Articles
Idaho statutes are clear regarding a real estate agent’s obligations when representing a buyer or a seller. These statutory agency requirements are spelled out in a pamphlet that is required to be given to residential purchasers only. As is the case in other jurisdictions, allowing a real estate agent to represent both buyer and seller can be problematic, and in many cases presents an insurmountable conflict of interest. Property Managers. If you plan to utilize the services…
Read MoreThe Paperwork: The primary types of paperwork affecting the purchase of real property are documents found in the public record as listed in your preliminary title report, and any private equitable servitudes, conditions, restrictions, or rules and regulations governing the parcel’s use. Title Report I. Idaho residential purchase and sale agreements do not typically require disclosure of the preliminary title report prior to six (6) days before the close of escrow. However, a preliminary title report is critically…
Read MoreWithin a municipality with residential one- to four-unit zoning for parcels created by a platted subdivision, easements are typically referenced, access by public or private road is required, zoning is well-defined, and water, sewer, and power are usually provided. Buyers typically do not have problems with real property purchases of this type. Outside of a municipality, perform your due diligence: Essential services. In other States, a public entity like a county or city is typically responsible for providing roads, water,…
Read MoreReal Estate Agents. Washington statutes delineate a real estate licensee’s obligations to a buyer or a seller. These statutory agency requirements are spelled out in a pamphlet in the form required under RCW 18.86.120. Property Managers. In Washington, property management is classified under “real estate brokerage services.” As a result, property managers in Washington are required to have a broker’s license. Licensure. Make sure you verify the licenses of any real estate agents, brokers, or property…
Read MoreThe primary source of legal risk affecting the value of real property are documents found in the public record and listed as exceptions documents in a preliminary title report, as well as other private equitable servitudes, conditions, restrictions, or rules and regulations governing the parcel’s use. The following is a list of documents where errors and other kinds of problems are typically found: Deeds. Conveyances of real property in Washington have to be by deed.…
Read MoreEnforcing Purchase and Sale Agreements Although it doesn’t happen often, when a buyer or seller unilaterally withdraws from a purchase and sale contract, it represents a material hardship to the other party. Contractual relationships generally assume two willing parties. What happens when one decides to stop performing and withdraw? Earnest monies. Sellers are compensated for their time and effort when a purchase and sale agreement doesn’t work out by a forfeiting of the buyer’s earnest…
Read MoreThe typical buyer of a residential parcel located in a municipality does not run into significant legal due diligence challenges when purchasing real estate. Parcels located within a municipality with one- to four-unit zoning and created by a platted subdivision require significantly less due diligence because typically: 1) easements are referenced, 2) road access is required, 3) zoning is well-defined, and 4) water, sewer, and power are provided. Outside of a municipality, the story is quite…
Read MoreWashington requires relatively extensive seller disclosures for both residential and commercial properties. The specific disclosure form required depends on whether the property is commercial, “improved residential,” or “unimproved residential.” The Revised Code of Washington defines “improved residential real property” as real property with one to four residential dwelling units, certain residential condominiums, residential timeshares (unless subject to written disclosure by law), and mobile or manufactured homes. “Unimproved residential real property” is property zoned for residential…
Read MoreReview and consider the impact of the following documents on your use and enjoyment of a parcel located within an HOA: Homeowner Association Records and Budgets. Financial or other governing entity documents include meeting minutes of boards of directors and members, and financial statements of account. Even without a homeowners’ association, a simple three-member road or septic or water system maintenance agreement should have financial records related to that maintenance. You need to ask for those…
Read MorePreliminary title reports are the source of basic legal due diligence information. The list of exceptions documents included in the preliminary title report references exceptions to title insurance coverage and, as such, may represent circumstances that could impair the parcel’s value. Typical documents found listed as exceptions documents are deeds, easements, surveys, plat maps, and CC&R’s. Require a minimum of ten days for legal review and evaluation of the preliminary title report, and the exceptions…
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