Dear Michael: If you make an offer on a house and the seller comes back with a counter offer and I agree to it by signing and accepting can the seller still change his mind and sell to someone else?
Answer: A seller is free to withdraw his/her offer any time prior to your acceptance. The communication method for acceptance is described in the purchase contract.
If the seller does not rescind the counter and you accept then the seller has to honor the contract with you and should not entertain any other offers. But people don’t always do what they should.
The problem then becomes whether you try to enforce your contract or not, which requires legal advice and expenses. For that, you have to consult an attorney.
Although you could probably technically enforce the contract, you have to reach a decision on whether it makes sense to expend the time and money to do so.
Or does it make more sense to realize the seller is unethical and just move on to buy something different? I would choose the last method, and save myself the headaches.
Dear Michael: I am closing escrow next week and the tenants are moving out on the day we close. I am worried that they may not move out. What would I do then?
Answer: Worst case scenario you would become a landlord for tenants that you would need to evict.
Your best bet is to delay the close. Schedule your walk-trough the day after the tenants move out, it’s the only way for you to be 100 percent sure that they have moved out and the property is not left in a state of disarray.
The purchase contract clearly states: “tenants should be out of the property 5 days prior to the close.”
This is to ensure the buyer that any tenants are out and to give the buyer enough time to work out any issues if the property should be damaged by the tenants.
Your seller is in breach of contract, but with tenants it may be beyond your seller’s control. You should hold off depositing your down payment to escrow until you’re guaranteed that the tenants are out. Timing is of the essence.
Dear Michael: How come I’m paying more in property taxes than some of my neighbors who have similar houses?
Answer: Your taxes are not based on your neighbors’, but are based on the price you voluntarily agreed to pay for your home.
Before Proposition 13 the average property tax rate in California was 3 percent of assessed value and there was no limit on annual increases.
In those days, if a house on your block sold for much more than you paid for your house, you shuddered in fear when you received your next property tax bill. Chances are, your new taxes would be based on what your new neighbor was willing to pay for his home.
Things got so bad in the late 1970s that people were actually losing their homes because of uncontrolled tax increases. The assessment rate is now only 1.25 percent for all California property and annual tax increases are limited to no more than 2 percent.
When property is sold it is then reassessed at market value, but the rate remains at 1.25 percent and the new owner is then protected by the 2 percent cap on annual increases.
Michael Kayem is a Realtor with Re/max Estate properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or email them to him at: homes@agentmichael.com