June 22, 2008
Who Can Inspect The Property?
June 22, 2008
Dear Dave: We are looking for a house to buy in Eagle River and we want to have our friend, who works construction, inspect the roof. Is this allowed or must we use a regular home inspector?
Answer: You can have anyone you like inspect a property, or even several different people, provided your contract allows.
The typical Inspection provisions of the MLS contract, however, state “Seller to approve Buyer’s selection of a qualified professional prior to inspection. Such approval will not be unreasonably withheld.” The standard wording also says that the Buyer shall have a “licensed contractor” or “other qualified professional” inspect and investigate the property.
I strongly recommend you be sure to read your contract carefully. The words of a contract can be changed to reflect your terms, but many people sign an agreement and want to do something different afterwards. Unless you write a special Addendum, your friend may not be able to inspect the roof unless he is a licensed contractor and approved by the Seller.
It is absolutely essential to obtain agreement on who will be conducting inspections prior to entering into a Real Estate transaction.
Dear Dave: Why do mortgage companies insist on collecting property taxes with the monthly payment?
Answer: Lenders are at risk if property taxes are not paid. The local Municipality or Borough, as a semi-government organization, can lien a property for unpaid taxes. This lien takes a position ahead of any lender.
Therefore, if taxes are not paid, the lender’s security interest in the property is weakened. This is why lenders like to collect the taxes from you and make the payment, when due, on your behalf.
If you put 20% down on your mortgage, or more, and you have good credit, you can normally argue successfully that you will pay property taxes direct, since the lender’s risk is lower. Then the monthly escrow will not apply.
Dear Dave: I’m interested in the senior exemption for residential property taxes which is currently set at $150,000. Is there any chance that this amount will increase since home values have gone up? Is there a contact person in the Municipality that would be helpful in raising the exemption limit? I’d really like to see the $150,000 reset at $200,000. Is there any hope of this change in the near future?
Answer: Whilst the senior exemption is processed through the Municipality it is, nevertheless, a State of Alaska mandate. In other words, the only way it can be increased is through the Legislature.
Last year, discussions took place in Juneau about amending the $150,000 exemption but the idea fizzled. The answer to your question is, therefore, “No”. The only way you could help is to contact your State representative. Alternatively, the State Assessor is Steve Van Zant at 269-4605 and he also may be able to provide further assistance.
Dear Dave: I have never sold to a VA buyer before, but my house is pending now with VA financing. Are my closing costs any different as a seller compared to FHA or Conventional financing?
Answer: The Seller’s closing costs are marginally different if the buyer is using VA.
Although most closing costs are negotiable between buyer and seller on any kind of financing, Federal regulations mandate that the seller must pay the Document Preparation Fee and the Escrow Closing Fee with VA. These fees, which are approximately $250 and $400 respectively, would be normally split 50/50.
Accepting a VA buyer on the sale of your home makes an insignificant difference to your closing costs, so you can relax.
Dear Dave: When buying a condo, how do you know whether pets are allowed? I am afraid of signing a contract if my two dogs can’t go with me.
Answer: Ask your Realtor to find out what the rules are regarding pets. These can vary in different condo developments. In any event, you must be given a “Resale Certificate” before you close on any condo purchase.
Under the Uniform Common Interest Ownership Act of Alaska, a condominium owner must provide a full disclosure of the Homeowners Association to the buyer. This hefty document, containing all sorts of information about the association including by-laws and house rules, is prepared by the Association manager. It is called a Resale Certificate.
Under the same law, the buyer has 5 days to review the Resale Certificate and, if not completely satisfied, can rescind the contract to purchase without penalty.
