It is a common practice for the lender to require the seller to sign an “arms length” affidavit as part of the short sale approval process. This arms length affidavit is intended to prevent the owner of the house from selling to a family member. It may also prevent the owner from selling to a business associate.
Why would the lender not want the owner to sell to a family member? The reason in part is because of the possibility of the owner and the family member creating a side deal whereby the owner may receive profit or some other benefit from the sale of the home. In order for the short sale transaction to happen, the lender must agree to accept less than the owner originally borrowed. The lender does not want the owner to “have their cake and eat it too”.
It is unfortunate that the underhanded dealings of a few impact everyone. I am sure there are cases when allowing a home to be sold to a family member would be of benefit to everyone involved, including the lender. The fear the lender has of mortgage fraud makes the likelihood of this happening nearly impossible in today’s market.
Jul 11, 2010
New theme park coming to Central Florida will bring tourists & jobs.
Managing Director of LEGOLAND Parks John Jakobsen says on this WOFL FOX 35 video that the opening of the LEGOLAND® Florida theme park will bring tourists and approximately 1,000 jobs to the Central Florida area. To find out more about the new park, visit http://www.legolandfloridaresort.com.
Jul 8, 2010
Leverage Our Experience To Your Advantage - Watson Realty Corp.
Founder and Chairman of the Board, William Watson, Jr. of Watson Realty Corp. discussing the advantages of using our full service real estate firm.
If the owner does not sign the contract how will you enforce it?
We are encountering houses for sale in our area where the listing agent informs us that the owner of the house has entered into an agreement to sell their home to a third party and it is this third party that has now listed the home and will be negotiating the transaction with our buyer. As you might have already guessed, these listings have short sale contingencies.
Here is how the conversation goes once the listing agent makes their disclosure to us.
Me: So the actual owner will not be signing the contract to purchase?
Them: No. The person(s) that have the option to buy the home will be signing the contract.
Me: How can the person who only has an option legally sign the contract?
Them: We do this all the time. The owner of record has agreed to sell the house to the person with the option and the person with the option will sell the house to your buyer. It will all be closed at the same time.
Me: Is this legal?
Them: Call our title company. The title representative will tell you “we do this all the time” and everything is legal.
Me: Does the owner’s lender know what is happening?
Them: The bank does not care; as long as they get the short sale price they agreed too, they are happy.
Me: So then we have it in writing that the owner’s bank knows what is happening?
Them: Call the title company; we do this all the time.
Me: If it is legit, why can’t we get the owner of record’s signature?
Them: That is not how we do these types of transaction.
I am not an attorney so I will leave it to those that are to determine the legality of transactions like this. In my opinion it just seems wrong not having the actual owner sign. Also, if it is legit, why doesn’t the owner’s bank know? We strongly suggest any buyer that may decide to enter into a contract to purchase a home with someone other than the person on the deed seek the counsel of an attorney. Since the owner of record is not signing the contract to sale, one of the questions I have is how would the buyer enforce it and against who?
Whenever I hear the phrase “we do it all the time” as the main answer to my questions and concerns, I get nervous. So should you.
Here is how the conversation goes once the listing agent makes their disclosure to us.
Me: So the actual owner will not be signing the contract to purchase?
Them: No. The person(s) that have the option to buy the home will be signing the contract.
Me: How can the person who only has an option legally sign the contract?
Them: We do this all the time. The owner of record has agreed to sell the house to the person with the option and the person with the option will sell the house to your buyer. It will all be closed at the same time.
Me: Is this legal?
Them: Call our title company. The title representative will tell you “we do this all the time” and everything is legal.
Me: Does the owner’s lender know what is happening?
Them: The bank does not care; as long as they get the short sale price they agreed too, they are happy.
Me: So then we have it in writing that the owner’s bank knows what is happening?
Them: Call the title company; we do this all the time.
Me: If it is legit, why can’t we get the owner of record’s signature?
Them: That is not how we do these types of transaction.
I am not an attorney so I will leave it to those that are to determine the legality of transactions like this. In my opinion it just seems wrong not having the actual owner sign. Also, if it is legit, why doesn’t the owner’s bank know? We strongly suggest any buyer that may decide to enter into a contract to purchase a home with someone other than the person on the deed seek the counsel of an attorney. Since the owner of record is not signing the contract to sale, one of the questions I have is how would the buyer enforce it and against who?
Whenever I hear the phrase “we do it all the time” as the main answer to my questions and concerns, I get nervous. So should you.
Jun 24, 2010
Kissimmee 4th of July fireworks and fun
There will be fireworks, entertainment, live music and food at the Kissimmee Lakefront Park South this 4th of July from 5:00 p.m. - 9:30 p.m.
The City of Kissimmee Parks and Recreation Department invites the public to attend a fireworks show that will be displayed above Big Lake Toho beginning at approximately 9:10 p.m.
More information
The City of Kissimmee Parks and Recreation Department invites the public to attend a fireworks show that will be displayed above Big Lake Toho beginning at approximately 9:10 p.m.
More information
Disclosing and inspecting for defective Chinese drywall
The Florida Realtors website recently reported on a Miami family that was awarded $2.4 million because of having defective Chinese drywall installed in their home. Defective Chinese drywall can smell like sulfur and corrodes appliances, wiring and other metal. Research is ongoing to determine health hazards and risks of exposure to the drywall.
A potential home buyer concerned with buying a home which may have drywall problems should take the precautionary steps needed to reduce the possibility of discovering the bad drywall after closing. Selling homes in the Orlando-Kissimmee area require that the owner disclose the existence of Chinese drywall and a strong recommendation that the buyer obtain a full and complete home inspection that includes inspecting for defective Chinese drywall.
Seller disclosure
Buyer should ask the owner of the house that they are thinking of buying for a written property disclosure. The seller can alert the buyer of any mechanical, structural or related issues with the home including the existence of Chinese drywall.
In addition to a detailed seller property disclosure, both buyer and seller can complete the Chinese/Defective Drywall Addendum to Contract. This addendum asks the seller to indicate in writing any knowledge they have pertaining to Chinese Drywall in the home. Equally as important, the addendum makes it clear to the buyer that they have the right to conduct an inspection or risk assessment of the property for Chinese drywall prior to closing of the contract.
Disclosing and inspecting for defective Chinese drywall benefits all parties in the transaction. Contact me if you are interested in purchasing a home in the Central Florida area and would like more information on the home buying process.
A potential home buyer concerned with buying a home which may have drywall problems should take the precautionary steps needed to reduce the possibility of discovering the bad drywall after closing. Selling homes in the Orlando-Kissimmee area require that the owner disclose the existence of Chinese drywall and a strong recommendation that the buyer obtain a full and complete home inspection that includes inspecting for defective Chinese drywall.
Seller disclosure
Buyer should ask the owner of the house that they are thinking of buying for a written property disclosure. The seller can alert the buyer of any mechanical, structural or related issues with the home including the existence of Chinese drywall.
In addition to a detailed seller property disclosure, both buyer and seller can complete the Chinese/Defective Drywall Addendum to Contract. This addendum asks the seller to indicate in writing any knowledge they have pertaining to Chinese Drywall in the home. Equally as important, the addendum makes it clear to the buyer that they have the right to conduct an inspection or risk assessment of the property for Chinese drywall prior to closing of the contract.
Disclosing and inspecting for defective Chinese drywall benefits all parties in the transaction. Contact me if you are interested in purchasing a home in the Central Florida area and would like more information on the home buying process.
Jun 14, 2010
If there is something about your real estate transaction that does not seem right, talk to an attorney.
The contracts that we use in Florida to sell real estate are legally binding documents. They were created to address the issues, concerns and requirements buyers and sellers should be aware of when buying or selling a home. As a result of repetition, practice and training, real estate agents should have a very good understanding of what is written in the contracts and can direct a buyer or seller to a specific addendum, clause or paragraph that might address their concerns or questions.
A buyer or seller should never rely on anyone other than an attorney for legal advice however. If you are not comfortable with or fully understand what you are agreeing to we strongly encourage you to talk to an attorney before proceeding. You should think twice before letting someone other than an attorney create special clauses or wording that are to be added to your contract.
I am quick to let buyers and sellers know that if there is something about your real estate transaction that does not seem right, talk to an attorney.
A buyer or seller should never rely on anyone other than an attorney for legal advice however. If you are not comfortable with or fully understand what you are agreeing to we strongly encourage you to talk to an attorney before proceeding. You should think twice before letting someone other than an attorney create special clauses or wording that are to be added to your contract.
I am quick to let buyers and sellers know that if there is something about your real estate transaction that does not seem right, talk to an attorney.
Jun 2, 2010
The Estates at Stevens Plantation Award Winning Saint Cloud Home
The Estates at Stevens Plantation. This award winning home has been professionally designed and appointed. Stevens Plantation is within minutes to Orlando. Located in Saint Cloud, this community prides itself on being progressive while not losing the small town feel. The city and community is also near the Orlando International Airport, and the newly created Medical City at Lake Nona.
Home facts
- 5 bedroom 3 full & 2 half bath
- 4705 square feet living area
- Two Story
- 3 car garage
- Built in 2006
Interior features
- Formal living & dining areas
- Family room
- 12' ceilings, custom crown & base moldings
- Gourmet kitchen
- Master bedroom on 1st floor
- Theater room
The features that make this house a home
- Private garden area
- Sub-zero refrigerator
- WOLF gas range
- Zodiac counters
- Intercom system
- Master bedroom with custom ceiling, sitting area & two walk-ins
- Insulated spa/tub
- Special entertainment area
- Wet bar w/ fridge
- Travertine decking
- Raised hot-tub w/ fountain
- Fire-pit
- Outdoor kitchen
Please call Jerry or Laurie Kelley to arrange a private viewing of this home. 321-689-2146
What would a football dome do to Orange County property values?
The Orlando Sentinel has reported that Orange County Commissioner Bill Segal dreams of bringing a football dome to Orange County.
How do football domes and stadiums impact mean property values? I went to Google looking for information about the impact football stadium has on real estate values. I found two differing opinions from two major markets that were considering/are considering building a football stadium.
How do football domes and stadiums impact mean property values? I went to Google looking for information about the impact football stadium has on real estate values. I found two differing opinions from two major markets that were considering/are considering building a football stadium.
- According to a paper prepared by Social Science Electronic Publishing, Inc., “the average expected amenity effect of hosting the Cowboys in Arlington was not significantly different from zero.”
- A FAQ on the Los Angeles football stadium website addressing property values says, “Typically good locations garner higher land values.”
Jun 1, 2010
Florida Realtors is donating money for phone calling cards that the USO will distribute to U.S. active duty troops
Florida Realtors kicks off military phone card program
Orlando, Fla. – May XX, 2010 – “To us, home is where we prop our feet up after a rough day” says Wendell Davis, Florida Realtors® president. “If ‘home’ to our service sons and daughters is a short phone call, then we, as Florida Realtors, should help them find ‘home,’ just as we help Florida buyers find a home.”
To honor our troops, Florida Realtors is donating money for phone calling cards that the USO will distribute to U.S. active duty troops. The USO has set up a dedicated webpage for credit card donations.
“When your son is in Iraq or Afghanistan, he’s physically 7,000 miles away, but the distance is much, much farther emotionally,” says Patti Fitzgerald, Florida Realtors president elect. “Comfort is a single phone call home. That’s it – a single phone call.”
“I was able to talk to my wife and family from Afghanistan, thanks to the phone cards donated by patriotic individuals, such as Realtors,” says LCpl Joseph Fitzgerald, U.S. Marine Corps and son of Patti Fitzgerald, Florida Realtors president elect.
Program details
• The USO will customize the calling cards with Florida Realtors® logo, so every soldier knows who paid for the call.
• The USO receives and tracks all donations. Checks sent to Florida Realtors headquarters will be forwarded to the USO.
• Everyone is encouraged to donate – not just Realtors.
• Deadline for donations: Aug. 15, 2010.
Florida Realtors has dedicated a website page for the initiative. It includes downloadable fliers with donation information about the program and how to donate by check; downloadable cards that can be handed out; and a link to the USO’s Florida Realtors credit card donation page: http://www.floridarealtors.org/supportourtroops.
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 67 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.
Orlando, Fla. – May XX, 2010 – “To us, home is where we prop our feet up after a rough day” says Wendell Davis, Florida Realtors® president. “If ‘home’ to our service sons and daughters is a short phone call, then we, as Florida Realtors, should help them find ‘home,’ just as we help Florida buyers find a home.”
To honor our troops, Florida Realtors is donating money for phone calling cards that the USO will distribute to U.S. active duty troops. The USO has set up a dedicated webpage for credit card donations.
“When your son is in Iraq or Afghanistan, he’s physically 7,000 miles away, but the distance is much, much farther emotionally,” says Patti Fitzgerald, Florida Realtors president elect. “Comfort is a single phone call home. That’s it – a single phone call.”
“I was able to talk to my wife and family from Afghanistan, thanks to the phone cards donated by patriotic individuals, such as Realtors,” says LCpl Joseph Fitzgerald, U.S. Marine Corps and son of Patti Fitzgerald, Florida Realtors president elect.
Program details
• The USO will customize the calling cards with Florida Realtors® logo, so every soldier knows who paid for the call.
• The USO receives and tracks all donations. Checks sent to Florida Realtors headquarters will be forwarded to the USO.
• Everyone is encouraged to donate – not just Realtors.
• Deadline for donations: Aug. 15, 2010.
Florida Realtors has dedicated a website page for the initiative. It includes downloadable fliers with donation information about the program and how to donate by check; downloadable cards that can be handed out; and a link to the USO’s Florida Realtors credit card donation page: http://www.floridarealtors.org/supportourtroops.
Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 67 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.
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