Buyer's Resources

Buying a home is an exciting time in one's life. Making the smart move of choosing a Century 21 Royal agent is your first step to ensuring that your new home and community meets your needs. Our services and experience range from financial aid to helping you find the home that best suits you and your family. For your convenience, we also provide listings by email. We pride ourselves on repeat business and hope you'll come to understand why.

Here you'll find helpful information and tips for buying property in Westchester...specific, local, useful information. Remember... It is a great time to buy! Home prices are affordable, interest rates are low, and the home buyers' tax credit is back! Contact us today to take full advantage of these benefits and our extensive experience and knowledge.

Tax Exemptions Avoiding Financial Stress

Build a Plan of Action & Get Ready Feeling a Little Cramped? Moving Up Finding the Right Seller

Getting A Lender & Pre-Approval Punch List For New Construction Owners Historic Charm or Modern Convenience

Hot, Normal, and Cold Markets Importance of Inspection Make Moving Easier

Packing List Selecting a Builder Don't Make Major Credit Purchases

Why Use A Buyer's Agent Lead Poisoning Radon

Underground Oil Tanks Commons Ways of Holding Title Difference Between Condos & Co-Ops

Living Trusts Types of Real Estate Liens Short Sales/Foreclosures

Tax Exemptions

New York State and Westchester County offer a number of tax reduction programs to qualified individual owners of single family, multi-family houses, condominiums, and cooperative apartments. Many homeowners are entitled to reductions in their property taxes, but do not receive them because they have never applied.

This is a list of New York State and/or Westchester County property tax exemption benefits:

It is important to file applications before the deadline to take advantage of all the benefits offered.

Avoiding Financial Stress By asking the right questions, and knowing exactly what your needs are, you can find the right loan for you. There are certain approaches that you can take while mortgage shopping that can cost or save you money.

It is still true that the better qualifications you have, the lower your interest rate will be. However, there are mortgages available for almost everyone; it's the interest rates or the down payments that vary.

Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Then when you discuss mortgage pre-approval with your lender, it is easier for you to determine the monthly amount and what value of home the monthly amount translates into. Do not put yourself in the position where you will be paying more each month than you intended simply because the "dream" house requires it.

Do your research on the types of mortgages available to you and find the one that best suits your needs. There are a number of considerations to be made in terms of finding the best mortgage for each individual:

What type of market are you in?
Are the interest rates falling or rising?
Do you want a fixed mortgage rate, where you will always know what your payment is going to be?
What are your long-term goals?
Do you intend to resell the property?
Do you only need the mortgage for a short time?

Build a Plan of Action and Get Ready

Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It's important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.

Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.

First, ask yourself how much can you afford to pay for a home. If you're not sure on the price range, find a lender and get preapproved. Preapproval will let you know how much you can afford so that you can look for homes in your price range. Getting pre-approved helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.

Second, ask yourself where you want to live and what is the best location for you and/or your family. Things to consider:

convenience for all family members
proximity to work, school
crime rate of neighborhood
local transportation
types of homes in neighborhood, for example condos, town
homes, co-ops, newly constructed homes etc.

Feeling a Little Cramped? Moving Up

If your home is giving you "the squeeze" because your family has grown or you're seriously thinking about buying a home in a more upscale neighborhood, then you may be ready to move up to your next home. But how do you get started?

Begin with a "reality check."

Take some time to really look at what the next step may be. Visit the neighborhoods you may be interested in. Tour open houses or homes for sale to see what kind of home is available in your price range. We can show you neighborhoods and homes that you might not have considered, but that will meet your needs. Trust your instincts and focus on what you know fits your lifestyle. Then we can help advise you on the value and investment quality of the homes on the market.

Next, talk to your lender to see what kinds of mortgage programs and rates are available, as well as how much you will qualify for. More important, take a hard look at your household budget to realistically determine how much of a mortgage payment you can afford each month. If you don't already have a good relationship with a lender, we'd be happy to refer you to lenders who offer mortgage programs that meet your needs.

In the meantime, we can perform a Comparative Market Analysis (CMA) for your current home to see how it compares to other homes sold in your neighborhood. Then we can determine a realistic asking price. We can also recommend ways to prepare your home for sale. Once you have made a realistic assessment of what you're getting into, then we can put your house on the market and begin to seriously look for your next home.

What if you find a home before yours sells…or vice versa

One of the biggest concerns of move-up buyers is what happens if they find their dream home before their current one sells, or if their home sells before they find a new one. Here's a brief look at several options (please call us for greater detail or help with your particular situation):

If you have an acceptable offer for your home on the table but haven't yet found a new house to move to, you can:

Go for it with the understanding that you may have to move twice - once to a short-time rental unit, the second time to your new home.

Accept the offer with the stipulation that you want a long closing and the right to rent back from the new owner for 60, 90 or 120 days. Assure the buyer that you will do everything possible to move things along so they may be able to take possession of the home sooner than the specified terms.

Inform the buyer you'll sell the home only if you can find a house you like and it will take 30 to 60 days to determine if, indeed, you will sell. This may seem a bit risky but this approach can be successful if you allow the buyer to do their inspection (not appraisal) and get their financing in order while you shop for a new home. You also allow them to continue looking at other homes on the market. If the buyer finds something they like better, then you agree to let them out of the deal and refund their inspection cost (typically it's only $200-$300). This a good way to avoid having to take your home off the market while you're looking, only to have the buyer then do an inspection after you've found a new home, giving them an opportunity to renegotiate the deal when they know you're over a barrel. To prevent surprises at the outset, we can include in your listing description a phrase such as "...the sale of this house is contingent on the seller finding a suitable home..."

Think about the future

When looking for your new home, try to think more about your future needs than your current needs. Generally, we recommend buying as much home as you can afford without overextending yourself, especially if you're buying a new home with few maintenance issues. By stretching a bit within your personal budget, the home will better meet your current and future lifestyle, you will likely hang on to it longer, and it will be a better-performing investment in the long run.

With all that said, remember that you will likely not live in your new home forever. According to U-Haul, the average American relocates 11 times over the course of his or her life (Ladies Home Journal, July 2005). If your new home meets many of your needs, then go for it. You likely will be moving up again in the future.

Finding the Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell for less than his or her house is worth. And it matters that you find out why; learning the reason why can help you get the price you want and help the seller get what they want: a timely sale. Additionally, it is important to find a seller that is willing to work with your needs and come to a mutual agreement.

When given the opportunity to meet with sellers, ask them why they are selling. The reasons could be anything from job change to a new location to financial problems. If you can solve their problem, whether it is cash related or time related, do so. For example, if the sellers are highly motivated because they need to move quickly, give them a fast sale - and a lower price. If you can make an offer, even a low one, that gives them cash in a short time, they are more likely to accept.

There are also some sellers that you should avoid. Not every seller is as genuinely motivated as they make themselves to be. Some possible hints:

they stall on having the home appraised or inspected
is unable to clear up liens against their property
does not own 100% of their property
they push back the move-out date
does not have a replacement property or back up plan
etc. etc. etc.

It is impossible to find the perfect seller. But it is possible to find out which sellers are legit, and which ones aren't.
Back To Top

Getting a Legitimate Lender and Getting Pre-Approved

It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today's market, that has proven to be one of the least effective methods in landing the dream home.

Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.

A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.

In addition to being pre-approved, it's important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.

Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.
Back To Top

Punch List for New Construction Buyers

Your newly constructed dream house is almost ready and it's time for the all-important walk-through with your builder. Do you know what you should be looking for?

Some problems may not be readily visible, even if you hire a professional inspector. Fortunately, most builders offer a warranty to cover problems in the workmanship of a home -- they do not, however, cover problems resulting from owner neglect or faulty maintenance. Still, knowing what to look for in your pre-settlement walk-through is a good way to catch potential problems. Here's a helpful "punch list" to use from the National Association of Homebuilders:

Outside

Grading: Does the ground around the foundation slope away from the house? Make sure the water does not pond or pool in large puddles, especially near the foundation. To check, water the areas with a hose, if possible. Are there signs of erosion?
Is the shrubbery placed at least 2-3 feet from the foundation
Roof and Gutters: Are the shingles flat and tight? Is the flashing securely in place? Do the gutters, downspouts and splash blocks drain away from the house?
Are the windows and doors sealed and protected by weather stripping? Are the trim and fittings tight? Are there any cracks? Does the paint cover the surface and trim smoothly? Has landscaping been installed according to the terms of your contract?

Inside

Doors and Windows: Are all doors and windows sealed? Do they open and close easily? Is the glass properly in place? Are any windows loose or cracked?
Finishes: Is the painting satisfactory in all rooms, closets and stairways? Did the painters miss any spots? Are the trims and molding in place?
Floors: Is the carpet tight? Do the seams match? Are there any ridges or seam gaps in vinyl tile or linoleum? Are wooden floors properly finished?
Appliances, Fixtures, Surfaces, Etc.: Do all of the appliances operate properly? Are all of the appliances the model and color you ordered? Check all faucets and plumbing fixtures, including toilets and showers, to make sure they operate properly. Are there any nicks, scratches, cracks or burns on any surfaces, including cabinets and countertops? If you have tile counters or floors, was the tile and grout sealed by the builder or will you need to handle?
Electrical, Heating and Air: Check all electrical fixtures and outlets. Bring a hair dryer to test the outlets. Do the heating, cooling and water-heating units operate properly? Test them to make sure. If the home has a fireplace, do the draft and damper work? Test the doorbell. Also test the intercom system, garage door opener and any other electrical items.
Basement and Attic: Are there indications of dampness or leaks? Is there significant cracking in the floors or foundation walls? Are there any obvious defects in exposed components, such as floor joists, I-beams, support columns, insulation, heating ducts, plumbing, electrical, etc.?

Certificate of Occupancy: Has your local municipality signed off on your house?

As your real estate agent, we will be available to assist during all phases of your home purchase, including your walk-through. Please contact us for more information on what you should look for and how we can help.

New or resale: hiring a professional inspector is a smart approach

Buying a home, whether a new or resale property, is one of the biggest investments you're likely to make. That's why hiring a professional inspector to check out your home's basic systems and structural integrity is so important. An inspector looks for and recommends changes that can make the difference in how much money you will spend for future repairs and maintenance. Even if you have a good eye for detail or are buying a brand new home, a thorough inspection by an experienced professional is a wise choice that can save you a lot of time, money and frustration in the future. Please call us for more information on how a professional inspector can make a difference in your home's purchase.
Back To Top

Historic Charm or Modern Conveniences?

Antique moldings, a unique staircase and a colorful past give one listing a historic charm that can't be replicated, yet another home is brand-new with all of the latest high-tech amenities. Which one is right for you?

We're fortunate to have a variety of home styles - and ages - to choose from in the area. Each has its own appeal, depending on your lifestyle, price range and personal taste. I can help you find a home that meets your needs and style. In the meantime, here's a look at some of the points to consider when choosing between an older, more historic home and a new, state-of-the-art property.

Older Homes

Craftsmanship: Older homes feature special touches that, in some instances, can't be replicated. Beautiful columns, antique lighting fixtures, stained or beveled glass, wood trim, crown moldings and period accents give a home character and verve.
A Colorful History: Buying an older home often comes with an interesting story. Perhaps a local celebrity lived there at one time. Maybe the home was once the local doctor's office or a popular business. Who needs an interesting knickknack when your entire home is a conversation piece?
Mature Landscaping: Homes in established neighborhoods are surrounded by mature trees and landscaping.
A Hobby for the Handy: If you enjoy puttering around the house, you may be well suited to an older home that requires your loving touch. Many owners of older properties get a lot of satisfaction by treating their home as a hobby of sorts -- a place where they can restore antique fixtures, renew a tired structure and, generally, bring an older home back to its glory days.

New Homes

Convenience: Newer homes have the latest amenities, including built-in appliances, central heating and air, and high-tech wiring for today's computer, telephone and television equipment.
Energy Efficiency: Better windows, efficient heating and cooling equipment, enhanced air filtration, and the latest insulation materials increase energy efficiency in newer homes.
Maintenance: If you're all thumbs when it comes to home repairs, you might consider a new home. With a home built today, for example, you can get siding, windows and trim that never need painting. New homes even have wood decks made of pressure-treated lumber to resist rot and pests.

Hot, Normal, and Cold Markets

Hot Market

This is an extremely competitive market, one that is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and more often than not, homes will sell for more than their asking price. It is even more crucial to be prepared and to be ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.

Normal Market

In a normal market, there is fairly a large number of homes available and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but he or she may not be desperate to sell either. Again, it is the buyer's responsibility to be prepared. During a normal market, the chances to negotiate are higher than in a hot market. As a buyer, you can expect to make offers at lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.

Cold Market

In a cold market, houses may be listed for more than a year and the prices of houses listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works to your best interest. It is not uncommon to low-ball and to find that sellers are accommodating to meet your needs. Keep in mind that even though this market is a great time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.
Back To Top

Importance of Inspection

Since obtaining a home inspection is one of the most important steps in purchasing a home, we thought we'd take the opportunity to provide some insight into the home inspection process.

A qualified inspector can point out potential costly problems with the home you are considering buying, and a good inspector will give maintenance advice and ultimately give you peace of mind about your home investment. All home buyers -- whether they are buying an older home or building a new one -- should have the home inspected by a professional after making an offer and before closing.

There are a few things you need to know before hiring a home inspector. First, the home inspection industry is becoming more professional and regulated, a trend that CENTURY 21 Royal strongly supports. There are professional organizations with codes of ethics, like the National Association of Home Inspectors and the American Society of Home Inspectors.

The average home inspection costs may vary depending on type of property, which is paid on the day the inspector examines your home. Lower or higher fees do not necessarily reflect the expertise of the inspector. Finding an experienced home inspector who provides value for your money is most important.

The American Society of Home Inspectors recommends interviewing at least three professional inspectors in order to find one you trust and with whom you communicate well. We can provide a list of local home inspectors for you to interview, and you should ask friends and family members for recommendations as well.

Ask inspectors about their qualifications. Do they have experience in the construction or engineering industry? Do they have special training or accreditation from a professional organization? How long have they been inspecting homes in the local area? Are they familiar with problems specific to our area like drainage issues, pests or building material failures?

Once you have found a qualified professional, it's important that you attend the inspection with me and your home inspector. Some buyers like to climb into the crawl space and attic with the inspector to look at the home's major systems. At a minimum, be on site to ask questions, examine the problem areas and learn about the ongoing maintenance your home will need.

The standard home inspector's report will review the condition of the home's heating, plumbing and electrical systems. The report will also include information about the structure including the foundation and basement, as well as the roof, attic, walls, ceilings, floors, windows and doors. It may include photos of problem areas or recommendations for repairs.

Back To Top

Make Moving Easier

Whether you're planning a move across town or across the country, making the move hassle-free is what it is all about. Besides the traditional garage sale and packing of boxes, there are a few details you won't want to forget before you begin loading the truck:

Plan Ahead
Experts recommend scheduling moves at least one month in advance, especially during the peak-moving season between May and September. Some estimates indicate 80 percent of all moving and storage business is done when schools are out. That's when employees are most likely to be transferred.

Ask Questions
Take the time to get as much information as possible from moving companies before selecting one. Check on truck size and availability. Ask about moving supplies, such as boxes, dollies and furniture pads. Find out about protection plans for your possessions. Ask about lost or damaged property claim procedures. Determine price differences in packing the truck yourself or having it professionally packed. Get estimates.

Save Your Receipts
Many of your moving expenses are tax deductible, so hang onto your receipts. Consult with your tax advisor to find out what is deductible, or call the Internal Revenue Service and request Publication 521: "Tax Information On Moving Expenses" to find out which moving expenses are deductible.

Collect Documents
If you're moving out of the area, you'll need to gather your family's personal records. Remember to get your medical and dental records, school transcripts, legal documents, titles, bank records, tax returns, stocks and bonds certificates, birth certificates, passports and insurance documents. Be sure to empty your safe deposit box.

If you need a list of services in your new neighborhood, contact your CENTURY 21 Royal Agent about schools, voter registration, auto licensing and registration, utilities and more.
Back To Top

Packing List

A few general things you need to know about packing:

Keep boxes to 50 lbs or less. Put heavy items in small boxes and light items in big boxes.
Pack non-breakables tightly in smaller boxes, so they're not too heavy.
Buy clean newsprint to wrap items, and bubble wrap for padding.
Pack breakables loosely in plastic storage bins with lots of bubble wrap.
Rent furniture pads.
Mark your boxes by room, so you know exactly where everything goes. Color coding or using a number system works great (i.e., red stickers for bedroom or 1 for bathroom.)
Write "FRAGILE" on all boxes with breakables and stack these boxes on top.

Packing the big things

Beds: Tie bed frames together with tape or rope. Then label the pieces so they're easy to reassemble.
Bureaus: Fill drawers with clothes or fragile, well-wrapped items. Cover with a blanket or furniture pads and rope securely.
ables: Remove legs, pad and tie together. Put nuts and bolts in a bag and tape under tabletop.
Big appliances: Empty, defrost and drain the fridge, freezer and dishwasher. Clean the interiors and put accessories in bags. Stuff towels between washer sides to prevent rotating and tape down moveable parts. Cover with blankets and tie.
Computers, TVs, & Electronics: Use original packaging, or buy electronic-specific boxes.

Packing the small (but still important) things

Small appliances: Put your microwave, VCR, etc. into boxes, and cushion with wadded paper.
Books: Pack them flat in small cartons, alternating bindings. Try to keep each box under 30 lbs.
Clothing: Pack hanging items, including drapes, in wardrobe boxes. Leave small items in drawers.
Collectibles: Wrap fragile items in bubble wrap and tape securely.
CDs: Pack upright and cushion with newspaper.
Kitchenware: Stack pots & pans, and cushion with paper. Put a few of these items in the "open first" box.
Dishes: Never stack them flat. Wrap each piece in bubble wrap. Pack plates & saucers on edge, with cups & bowls placed around them.

Packing the awkward things

Chairs: Wrap arms & legs with bubble wrap. Leave slipcovers on or buy chair bags for protection.
Bicycles: Loosen the handlebars and turn them sideways. Cover chains and pedals to keep grease off other items.
Mirrors, artwork & frames: Wrap small pieces in newsprint and pack in mirror boxes. Cover larger pieces with cardboard, tape securely and stand them along the truck's sides or inside wardrobe boxes.
Lawn furniture: If heavy or bulky, disassemble. Put nuts and bolts in a bag and tie together.
Rugs: Roll up and secure with rope or tape.
Plants: Put in plastic bags with air holes, then in boxes. Water before you leave.
Power and garden tools: Wrap all sharp edges and use plenty of cushioning to prevent injury. Tape long-handled tools together and place small ones in boxes.
Lawn mowers/yard edgers: Empty gasoline from all tanks, and check for oil leaks.
Garage & attic stuff: Use medium-sized boxes for spray paints, brushes, car waxes, etc. Throw away oily rags or anything combustible.
Pets: Always keep them in a pet carrier up front with you. Ask your vet how to make their, and your, move less traumatic.

Selecting a Builder

Building a new home is a wonderful experience that can lead to the home of your dreams, but the process is challenging. There are many choices to be made along the way, and the relationship you have with your builder can impact the success of your new home. Here are some tips to consider for finding a reputable builder.

Make a list of builders who construct the type of home you want. We can help make recommendations, and you may also want to scan newspaper ads and ask friends and relatives for referrals.

Ask each of the builders for a list of their recently built homes. Drive by the homes or subdivision and take notes about the houses similar to what you want to build. Introduce yourself to the homeowners in the subdivision. Ask them to share their experiences with the builder, good and bad, and get as many opinions as you can to develop an accurate impression of the builder.

Carefully inspect the builder's model homes. What is the quality of construction? Look closely at the cabinetry, paint and trim. Does the home have enough bathrooms, bedrooms and storage to suit your needs? Does it have flexible spaces for "extras" such as a home office, exercise or hobby room?

Ask for a copy of the builder's typical warranty. Warranties vary depending on the local building codes, but at a minimum they should include information about coverage, service calls and emergency repair policies.

Finally, ask a lot of questions. Often, what seems to be a routine question leads to important information that could affect your buying decision. Developing a dialogue with a builder will help you assess whether or not you communicate well with the builder and will feel comfortable working with him/her. The more comfortable you are talking with your builder, the more confident you will be when making the numerous decisions that come with building your own home.

There are a number of very good homebuilders, both large and small, on the East coast. But unlike other industries, you can't pick up Consumer Reports to find out who the good ones are, so please use me as a resource. We can also help you through the process of locating and purchasing a newly constructed home, as well as help you with financing decisions on custom construction. We can also provide information about covenants and restrictions, homeowner’s association dues, school districts and other important information that you'll need in making decisions.

Why You Should Not Make Any Major Credit Purchases

Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.

Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.

Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.

Use a Buyer's Agent

It's important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.

First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer's agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.

Also, when you use a buyer's agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but also they are actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.

Lead Poisoning

Lead poisoning is a serious problem which can lead to adverse health problems. In children, high levels of lead can cause damage to the brain and nervous system, behavioral and learning problems, slow growth, and hearing problems. In adults, lead poisoning can cause reproductive problems, high blood pressure, digestive problems, nerve disorder, memory and concentration problems, and muscle and joint pain.

Lead poisoning is especially a problem in cities with older buildings. Typically, lead is present in the paint from older buildings, in the water supply, and in the environment from cars and buses. Preventing lead poisoning in large cities, where there is so much possibility for exposure is both difficult and expensive. Federal programs have attempted to address this problem.

For buyers and sellers, lead poisoning is also an issue. Houses that were built before 1978 probably have paint that contains lead. Federal law requires that sellers disclose known information on lead-base paint hazards before selling a house. Sales contracts must include a federal form about lead-based paint in the building. Buyers will have up to 10 days to check for lead hazards and are likely to stipulate corrections.

Print or view free Protect Your Family From Lead in Your Home Pamphlet

Radon

Radon is a colorless and odorless radioactive gas that has been estimated to cause 5,000 to 20,000 lung cancer deaths yearly. It is second only to smoking as a cause of lung cancer. It has been estimated that nearly 1 out of every 15 homes in the US has elevated radon levels.

Radon is produced when small amounts of uranium and radium in soil and rocks decay. Radon gas will also decay into smaller and radioactive particles that can be inhaled into the lungs where it can damage cells and cause lung cancer.

Radon is mainly released from soil, water and natural gas which have already been exposed to radon, from solar-heating systems that use radon-emitting rocks, and from uranium or phosphate mine tailings. Radon is naturally released in low concentrations, but inside your house, radon gas can become more concentrated. Lack of ventilation exhaust fans that bring in air from outside can increase the amount of radon in your home.

The United States Environmental Protection Agency (EPA) suggests that homes be tested for radon, which should have a radon level of 4 picocuries per liter or less. For people selling their homes, the EPA recommends that the house be tested for radon, and radon levels be reduced, if necessary. Radon levels can be reduced by increasing the airflow into the house, keeping the vents open year round, and discouraging smoking in the house. For people buying homes, the EPA recommends obtaining radon test results in addition to information about radon reduction systems.

If you are planning to have your home tested for radon, the EPA recommends that the test be conducted in the lowest level of the home that is suitable for occupancy, and you should make sure that the test is done correctly by following the EPA Test Checklist.

There are two different types of testing devices available: passive devices and active devices. Passive devices, such as charcoal canisters, alpha track detectors, and charcoal liquid scintillation devices are exposed to air in the home for a specified amount of time, and sent to a laboratory to be analyzed. Active devices, like continuous radon monitors and continuous working level monitors, continuously measure and record the amount of radon in the air, and require operation by trained testers. These tests can be performed over a long term, or a short term, with the long term tests by active devices considered to be more accurate.

Underground Oil Tanks

Underground heating oil tanks can pose many potential problems to both home buyers and sellers. They have been the source of many environmental problems such as contamination of surrounding soil and ground water.

Leaks are caused by the rust inside underground tanks, or by an electrical condition sparked by electric utility lines.

Buyers should have the tank inspected to make sure that it is structurally sound. Buyers who do not want an underground fuel tank can arrange for an above ground tank to be installed in the basement, an underground tank to be shut off. Cleanups of any leaks will also have to be taken care of.

For buyers, the underground heating oil tank should be written in the sales contract. For sellers, your lawyer should make sure that the description and condition of the underground heating oil is accurate and up-to-date.

Common Ways of Holding Title

How Should I Take Ownership of the Property I am Buying?

Real property has become increasingly more valuable and the question of how parties can take ownership of their property has gained greater importance. The form of ownership taken -- the vesting of title -- will determine who may sign various documents involving the property and future rights of the parties to the transaction. These rights involve such matters as: real property taxes, income taxes, inheritance and gift taxes, transferability of title and exposure to creditor's claims. Also, how title is vested can have significant probate implications in the event of death.

The Land Title Association (LTA) advises those purchasing real property to give careful consideration to the manner in which title will be held. Buyers may wish to consult legal counsel to determine the most advantageous form of ownership for their particular situation, especially in cases of multiple owners of a single property.

The LTA has provided the following definitions of common vestings as an informational overview. Consumers should not rely on these as legal definitions. The Association urges real property purchasers to carefully consider their titling decision prior to closing, and to seek counsel should they be unfamiliar with the most suitable ownership choice for their particular situation.

Common Methods of Holding Title

SOLE OWNERSHIP

Sole ownership may be described as ownership by an individual or other entity capable of acquiring title. Examples of common vestings in cases of sole ownership are:

1. A Single Man/Woman:

A man or woman who has not been legally married. For example: Bruce Buyer, a single man.

2. An Unmarried Man/Woman:

A man or woman who was previously married and is now legally divorced. For example: Sally Seller, an unmarried woman.

3. A Married Man/Woman as His/Her Sole and Separate Property:

A married man or woman who wishes to acquire title in his or her name alone.

The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that it is the desire of both spouses that title to the property be granted to one spouse as that spouse's sole and separate property. For example: Bruce Buyer, a married man, as his sole and separate property.

CO-OWNERSHIP

Title to property owned by two or more persons may be vested in the following forms:

1. Community Property:

A form of vesting title to property owned by husband and wife during their marriage which they intend to own together. Community property is distinguished from separate property, which is property acquired before marriage, by separate gift or bequest, after legal separation, or which is agreed to be owned only by one spouse.

Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Since all such property is owned equally, husband and wife must sign all agreements and documents of transfer. Under community property, either spouse has the right to dispose of one half of the community property, including transfers by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as community property.

2. Joint Tenancy

A form of vesting title to property owned by two or more persons, who may or may not be married, in equal interest, subject to the right of survivorship in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will. For example: Bruce Buyer and Barbara Buyer, husband and wife as joint tenants.

3. Tenancy in Common:

A form of vesting title to property owned by any two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of the income from the property and must bear an equivalent share of expenses. Each co-tenant may sell, lease or will to his/her heir that share of the property belonging to him/her. For example: Bruce Buyer, a single man, as to an undivided 3/4 interest and Penny Purchaser,
a single woman, as to an undivided 1/4 interest, as tenants in common.

Other ways of vesting title include as:

1. A Corporation*:

A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having an existence and personality separate from such shareholders.

2. A Partnership*:

A partnership is an association of two or more persons who can carry on business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.

3. As Trustees of A Trust*:

A trust is an arrangement whereby legal title to property is transferred by the grantor to a person called a trustee, to
be held and managed by that person for the benefit of the people specified in the trust agreement, called the beneficiaries.

4. Limited Liability Companies (L.L.C.)

This form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the L.L.C. functions and is taxed. Like the corporation its existence is separate from its owners.

*In cases of corporate, partnership, L.L.C. or trust ownership - required documents may include corporate articles and bylaws, partnership agreements, L.L.C. operating agreement and trust agreements and/or certificates.

Remember:

How title is vested has important legal consequences. Consult an attorney to determine the most advantageous form of ownership for your particular situation.

Difference Between Condos and Co-Ops

Are you tired of paying rent and ready to purchase your own apartment? Learn about the differences between condominiums and co-op apartments and decide which one is right for you.
Search Westchester County Condominimums (Condo) and Co-Operatives (Co-Op)

What is a Co-op?

When you buy a co-op, you don’t actually own your apartment. Instead, you own shares of a co-op corporation that owns the building. The larger your apartment, the more shares within the corporation you own. Monthly maintenance fees cover building expenses including heat, hot water, insurance, staff salaries, and real estate taxes.

Advantages of Buying a Co-op

Co-ops are generally less expensive than comparable condominium apartments.
Some of your monthly maintenance fees are tax deductible

Disadvantages of Buying a Co-op

All prospective purchasers must be approved by the Board of Directors. The Board approval process is often time-consuming and rigorous -- requiring extensive information regarding finances, employment, and personal background. Even celebrities have been turned down by some selective New York co-op boards.
Monthly maintenance fees for co-ops are much higher than for condos. This is because the monthly fee includes part of the underlying mortgage for the building.

Many co-op boards limit the amount of the purchase price that can be financed and require higher down payments than are usually required for condominiums.

It is harder to sub-lease a co-op. Each co-op building has its own rules, but many limit or forbid subletting.

What is a Condominium?

Condominiums are becoming more popular as new residential buildings are constructed. Unlike co-ops, condo apartments are "real" properties. Buying a condo is much like buying a house. Each individual unit has its own deed and its own tax bill. Condos offer greater flexibility, but are often priced higher than comparable co-op apartments.

Advantages of Buying a Condo

In most cases, buyers can finance a larger portion of the purchase price (up to 90%) and put less money down.

With a condominium, you don’t have to deal with board approval.
Condo apartments can be freely sublet/renting is allowed, giving you more flexibility.
Monthly maintenance fees for condos are much lower than for co-ops.

Disadvantages of Buying a Condo

Condos are generally more expensive than comparable co-op apartments.
Monthly maintenance payments are not tax-deductible.
There are fewer condos in some real estate markets, which limits your options.

Courtesy of About.com

Living Trusts
Estate planners often recommend "Living Trusts" as a viable option when contemplating the manner in which to hold title to real property. When a property is held in a Living Trust, title companies have particular requirements to facilitate the transaction. While not comprehensive, following are answers to many commonly asked questions. If you have questions that are not answered below, your title company representative may be able to assist you, however, one may wish to seek legal counsel.

Who are the parties to a Trust?

A typical trust is the Family Trust in which the Husband and Wife are the Trustees and, with their children, the Beneficiaries. Those who establish the trust and transfer their property into it are known as Trustors or Settlors. The settlor's usually appoint themselves as Trustees and they are the primary beneficiaries during their lifetime. After their passing, their children and grandchildren usually become the primary beneficiaries if the trust is to survive, or the beneficiaries receive distributions directly from the trust if it is to close out.

What is a Living Trust?

Sometimes called an Inter-vivos Trust, the Living Trust is created during the lifetime of the Settlors (as opposed to being created by their Wills after death) and usually terminates after they die and the body of the Trust is distributed to their beneficiaries.

Can a Trust hold title to Real Property?

No, the Trustee holds the property on behalf of the Trust.

Is a Trust the best way to hold my property?

Only your attorney or accountant can answer the question; some common reasons for holding property in a Trust are to minimize or postpone death taxes, to avoid a time consuming probate, and to shield property from attack by certain unsecured creditors.

What taxes can I avoid by putting my property in trust?

Married persons can usually exempt a significant part of their assets from taxation and may postpone taxes after the first of them to die passes. You should check with your attorney or accountant before taking any action.

Can I homestead property which is held in a Trust?

Yes, if the property otherwise qualifies.

Can a Trustee borrow money against the property?

A Trustee can take any action permitted by the terms of the Trust, and the typical Trust Agreement does give the Trustee the authority to borrow and encumber real property. However, not all lenders will lend on a property held in trust, so check with your lender first.

Can Someone else hold title for me "in trust?"

Some people who do not wish their names to show as titleholders make private arrangements with a third party Trustee; however, such an arrangement may be illegal, and is always inadvisable because the Trustee of record is the only one who is empowered to convey, or borrow against, the property, and a Title Insurer cannot protect you from a Trustee who is not acting in accordance with your wishes despite the existence of a private agreement you have with the Trustee.

You should always consult a Living Trust expert.

Types of Real Estate Liens

A lien is a legal claim against your property that prevents you from selling or transferring that property until a debt is paid and the claim is discharged. A lien doesn't give someone else ownership of your property, but if you sell property on which there is a lien, you are legally bound to pay off the debt out of the proceeds.

Voluntary Liens

A voluntary lien is a lien that you agree to have recorded against your property. These are used when you put property up as collateral for a loan, as with a mortgage or a car loan. You might not think of a mortgage as a lien, but the lender does have a lien on your house for the duration of the mortgage, meaning you can't sell the house unless you can pay off the mortgage and remove the lien.

Contractors' Liens

One common type of lien is levied when you don't pay for work done on your property. These are known as contractors' liens, mechanics' liens or construction liens, because these professions are the most common ones to go unpaid. Other professionals can be allowed to file liens as well, including architects, engineers and surveyors. Some states require that you be notified before a lien is filed, but other states allow a lien to be filed without your knowledge.

Federal Tax Liens

A lien can be placed on your property by the federal government for unpaid federal taxes. The Internal Revenue Service (IRS) must notify you of the exact amount due and demand payment in writing. If you don't pay the entire debt within 10 days of the notice, you will receive Notice of a Federal Tax Lien and a lien will be filed against all your property, including your house and car, and against all your rights to property, including business assets.

Other Types of Liens

A divorce lien is placed on property that is co-owned by former spouses. It ensures that the spouse who has the right to live in the property gives the other spouse his share of any profit when the house is sold.
A homeowners' association lien is filed against property when the owner fails to pay mandatory dues to the association. If you sell a home that belongs to a homeowners' association, you must present a certificate from the association that states all dues have been paid and your account is current.
Creditors can go to court and get judgment liens against you for unpaid debt. These include credit card debt, defaulted bank loans and repossessed vehicles. In some cases, you can be forced to sell property to pay off the debt.

Even if a lien is recorded against your property you may be able to resolve the problem without further payment to the lien claimant. This possibility exists where the proper procedure for establishing the lien was not followed because each claimant is required to strictly adhere to a well-established procedure in order to create a valid lien.

Needless to say, this is one area of the law that is very complex, thus consult an attorney if you become aware that a lien has been recorded against your property. In the event you discover that a lien has been recorded but no effort has been made to enforce the lien, a title company may decide to ignore the lien. However, be prepared to be presented with a positive plan to eliminate the title problems created by the type of lien. This may be accomplished by means of a recorded lien release from the person who created the lien, or other measures acceptable to the title company.

Understanding Short Sales and Foreclosures

We are the Short Sale/Foreclosure experts in Westchester County. Contact us today for expert help.

VIEW
Our Westchester County Short Sales & Foreclosures

SEARCH
National & Westchester County Short Sale, Foreclosure, Pre-Foreclosures, Sheriff Sales, Bankruptcies, & Tax Liens Properties

What is a short sale / pre-foreclosure?

With the increase in foreclosures lately you may have heard the term “short sale” and wondered what it was. A short sale is when the lender will accept less than the full amount due on a mortgage when a property is sold. Usually, the lender will accept the short sale to avoid the time and expense of a foreclosure.

When a borrower is in default on a mortgage they not only owe the back payments but also may owe late fees, property inspection fees, attorney fees, etc. This can add up quickly to eat up all the equity the borrower had in the property. If the borrower is unable to bring the account current the lender will then foreclose on the property. With a foreclosure, the lender can lose up to 40% of the mortgage amount because of the extra costs involved with foreclosing on a property: attorney fees, court costs, lost interest, eviction costs, property maintenance costs, and selling costs. Foreclosing on a property can also take up to two years in some states. Therefore, it is sometimes in the best interest of the lender to accept the short sale.

It also can be in the best interest of the borrower. They will not have to endure the time and stress of a foreclosure and their credit may not be as adversely affected as it would with a foreclosure. It is quicker and easier and does not subject the borrower to the embarrassment of a foreclosure.

How does it work?

The first thing the borrower should do when they can no longer afford a property is to contact the lender immediately. The last thing a lender wants to do is foreclose on the property. Secondly, contact a real estate agent to negiotiate with the bank on your behalf. Be sure the agent is knowledgable about short sale properties, has successfully completed a pre-forclosure sale, and is capable of handling such a work load. This will be particularly handy during negotiations with the lender. An experienced short sale/pre-foreclosure agent knows who to contact, how to reach them, and how to approach each situation. Lenders typically have departments that work with real estate agents to resolve the situation.
The lender will usually require the agent to submit a lot of information to the lender on behalf of the borrower in order to consider the short sale. The information required may include:

Income documentation such as W-2s and pay check stubs to verify the borrowers’ income
Bank statements to verify the borrowers’ assets
Hardship letter – this letter will describe for the lender the reasons the borrowers are in the financial position they are in and will ask the lender to accept the short sale
Fair market value for the property – depending on the lender they may require an appraisal or may accept an opinion from the real estate agent known as a Comparative Market Analysis (CMA)
Preliminary proceeds sheet from the sale of the property. This will show the proceeds of the sale of the property after the mortgage is paid off and all other closing costs and fees are paid. This will be negative in the case of the short sale and this negative amount is the amount of the shortage
Exclusive Right to Sell Listing Agreement
Offer to Purchase
Purchase agreement

When the lender reviews all of this and accepts the short sale, you will close on the sale of your property and the lender will take the loss. Although not the normal practice, the lender still has options to try to collect this shortage. As a condition of the short sale the lender may require the borrower to sign a note to repay the shortage. They may also file a collection or a judgment for the amount of the shortage. This is something that an attorney with expertise in this area of real estate needs to be consulted. Also, the IRS may come after the borrowers for income taxes on the amount of the shortage. If the shortage was forgiven, the lender will report the shortage as income to the IRS and the IRS will collect taxes on this amount. Again, for the specifics on this please consult a tax professional.

What is a foreclosure?

It is an unfortunate commentary, but when economic activity declines and housing activity decreases more real property enter the foreclosure process. High interest rates and creative financing arrangements also are contributing factors.

When prices are rapidly accelerating during a real estate "bonanza", many people go to any lengths available to get into the market through investments in vacation homes, rental housing and "trading up" to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth deeds of trust. Many buyers anticipate that interest rates will drop and home prices will continue to escalate. Neither may occur, and borrowers may be faced with large "balloon" payments becoming due. When payments cannot be met, the foreclosure process looms on the horizon.

How does it work?

In the foreclosure process, one thing should be kept in mind: as a general rule, a lender would rather receive payments than receive a home due to a foreclosure. Lenders are not in the business of selling real estate and will often try to accommodate property owners who are having payment problems. The best plan is to contact the lender before payment problems arise. If monthly payments are too hefty, it may be that a lender will be able to
make some alternative payment arrangements until the owner's financial situation improves.

Let's say, however, that a property owner has missed payments and has not made any alternate arrangements with the lender. In this case, the lender may decide to begin the foreclosure process. Under such circumstances, the lender, whether a bank, savings and loan or private party, will request that the trustee, often a title company, file a notice of default with the county recorder's office. A copy of the notice is mailed to the property owner.

If the default is due to a balloon payment not being made when due, the lender can require full payment on the entire outstanding loan as the only way to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.

In cases of a public sale, a notice of sale must be published in a local newspaper and posted in a public place, usually the courthouse, for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current. If the owner cures the default by making up the payments, the deed of trust will be reinstated and regular monthly payments will continue as before.

After this time, it may still be possible for the property owner to work out a postponement on the sale with the lender. However, if no postponement is reached, the property goes "on the block". At the sale, buyers must pay the amount of their bid in cash, cashier's check or other instrument acceptable to the trustee. A lender may "credit bid" up to the amount of the obligation being foreclosed upon.

With the recent attention given to foreclosure, there also has been corresponding interest in buying foreclosed properties. However, caveat emptor: buyer beware. Foreclosed properties are very likely to be burdened with overdue taxes, liens and clouded titles. A buyer should do his homework and ask a local title company for information concerning these outstanding liens and encumbrances. Title insurance may or may not be available
following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property.