Dear Michael: We closed escrow on our new home and the seller did not replace the electrical panel as agreed by our request for repair. When we approached him he said that it worked fine, this was after the fact that he agreed to replace it. How can we collect the funds? The cost to replace the panel is $2,000.
Answer: Your seller is at fault particularly if he agreed to replace the panel and signed the “Request for Repair.” I assumed you had a verification of property condition (walkthrough) prior to the close of escrow. This would have been the time to put pressure on the seller and question him as to why it was not replaced as agreed. You could have opted to have escrow hold the close until your dispute was resolved. But in most cases buyer’s have a set schedule to move into their new home, so postponing the close is not always an option. This may be a matter for small claims court. If you decide to go this route, it will be essential to be prepared on the date of your hearing. You’ll want to bring all your documents showing proof and what you are suing for. More often than not when the defendant is served, he/she will opt to settle out of court and settle the matter. You may want to contact a real estate attorney for more details.
Dear Michael: What is the difference between a listing agent and a buyer’s agent?
Answer: Basically, a listing agent represents the seller and the buyer’s agent represents the buyer. However, any real estate agent can serve in either role depending on the client’s needs, or they can serve in both roles under dual agency. Many agents specialize in working with sellers or working with buyers and there may be some benefit to that. Make sure that if you hire an agent to list your home, he or she has knowledge of the area and has done some listing sales in the past.
Dear Michael: We are in escrow on a house that is a short sale. Could you explain the meaning of the term and also let me know why I can’t seem to get an approval answer from the short sale lender on my offer? It’s been over one month. I am ready to move on to another property.
Answer: To answer your first question: a short sale is when the bank holding the mortgage must agree to accept less money than what is owed on the note (value of the mortgage). To answer your second question as for the time it is taking to get an approval on your offer. The short sales loss mitigation department is overwhelmed with requests nationwide. They have procedures in place they must follow. This can take from one week to as many as six months to review and approve the sale. There are also supplementary parties that may be involved, such as private mortgage insurance companies (PMI) that insure the loan against default. My best advice to you is to have patience. Banks don’t want these homes in their foreclosure inventory. They will work with the sellers and buyers to get the home sold rather than go through the foreclosure process.
Dear Michael: My agent asked a prospective buyer for a copy of his credit report. Was that wrong for my agent to do?
Answer: We are not licensed mortgage professionals; however, it is entirely reasonable for your agent to ask the buyer’s lender or mortgage broker for a pre-approval or pre-qualification letter indicating if he/she has sufficient credit score, debt-income ratio, savings, income, etc. This is done in order to eliminate the risk of cancelation by an unqualified buyer. If a buyer is paying cash, it’s reasonable to ask for proof of funds showings the assets. In my experience asking for a credit report is not essential as the buyer lender would have ran a credit report in order to issue the pre-approval letter.
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.
