Q-I am recently divorced and want to buy a modest home for my son and myself. I have about $45,000 from the settlement with my former husband. Thankfully, I have an excellent executive secretary job with a bank, so obtaining an employee mortgage is no problem. However, I am not sure how can I best protect myself so I don`t get stuck with a lemon.
A-There are several ways to avoid getting stuck with a lemon of a house. When you find a house you want to buy, make your written purchase offer contingent upon your approval of (a) the seller`s written disclosure of all known defects in the house and (b) a professional inspection of the house.
Your real estate agent can assist you in obtaining the seller`s written disclosure statement and arranging a professional property inspection. Incidentally, be sure to accompany the inspector, so you can see any defects that are discovered and learn whether they are serious or superficial.
An additional protection is to insist the seller provide you with a one-year home warranty policy. This insurance pays for repairs to the plumbing, wiring, built-in appliances and furnace during the first 12 months after purchase. For an additional premium, the air conditioning, pool and roof also can be included in the warranty.
Just as you can`t always be certain that a new car won`t have defects, there is no absolutely perfect technique to be sure you are buying a trouble- free house. But these methods are the best you can use to minimize the chances of buying a lemon.
Property condemnation
Q-I am 82 and live in a home that is located adjacent to a large hospital. For many years the hospital has been trying to buy my home, so it can expand, but I don`t want to sell because I have no place to move. Last month the hospital administrator wrote me a letter saying if I don`t agree to sell, the hospital will condemn my house and force me to sell. Can the hospital do this to me at my age?
A-If the hospital is a private institution, under the laws of most states it has no right to take private property by eminent domain condemnation. However, if it is a public hospital-a governmental agency such as a general hospital-it may have eminent domain rights. But such public governmental agencies are obligated to first try to negotiate a fair price before taking private property by eminent domain.
Perhaps if you visit with the hospital administrator and explain you would be willing to sell for a good price if you can find a nice place to move, the administrator can assist you in finding a suitable new residence. However, I suggest you retain an attorney to advise you, so you are not cheated and you receive the fair market value for your home, considering its valuable location next to a large hospital.
Poor condo management
Q-I own a rental condominium that has been vacant for over six months. Because the homeowner`s association is not maintaining the exterior, hallways and recreation area very well, I find it virtually impossible to rent my condo unless I discount the rent below my costs. I know my credit will be ruined if I stop paying the mortgage and property taxes, but what will happen if I stop paying the monthly condo assessment fee, which, I feel, is not being well spent?
A-If you fail to pay the monthly condo maintenance assessment fee, the condo homeowner`s association can record a lien against your condo and foreclose on it, much like a lender forecloses on a delinquent mortgage.
Since you are unhappy with the condo management, instead of just complaining, I suggest you become active in the condo homeowner`s association by attending the monthly board of directors meetings and making constructive suggestions to improve the management.
Condo homeowner associations are mini town halls where every owner has a vote. Only if you are willing to participate, such as joining one of the association`s committees and contributing your time to help improve things, can you hope for improved management.
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The new special report ”How to Get Rich in Real Estate Today,” by Robert J. Bruss, is available for $4 from Tribune Publishing Co., 75 E. Amelia St., Orlando, Fla. 32801.
Please note: Real estate laws differ from place to place, and laws of your area should be checked before making decisions on real estate problems. Robert Bruss will answer inquiries addressed to Tribune Real Estate Features Service, P.O. Box 280038, San Francisco, Calif. 94128.
