All Forum Posts by: Paul Chen

Am in the process of purchasing a SFH that my agent had never once informed me any HOA fee involved, though he'd checked those boxes that said seller shall pay for HOA transfer fee and seller pay HOA document preparation fees on page 2 0f 8 from purchase contract; item 4 E.3) & 4) (which I later found out from my friend who‘s an agent also); where I'd let it slipped; just went by his verbalization when he'd went over the contract with me; he did told me none of those fees on page 2 concerned me and they're all paid by seller with the exception of 50/50 escrow fee; without further scoping into the itemizations which he should've had; so should I. In addition to I'd always asked if there's HOA upfront before I'll consider checked out any properties which answer he gave me was no; took his words for granted again…

Comes the escrow acceptance letter needed to be signed, the $45/mo HOA fee only then caught my eyes, I asked my agent what's it about since I wasn't at all aware of it up until this point, he then told me that's just the escrow's letter template, it doesn't apply on the purchasing property.
Nevertheless, I’d wrote “ N/A “ right next to that paragraph with his approval before I’d signed at the bottom of that page for the peace of mind.

A couple of days later, upon calling the escrow to confirm they've everything they needed from me. Only then found out from them that they're waiting on the HOA's info which they assured me its existence and will be included, despite I'd wrote " N/A " next to its mentioning paragraph on the escrow acceptance letter. Followed by a phone call to my agent with frustration; his reply was " Oops! Sorry about that, WE (meant me and him) both had missed it from the listing” (which I’ve never gotten one from him) and he rationalized it by tried to have me offsets the $45/mo by increasing the rent to my tenants to justify his negligent and inconsistence informing. He’d also told me the escrow is just going to bypass my dispute on the escrow acceptance letter and will go through its process as if I’d agreed to it completed.

Any fix to this twist at this point? Or I have to live with the $45/mo for my entire ownership? Though I didn’t read the signed contract that I should have for my bad.

Am I suppose to be informed what kind of services comes with the HOA before asking me to sign the contract's page 2? Let along the misled. I wouldn't have had offered such generous price for this house in order to ruled out my competitions; $13K above its REO listing price; only if the agent isn't seemingly tried to pulled a fast one on me to avoided most buyer's HOA syndrome, besides the seller's agent was manipulating the selling price as well… my agent is just now requesting the HOA service coverage from the escrow for me…

Any thoughts / advises would be appreciated.

TIA

Thanks a million, Mike, for helping out in such details. I’m suppose to meet the Section 8 tenant at Housing Authority to take care of some paperwork tomorrow. I then should be able to get a better picture.

The average rent for the similar type of house from the Section 8 property listing is indicating $150 higher than my asking , and I’m aware of my asking is lower than the comparable non-Section 8 property by about that much as well. I just want to rent it out ASAP since the escrow closed 1 month late, and it was vacant for 2 months; I was hoping I can sell it at a $10K lost and get that Short Sale which offered much more value despite the lost; but failed. That’s another story.

Nevertheless, I’m still concerning what you’d said about the security deposit which I’d also read it from other post that said the same. I’m wondering if my own lease contract between me and her doesn’t governed by the Section 8 contract and if its worth the trouble to risk it for the possible higher and stable rent than my asking. I’ll consult with a R. E. attorney on this as well. How ugly can it gets if she doesn’t pay the security deposit installments as agreed on the lease contract that’s between me and her? Provided the Section 8 contract doesn’t interferes it.

Lastly, is it good enough to just tell my other turned down applicant that I’d found a better financial fit tenant if I decided to go with the Section 8 tenant?

Thanks again…

Am I legally able to take a conditional nonrefundable deposit from a section 8 tenant to prevent her from renting some place else other then mine during/after her end part of section 8 paperwork processing stage (provided she will get the final approval by section 8 that is; she told me she has been a section 8 tenant for years and she’s just being transfer from one city to another; she verbally agreed that she‘ll rent my place)? So that I won’t loose my other qualifying tenant in line to her possible mind changing after she get the final approval by section 8. Especially the final approval for transferring is going to take almost a whole month as she’d told me. In addition to another negative condition is that she requested to have her security deposit pay off during the first 6 months of the 1 year lease contract rather than before she moves in. Her edge for me to consider her over others is that she can offer higher and stable rent, but I need to verify if her higher rent is including utilities ASAP; she asked me to increase my asking rent to what she’s allowed from section 8 if I can provide her a cooking stove, and to install central air which I’m considering anyway.

And what should I tell my other turned down qualifying applicant without any discriminating element that I might not be aware of if they ask for the specific reason after I’d told them that I’d already chosen a financially better qualifying tenant over them? Am I required to disclose further by law?

Perhaps I should simply take the other qualifying applicant who will pay $175/mo less over this section 8 tenant that’s having a few unpredictable obstacles?

What’s a fair ballpark figure for a real estate attorney to charge for supervising my process of finding a tenant; over looking the section 8 contract and my own lease contract/documentations with the tenant; I’ll be using the online tools for application, credit report / background check and customized lease contract. Does the real estate attorney offer such service to begin with?

Thank you for any advises.

REI rookie.

Seller failed to close escrow on time once again for the fourth time and further postponing to this Friday. I’d sent in a letter to my realtor and for the seller stating that I wish to terminate this transaction / contract if escrow is not closed for the last time on that day, as per my real estate attorney instructed me to do (have reached the end of my alley); she said I don’t have to lose the 3% of selling price even I’d signed off the contingencies. Though my realtor keeps feeding my lines that’s otherwise.

Thank you for sharing your experiences… wouldn’t want to sue the seller given their lost of love ones; both were recently apart especially. Just wanted some compensation for their third postponing of the escrow closing that’s incurring my financial lost since didn’t know my right, and since I wasn‘t able to take much of the advantages from the downturn market for this property that‘s also full of obstacles (rookie meet up with a lazy and inexperienced realtor). I’ll make sure it’s going to be on my next contract which is coming up soon however.

Thanks

Kenvest,

Thank you so very much for your tangible legal fact, I’d just called my realtor’s staff manager in regards with "time is of the essence", without a pause, he then tells me it’s already on the contract, he was stuttering and said he’ll reread the contract after I asked him why did he agreed with me then when I though I would have to lose the 3% of the selling price for breaching the contract if I’d decided not to agreed with their last postponing and wanted out, in addition to my comment to him that there ought to have some kind of protection for my situation.

Just myself to blame for not reading the contract thoroughly (rookie’s lesson # 1); took it for granted; relied on the realtor’s verbal review of the contract with me which appointments always set to be her last one of the day (whenever comes to signing anything) and under a time pressed that she’d to leave soon to pick up a member of her family… I would have dropped this deal if she’d elaborated that term especially when the seller is not responding to my asking of some kind of compensation (naturally, since I’d agreed to their last postponing without using that as a leverage at the same time), let along she didn’t let me know about the property is in a flood zone until the last minute when I’d to signed off my contingencies (supposedly a week prior that they’d even admitted but with an excuse) and reluctantly went through with this deal since I’d spent so much time and effort on this property already, on top of the $1K spent on “two“ inspections along with the upfront appraisal… 101 other reasons for me to make a snap decision now to drop this deal in a heartbeat without worrying the losing of 3%! If they postpone just one more time.

Nevertheless, good knowing at least there will be no other postponing without compensation, don’t have to lose the 3% when not agree to it and that I was taken for a ride in this aspect is the last time.

Thanks again for your valuable info.

Thank you for your helpful info.

Is there anything I should / can do about that? Originally they wanted to close before X-mas and only gave me 10 days for inspections which I'd accomplished. And gave me a Notice To Buyer To Perform in return for my minor negotiations; demanded if I don't remove the contingencies within 24 hrs, they may cancel the agreement. Which request I'd also fulfilled. After all, they wanted to close on Jan 4th instead of. And postponed again to Jan 11th on Jan 3rd all for the reason of one of the heir past away for this probate sale, that I do understand for their lost and agreed. But yesterday they're further postponing the closing date to Jan 22nd! In the mean time I'm loosing one month rental for this 4 bedrms / 2 baths SFH, on top of money sitting on Cashier's checks for escrow closing balance without bank interest that has been already lost. Along with the timing chain reaction on my other plans that involves with financial lost outside of this deal causing by the postponing as well.

Your advises and insights are much appreciated. Please also let me know if it would be more appropriate that I should post this under other topic.

- Rookie

Tenant's death

If the previous tenant died in a rental property, am I required by law to disclose the death to the future tenants who want to rent that property?

Landlords' Attorney McKinley: Yes. Under California law, if a tenant dies in the rental property, you should disclose that fact of the death, and the manner of death to any prospective renter or purchaser for three years, from the date of the tenant's death. The exception that proves the rule is that if the former tenant died of AIDS or any HIV-related illness, or even was HIV positive, you may not disclose that detail to any prospective renter or buyer.

Tenants' Attorney Kellman: Yes and no. The law does not specifically demand that you disclose the manner of death within three years of the death but on the other hand, it will not protect you from a lawsuit if you do not make the disclosure to a new tenant.

James is right about the advice to make the disclosure if you want to be shielded from a lawsuit. If you fail to disclose it, a tenant may sue you for concealing a material fact. Of course, the tenant would have to prove they were damaged by your failure to tell them of this death.
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So, I have to disclose it voluntary without the tenants asking?

Thank you for your positive outlook. Opening escrow tomorrow.