Archive for August, 2012

You Know Your Deal’s In Trouble When….

August 27, 2012

Every new buyer prospect brings hopes of finding the perfect property, writing the cleanest offer, working with the most professional and cooperative of co-op agents, attending the most jovial and pleasant closing and collecting a nice commission check.

Likewise, every new listing brings hopes of the sunniest of Open House days, receiving the cleanest and most serious of offers, working with the most honest and hard-working co-op agent who represents the most reasonable and considerate buyers with solid financing already arranged. Oh, happy days!

Helloooooooooo??? Sorry to wake you from your pleasant dream, but reality does rear its ugly head, often and at the least convenient times.

You KNOW your deal’s in trouble when: (more…)

The Facts about the 3.8% Real Estate Tax in Health Care Law

August 20, 2012

You might have heard rumors or received e-mails stating that all real estate sales would have a new tax in 2013 due to the passage of the Health Care Law. Here are the basic facts:

  • Yes, there is a new 3.8% tax that is part of the recently passed Health Care Bill.
  • Yes, this new tax comes into effect January 1, 2013.
  • No, this is not a transfer tax that will be charged on all real estate sales.
  • The tax will only impact individuals who have more than $200,000 adjusted gross income (AGI) and joint tax filers who have more than $250,000 AGI on their joint tax return. (more…)

REALLY Bad Special Stipulations

August 6, 2012

The following Special Stipulations are real. The names of the parties have been changed to avoid embarrassing the agents who are sure to never commit such errors again.

Buyer Clara Careful entered into a binding agreement on July 1 to purchase a home through her buyer’s agent, Sally Speedqueen. The home Clara wanted to buy was in “rough” condition and there were several obvious repairs which Clara wanted the seller to complete prior to Clara hiring a home inspector to check out the house (and the repairs the seller would have just completed). Not a problem for Sally Speedqueen, who quickly created a Special Stipulation stating that the seller would make the specific repairs AND that Clara Careful’s “14-day due diligence period shall not begin until the above repairs are completed.” Clara put up $5,000 earnest money, which Sally’s broker deposited on July 3.

The seller, Pete Procrastinator, took his sweet time doing the repairs, much to Sally Speedqueen’s consternation. In fact, he took so much time that Clara Careful decided to terminate the deal and look elsewhere. Clara Careful signed a Unilateral Termination on July 14 citing her ability to cancel the deal within her Due Diligence period. (more…)