Imagine New Possibilities for Under-used Spaces

Home Design--How to Analyze How You Use Your Home and Imagine New Possibilities for Under-used Spaces

TX Attorney General Demands Suspension of Foreclosoures

Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.

In this case, Texas Attorney General Abbott has noted possible violation by these banking institutions of the Texas Deceptive Trade Practices Act, the Texas Debt Collection Act, the Texas Penal Code, the Texas Property Code, the Texas Government Code, and the Texas Constitution.

How will the banks respond?

The Houston Chronicle reported on Oct. 6 that some banks will not honor the AG’s request. If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent.

If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:

Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.

Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.

Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.

Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.

Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.

Commercial vs. residential properties: The demand letter makes no distinction between commercial and residential properties.

Read the Demand Letter and see a list of banks below:
Letter from the Attorney General
List of Banks

Source: Texas Association of Realtors

Lead Paint Rules Update

Lead is a toxic metal that was used for many years in products found in and around our homes. Lead also can be emitted into the air from motor vehicles and industrial sources, and lead can enter drinking water from plumbing materials. Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children six years old and under are most at risk

Recently, law was passed to require contractors who disturb lead-based paint in homes, child-care facilities and schools built before 1978 to be certified and follow specific work practices to prevent lead contamination. Although the law applies to 79 million houses, just 38 million of those are believed to have lead paint. That law took effect April 22, but in late June, the EPA said it would delay enforcement of the law until October because there weren't enough government-approved trainers needed to certify thousands of contractors. That enforcement deadline has now been extended to Dec. 30.

By early July, 320,000 contractors had been certified. There had been an "opt-out" clause that allowed consumers to permit contractors to bypass extra preparation, cleanup and record-keeping requirements in homes where there were no children under 6 years old or pregnant women, thus avoiding additional costs. That provision expired July 6, and the EPA had no plans to reinstate it. The National Association of Homebuilders and others filed suit to force the EPA to reinstate the opt-out rule.

The law states that a hazardous condition exists when lead-paint dust is present on a floor to the extent of 40 micrograms (one millionth of a gram) in a square-foot area. Another way of expressing it is if a square centimeter lead-based paint chip were ground into dust, it would (by EPA standards) contaminate 25 square feet of floor space. The feds require the "proper" containment and cleanup when six or more square feet of lead-based paint will be "disturbed" in a home.

The EPA suggests consumers ask to see certification before they sign a contract. Since December 2008, contractors have been required by law to supply a brochure to customers outlining the dangers and rules.

If your home was built prior to 1978, it could contain lead paint. There could be extra costs associated with a remodelling project for testing and remediation of lead paint, so please talk to your contractor about this before any paint is disturbed in your home.

For more information on Lead-Based Paint rules, please visit the EPA website.

Sources: RIS Media (c) 2010, The Philadelphia Inquirer.Distributed by McClatchy-Tribune Information Services, and the EPA.

"As-Is" Home Purchases

Many homes, especially bank-owned properties, are advertised as to be sold "as-is." What does this mean? A home being sold in as-is condition is one that will transfer ownership in its current condition, and the seller is stating up front that no repairs will be made to the property. The home could be in good condition, or it could have major structural or mechanical components in need of repair or replacement.

In Texas, buyers can present a purchase offer to a seller that includes an "option period" to evaluate the condition of the property. This option provides the buyer a prescribed period of time, in exchange for monetary consideration, to terminate the contract for any reason or no reason.

During this option period, an inspection can be performed at the expense of the buyer. In an as-is purchase, the inspection should be considered as an evaluation to see if the buyer wants to move forward with the purchase or terminate, not to re-negotiate the terms of the contract. However, if specific repairs are identified, the parties can negotiate to amend the contract to specify seller-paid repairs of the items before closing, a price adjustment, or buyer termination of the contract. Some sellers will agree to make repairs prior to closing, especially if they are lender-required repairs, and other sellers will stick to the "as-is" condition, particularly banks. Banks will usually include contract addenda at the time of acceptance that address whether repair requests will be considered.

It's important to have the guidance and advice of a REALTOR during your home search and purchase. I cannot emphasize enough the need for a home inspection and an option period to evaluate the condition of any property. A home (foreclosures, particularly) might be listed at a bargain price, but it isn't a wise investment if the repair costs after the purchase are astronomical.

As always, seek the advice of an attorney for legal questions.

Bigger Isn't Better, Know Who's in Charge

Before selecting a real estate agent to represent you during a sale or purchase transaction, please be aware that "bigger isn't better" when it comes to real estate brokerages. Just because a real estate agent works for a large company, it does not necessarily translate into them having more experience or knowledge. I am a licensed broker in the state of Texas, and I am the owner of my real estate company. The buck stops with me.

The Texas Real Estate Commission recently issued this letter to brokers:

The Texas Real Estate Commission (TREC) is duly concerned about the ability of one sponsor to adequately supervise a large number of licensees. We would like to take this opportunity to
remind you of your obligations as a sponsor under The Real Estate License Act (“TRELA”) and of the Commission’s intention to diligently enforce these provisions.

As a sponsoring broker, you are responsible for the authorized acts of your salespeople. [TRELA §1101.803, Rule 535.2] A broker should also be aware that a complaint filed against a sponsored salesperson is also a complaint against the broker for the purpose of determining the broker’s involvement in the alleged violation and whether the broker properly supervised the salesperson. [Rule 535.141(c) and (d)] Corporations or LLCs can only provide the required level of adequate supervision through the personal involvement of the designated officer (DO), or where the broker or designated officer clearly delegates certain responsibilities to a qualified supervisor who fulfills these obligations.

The sponsoring broker and the DO are always responsible for the salesperson's actions, even when the salesperson does not work out of the broker’s main office or when the salesperson owns his or her own real estate company. [TRELA §1101.803, Rule 535.2(a)] A salesperson may not lawfully engage in brokerage activity unless the salesperson is associated with, and acting for, a sponsoring broker at all times. [TRELA §1101.351(c)] The broker will also need to obtain a branch office license for the office location from which the salesperson transacts business. [Rule 535.112] If the salesperson’s company engages in business under an assumed name, the broker must notify TREC in writing within 30 days after the salesperson or the sponsoring broker starts or stops using the assumed name. [Rule 535.154(c)]

Although a broker’s responsibility to supervise the broker’s sponsored agents may be delegated to another person with the proper level of experience and expertise, adequate supervision under the law must be maintained for all agents and entities in every location. Brokers operating at a significant distance from the entities for which they serve as DOs, or who have a significant number of agents or entities that they sponsor have a very high hurdle to overcome to ensure the methods and tools of adequate supervision are in place, are workable, and are effective. Formal written policies and procedures should be available, should be reasonable, should be actually used, and sponsored agents should be adequately trained on them, and such training documented. There are many practical matters which must be dealt with, such as client access to the broker or DO, advertising methods and disclosures, to ensure consumers are adequately protected and not misled.

For example, all advertisements by a broker’s sponsored agents must comply with TRELA §1101.652(b)(23) and Rule 535.154. At minimum, subsection (e) of this rule requires an advertisement placed by a licensee to "include information identifying the advertiser as a real estate broker or agent. The name of a salesperson sponsored by the broker may also be included in the advertisement, but in no case shall a broker or salesperson place an advertisement which in any way implies that the salesperson is the person responsible for the operation of a real estate brokerage." A broker may be held liable for a sponsored agent’s violation of any advertising requirement and we suggest that the broker conduct a careful review of all sections of Rule 535.154 and have proper advertising guidelines and/or an advertising review procedure in place to ensure compliance at all times prior to placement of any advertisement.

This message is a reminder to live up to the high standards of the profession you enjoy. We know that most brokers take these responsibilities seriously and strive to make them a part of their daily business practices. The Commission’s Broker Responsibility Working Group is currently developing enhanced professional standards for brokers to better enable the Commission to carry out its primary mission of consumer protection. We hope that you will continue to take your supervisory responsibilities as a broker seriously and will join us in working for the betterment of the profession as a whole. By doing so, we will surely gain increased trust and respect from the people of Texas whom we all serve.

Sincerely,
Douglas E. Oldmixon, Administrator
Texas Real Estate Commission

Preparing Your Home for Fall

With fall around the corner, it’s a great time to start prepping your home for the cooler months. It's better to be ready for the cold season…before it hits. State Farm offers up some fall maintenance tips for your home:

Windows and Doors

• Check all windows and doors for proper operation and seal.
• Windows that can be opened by breaking the glass and unlocking them, are less effective deterrents to criminals. Check with the hardware store for window lock alternatives.
• All exterior doors should have deadbolt locks.

Stairs

• Make sure there are working nightlights at the top and bottom of all stairs.
• Tile and painted wood or concrete stairs can be slippery when wet or when a person's shoes are wet. Resurface the treads with slip-resistant strips near the stair nosing.
• All stairs of at least three risers should have a handrail.
• Do not store items on the stairs.

Heating

• Have a heating professional check your heating system every year.
• Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
• Replace your furnace frequently to allow your heating system to operate properly.
• Have a certified chimney sweep inspect and clean the flues and check your fireplace.
• Remove bird nests from chimney flues and outdoor electrical fixtures.

Source: RISMedia

10 Lost (or no) Cost Ways to Improve Home Appeal

When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. It is a buyer's market, and a buyer will move on to the next listing if your home is not presented at its best.

Tip #1: Refresh the exterior

First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:

-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.

-Painting siding, trim and shutters and lamp and mailbox posts.

-Pressure washing vinyl siding, roofs, walkways and the driveway.

-Washing windows.

Tip #2: Spruce up the lawn and landscape

Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:

-Mowing and edging the lawn.

-Seeding, fertilizing and weeding the lawn.

-Keeping up with regular lawn maintenance and frequent watering.

-Trimming and/or removing overgrown trees, shrubs and hedges.

-Weeding and mulching plant beds.

-Planting colorful seasonal flowers in existing plant beds.

-Removing trash, especially along fences and underneath hedges.

-Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance

The front door to your home should invite buyers to enter. The best ways to improve your entry include:

-Painting the front door in a glossy, cheerful color that complements the exterior.

-Cleaning, polishing and/or replacing the door knocker, locks and handles.

-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.

-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture

A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:

-Holding a garage sale to prepare for your move, getting rid of unnecessary items.

-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.

-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.

-Removing any visibly damaged furniture.

-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.

-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.

-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean

The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:

-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.

-Cleaning carpets, area rugs and draperies.

-Cleaning inside the refrigerator, the stove and all cabinets.

-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.

-Eliminating house odors, especially if you have pets. Do not attempt to "cover up" odors such as pet stains in carpets with candles or potpourri.

Tip #6: Make minor repairs

The small stuff does count, especially with first-time home buyers. Except for major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:

-Repairing ceilings and wall cracks.

-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.

-Caulking and grouting tubs, showers, sinks and tile.

-Adding fresh paint to ceilings, walls, trim, doors and cabinets.

-Tightening door handles, drawer pulls, light switches and electrical plates.

-Lubricating door hinges and locks.

Tip #7: Showcase the kitchen

The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:

-Replacing cabinet doors and hardware.

-Installing under-cabinet lighting.

-Replacing light fixtures.

-Replacing outdated shelving with pantry and cabinet organizers to maximize space.

Tip #8: Stage furniture

Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:

-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.

-Creating a reading corner in the master bedroom.

-Clearing an empty room to set up a reading space.

-Turning an awkward space into a home office or exercise area.

Tip #9: Light up the house

Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:

-Opening shades and drapes to let the sunshine warm and brighten rooms.

-Installing brighter light bulbs in rooms that tend to be dark.

-Adding additional lamps for ambient lighting.

-Turning on all the lights for a showing.

Tip #10: Add fresh touches

You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:

-Placing fresh floral arrangements in the entry and master bedroom.

-Placing bowls of bright-colored fruit in the family room and the kitchen.

-Filling an empty corner with a potted leafy plant.

-Setting new hand soap in the bathrooms.

-Displaying fresh towels near sinks.

Source: RISMedia