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Disclose, Disclose, Disclose When Selling or Leasing your Property

July 16th, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers

Why is it Important?

Sellers/Landlords and Real Estate Agents are obligated to disclose to prospective Buyers/Tenants any material fact that affect the value of the property or has any condition that may affect the health or safety of the future occupants. Many sellers/landlords/agents take disclosures lightly and it can come back to haunt them even years after the transaction closed.

Just a few of the many things that MUST be disclosed:

Lead-Base Paint: Properties built prior to 1978  “any condition that caused exposure to lead from lead-contaminated dust, soil or paint that is deteriorated or present in accessible surfaces or surfaces that rub together, like doors and windows”.

Mold: Any potential source of moist that could have created mold: leaks, floods, broken pipes. Even if it can’t be seen mold may be hidden behind dry walls or under carpets. There was a case a few years ago on a Rental where the Tenant’s kid was highly allergic to mold and after moving to the property the child got very sick.  The Tenants found out that some time prior they moved in the property was exposed to mold and since it was not disclosed they rented the property. The story ended with the Tenants suing the Landlord for failure to disclose.

Structural Issues:A property went under contract and the general inspector found a crack in a foundation that looked suspicious and recommended an Structural Inspection.  The Buyer cancelled the contract and the property went back on the market. The seller didn’t think it was necessary to disclose the fact and sold the property to another buyer. The new Buyer’s Inspector didn’t notice the problem and the buyer went ahead a purchased the property, to find out a few months later that there was a huge Structural problem. Both the Seller and the agent for the Seller were involved in a legal case that they lost. They knew there was a problem and failed to disclose it.

Known Code Violations and non-permitted additions/improvement: the main problem with non-permited additions/improvements aside from the safety issues is the fact that if the new buyer needs to pull permits and the city finds out there are code violations it can open a can or worms. The result can be that the addition must have to be permitted (a nightmare) or removed.

Chinesse Drywall:this is our newest concern…during the construction boom many homes were built with Drywall imported with China.

Disclose Facts not Opinions unless you are an expect. A little crack that looks insignificant may be just a crack or can be the expression of an structural program. As the author of an article I read today says: If you have to ask if you should disclose it, DISCLOSE IT!

Written by Ines Garcia | Discussion: 1 Comment »

Weston Real Estate Market Trends – June 30th 2009

July 1st, 2009 categories: General RE Info, Market Update

Months of Inventory Based on Closed Sales is for me one of the best ways to get a snapshot of the Real Estate Market.

As of June 30th:

Single Family Homes:

Condos and Townhouses:

If we look closely at this data there is something that doesn’t make much sense. How can we have such a huge gap? Looking in detail where the  numbers come from I concluded that the SFH data was accurate but the data for Condos and Townhouses is distorted.

Why the Data for Condos/TH was distorted? Be Aware of Raw Statistics!

Of the 289 Active Units I found the following:

How Condos and Townhouses are really doing, after cleaning up the Data?

In conclusion if you are listing a Condo or Town House it must be marketed wisely!

Written by Ines Garcia | Discussion: No Comments »

Forget About Quick Closings? When Will the Closing Take Place?

June 23rd, 2009 categories: General RE Info, Mortgage, Tips For Buyers, Tips for Sellers

fotolia_13096511_xsThe New Government Regulations May Impact Closing Dates, for a transaction to close in less than 30 days we need “the perfect world being in motion and the starts lighting our way”.

What is HVCC?

Effective May 1st, 2009 the Home Valuation Code of Conduct (HVCC) was created to reinforce appraiser’s independence, protect lenders from unethical practices and to improve the overall integrity of the valuation process.
As a way to protect consumers it makes sense because it shields appraisers from being influenced by lenders; but from a practical point of view is curb-some and more expensive to borrowers because it forces them to lock in the mortgage rate. In the past the principle of independence was violated too often and it was one of the reasons the prices could keep increasing at an unrealistic pace but the impact in closings dates and disputes is yet to be determined.

How it Impacts the Closing Timeline?

-The earliest a transaction can take place is 7 business days after the borrower is issued his mortgage disclosures from the lender.
-Upfront fees can not be collected by the lender until disclosures are received by all the borrowers. Starting July 30, 2009 the fees can be collected only when the application is taken in person and the home-buyers receive the initial disclosures
-The Lender does not order the appraisal directly;  it can cause a delay in the process and the appraiser might not be the most qualified for an specific area.
-The borrower must receive a copy of the appraisal at least 3 days prior to closing date; the buyer has the option to waive this requirement.
-Any increase of more than 1/8th percent in the APR from the initial Truth in Lending Disclosure must be disclosed to the borrower and it must be received at least 3 days prior to closing. This requirement implies that the rate should be locked or it may change during the course of the transaction creating potential delays in the closing date.

As good as it is to protect consumer, as a real Estate Agent I find the process complicated and an additional potential source of conflict between the Buyer and the Seller. There are enough things that can go wrong in the course of a real estate transaction and each an everyone of them can delay closing dates.

Why Closing Dates are so Important?

Because there is a lot of stress involved in moving! The truck is already loaded, I have to leave my place by certain date, I have no place to go, delaying the closing will cost me X amount of dollars per day…  you name it! If you have been there you will understand it better. Let’s say the closing is scheduled on June 30th.; the Buyer received the commitment letter on June 15th, there mortgage rate increases 1/4% by June 29th and the Buyer didn’t lock in his rate. What happens? New Disclosures must be sent to the Buyer and the closing can’t take place until August the 2nd. With such a short notice can you imagine how Buyer’s and Seller’s life is disrupted.
I always say to my clients: the closing date is a target date…be prepared for last minute changes and have your plan B ready. We all work very hard to close on time but many things can happen at the last minute. Having expectations set up upfront eases the frustration but does not avoid it. It easier said than done!

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Written by Ines Garcia | Discussion: 2 Comments »

How West Broward Real Estate Markets Compare?

June 18th, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers

West Broward Real Estate Market Comparison

West Broward Real Estate Market Comparison

The Real Estate Market in West Broward is definitely leaning towards being a balanced market. The long term trend is still uncertain. The summer is the most active time of the year for these neighborhoods but the performance year-to date sets a very positive trend. Compared to many other neighborhoods West Broward is doing very well.

Interestingly in Pembroke Pines West Months of Inventory based on the last 30 days Closed sales shows signs of being a Buyer’s Market. I know it sounds an overstatement but the numbers don’t lie. The percentage of Short sales Listings in all the area is still very high running from 34% to 50%. In most areas, except Weston, Short Sales represent more than 50% of the active inventory. Challenging as Short Sales are, whoever is looking to buy specially in the Lower prices will have to seriously consider going through the pains of a Short Sale Process.

Written by Ines Garcia | Discussion: No Comments »

New Law Allows Partial Payment of Property Taxes in Florida

June 16th, 2009 categories: General RE Info, Tips For Buyers

Good News for Florida Homeowners

The Florida Senate passed a bill authorizing tax collectors to receive partial tax payments under certain circumstances. At his/her discretion, each tax assessor has the right to determine the qualifiers. Until now that option didn’t exists, state law prevented  property owners to give a partial payment to property tax collectors unless they have agreed to a payment plan ahead of time.  If there is a portion of the taxes still owed by May 1st that balance will be treated as delinquent taxes.

The law in not retroactive for 2008 property tax bills and will be in effect on July 1st, 2009 for this year’s property tax payment.

Written by Ines Garcia | Discussion: No Comments »

Weston Real Estate Market Trends May 2009

June 8th, 2009 categories: General RE Info, Market Update, Tips For Buyers, Tips for Sellers

Is Weston’s Real Estate in a Balanced Market?

In the month of May 2009, 59 single family homes sold in Weston, Fl. By the beginning of June there were 492 active SFH listings in Weston. That means we had 8.3 months of inventory based on Closed Sales.  On April we had 8.6 months of inventory based on Closed Sales. Granted we are in the “Hot Season”, not only for the temperatures, and the begining of the Summer are the months of more sales activity in the city. As a refence of how much the market has improved last year in April we had 12.5 and in May we had 11.9 months of inventory based on Closed Sales. A balanced or healthy market is one where we have 6 to 9 months of Inventory based on Closed Sales.

In the Month of May the breakdown by price was a follows:
Under $ 199,999.00 :  4 Homes
Between $ 200,000.00 and $ 399,999.00 : 32 Homes
Between $ 400,000.00 and $ 599,999.00 : 18 Homes
Between $ 600,000.00 and $ 999,999.00 : 3 Homes
Over $ 1,000,000.00 : 2 Homes

Weston,Fl May 2009 Sales SFH

Weston,Fl May 2009 Sales SFH

Where are the Bargains?

Of the 59 sales in May 2009 in Weston,Fl 11 were Short Sales and 5 Foreclosures. The Myth that only Short-Sales and Foreclosures are selling seems to have no basis. Two of the Bank Owned Properties sold above the Asking Price (not much though) and the other 3 very close to the asking price. Four of the 11 Short Slaes also sold slightly over the asking price. in the regular sales the list to price ratio was 94% (not including the sales over 1,000.000.00 since they would throw out the averages).

Written by Ines Garcia | Discussion: No Comments »

U.S. Senate Votes To Create Nationwide Mortgage Fraud Task

May 7th, 2009 categories: General RE Info, Tips For Buyers

On Wednesday, May 6, 2009, the U.S. Senate voted to create a Nationwide Mortgage Fraud Task Force modeled after the Mortgage Fraud Task Force created by Miami-Dade Mayor Carlos Alvarez in 2007.

Introduced by U.S. Senator Bill Nelson and Congressman Kendrick Meek of Florida and amended onto Bill S.896, Section 302 of the bill, establishes a Nationwide Mortgage Fraud Task Force within the U.S. Attorney General’s Office. Section 302 Task Force Bill S.896 was introduced by U.S. Senator Christopher J. Dodd of Connecticut. In the U.S. House of Representatives, Bill H.R.1106 was introduced by Congressman John Conyers, Jr. of Michigan in February 2009. -

“Mortgage fraud is one of the fastest growing crimes in Miami-Dade County and the entire U.S.” said Mayor Alvarez. “Last year, more than 1,000 mortgage fraud cases were reported in our community and 63,000 cases nationwide. This new bill will help all communities reduce mortgage fraud and prevent victimization. I want to thank my Task Force Chairman Glenn Theobald and all of the federal legislators for this new legislation

The Attorney General shall provide the Task Force with the appropriate staff, administrative support and other resources. The Nationwide Mortgage Fraud Task Force will address mortgage fraud in the U.S. The Task Force will also solicit the voluntary participation of federal, state and local law enforcement and prosecutorial agencies to organize initiatives to address mortgage fraud, including initiatives to enforce federal and state mortgage fraud laws

Since its creation in September 2007, the Mortgage Fraud Task Force has

· Made more than 150 arrests

· Drafted new state legislation, Florida Statutes 193.133, which was adopted on July 1, 2008. The new legislation requires law enforcement to notify the property appraiser’s office when fraud has been detected and mortgage fraud over $100,000 will now be considered a 2nd degree felony.

· Created the first Code of Conduct Model for real estate professionals and others involved in real estate transactions

· Created the first local public/private partnership Task Force in the nation to fight mortgage fraud

· Streamlined reporting and investigating of mortgage fraud by creating an online form

· Created a Speaker’s Bureau.

· Involved other local, state and federal agencies in a comprehensive approach to fight mortgage crime

The Mayor’s Mortgage Fraud Task Force is chaired by Glenn Theobald, Chief Counsel of the Miami-Dade Police Department, and made up of law enforcement officials, prosecutors, business leaders, elected officials and other public servants. Through their vision and direction the Task Force aims to help reduce and prevent mortgage fraud through law enforcement and prosecution, legislation and public education

Miami-Dade Mortgage Fraud Task Force Partners

Miami-Dade Police Department, Miami-Dade County Consumer Services Department, Miami-Dade County Property Appraiser’s Office, Miami-Dade County Clerk of the Courts, Miami-Dade County State Attorney’s Office, U.S. Secret Service, U.S. Attorney’s Office, IRS, FBI, Office of the Treasury, the Florida Attorney General’s Office, Florida Department of Law Enforcement, Office of Financial Regulation, and the Department of Business and Professional Regulation. Coldwell Banker; Regions Bank; Florida Bankers Association; Florida Attorneys Title “The Fund;” Cohen, Fox; Coffey, Burlington; Abacus Lending; and National Title Insurance.

Written by Chris Hotz | Discussion: No Comments »

Fed announces new program to help commercial real estate lending

May 5th, 2009 categories: General RE Info

New TALF (Term Asset-Backed Securities Loan Facility) program launches in June.

On Friday, the Federal Reserve announced that it will launch a much-awaited program in June to bolster commercial real-estate lending.   And, to help make the program more attractive to investors, the Fed will provide longer, five-year loans. Investors would use the money to buy securities backed by commercial real-estate loans.

The goal is to boost the availability of these loans, help prevent defaults on commercial properties like office parks and malls, and facilitate the sale of distressed properties, the Fed said.

The new commercial real-estate component is part of a broader program rolled out in March that aims to jump-start lending to consumers and small businesses called the Term Asset-Backed Securities Loan Facility, or TALF.

It figures prominently in efforts by the Fed and the Obama administration to ease credit stresses and stabilize the financial system. Those are critical elements needed to lift the country out of recession.

The TALF has the potential to generate up to $1 trillion in lending for households and businesses.

Earlier this year, the government said it planned to expand the TALF to include help for commercial real estate lending.

“There’s a looming crisis in commercial real estate whereby owners of shopping malls, hotels, rental properties and many other types of buildings are unable to refinance or to pay for new construction,” Fed Chairman Ben Bernanke warned lawmakers on Capitol Hill in March.

The market for so-called commercial mortgage-backed securities, or CMBS, came to a “standstill in mid-2008,” the Fed said Friday in announcing the launch of the new piece of the TALF program. The CMBS market accounted for almost half of new commercial mortgage originations in 2007, the Fed said.

The commercial real-estate lending industry especially welcomed the Fed’s decision to offer longer loans.

“A five-year term is more consistent with the longer-term nature of commercial lending and will provide more flexibility to borrowers as they navigate the current real-estate cycle,” said Christopher Hoeffel, president of the Commercial Mortgage Securities Association.

The association “strongly advocated for a term of five years to kickstart investor demand,” he added.    To read the article in it’s entirety click here.

Written by Debra Spadafora | Discussion: No Comments »

Chinese Drywall Update

May 1st, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers

According to recent news reports, there may be anywhere from 36,000 to 100,000 homes across the country built between 2003-2008 that may contain tainted drywall imported from China. Drywall commonly used for interior walls and ceilings in homes is usually manufactured in the U.S. however, due to several hurricanes and the building boom, a shortage of drywall occurred. To stay on schedule many builders had to order drywall from outside the U.S.  Unfortunately, this resulted in some tainted drywall being imported from China. In March, the Florida Department of Health reported that recently analyzed drywall samples from China emitted a sulfur smell when exposed to heat and moisture. The department released the analysis of samples comparing American and Chinese drywall, finding that the Chinese samples gave off the sulfur odor.

Florida’s health department is currently analyzing the potential hazards from the tainted drywall, which potentially includes damage to electrical wiring, air conditioning parts and other appliances due to the presence of sulfide gases in homes built with the product.

Florida is not alone. Media reports indicate that drywall imported from China was also used in homes in other States, including Louisiana, Georgia, Mississippi, North Carolina, South Carolina, Texas, and Virginia.

Legislative Action

On March 30, 2009, U.S. Sens. Bill Nelson (D-FL) and Mary Landrieu (D-LA) filed two bills relating to this issue in an effort to press the Consumer Product Safety Commission (CPSC) for a recall of Chinese-made drywall based in part, on findings by a Florida home builder and state officials who have confirmed the presence of sulfide gases in homes built with the drywall.

S. 739, the Drywall Safety Act, would require the CPSC to work with federal testing labs and the EPA to determine the level of hazard posed by certain chemicals and unidentified organic compounds found in the drywall. The legislation also calls for an interim ban on drywall imports until federal drywall safety standards can be created to protect consumers in the future.  Nelson and Landrieu are pushing for a recall in hopes of jump-starting a process to help affected homeowners with the costs of repairs or replacement. Their legislation would make manufacturers responsible for these costs. According to news reports, a companion bill was introduced in the U.S. House of Representatives by Rep. Robert Wexler, D-Fla.

U.S. Rep. Robert Wexler (D-FL) also sent a letter to Governor Crist requesting the Governor declare a state of emergency over this issue. A spokesperson for Governor Crist has stated that he is not clear what practical effect a state of emergency declaration would have at this time.

Senate Resolution 91 can be found here.
Senate Bill 739 can be found here.
Senator Nelson’s news release on the legislation click here.
For video on Congressman Wexler’s actions, click here.

Written by Chris Hotz | Discussion: No Comments »

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