Dear Michael: We are in escrow on a condo, how can we find out if there are any pending special assessments?
Answer: When purchasing a condo escrow will order all documents pertaining to the HOA (home owner association). The meeting minute is where you will find all information on any pending assessments. The seller must also disclose any knowledge of assessment that he or she is aware of. Make sure you read the minutes attentively, if they are outdated; ask the board or the management Co. for the most recent minutes. As the buyer, you must approve all the HOA documents in order to move forward with your purchase. If you are within your contingency period and you disapprove the HOA documents then you are within your right to cancel the purchase.
Dear Michael: We are 2 adults with 3 children living in a 2 bedroom condo. We have good equity and would like to move up to a larger home in the same area. Unfortunately we cannot afford the prices of homes in our area.
Answer: This is a very difficult decision to make but fortunately there are two very simple answers … You can either buy a new home and move out of the area or be crammed and stay put where you are. With the higher price of a larger home and an increase on your property taxes, your payments could reach an amount which could possibly be a financial drain on you and your family. You and your family are the only ones who can make this though decision. The last thing you want to do is put yourself in a financial predicament. Sacrifices will have to be made: this may mean a longer commute to work or a change of school for the kids. Whatever your decision is, it will be a difficult one. It may also be the only right decision for you and your family.
Dear Michael: I am relocating to the east coast for 2 years and want to rent out my home; I am worried about finding the right tenant. What steps should I take to find the right tenant?
Answer: You will be taking the responsibility of becoming a landlord. As a landlord myself, I would love to tell you that all tenants are good, and for the most part they are but unfortunately one bad tenant can cause you much aggravation. In order to avoid having a dead-beat tenant you will need to do some research before renting out your home. Here are a few steps you should consider to ensure a first-class tenant for your home: Check his/her credit score; this can be done over the internet, if their score is lower find out why. I once had a tenant who had a lower score because of the lack of credit cards he owned, this tenant ended up being one of my best tenants. Call all previous landlords, this is a sure way to get some history about your prospective tenant and will also ensure confidence with your final decision. Check employment, ask for pay stubs. Make sure they are working and making enough money to afford paying the rent. A tenant who cannot afford the rent will be a headache to you and will constantly late with the rent. These few steps will help you avoid the worst scenario. A good tenant will help you sleep well at night while you are away!
Dear Michael: My husband and I are buying our first home and would like to know how we should hold Title?
Answer: There are 3 main ways to hold title in the state of California: 1) “Community Property” with right of survivorship- husband and wife, both have equal management and control. Community Property requires written consent of other spouse or conveyance by deed. Surviving spouse owns 100% of the title. 2) “Joint Tenants” any number of persons, can be husband and wife alone or with others. No corporation, no partnerships, equal right of possession by all parties. Last surviving Joint Tenant owns entire property interest which is devisable by will. 3) “Tenants in Common”- Any number of person and/or corporations and partnerships. Equal right of possession: where each co-owners interest may be conveyed separately. Heirs or devisee become Tenants in Common with other owner. To find out more about which method you should hold title, please consult a real estate attorney.
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
