All Forum Posts by: Tim Silvers

 48 DOM. 

I am a week away from COE.

Buyer's sewer inspection report came up with the following:

"CAST IRON PRESENT: The age of the plumbing system should be taken into consideration. Cast Iron drain and waste lines typically have a 50 - 60 year life. Internal corrosion in the lines can and will affect the pressure and draining capabilities of the plumbing system at some point in the future. Major repairs and/or replacement should be anticipated - this could be in 20 years or 6 months, remaining life is indeterminable. You should consult with a qualified contractor to discuss options and costs for proper repairs.
Recommendation: Contact a qualified professional. Drain System: POSSIBLE DAMAGED LINE. There is one or more sections of possibly damaged/cracked drain line found under the home as viewed from the clean out at the front of the home. We recommend the repair of all damaged lines. It is HIGHLY recommended that a licensed plumber review review the findings and recommend any repairs necessary prior to the end of your due diligence period."

This was a major rehab ($160K) and I've already discounted the price $40K from ask.

After discussing with my contractor, since there is nothing backed up or leaking and the toilets and sinks are draining properly, there is nothing to repair or replace at this time. We did, however, replace some of the pipes with ABS. Furthermore, the report does not indicate any clogging. There are also separate plumbing inspection plans available. The buyer needs to understand that all older homes come with cast iron pipes and will all show aging over time, but as long as there are no issues with draining, it is not something we repair.

To address potential future problems, wouldn't a homeowner's policy and/or home protection plan cover any occurrences?

Buyer's agent has requested a CLUE report as part of the request for repairs on a flip property under contract.

I've asked my insurance agent to pull one, but he suggested to contact LexisNexis directly. That will take a couple weeks and delay the close.

Should I find another agent to pull one for me quicker?

Also, how would I order the report for just this property when LexisNexis is asking for personal information for a Consumer Disclosure Report on the order request form? This does not apply to my flip property which would not come up under my personal history since it is titled in an entity name, not me personally.

Suggestions? 

Upon further inspection of the Loan Agreement, there was likely a county fixture
filing required to perfect the lender's security interest.

"GRANT OF SECURITY INTEREST IN COLLATERAL. As consideration for the loan we are providing and to secure your obligations under this Agreement, you hereby grant to us a security interest in the following property (collectively “Collateral”):
all consideration received from the collection, sale or other disposition of the Collateralized Goods, including any payment received from any insurer arising from any loss, damage or destruction of any Collateralized Goods and any other payment received as a result of possessing any Collateralized Goods, or any other proceeds of Collateralized Goods."

In this case, the insurer denied the claim, so no payout, despite the surviving spouse filing a bad faith claim.

Given the above, it seems the question is as to whether the loan balance still falls under the decedent's estate as an unsecured debt (since there's no collateral) that has no bearing on the title  - or if it's secured under which the lender will refuse to terminate the UCC-1 filing until the loan is satisfied.

It is actually a loan, however, the panels are not attached to the property as is stated in the agreement:

"Personal Property. You and we both expressly intend that no portion of the Collateralized Goods will constitute a “fixture” attached to any real property, and that the Collateralized Goods will be removable personal property. You also agree not to take any action that might cause the Collateralized Goods to be treated as real property or as fixtures to real property. You agree that we may make a fixture filing, if we choose, provided that you and we agree that we may enforce rights in the Collateralized Goods under the Uniform Commercial Code and not under state real estate or mortgage law."

 Title says we need a cancellation of the UCC-1.

Need full replacement of tile roof, plywood already in place, 1300sf house in Las Vegas, single story.  

So, the UCC-1 is now an unsecured debt against the decedent's estate, I assume?
Wood tile need in order to reconvey since the lien still shows up?
 

I updated my post after your response, so you didn't get the part on the insurance. It is a very protracted and complex case, but I shall summarize best I can:
- husband caused the fire and committed suicide
- insurance claim denied due to arson
- wife filed bad faith claim against insuror under innocent spousal relief argument
- insuror still refused to pay claim
- wife exhausted all resources; abandoned further claims against insuror
- city deemed property uninhabitable and issued demo order (lien)
- property demolished along with the solar panels
- husband was the sole lessee of record on the solar lease
- wife submitted death cert to solar lease co.
- bank just recently issued cancellation of debt to wife for 1st mortgage
- wife wants to wash hands of it all and sell vacant lot to me

My discussions with the public adjuster I brought on the case was that since the property no longer exists, the solar lien is wiped out, but I'm not sure.