Behind The Real Estate Curtain

Between 2004 and 2007 some drywall manufactured in the People's Republic of China and imported into the United States contained elemental sulfur exceeding 10 parts per million that when exposed to heat, humidity, or both, releases elevated levels of hydrogen sulfide gas into the air.  Additionally, there was drywall imported from China that has been designated by the U.S. Consumer Product Safety Commission as a product with a product defect that constitutes a substantial product hazard within the meaning of § 15 (a)(2) of the Consumer Product Safety Act (15 U.S.C. § 2064 (a)(2)). If the Sellers have knowledge that their property contains any of the affected drywall, they are required by Virginia State law 55-519.2 to disclose this to any potential Buyers.  This disclosure is exempt if the property falls under the exemptions contained in 55-518;   ·          Transfers pursuant to court order of an estate, ·   ...

Previously I posted the Buyers are responsible for conducting due diligence about a property they are considering purchasing.  I also listed in that same post titled “Buyer Beware” the list of disclosures are not required to make.  However, there are disclosures Sellers are required to make.  One is pertaining to military air installations. According to Virginia state law 55-519.1 Sellers are required to disclose to any potential Buyers if the subject parcel is located in a noise zone or accident potential zone, or both.  Such disclosure shall state the specific noise zone or accident potential zone, or both, in which the property is located according to the official zoning map. Every jurisdiction where an air military installation is located will maintain an official zoning map that delineates crash zones and noise zones.  Most of these maps are available online or by contacting the jurisdiction the property is located.  Having spent thirt...

Virginia is a “Buyer Beware” state.  Buyers are responsible for conducting due diligence investigations as to the property they are purchasing as well as the surrounding properties. The Sellers are only responsible for disclosing conditions, of which they have knowledge that may affect the health, safety and structural soundness of the property offered for sale.   They are not responsible for disclosing anything that may be planned outside those four corners. Virginia State Code 55-519 outlines everything that the Seller is not responsible to disclose, i.e.; ·          no representations or warranties as to the condition of the real property or any improvements thereon, or with regard to any covenants and restrictions as may be recorded among the land records affecting the real property or any improvements thereon ·          no representations with respect to any matters tha...

So you’ve found the perfect house.  Lots of open space.  Huge windows to allow natural light to bathe the rooms.  The perfect location close to great schools, parks, shopping and activities.  The rooms are even painted in colors you love.  You are in love with this new home. But wait!  Is it everything it is presented to be?  Are there any secrets lurking beneath that could cost you big bucks in the long run?  Maybe.  Maybe not.  The only way to reign in your emotions is to have an unbiased third party examine the home.  That person is a home inspector.  The inspector, if they are proficient at what they do, will look in every nook and cranny from the top of the roof to the bottom of the basement or crawl space and everywhere in between.  They will make a list of everything they find that is deficient, questionable or impressive…complete with photos. Once you receive the report, you should read it carefull...

Signing a Buyer Broker Agreement with an agent means that the agent now represents you as a “regular” agent.  In that agreement you will also be asked if you are willing to work with a Dual Agent or a Designated Agent.  Let me explain… A “regular” agent is the agent showing you properties that meet your criteria but they are not the listing agent for that property.  The properties may be listed by that agent’s brokerage firm, but by another agent.  If you agree to Dual or Designated Agent then that agent may also show you properties they are the listing agent on.  They must advise you they also represent the Seller when they show you the property. If you choose to make an offer on any of the properties you agent is the listing agent on, then the concepts of Dual Agent or Designated Agent come into play.  Let me explain: A Dual Agent is an agent who represents both the Seller and the Buyer at the same time.  Both the Seller and the ...

Whether you are Selling or Buying, if you agree to work with an agent by signing a listing agreement or a Buyer’s Broker agreement, you have agreed to pay a commission. What?  But aren’t the Sellers suppose to pay the commission? Usually.  This is how it works. When a Seller lists their home for sale with a brokerage firm, they have agreed to pay that brokerage firm a commission.  That commission can either be a set dollar amount or a percentage of the final sales price.  The Seller’s agent, when the property is listed in the multiple listing service, agrees to split the agreed upon commission with any other brokerage firm that brings a contract to purchase and the Seller accepts. If the listing agent or another agent working for the listing brokerage brings a Buyer, the listing firm receives the entire commission.  That commission is then divided between the listing agent, selling agent, listing brokerage and if there is a separate selling brok...

Once upon a time when you worked with a real estate agent to purchase a home, you assumed the agent you were working with was working for you. This assumption couldn’t have been further from the truth. In reality they were also working for the Sellers. But things have changed. Today, agents are required to notify you IN WRITING who they are working for. If they are working for the Seller, they are required to disclose that to you. If you “hire” them to represent you then VA state law 54.1-2137 requires that the brokerage relationship be put in writing. The agreement must contain the following: A definite termination date State the amount of the brokerage fees and how and when such fees are to be paid State the services to be rendered by the licensee Include other terms agreed to by the client and the licensee Whether there is dual or designated representation (to be discussed in a later post) Even if you sign a Buyer Broker Agreement, there could be a question if your agent is r...