Dear Michael: I was in escrow on a house and had to cancel because I found out that the master bedroom was added without permits. How long after a mutual rescission of a contract do you get back your earnest money?
Answer: The cancellation will have to be in writing and signed by all parties. Assuming both the buyer and the seller are in agreement to cancel, and the earnest money is not in dispute, it probably should not take more than a day. The next step is for escrow to release the funds and return them to the buyer. If you have not received your funds within one week (assuming that this is a standard residential real estate transaction), check with the escrow holding the earnest money to verify that they have sent the funds to the correct address. I suggest that going to escrow and picking up your check may save you time and worries.
Dear Michael: I am making an offer on a house where the term “as is” is used in the description. Should I worry about buying the house in its current condition? What if it is in need of major repairs?
Answer: “As is” means the property is sold without the seller making any repairs. This is standard procedure for foreclosure and short-sale properties where the seller will not make any repairs. In exchange for the as-is condition of a foreclosure and short sale, the buyer will usually buy the property at a discounted price. Depending on how it is used in the contract the term, “as is” can also mean that the buyer is buying the property in its current condition. All repair items may not be noticeable so it is a good idea to get a licensed home inspector to inspect the property. I have heard of situations where a buyer didn’t want to pay for a home inspection because he/she felt that the seller was not going to make any repairs because it was being sold as is. This is faulty logic – as a buyer, it is imperative to know everything about the home you are buying. The condition of the property is one of the most important factors. And, yes, that includes a termite inspection or any other conditions requiring inspection. The seller’s position in this instance is that he/she will not fix or repair anything. Keep in mind, it never hurts to ask. More often than not, when a seller is motivated and really needs to sell the home, compromises and repairs are often made despite the “as is” clause.
Dear Michael: I have my house listed for three months with the same agent. He’s been doing a great job marketing it. However, he is having other agents sit the open houses. I don’t want to interfere with his work but I really would rather have him sit the open house. Am I asking for an unreasonable request?
Answer: I’m glad to hear that your agent is doing a good job for you and scheduling open houses on your home. The fact that a different agent sits the open house should really not make any difference in the way your property is exposed. Your agent can only be at one place at a time. If he carries multiple listings, which is a sign of competency, he will have to find a substitute agent to hold the open house. In today’s market, homes can sit for months before being sold. With inventory growing and Realtors leaving the industry, many listing agents are having a difficult time finding help with their open houses.
Michael Kayem is a Realtor with Re/max/Execs serving Culver City and the Westside since 2001. Contact him at (310) 390-3337 or homes@agentmichael.com.