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Property Disclosures: Seller Required, Buyer Desired
One of the most important aspects of a residential real estate transaction is finding out as much as one can about the property before completing the sale. For sellers, this means being up front about certain issues, and for buyers this means doing what's known as due diligence: having the property inspected, reading and understanding the seller's disclosures, and asking as many questions as you need to feel comfortable buying the home.
Both sellers and buyers will receive from their agents a booklet called the "Residential Disclosure Guide" written by the Nevada Real Estate Division. The booklet is designed to increase consumer awareness and understanding of the disclosures that may be required in a residential transaction. It lists and explains disclosures required by federal, state and local laws.
One piece of the disclosure puzzle is the Seller's Real Property Disclosure form, also known as the SRPD. With a few limited exceptions, the SRPD is required to be provided by a seller at least 10 days prior to the conveyance of the property. (Contractual provisions may shorten that time frame.) The seller should use care when completing the form, and answer all questions truthfully as to what they are aware of in the property. Failure to provide the form or to answer untruthfully may have serious consequences under Nevada law. For example, if the seller knew there was mold in the home and failed to disclose it, the buyer could sue and recover three times the amount of money it took to fix the mold problem.
When reviewing the SRPD, buyers should make note of any answers that may concern them, and ask the REALTOR® representing them to follow up with the seller's agent. If any questions on the form are left unanswered, the buyer may request a response. Buyers should also be mindful of their statutory right to cancel the transaction with a written, signed and notarized cancellation notice within 4 business days of receiving the SRPD. The buyer may also waive the SRPD.
Nevada law does not require a seller to disclose a defect of which he is not aware, nor does the SRPD constitute an express or implied warranty regarding any condition of residential property. Additionally, the law does not relieve the buyer of the duty to exercise reasonable care to protect himself.
Long-Term Mortgage Rates Hold Steady This Week
February 4, 2011
Average interest rates for 30-year and 15-year mortgages were mixed in the week ending Feb. 3, the U.S. Federal Home Loan Mortgage Corp. said.
The average interest rate for 30-year, fixed-rate mortgages rose from 4.8 percent to 4.81 percent with 0.8 points. Average interest rates for 15-year contracts dropped from 4.09 percent to 4.08 percent with 0.8 points, Freddie Mac said.
Rates for 15-year, fixed-rate mortgages a year ago stood at 4.4 percent. Rates for 30-year mortgages a year ago averaged 5.01 percent.
"Mortgage rates held relatively stable this week on news that the economy improved and inflation remained in check at the end of 2010," Frank Nothaft, Freddie Mac vice president and chief economist, said.
Nothaft noted that the NATIONAL ASSOCIATION OF REALTORS® has said housing in the fourth quarter of 2010 was "the most affordable on record, according to figures … which date back to 1971."
Green Clean Stovetop and Oven: You've Already Got What It Takes
Instead of buying expensive and toxic oven cleaning spray, make your own cleaning solution using three parts baking soda to one part water.
All it takes is a few family meals to turn your once-sparkling stovetop and oven into a frightful mess. The easy solution-reaching for a commercial cleaner-is hardly the green solution, as those products often contain nasty chemicals. If you want to be both clean and green, reach for gentler solutions. Better yet, fashion your own homemade cleaner using items already on hand.
Green clean your stovetop
The problem: Baked-on stove gunk can be a real pain. But beware of "grease-cutting" cleaners that contain glycol ethers, solvents linked to health problems ranging from reproductive damage to eye and respiratory-tract irritation.
The solution: To prevent the gunk in the first place, get in the habit of cleaning your stovetop after every meal. For stubborn food bits and sauces, combine equal parts vinegar and baking soda, add some elbow grease, and scrub away.
Green clean your oven
The problem: Considering the warning labels affixed to some oven cleaners-wear gloves, avoid direct skin contact, don't breathe vapors-it's safe to assume there's nasty stuff inside. There is, namely petroleum distillates, among others, which can cause headaches and respiratory ailments.
The solution: Coat interior surfaces with a paste of three parts baking soda to one part water. Allow the mixture to sit overnight before wiping off with a sponge. Feeling lazy? You can always seek out earth-friendly cleaners that rely on citrus oil and plant-based surfactants to get the job done.
Alyson McNutt English has written about the joy of green cleaning for publications like Pregnancy, Conceive, and BobVila.com. She buys her baking soda and vinegar in bulk and uses them liberally for everything from disinfecting laundry to soaking up her kids' food stains
Read more by Clicking Here.
Short Sale Program Eliminates Hurdles
The federal government's short sale program (Home Affordable Foreclosure Alternatives, or HAFA), recently made changes to the eligibility requirements that could open up the program to more sellers.
The most sought-after benefit of a HAFA short sale is the elimination of the seller's personal liability on any difference between the sales price of the home and the amount of the mortgage loan.
To be eligible for HAFA, the seller must still demonstrate some kind of financial hardship. However, the lender is no longer required to verify a seller's financial information or to determine if the borrower's total monthly mortgage payment exceeds 31 percent of the seller's monthly gross income.
Another major change to the program concerns the vacancy of property. Originally, the home had to be currently owner-occupied with a narrow, 90-day exception related to job relocation. In the revised program, the property currently must be or recently have been the seller's principal residence, but a vacancy for up to 12 months prior to the short sale agreement is allowable, so long as the seller provides documentation that the property was his/her principal residence prior to relocation and the seller has not purchased a residential property in the prior 12 months. The reason for relocation does not need to be connected to re-employment or transfer of employment, and there is no longer a minimum distance requirement.
For more information about the HAFA program, contact your lender or your real estate agent.
Sales Statistics for January 2011
This graph includes the breakdown of the median listed price of available Single Family properties.
This graph shows the available number of Single Family properties as of January 31, 2011. The graph then depicts out of the total number of available how many of these listed properties are Traditional, Bank Owned or Short Sale.
This graph includes the breakdown of the median sales price for closings for January 2011. Traditional listings continue to close at higher pricing but as the other graph shows Traditional properties also have the smallest number of actual closings.
This graph shows the number of Single Family properties that closed escrow during January 2011 and out of that total number, the number of closings of Traditinal, Bank Owned or Short Sale listings.
Email me at rakesh@lvrealestates.com or call me at (702) 285-0586 for more information regarding the market.
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Why Use a REALTOR®?
The REALTOR® mark shows that your real estate agent is a member of the National Association of REALTORS® and adheres to a strict Code of Ethics. There are many reasons to use a REALTOR® to help you buy or sell a home. Here's one:
A REALTOR® can give you up-to-date information on what is happening your local marketplace and the price, financing, terms and condition of competing properties.
For information on choosing and using a REALTOR®, click here.
Pending Home Sales Continue Uptrend
Lawrence Yun, NAR chief economist, credits good affordability conditions and economic improvement. "Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions. Mortgage rates should rise only modestly in the months ahead, so we'll continue to see a favorable environment for buyers with good credit," he said.
After you move . . .
During the First Week After Moving
- Locate police and fire stations as well as hospitals and gas stations near your home.
- Scout your new neighborhood for shopping areas. You may need furniture tools or housewares unexpectedly.
- Call the Department of Sanitation in your new town to find out which day the trash is collected. Also ask whether your new community has recycling programs.
- Seek out new service providers such as a bank cleaners veterinarian.
- Register to vote. Call your local board of elections for specific registration information. Ask them how to notify your previous voting district of your change of address.
- If you have moved into a different state contact the Department of Motor Vehicles to exchange your driver's license.
- Call your Chamber of Commerce for helpful information on: schools cable service cultural events and community activities Libraries and parks and availability of emergency calling services such as 911.
- Provide your new doctor and dentist with your medical history. You may need to request your file from your previous doctor/dentist.
- Transfer insurance policies to an agent in your new community. You may also wish to make a detailed list of your belongings their value and your coverage.
- Give your new home a good cleaning.
- Moving can be stressful. Watch for effects on family members and pets so you can give comfort and a helping hand.
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