Dear Michael: I am buying a home and the seller does not want to pay for the owner title insurance policy. Who is supposed to pay for it? And why do I need to have title insurance on my new home?
Answer: Chances are that the purchase of real estate is the largest single investment you will ever make. The loss of such an important investment would be catastrophic. It pays to be certain that the person selling the property has the ownership rights you think you’re buying, but that’s not always easy to determine. An owner’s rights to property, which often involve family and heirs, are sometimes obscure. There may be other parties (such as government agencies, lenders or private contractors) who also have rights to the property in the form of outstanding claims. How can you be sure you will be the true owner of the property you’re buying? Simply by purchasing a title policy.
Title insurance is customarily paid for by the seller but is a negotiable item. Have your real estate agent press the seller to accept this cost. If you don’t have an agent, now would be the time to get one.
Dear Michael: My home has been on the market for 60 days. Activity has diminished for the past two weeks. I am not sure what else my agent can do to increase activity?
Answer: Fall is generally a slower time of year for buyer and seller activity. Holidays are approaching. If a buyer was to open escrow on a home now, chances are that escrow would close around the holidays. No one wants to move during this time.
If you leave your property on the market during the holidays, there can be some possible advantages. For one, with fewer homes for sale, competition is scarce. Also, buyers who are searching for properties during this time of year are likely to be more serious about making a purchase. Spring is a better time to list your home if you can wait.
Dear Michael: I am getting ready to list my house. I have certain fixtures that I am emotionally attached to and do not wish to give up. Is there a clause in the listing contact that can leave these items out of the sale?
Answer: The correct definition of fixture is “anything that is attached to the property that is considered to be permanently established in a place or position.” If a buyer walks into your home while your property is listed for sale and discovers that a fixture is no longer there after that first visit, you may have a problem. In order to avoid this, have any fixtures that you wish to keep be replaced before you start showing your home. I have seen transactions cancelled because of such disagreeable situations that could have been avoided by simply planning ahead.
Ask your Realtor about any concerns you have in regards to any fixtures before showing your home.
Michael Kayem is a Realtor with Re/max/Execs, serving Culver City and the Westside since 2001. Contact him at (310) 390-3337 or homes@agentmichael.com.
