Dear Michael: My house just fell out of escrow. The buyer requested that I remove the acoustic ceilings during escrow. We did not want to do the removal; we could not come to an agreement with the buyer. Is it common practice for a buyer to request this type of repairs when in escrow.
Answer: Buyers have the right to request the moon, but that does not mean that they will get it. Removing the acoustic ceiling is a huge endeavor. Especially if they contain asbestos. An abatement company will need to be used. A seller removing acoustic ceilings is more of a remodel then a request for repair. There are risks associated when a seller takes on big remodel when in escrow; What if you remove the acoustic ceiling and the buyers cancels the escrow? It could be that the buyers have to cancel because of matters beyond their control, such as the loan being denied or the appraisal coming in low. Now, you are left with a cancelled escrow and the cost of the ceiling removal. If possible, it is better to agree to a credit then to take on the repairs. This way the buyers can satisfy themselves with their own contractor and you as the seller will not need to take on the task of repairs. If you cannot come to an agreement with the buyers, then your property will probably need to be back on the market. If you are priced at fair market value, then given this market you should be back in escrow in no time.
Dear Michael: My home is in escrow and my agent is telling me that I have to have a carbon monoxide detector present in my home before the close of escrow. Is this a new law and do I need a carbon monoxide detector in my home?
Answer: In May 2010, the state of California enacted a law requiring homeowners to install carbon monoxide detectors in their homes. California residents must now have carbon monoxide detectors in their homes/condo as of Jan. 1, 2013. This applies to all single-family homes and condo’s that have appliances that burn fossil fuels or homes that have attached garages or fireplaces. Types of fossil fuels include wood, gas and oil. The detector must sound an audible warning once carbon monoxide is detected. It also must be powered by a battery, or if it is electrical, have a battery for a backup. Carbon monoxide detectors typically can be purchased at any hardware stores for about $20 and up. California law states that anyone who does not comply with the law may face a $200 fine. However, residents will receive a notice of 30 days to correct any violations before they are fined.
Dear Michael: I have not paid my property taxes in over five years. If I decide to sell my home how will my property taxes be paid?
Answer: If you have not paid your taxes in over five years, chances are, the City Assessor’s has already placed a tax lien on your home. You will need to find out how much you owe in back taxes including penalties and late fees. Escrow can draw an estimated closing statement so you can have a better idea of how much you stand to net after the sale. If you have equity on your home, then escrow will pay off your taxes owed through your sales proceeds. If you have no equity on your home, you may want to consider a “short sale.” A short sale, if approved is a very good option to settle your debt, but will need to be overlooked by an experienced Realtor.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
