> Columnist Ask Realty Times
Ask Realty Times - March 26, 2004
by Peter G. Miller
Question: I inherited property along with my stepmother and would now like to sell; however, I have not been able to locate her for six years. The court named me as overseer of the property and anything that pertains to the property including all decisions must be communicated through me. Can I sell without her consent? Answer: How is title to the property held? Does your stepmother have any interest, on the title or not, in the property? Under the will, things must be "communicated" through you -- does this also mean you have the exclusive right to make all decisions regarding the sale, repair, leasing or retention of the property? You don't want to sell the property and then have your stepmother suddenly emerge from a distant trek complaining that you have somehow abused your position, devalued her assets or taken what was hers. Have an attorney or legal clinic provide a letter which clearly says you can or cannot sell the property by yourself. That way, if a question arises in the future, you did the right thing. If you are advised that you cannot sell by yourself, then the attorneys will suggest a next step, most probably going back to court. State rules vary, but you'll surely need to document all efforts to reach the stepmother, so gather your paperwork. As well, if you sell who gets the money? This is another question which should be resolved before entering the marketplace. Is it possible that some of the funds must go to your stepmother -- or her guardians, heirs, etc? If yes, money may need to be placed in an escrow account. Question: My parents have a great house that has been listed for almost six weeks. Houses in the area are selling quickly and it seems like the house is well priced. On the other side of the house is a small park with a hydro station encased in a brick building. It seems that people are not comfortable with the hydro station beside the house, although the hydro station does not look unsightly in the least, especially since it is encased in the brick building. What can we do to make the home sell faster? Answer: The first step is to ask your broker how long it takes to sell a typical property in your sub-division. It may be that you need to do nothing to accelerate the sale. Sometimes it just happens that even with a great location, a terrific house and a wonderful price homes do not sell instantly -- a kind of real estate kismet. Is the hydro station loud? Does it attract trucks for maintenance? Are there safety concerns? In my area electrical sub-stations are often housed in what look like brick homes. Few people even realize what they are. Have some patience. In time your home will sell. Question: I listed my house a few weeks ago and had seven offers, all with pre-approval letters, a must in this market. Things were progressing smoothly until the lender of the contract I selected would not give my buyer the loan, despite the pre-approval letter. What is the value of such letters, are they loan commitments? Answer: Some in real estate disagree with my view, but here goes: There is no standard definition of either a "pre-approval" or "pre-qualification" letter and neither should be seen as a loan commitment. For instance, what if a borrower has great credit but there are appraisal problems, property encroachments or title issues? What if a borrower suddenly buys a new SUV just before closing? Will a lender instantly issue a loan? Not hardly. Pre-qualification and pre-approval letters -- what are often called "hand holding letters" -- mean that a borrower has met with a loan officer. In the best case it also means borrower credit has been checked and that prospective purchasers have some idea of how much they can afford. But, typically, a pre-qualification or pre-approval document is NOT an iron-clad loan commitment which locks in interest levels, points, origination fees, etc. Is it good that borrowers met with lenders? Absolutely. The process alerts consumers to credit issues and suggests what's affordable -- and what isn't. Question: I just passed my real estate exam and would like some advice. I'm torn between becoming a sales agent or an assistant for a year to learn the ropes. What makes the most sense? Answer: Having a license instantly gives you marketplace value because in many states unlicensed real estate assistants are largely limited to clerical activities. As a newly-minted salesperson the odds are that you will have little immediate income from real estate if only because successful transactions takes weeks to close. Thus, if you could work as an assistant for a successful local agent and get paid, you would learn on the job and get some money in the process. That's a good deal. Question: When an appraiser classifies a room as a "bedroom," does the "bedroom" meet the local building and safety codes? For example, can a buyer assume that a "bedroom" has a closet, window area, ventilation area, heating, and 5.7 sq. ft. of window for emergency egress? Answer: Around the country building codes vary. For instance, that window not only has to have a certain amount of square footage but it must be within a given distance from the floor, say so many inches above the floor. But what do you do with homes where windows are toward the ceiling for privacy reasons? Or, what if an area meets all the requirements you cite -- and is also used as a passage to another bedroom? I have often seen homes advertised with "five bedrooms" and sure enough there are five places where people sleep. Do such homes conform with current building codes? That's not always clear. Must older homes conform to new codes? Not in all cases, otherwise all older houses would be torn down. Call the building inspection office and get their view on local code requirements. The central code issue is safety, not cosmetics. Ask what is standard, what is not and whether older properties much be brought to current code standards when sold. Also speak with an insurance broker for further information.
This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal services or other expert assistance is required, the services of a competent professional person should be sought. | 
