desirability of the property which are known or accessible only to you.
This might include: homeowners association dues; whether or not work
done on the house meets local building codes and permits requirements;
the presence of any neighborhood nuisances or noises which a prospective
buyer might not notice, such as a dog that barks every night or poor TV
reception; any death within three years on the property; and any
restrictions on the use of the property, such as zoning ordinances or
association rules.
It is wise to check your state's disclosure rules prior to a home
purchase.
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Question:
Will a neighbor
problem reduce
the value of my property?
Answer:
While it may
not reduce the actual value, a cluttered landscape next door can detract
from the positive aspects of your home. Review your local laws, which
should be on file at the public library, county law library or City
Hall.
A typical "junk vehicle" ordinance, for example, requires any disabled
car to either be enclosed or placed behind a fence. And most cities
prohibit parking any vehicle on a city street too long.
It also may be worthwhile to check into local zoning ordinances. An
operator of a home-based business usually is required to obtain a
variance or permanent zoning change in residential areas.
In addition, if a neighbor's repair work produces loud noises, he may be
breaking local noise-control ordinances, which are enforced by the
police department.
Before bringing in the authorities, you may want to make a copy of the
pertinent ordinance and give it to your neighbor to give them a chance
to correct the problem.
Resources:
* "Neighbor Law: Fences, Trees, Boundaries and Noise," Cora Jordan, Nolo
Press, Berkeley, Calif.; 2001.
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