Recently, in the case of Holmes v. Summer, the California Court of Appeal concluded that broker Realtors in Huntington Beach had a duty to inform prospective buyers that the property listed was a short sale. What happened? Buyers made an offer on a house in Huntington Beach for $700k. The Multiple Listing Service for the house failed to mention that it was a short sale, subject to lender approval. In fact, there were three loans against the … [Read more...]
California Mortgage Brokers – Are you Ready for The Dodd-Frank Act?
As many of you have no doubt have read in the papers, President Obama signed the the massive Dodd-Frank Wall Street Reform and Consumer Protection Act ("Consumer Financial Protection Act of 2010"). One component of the Act “Mortgage Reform and Anti-Predatory Lending Act” which amends Title XIV. The regulations required by Title XIV must be issued in final form within 18 months of the designated transfer date and must take … [Read more...]
Realtors(R), Homebuyers & Homeowners & Investors – new EPA rules on lead paint may affect your sale.
Effect April 22, 2010, the EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning April 22, 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. EPA requires that … [Read more...]
California's New Loan Modification Laws and Suspended Lawyers
Our governor signed S.B. 94, and so now everyone is prohibited from taking "advance" fees to assist with a loan modification for a borrower. This prohibition includes attorneys and causes some change in law firm practices. Normally, when a borrower is coming to an attorney with a loan problem, it is likely because the borrower lacks funds to pay the lender. It also means they may lack funds to pay the law … [Read more...]
Past Litigation is a Material Fact that Sellers are Obligated to Disclose By Julia M. Wei, Esq., Law Offices of Peter N. Brewer
In California, sellers have a legal obligation to disclose any material facts affecting the desirability of the property. This duty is not only rooted in the common law, but statute as well, codified by California Civil Code Section 1102 et seq. The sellers must complete the Transfer Disclosure Statement (“TDS”) and certify the information in the TDS. Additionally, many organizations such as the California Association of … [Read more...]
"Should I Initial the Arbitration Provision?"
Here in the San Francisco Bay Area, two types of purchase and sale contracts for real estate are the most commonly seen--the C.A.R. form from the California Association of Realtors and the PRDS form from the Silicon Valley Association of Realtors. Both of them have an arbitration provision in the residential purchase contracts that the buyer and seller can voluntarily agree to. That's right, the arbitration is optional and the parties do NOT … [Read more...]
California Real Estate Litigation – The "Bad House" Case
Sometimes when lawyers talk amongst themselves, they will refer to certain real estate cases as "bad house" cases. What they are talking about is a dispute between buyer and seller over the FAILURE TO DISCLOSE material defects in the home. These are perhaps the most common disputes in residential real estate. The Transfer Disclosure Statement is mandated by California Civil Code Section 1102, and listing agent will have … [Read more...]
Real Estate Home Inspectors
Did you know that Home Inspectors are not regulated in any way by the State of California? Many home inspectors will tout their credentials and indicate that they are "Certified." The question is, by whom? The only certification available is through a self-regulated body, such as the California Real Estate Inspection Association (CREIA). This organization provides education and testing and issues designations … [Read more...]
So You Want to Buy a House…
I recently spoke with a friend about house purchasing. She indicated that despite many offers and many months of searching, she and her husband had not had any luck purchasing a house. When I asked who her agent was, she replied, "Oh, we don't need one." Despite being a highly intelligent individual, my friend failed to understand the simple correlation between her lack of a real estate salesperson and her failure to bid … [Read more...]
Listing With a Broker to Sell Your Home
These days, the media is filled with reports of people using eBay or craigslist to sell their own home. Apparently, the marketing exposure generated from those sites may match the power of the Multiple Listing Service in a hot market. After all, why give away 6% to a listing broker when you can do it yourself. If your home is worth $600,000, you've saved $36k. Right? Well, yes and no. Do you know what you are … [Read more...]