Buyer/Seller Info
Homeowner Information / HOAs
Enviromental Issues
- Environmental Issues
- Lead Poisoning
- Radon
- Underground Heating Oil Tanks
Others
- Common Ways of Holding Title
- Living Trusts
- Mello-Roos
- Condominium and PUD Ownership
- Mechanic's Liens
- Understanding Foreclosures
1. Environmental Issues
When purchasing a piece of property, it is important to be aware of any environmental liabilities associated with it. For example, you should find out if there are any registered underground tanks within several miles of the property, any known contaminated properties in the neighborhood, or any property owners who have been fined by the government for failing to meet environmental safety standards.
Before, it took a costly site investigation for the information, but now there are online environmental databases available at a fraction of the cost. Anyone can access reports on otherwise hard to detect environmental issues. With these databases, it is possible to obtain a listing of hazards near a property, or spills and violations attributed to businesses nearby.
Some reputable databases include VISTA Information Systems, located in San Diego, California, which allows you to register and search the data bank for free, and E Data Resources, which is located in Southport, Connecticut. These services are all relatively inexpensive, but can provide you with priceless information that is useful before you make a purchase.
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2. Lead Poisoning
Lead poisoning is a serious problem which can lead to adverse health problems. In children, high levels of lead can cause damage to the brain and nervous system, behavioral and learning problems, slow growth, and hearing problems. In adults, lead poisoning can cause reproductive problems, high blood pressure, digestive problems, nerve disorder, memory and concentration problems, and muscle and joint pain.
Lead poisoning is especially a problem in cities with older buildings. Typically, lead is present in the paint from older buildings, in the water supply, and in the environment from cars and buses. Preventing lead poisoning in large cities, where there is so much possibility for exposure is both difficult and expensive. Federal programs have attempted to address this problem.
For buyers and sellers, lead poisoning is also an issue. Houses that were built before 1978 probably have paint that contains lead. Federal law requires that sellers disclose known information on lead-base paint hazards before selling a house. Sales contracts must include a federal form about lead-based paint in the building. Buyers will have up to 10 days to check for lead hazards and are likely to stipulate corrections.
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3. Radon
Radon is a colorless and odorless radioactive gas that has been estimated to cause 5,000 to 20,000 lung cancer deaths yearly. It is second only to smoking as a cause of lung cancer. It has been estimated that nearly 1 out of every 15 homes in the US has elevated radon levels.
Radon is produced when small amounts of uranium and radium in soil and rocks decay. Radon gas will also decay into smaller and radioactive particles that can be inhaled into the lungs where it can damage cells and cause lung cancer.
Radon is mainly released from soil, water and natural gas which have already been exposed to radon, from solar-heating systems that use radon-emitting rocks, and from uranium or phosphate mine tailings. Radon is naturally released in low concentrations, but inside your house, radon gas can become more concentrated. Lack of ventilation exhaust fans that bring in air from outside can increase the amount of radon in your home.
The Environmental Protection Agency suggests that homes be tested for radon, which should have a radon level of 4 picocuries per liter or less. For people selling their homes, the EPA recommends that the house be tested for radon, and radon levels be reduced, if necessary. Radon levels can be reduced by increasing the airflow into the house, keeping the vents open year round, and discouraging smoking in the house. For people buying homes, the EPA recommends obtaining radon test results in addition to information about radon reduction systems.
If you are planning to have your home tested for radon, the EPA recommends that the test be conducted in the lowest level of the home that is suitable for occupancy, and you should make sure that the test is done correctly by following the EPA Test Checklist.
There are two different types of testing devices available: passive devices and active devices. Passive devices, such as charcoal canisters, alpha track detectors, and charcoal liquid scintillation devices are exposed to air in the home for a specified amount of time, and sent to a laboratory to be analyzed. Active devices, like continuous radon monitors and continuous working level monitors, continuously measure and record the amount of radon in the air, and require operation by trained testers. These tests can be performed over a long term, or a short term, with the long term tests by active devices considered to be more accurate.
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4. Underground Heating Oil Tanks
Underground heating oil tanks can pose many potential problems to both home buyers and sellers. They have been the source of many environmental problems such as contamination of surrounding soil and ground water.
Leaks are caused by the rust inside underground tanks, or by an electrical condition sparked by electric utility lines.
Buyers should have the tank inspected to make sure that it is structurally sound. Buyers who do not want an underground fuel tank can arrange for an above ground tank to be installed in the basement, an underground tank to be shut off. Cleanups of any leaks will also have to be taken care of.
For buyers, the underground heating oil tank should be written in the sales contract. For sellers, your lawyer should make sure that the description and condition of the underground heating oil is accurate and up-to-date.
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Others
1. Plan of Action
- Analyze why you are selling - If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle.
- Prepare your home for the buyer - Maximize the strengths of your property and fix up it's weaknesses. You want the buyer to walk away from your home with a lasting good impression.
- Find a good real estate agent that understands your needs - Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer.
- Be prepared for negotiation - Learn and understand your buyer's situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through.
- Negotiate for the best price and the best terms - Learn how to counter offer to get more from every offer.
- Make sure the contract is complete - Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home's defects. Insist the buyers get a professional inspection. This will protect both you and the buyer.
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6. Finding the Right Agent
Not all agents work the same way. The most important attribute of an agent is that he/she is well connected to the real estate industry. He/she should know the market and provide information on past sales, current listings, his or her marketing plan, and at least 4 solid references. In addition, you also want to look for an agent that is honest, assertive, and one that best understands your needs.
Try to go with a local agent. They can better serve your needs; they are familiar with what the local market condition is, the local prices are, and what's hot or not in your community.
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7. Considering Offers
When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.
Some terms that may work in your favor:
- higher-than-market-interest in a second mortgage for your home
- the buyer will pay for most or all of the closing costs
- the buyer will take care of any repairs
- quick close - the buyer is pre-approved and ready to close in a time that best suits you
- all-cash deal
When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs..
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8. Insist on a Home Inspection
A professional home inspection protects both you and the buyer. It allows both you and the buyer the opportunity to learn about the property's defects.
A home inspection usually covers the following:
- Plumbing conditions - if there is leakage or clogging
- Roofing conditions - the extent of deterioration, if there is leakage
- Electrical conditions - if there are inadequate circuits or potential fire hazards
- Structural problems - if there are problems with the underlying foundation of your home
As a seller, the home inspection reports protect you because it establishes the actual condition of the property at the time of sale.
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