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Question: Can a buyer"s agent represent two purchasers seeking the same property at the same time? My agent recently dropped me as his client when I asked him to write an offer for a house which was also of interest to another client of his. As my agent just prior to my offer, he knows all my weaknesses and strengths as the buyer for that property, even my offering price, and the maximum price I am willing to pay for that property. Now that he is representing another client by dropping me, I will be in very disadvantaged position. Is there anything I can do?
Answer: In most situations a broker acts as an agent for another party. As an agent, a broker has certain obligations to serve a "master." If there are two masters and both want the same property, it"s plain that both the broker and the clients have a difficult quandary.
In theory, a broker could act as a "dual agent" and represent both purchasers. This would require the permission of both buyers as well as an assortment of disclaimers. However, the reason you hired a buyer broker was to get the sole and undiluted benefit of his or her representation, something not possible with dual agency.
What to do? A buyer brokerage agreement likely contains a clause which allows the broker to end the relationship and give up any fees in the case of a potential or actual conflict among buyer clients. However, such a clause cannot erase the broker"s knowledge.
Because of the knowledge factor, there"s an argument to be made that the broker should give up both clients and that each client should then retain a new broker. This means the value of the broker"s work with both clients will be lost, but also that neither client will be at a disadvantage in the bargaining process. For details, speak with a local attorney who specializes in real estate matters.
Question: I purchased my father"s home from my siblings. The deed was in all of our names and my siblings each signed a quitclaim deed. I have not yet recorded a new deed in my name alone.
I have decided to sell the property. Should I file a new deed in my name before placing the property on the market, or can I sell it with the quitclaim deeds as proof of ownership? Also, is it possible for me to transfer the deed into my name without an attorney? How do I go about it?
Answer: When you sell a property both the buyer and the buyer"s lender will want to assure that they are receiving marketable and insurable title. This means local property records will be checked to establish a chain of ownership from the time the property first entered the records until today.
It"s in your interest to update property records to show your ownership claim. This need not be complex or expensive -- and it"s much cheaper to have an attorney do it right then to sort out future problems. As to the quitclaim deeds, it"s important to assure that they meet all legal tests in your jurisdiction before offering the property for sale.
Question: It seems to me that the single biggest factor that determines the resale value of a given property in a given area is the market. For example, just six months ago homes in my neighborhood stayed on the market more than 60 days and sold in the $150s, at best. Today they are on the market for less than 30 days and sell in the $180s. All the homes all virtually identical in color, style, floor plan and vary only by one to five years in age.
Realistically, what effect would one house painted an odd color or not meticulously maintained have on the other homes on a street or in the neighborhood?
Answer: There is a lot of logic to what you"re suggesting, which is that home prices are influenced most powerfully by recent and comparable sales. That said, the issue is not so straight-forward.
In real estate, all homes are unique. They may be similar, they may be physically identical, but for one reason or another they are also all different if only because each lot is distinctive.
In a local market like homes will tend to cluster around given selling points. That one house has a bad paint job will likely not influence the general momentum of the marketplace.
However, a bad paint job will surely impact the property"s owner in two ways:
First, the home is likely to take longer to sell -- why buy a home with a lousy paint job or poor maintenance when like homes in better condition are available? This also means it may sell for less.
Second, published sale prices may not reflect all transaction details. In this case, poor condition may mean that the home has an apparent sale price of x dollars, but the seller has actually agreed to also give the buyer a credit for repairs, settlement, points, new appliances, decorating or whatever to close the sale. In effect, the price is discounted by the value of the concessions -- something not visible in public records, but very visible in terms of a settlement check.
Question: Our condo association board interviewed prospective candidates to manage a property with 125 units. It was decided that the expense was too much to hire a property management company. The board then gave the manager"s position to a former board president.
I conducted some research which stated that a property manager must be licensed. I took this to the board and they replied by sending the manager to school to obtain the license. Our community paid for the schooling and exam. We were never notified until after the fact.
My problem is that the manager is a good friend of the president who is downplaying any concerns the owners have regarding the way this manager handles his position and authority. Is this a conflict of interest?
Answer: The condo association needed a licensed manager. It hired a former officer and paid for his licensure costs. It now has a manager who is entirely familiar with the property, represents a lower cost than a management company, lives in the community and is licensed.
Why is it odd or discomforting that two members of a condo community who have been active in the association are friends? Would the community be better served by having people who disliked one another?
The nature of condo communities is that they more or less reflect member interests. Within the community there is likely to be dispute and argument regarding different issues, but that"s because democracies tend to be messy. Nobody gets what they want, all the time.
In this case the board listened to you and the community now has a licensed manager -- evidence of a responsive board. No doubt if other community rules are broached you can make the matter known to the board, and they will give the issue such consideration as may be deserved.
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