Important Info. for BUYERS
Loan Fraud
Even with tightening lending guidelines, loan fraud continues to be a problem in this real estate market! We’ve all heard the stories about predatory lending; buyers falsifying loan applications; sellers and agents withholding information about actual defects in the property; kickbacks, etc. As your agent, it is my job to coach you through the transaction and if something fraudulent comes up during the course of a real estate transaction, I will point it out to you.
Recently I attended a class taught by Oliver Frascona, a local real estate attorney, who presented 4 simple rules that buyers, sellers, lenders, closing companies and agents need to follow to reduce and hopefully eliminate fraud in real estate transactions. Basically, all agreements between buyer and seller need to be written in the Contract to Buy and Sell Real Estate, which will be seen by the lender, and everything is reflected on the HUD-1 Settlement Statement.
Oliver’s 4 rules:
1. The Real Entire Deal…
2. that’s in the contract…
3. that goes to the lender,
4. and it’s on the HUD-1 Settlement statement
For more tips on how to avoid loan fraud, click here to read HUD’s tips “Don’t be a Victim of Loan Fraud.”
Oliver Frascona is a shareholder in the law firm of Frascona, Joiner, Goodman and Greenstein, P.C., 1974 - Present. Clients include first and second mortgage lenders (banks, savings and loans, mortgage companies), hundreds of real estate brokers and salespersons, real estate companies, developers, property management companies, builders, subcontractors, suppliers, buyers and sellers, and he represents eighteen Colorado Associations of REALTORS®.
Title Insurance: What you need to know
It is tradition for sellers in the Denver Metro area to foot the bill for a title insurance policy for the buyer. (NOTE TO BUYERS: This is negotiable. Buyers have the right to choose their own title insurance policy. After all, it is a policy intended to protect the Buyer against loss from any defects in title, liens or other matters!) Often times sellers rely on the real estate professional to assist them in selecting the title insurance company. While real estate professionals can provide useful information, the Colorado Real Estate Commission has taken the position that it is the responsibility of the consumer to shop around for title insurance policies and closing services. There are many title insurance companies in Colorado and they all vary in cost, quality and the extent of closing services they provide. There is a FREE on-line resource called Mytitleins.com that will calculate your estimated title insurance and closing costs in real time. It will provide you with a comparision of the various title insurance companies in Colorado. Check it out!
Condos and Townhomes: What is the difference?
Buyers, Sellers and even Real Estate Agents are often confused about the difference between condominiums and townhomes. A condominium or condo is one of several units of a complex. When purchasing a condo, you are essentially purchasing everything from the walls of the unit inward. You also own a share of interest in the condominium’s association, which is responsible for maintaining the common areas of the complex (e.g. pool, clubhouse, elevators, hallways). You will pay a monthly Home Owner Association (HOA) fee that covers the maintainance of these common areas. There can also be special assessment fees for larger maintainance projects (e.g. replacing the roof or repainting the complex).
A townhome or townhouse is basically a home attached to adjacent houses and includes ownership of the land underneath it. Townhomes can also be referred to as Row houses, duplexes, triplexes and 4-plexes. Like condos, townhomes can be single or multi-storied and share common walls. Townhomes may also have HOA fees that cover maintainance of common areas.
So….with condos, you essentially own a unit or cube of air plus a share of interest in the condominium association. With townhomes, you own the unit and dirt underneath it. Be aware, the terms “townhome” and “condominium” are used interchangeably, but they are very different! Check the legal description of the property to be sure. If legal decription includes a lot and block legal address description, it is a townhome. If the legal description consists of the name of the complex and the unit number, it is a condominium.
**Tips on Searching for Condos and Townhomes on the Internet**
Agents will post townhomes on the Denver MLS under “condo” and/or “multi family residential.” So, when searching for homes, make sure you search under both sections or you will miss some listings!
To search for Townhomes on my website, click here.
To search for Condos on my website, click here.
If you have questions about purchasing a condo or townhome, feel free to call me!
Well permit data now on-line
If you are looking to purchase a property with a private well, here is some helpful information:
The Colorado Division of Water Resources has opened WellView Web, a site dedicated to providing Well Permit data, information and images. The general public can now search and view permit information online using the free service. Information is updated daily on the site, however new permit information will take up to two weeks to be uploaded.
Click Here to visit Colorado’s WellView Web site.
