Buyer agent's mistake comes back to haunt

Q: I had a couple that asked me to find a home for them that did not have any sort of fee that had to be paid to a homeowners' association (HOA).
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I found a house that they liked a lot so I asked the listing agent (it was a property that had been foreclosed upon by the lender) to look into it. He supposedly did his research and came back and said there was no HOA fee.

I also asked the title search officer to look at this issue before the house went into contract and she also said there was no HOA fee. The only association that came up was one for the contractors for the development.

My clients purchased the home. Last week they called and said they received a statement for their HOA dues for $30 per month.

Should that have come up on the title search with the escrow instructions?
Now what do I do? My clients are upset!

A: To the best of my knowledge, an HOA should have come up on a title search. For most associations, the HOA is allowed to collect assessments by virtue of the rights given to the association in the association documents. These association documents are generally recorded against all of the titles to the homes in the subdivision or community.

The title search office may have made a mistake. In any event, the existence of a HOA should have been disclosed by the seller, even if the property is being sold to you by a relocation company.

Still, this is something you should have found out a long time ago.

One easy way to determine if there are dues owed to a HOA is to see if there are any common areas or amenities that can be used by the home your client was buying. If the development has a clubhouse, shared playground or other common amenity and you ask around and that clubhouse, playground or other amenity is not managed by the town or city or other municipal government, then it's quite likely that monthly or annual fees from the homeowner's must be paid.

You should have knocked on a few doors to talk to other homeowners who lived in the development so you could get some first-hand information. Other listings in the development from current or past sales may have disclosed the amount of the fees. But if you just relied on what other people told you, and they were less than forthcoming, it's not hard to see how you've wound up in this difficult situation.

That's not a great way to run your business. It's no wonder that your clients are upset.

If your clients want to explore legal options, they should talk to a real estate lawyer or litigator. In the meantime, your clients should check the documents from their closing and see if the title work showed any documentation regarding the association. If there were documents that disclosed the existence of the association and its ability to collect fees from the homeowners ? whether your client's decided to read it or not ? they are on the hook to pay those fees. If the title company missed the document, the title company may have some responsibility for the error.

"

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source: boston.com

Should I paint roof to better match house?

Q: I have enjoyed your column for some time, and I now have a question about the composition shingle roof on a house we just purchased. The roof is only 5 years old and is in good shape, but we want to paint the house. Unfortunately, the existing roof color will contrast poorly with the paint colors we've chosen. Is there any kind of paint or other surface coloring that we can use to darken the shingles? --Pat W.
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A: As you're probably aware, a composition shingle gets its coloration from the thousands of tiny mineral granules used in its construction. Even in a roof with a uniform color -- white or black, for example -- you will find a lot of variation in the color of the individual granules. Any type of surface coating you could apply would have a uniform color to it, so it would actually appear rather odd compared to what a normal composition roof looks like. Also, since these are surface coatings -- similar to paint -- they will wear off relatively quickly and may also void the manufacturer's warranty.

I did speak with a representative from the Asphalt Roofing Manufacturer's Association, who said that they get this question fairly often, and raised the same concerns I mention above. His only recommendation was the Brewer Co. -- www.brewercote.com -- that apparently makes a coating with a variegated coloring meant to mimic the colors in composition shingles. I tried to contact them to ask about this but received no reply, so I don't have any more information for you on that particular product.

All in all, I would strongly recommend against trying to color your roofing, and would suggest instead that you look at some other color combinations for the exterior of the home that might go better with the existing roof color.

Q: I had a water feature installed, made from brick and cinder block. The rubbery coating the contractor applied as a sealer has formed thousands of blisters, and has pulled away completely in one area. The contractor says that in spite of this, the block is still sealed, and he won't do anything about it. It's not leaking, but I'm very concerned about it, especially in freezing weather. What do you think? --Patty P.

A: From what you describe, it sounds like the surface of the block was not prepared correctly prior to the application of the coating. With most types of surface coatings, bubbles in the finish indicate the presence of moisture. I don't know what type of product was used in your case, but it sounds like the block may not have been completely clean and dry at the time of application. It could also be a defect in the product itself.

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source: boston.com

What to expect at home inspection

Dear Barry,
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We've never hired a home inspector and have questions about the protocol for an inspection. Some inspectors, we're told, prefer to work alone, and some agents, they say, discourage buyers from attending. Who typically attends a home inspection, and who decides who can attend? --Jill

Dear Jill,

The variables that affect home inspection attendance are numerous. The bottom line, however, is that buyers, in most cases, hire the inspector as their private consultant. In that light, the buyers should have the first and last word regarding their own attendance. But your questions address a broader range of attendance issues that also need answers.

There are home inspectors who prefer to work alone, but their exclusion of clients is highly unprofessional and should be reconsidered. They should abandon this solitary practice or find another line of work. A consultant cannot consult when no one is there to listen. And mailing a report after the inspection does not provide adequate explanation of inspection findings.

Attendance arrangements are usually handled by real estate agents, but circumstances often override their preferences. In some cases, buyers cannot attend because they live out of the area or are unable to get time off from work. In those instances, inspectors may be accompanied by one or both agents or may simply be left alone.

In most cases, buyers attend all or part of the inspection. This may occur with or without the sellers and agents present, or it may include an entourage of buyers, sellers, agents and contractors -- and possibly relatives and friends of all or some of the above.

The question of seller attendance is one that involves numerous answers and complexities. Although buyers have the right to insist on their own presence at the inspection, they cannot forbid sellers from remaining in their own home when the inspection is taking place. Some sellers willingly leave for a few hours; some remain home without involving themselves in the inspection; and still others become actively involved in the process, engaging the buyers in lengthy conversations or shadowing the inspector every step of the way.

A priority of many agents is to prevent direct communications between buyers and sellers, especially during the home inspection. This is done to prevent emotional exchanges that might adversely affect the outcome of the sale. In some cases, the oppositional chemistries of buyers and sellers make this a wise precaution. Often, however, full attendance at the inspection promotes amicable exchanges and fosters goodwill among all parties. Each case is distinct and hinges on individual personalities, rather than strict protocol.

When reviewing the findings at the end of the inspection, buyers often prefer a private consultation with the inspector, without the sellers being present. In some instances, sellers instinctively understand this and offer the buyers and their inspector a private meeting environment in some area of the house. In other cases, the buyers might meet the inspector and agent at a local restaurant or real estate office for a review of the report. Occasionally, sellers will attend the review, and this arrangement can be productive or otherwise, depending on the temperaments involved.

The worst of all arrangements is when agents advise their buyers not to attend the inspection and appoint themselves as emissaries between buyers and home inspectors. Agents who even suggest such arrangements are not acting in the best interests of their clients. Buyers who have such agents should seek better representation.

As a buyer, keep in mind that the inspector is your private consulting advocate. The home inspection is your show, paid for by you, and presented for your exclusive benefit. Find a home inspector with a reputation for thoroughness, and don't let anyone else set the rules of engagement.

"

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source: boston.com

Fannie, Freddie see further losses

WASHINGTON - The chief executives of Fannie Mae and Freddie Mac yesterday warned that their ailing mortgage-finance companies will suffer further in 2008 due to a weakening housing market and rising home-loan defaults.
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Freddie's CEO, Richard Syron, said the government-sponsored company could lose an additional $5.5 billion to $7.5 billion over the next few years from soured home loans.

"I honestly think it's going to get tougher before it gets better," Syron said in a discussion with financial analysts in New York. His company has already logged about $4.5 billion in projected losses during the first nine months of this year.

Freddie's shares fell $3.73, or 10.6 percent, to $31.31.

Fannie CEO Daniel Mudd, also meeting with analysts at the conference, forecast "a very tough 2008" and continued weakness in home prices through 2009. Mudd called the wave of defaults and foreclosures this year the worst mortgage crisis "in recent memory."

The Washington-based company, which lost $1.4 billion in the third quarter, sold $7 billion in preferred stock last week to raise capital to stabilize its finances. Mudd said yesterday that Fannie had no further plans for such sales.

Mudd said the company could raise additional capital, however, through sales of mortgage investment holdings and increased fees on mortgages.

Syron said while the mortgage crisis has brought a rising wave of foreclosure notices into public view, less evident have been "pictures of people standing with furniture on the lawn" after being evicted from their homes. "As that begins to happen, and it will happen, I am afraid of the impact that this has."

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source: boston.com

Playground dust-up

Joe Fallon is Mayor Tom Menino's favorite developer. He is not, it is safe to say, the favorite developer of Michael Flaherty, the man who would be mayor.

Flaherty leaves no doubt about that in a blistering letter he wrote last week criticizing Fallon's attempt to protect the water views of his own new development on the South Boston Waterfront. "It is a bit unnerving that a developer who has constantly asked for cooperation, flexibility and in some cases, leniency from the City and community in regards to the company's own developments, would oppose an abutting project," Flaherty wrote in a letter to state environmental regulators. Then he adds: "I would hate to see a good public process hijacked by a wealthy developer with self-interest in protecting a view."

Just so there is no misunderstanding, the city councilman from South Boston elaborated, at length, in an interview with me yesterday: "Here is a guy from Belmont who seems set on making this his own personal playground."

It was only two months ago that all Boston officialdom - Flaherty included - was applauding Fallon for finally getting a shovel in the ground at his personal playground, otherwise known as Fan Pier. But what set Flaherty off now is Fallon's opposition to the design of a new project slated to rise where Jimmy's Harborside Restaurant, one of the city's old standbys, once stood.

In a letter last month, Fallon Co. said it "strongly objects" to Cresset Development's design for two modest-size buildings across the street from Park Lane Seaport, Fallon's large apartment complex. Fallon's objection: The corridor between the two Cresset buildings is not lined up to provide appropriate views for Fallon's tenants. "The currently proposed building configuration on Parcel E will adversely impact the marketability of resident and retail space in the Park Lane Seaport development," Fallon's attorney wrote.

The man is breaking my heart. Considering the size of Fallon's development - 13 stories and 465 units - it is amusing to see him whining about a neighboring project that is all of 70,000 square feet and is four stories at its highest. Fallon told me it's all a misunderstanding. "I want to see this building built," he says.

Consider: Here on the barren South Boston Waterfront we actually have developers complaining about blocking each other's views. Who thought we would see the day!

Look for mayoral candidates to start jockeying for position, too, even two years before an election. Take Flaherty and Ralph Martin, for instance.

Two weeks ago, the two undeclared candidates met for drinks at the Hilton's Caliterra Bar on Broad Street. The topic: Who would run against Menino in 2009? The two are good friends; Flaherty, in fact, was Martin's deputy in the Suffolk district attorney's office. Both want to be mayor.

Martin's pitch to Flaherty: I'll run for mayor, and you run for district attorney against Dan Conley. After two terms, I'll back you for mayor. Martin is 54; Flaherty is only 38. You have time, Martin said. I don't.

Flaherty had a better idea: Why don't you be my campaign chairman?

Developers jockeying with each other to build on the waterfront. Good candidates jockeying with each other for a mayor's race. This is a good thing, not bad.

"

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development, Internet programming,

real estate web design and hosting needs. Our service includes domain name
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complete solution including design, application development and marketing."

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: boston.com