Dear Michael: I am buying a townhouse and I am told that it is not a P.U.D. What is a PUD and how does it affect my townhome?
Answer: A P.U.D (planned unit development) can take the form of a community of townhomes or detached homes. Membership in the HOA is mandatory. The HOA fee is often used to cover insurance and maintenance.
The difference between a PUD townhome and a condominium townhome is that in a PUD, you actually own the land your townhome sits on, and if present a small back and front yard. In the case of a condominium townhome, all land is commonly owned and maintained by the association.
Some buyers prefer a PUD. With a PUD you can landscape the land you own, rather than having the HOA control it. HOA fees for PUDs are usually lower than for condominiums because there is less for the HOA to maintain.
Most PUD’s will not have pools, clubhouses or tennis courts (although they sometimes do). There is no problem with PUD ownership, as long as the HOA is solvent and doing its job. Again, the main difference between a PUD townhome and a condominium townhome is that in a PUD, you own some land. In a condo, the HOA does.
Dear Michael: We are in escrow on a home that did not appraise for it purchased value. We really love the home. What are our options to move forward?
Answer. The bank lending you the money does not want to give you a loan on a property that they cannot sell if you should default on the loan.
Appraisers are appraising properties at the most current value and do the most extensive study in order to meet the purchase value. If the home you are purchasing did not appraise for its value then you are purchasing a risky investment on an overvalued home.
You have 4 options to move forward:
- Ask the seller to reduce the price to the appraised value. This is the most logical option; make your point stating to the seller that he/she is wasting valuable time with the probable risk of having the same appraised value for the next buyer.
- If you have the cash to make up some of the difference, you can negotiate with the seller and could meet half way. Keep in mind that there is no sense asking your lender to loan you more money, this money has to come from you.
- If you really love the home and are completely emotionally vested and ready to pay above market value you can make up all of the complete difference with your money. Although not advisable, if you should decide to make up this difference you are speculating which way the market is trending but most of all overpaying for a home. This may be worth it to you and although I may not agree with this scenario, I am not the one emotionally vested and buying the home.
- If no agreement can be reached the seller can decide not to sell the home and just withdraw it from the market.
Dear Michael: I am selling my home which is tenant occupied. My tenants are not cooperating by making it very difficult for my Realtor to show the house to prospective buyers. What can I do to get them to let my Realtor show the house?
Answer: This is a common problem when homes are leased and much to their dislike tenants are told that they will have to move out. Tenants are required by law to let real estate agent or anyone else show the property if they have received a 24hrs notice.
Unfortunately your options are limited if they don’t cooperate. If your tenants are on a month to month tenancy you may consider giving a 60 day notice to terminate the tenancy which is the amount of time required by law.
This way after they have moved out your Realtor will have full control of showings and can market your home effectively. However, the landlord can give a 30 day advance written notice in either of the following situations:
Any tenant or resident has lived in the rental unit less than one year. The landlord has contracted to sell the rental unit to another person who intends to occupy it for at least a year after the tenancy ends. In addition, all of the following must be true in order for the selling landlord to give you a 30-day notice
- The landlord must have opened escrow with a licensed escrow agent or real estate broker, and
- The landlord must have given you the 30-day notice no later than 120 days after opening the escrow, and
- The landlord must not previously have given you a 30-day or 60-day notice, and
- The rental unit must be one that can be sold separately from any other dwelling unit. (For example, a house or a condominium can be sold separately from another dwelling unit.)
The landlord usually isn’t required to state a reason for ending the tenancy in the 30-day or 60-day notice. You may be out of rent income for everyday your property is vacant after your tenants have moved out but this is a small price to pay for an effective sale.
If you’re in a rush to sell your home you can entice your tenants to leave early by reducing their rent for everyday they leave or offering them a pay off. Selling a home in today’s market is challenging enough for your real estate agent; dealing with uncooperating tenants can only make things dreadful. If your tenants are not cooperating with the sale of your home, wait until they move out before putting your home on the market.
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