Sorry for the delay in this next post. Life got away from me for a bit. Holidays happen and life gets hectic for a time. I am sure you all can relate.
To continue with our home buying saga...
Once you have an accepted offer, boy oh boy, the time clock starts
ticking. So much to do before you can close! There may be an inspections period
that ends prior to your loan denial deadline or possibly just after.
Key 1: Look at section 24 of the Real Estate
Purchase Contract (for Utah).
Every situation is different. Look at section 24 of the Real Estate
Purchase Contract. This will name the important dates you need to keep in mind
for your contract period. Write them down and then read section 8, 10 and
11 again very carefully. (Notice I said 'again', many people skim through the
contract before signing it. You should read the contract over very carefully
prior to signing it. Always ask your Realtor questions about the meaning of any
section in the contract).
These sections carefully explain your inspections, appraisal and loan
process, as well as accepting the current condition of the property once you
close. Once you close, it can be very difficult to prove any wrongdoing by the
seller, so try to make sure you are willing to take the property after you
close, problems and all.
Key 2: Use the "Buyer Due Diligence Checklist" as your inspections checklist.
You may have signed a form called: “Buyer Due Diligence Checklist”.
This form is fairly inclusive of all the inspections you may perform on your
intended purchase. I recommend reading this form over very carefully and using
it as your checklist to ensure you have checked over each item during your
inspections period.
Key 3: Always verify opinions you hear with a licensed professional.
The first section to read is the box that outlines the idea that your
Realtor is most likely not an expert in any other profession outside of helping
you to fill out the Real Estate Purchase Contract and the addendums. Unless
they are a licensed CPA, attorney, builder etc., you should always verify any
opinions you may hear with a licensed professional who is also working for your
interests.Key 4: Contact the 'planning department' in your area and ask questions about your property. Ask if there is anything you need to be aware like regulations or zoning laws.
The first item listed on your checklist is building code/zoning
compliance. Your property is most likely under the jurisdiction of either the
county, town or city municipality in Utah. You should understand the difference
in the areas.
Each municipality I worked in had their own set of zoning laws and
building requirements. Each area also needed to be in compliance with state
laws as well. We have installed a link to each
municipal website in our communities section for Zion Canyon area. I highly recommend you contact the planning department in your area and
ask questions about your property. Have the town planner look at the
prospective parcel and ask if there is anything you should be aware of that
could negatively or positively impact your parcel. Have the planner explain any
regulations that you might not understand.
I have been involved with a number of purchases where the potential
buyer could easily lose or have lost their money by buying a property that has
zoning issues that are not being relayed to them by the seller or the seller’s
agent. These issues, more likely than not, are not understood by either party
and/or how they affect the parcels value.
For instance, one area in Rockville has several small lots that come
up for sale and, oftentimes, they cannot be built on. A land owner some time
ago subdivided a larger parcel into several smaller lots and either sold them,
gave them away or traded them for debt’s he incurred (hard to say as the grapevine
is not always reliable). He did not go through the proper subdivision process
with the county (the land was county land before it was annexed into
Rockville). So the county did not approve the subdivision but the recorders
office recorded the lot splits and gave individual tax ID’s to each new lot.
To a prospective buyer that does not understand the rules, it appears
these lots could be built on. They may overpay for a parcel of ground that can
only be camped on part of the year. This story illustrates how important it is
for the seller to know what they are selling and the buyer to know what they
are buying.
Key 5: Do the homework in order to understand the zoning processes in your area.
I have also found that it is very “enlightening” for the buyer to do
this homework themselves. That way they will know the appropriate personnel to
talk to and they can really understand the zoning processes in their area. The
better informed they are the more they can fully appreciate the parcel they
own.
I have realized it is better for me NOT to do this work for the buyer
as they often don’t remember the concepts I try to relay. I think they
understand the issues I am trying to relay, but they don’t. If the buyer does
the work themselves it seems to stick better and they understand the process
better.
