The importance of ‘Verification of Property Condition’
Dear Michael: The square footage of my home is listed at 1200 square feet on the tax roll. I believe it is 1500 square feet. How can I find out the exact amount? I want to list my home and don’t want to advertise the wrong square footage.
Answer: Go to city hall and ask for the permits on your home. All records should be kept from the time it was built. If any additions were made to your home and completed with permits city hall will have them on record.
If any additions to your home were done without permits you will not be able to add this addition to the total square footage of your home. You can define an unpermitted room as a “bonus room,” but it must be listed as a separate room from the house and square footage must be excluded. You can also hire an appraiser to measure your home.
I suggest you disclose the square footage of your home exactly as it is. The buyer’s appraiser will also measure your home when appraising.
Dear Michael: I am purchasing a home and my agent is telling me that it is time to remove my loan contingency. I am not comfortable doing so. Why must I remove my loan contingency? I plan on purchasing this home no matter what…
Answer: You hired your agent because you trusted him/her. Or you should have hired your agent because you trusted him/her. If you appraisal came in at full value and all of the lenders condition have been met for your loan to be approved, then there is no valid reason why you should not remove your loan contingency.
The seller needs a guarantee from the buyer that he/she is purchasing their home and means business. The fact that you plan on “purchase this home no matter what” bares little security to a seller that vested his/her lifetime retirement on his/her home.
If there is minimal doubt from your lender that you may not be approved for a loan for whatever reason: hold off on removing your contingency. Be upfront with the seller and explain the situation.
Lenders requirements for loan approval can go beyond reasonable time. The seller has to understand that you are not ready to remove your loan contingency because of factors beyond your control. If the sellers don’t want to wait, he/she will give you a notice to perform (NBP) a removal of contingency at which time you can opt to either cancel the agreement or remove your contingency.
If you remove all your contingencies including your loan and decide to cancel the purchase, you could stand to lose up to 3 percent of the purchase price which most often means your earnest deposit.
Dear Michael: We are doing a final walk-trough just before closing escrow on our new home. We notice some items that we would like the seller to fix but our agent is telling us that we should have asked for these items to be repaired earlier when we did our inspection.
Answer: I guess you are asking me: what is the protocol of the “walk-trough” also correctly known as “Verification of Property Condition.” The buyer has a right to a final review of the property usually within 5 days prior to the close of escrow.
This is not an inspection but a verification of the property to make sure that repairs have been completed and that the house is in the same condition as when you first purchased it. You had an inspection at an earlier time.
If your home inspector failed to notice any defects with the property or if you simply failed to request any repair from the seller, now it is too late. If your home inspector is at fault for not finding items that needed repairs you need to take it up with him. If there are major repairs the inspector neglected to find, call him and explain your concerns. If all fails consider consulting with a real estate attorney in order to help you resolve the problem.
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or email them to him at: homes@agentmichael.com
