Q-We are just starting to look for a home. When we go to Sunday open houses, some agents tell us the appliances, carpets and drapes are included;
other agents tell us these are not. What is the rule on including appliances in the sales price?
A-As master-negotiator Herb Cohen says, ”Everything is negotiable.” By the way, his book by that title is outstanding.
When you see a home you want to buy, just include in your written purchase offer a list of the items you want included, such as stove, refrigerator, carpets, drapes, the cat, the dog, the parakeet, the goldfish, the furniture and whatever else you see that you want. The worst that can happen is the seller might cross off items, but the best is those items might be included in the sales price.
Is a duplex a good deal?
Q-Instead of buying a single-family house, I am considering buying a two- family duplex where I would live in half and rent the other half to a tenant. Is this a good idea?
A-No. The market value appreciation of duplexes usually is less than for nearby single-family houses. Another problem is that you may not want to live so close to your tenants.
What price friendship?
Q-Two years ago a good friend and I bought a townhouse as 50-50 owners. All went well for about a year until we started fighting. I don`t approve of his lifestyle. After I protested several times, he said we should sell the townhouse or I should buy him out. But I don`t want to sell and I can`t afford to buy him out. Last month he went to see a lawyer who filed a lawsuit to force the sale of the townhouse. Is he just trying to blackmail me, or can I be forced to sell?
A-A major drawback of joint tenancy and tenant in common ownership is that one co-owner can force the sale of the property in a partition lawsuit.
When it is not feasible physically to divide the property between the co- owners, the court can order the property sold and the sales proceeds divided between the co-owners. Your situation shows why joint tenancy and tenant in common ownership usually is not desirable.
A better alternative would have been to own the property in a partnership. The partnership agreement can provide for buyout agreements, sale of the property and unexpected events such as when one partner cannot afford to pay for needed repairs.
$175 holds up $325,000 sale
Q-We have contracted to buy a house for $325,000. Everything was going well until the title insurance company discovered a $175 judgment lien from a small claims court recorded against the seller. She claims the lien is not hers, but her name is very unusual, so I think the judgment is correct. Is there any way to close the sale while awaiting settlement of this little claim?
A-Yes. It usually is possible to close the sale by having the closing settlement agent hold back from the sales proceeds an amount double the lien until the dispute is settled. Please consult the person who will be closing the sale so a reasonable solution can be agreed upon.
The seller`s to blame
Q-We contracted to buy what we thought was a three-bedroom home. But last week my husband went to city hall to learn what would be required to add a family room and a second bathroom. To his surprise he learned that the third bedroom was added illegally without a building permit. To legalize the addition, the city will require complete inspection and possibly removing some of the walls to check the wiring. Do we have to go ahead with the purchase? If so, can we get the seller to pay for legalizing the addition?
A-If the seller did not disclose the illegal addition and you learned about it before the sale closed, you need not complete the purchase because the property was misrepresented to you. The seller must refund your earnest money deposit if you elect to cancel the sale.
Another alternative is to require the seller either to reduce the price by the amount of your damages or to pay the costs of having the room addition legalized. Home improvements constructed without proper building permits and inspections not only can be dangerous but also can hurt the value and resale potential of the home. Please consult a real estate attorney for details.
VA liability
Q-My wife and I were divorced four years ago. She got the house with its VA mortgage. Shortly after she became unemployed and quit paying on the mortgage. She lived in the house almost a year before the VA foreclosed. Then she filed bankruptcy to stall the foreclosure sale. Finally, the VA foreclosed and my ex-wife was kicked out of the house. The VA says they lost about $4,500 after they eventually found a buyer for the house. Now the VA wants me to pay for their loss. Can they do this to me?
A-Yes. Unless you were released of liability on the VA mortgage at the time of your divorce, you remain liable to the VA for any loss upon foreclosure of the house. Please consult a real estate attorney for details.
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Please note: Real estate laws should be checked before making real estate decisions.
