5 Hazardous Waste Products that could be on Your Purchase Property

You may have diamonds in your eyes as you are purchasing your new home or land. You may believe it’s impossible for hazardous wastes to exist on your property. Regardless, it is always a good idea to get an expert opinion from a professional in the field. There are several good professionals available in the Zion Canyon area.

Your Real Estate agent may know some general information about hazardous wastes, but, unless we are considered an expert, our opinion should not be relied on. Ask your real estate agent for referrals of experts in the area.

Here are examples of hazardous waste that could affect your purchase property:

1. Lead Paint

Lead paint is generally a potential concern in buildings built prior to 1978. It was banned after that. If the home you are buying is pre-1978, then a lead paint pamphlet is required to be given to the buyer. The seller is required to provide the buyer with a lead paint disclosure. All parties including the Real Estate agents involved sign this disclosure.

The buyer then has the option to have a lead paint test performed on the home to determine if the paint has lead. If it has lead, then it does not necessarily mean that the buyer should opt out of the sale. As long as the buyer knows the proper procedures for mitigating lead paint and they are willing to accept those conditions, then that is all that is necessary.

2.   Radon Gas

Radon gas is a naturally occurring gas that emanates from various parts of the earth. When it is allowed to build up in an enclosed space and inhaled for a period of time, it can cause all kinds of damage. In the out of doors, where it is allowed to dissipate into the atmosphere, it is not dangerous. Newer homes have more of a concern for potential radon, especially those with basements. I would highly recommend researching the “in’s and out’s” of radon gas so that you understand what it is, what it can do and how to mitigate it. Most home inspectors know how to test for Radon.

3.   Asbestos

Asbestos was used in the early part of the century for its fire resistance, tensile strength, sound absorption and affordability. However, if particles are released into the air and inhaled, then it can potentially get lodged into your lung tissue thereby causing serious diseases like lung cancer, mesothelioma and asbestosis. If you have asbestos on your property, it’s best to have it removed by a professional so that you can avoid the release of fine particles.

4.  Methamphetamine

Some homes have been condemned due to methamphetamine production that happened on sight. The residue left in the building is extremely dangerous to live around. The building does not have to go through an outright destruction. It can be professionally cleaned up.

Some buyers may still not choose to live there. I believe that, even though it may have undergone a clean up, the value will be decreased simply due to the amount of buyers that will decline on purchasing it regardless of clean up. You may only find out about this hazard by talking with the local police department and seeing if it was ever condemned.

5.   Hazardous Waste Dumped on Land 

Lastly, we will discuss potential hazardous wastes that have been dumped on/in the land.

Examples:      a. Old town dumps that occurred on the site.

                       b. Old gasoline tanks that were buried under ground.

           c. Old barrels of fuel/oil that were dumped on site.

Please wander your ground and look carefully everywhere. Ask the neighbors. Ask a qualified environmental engineer.  Ask the governing body. You may be amazed at the information you receive.

There are federal laws that require the present landowner and ALL previous owners be responsible for the cost to clean up any hazardous wastes. Even if you owned it for a couple of months and knew NOTHING about it, you still may be required to share in clean up costs. Always better to be safe then sorry!

Important Point 

TAKE THE TIME TO RESEARCH YOUR PROPERTY 

Buying a Rental Property in Zion Canyon Area

The second item on the due diligence checklist is rental of property. This is a pretty important part of your inspections from two angles. You should ensure that the property is either not presently rented out or, if you intend to rent it, that your type of rental is legal. We will discuss them both separately. 

The property you want to buy is being rented

 

If the seller does not occupy the residence but has rented it out, then you need to understand that the sale and purchase does not affect the rental agreement in place. 

For instance, if the renter has a year lease with the seller and they are into month 7, then the lease still has 5 months to go before the lessee can be given notice that the rental agreement will not be extended. 

As a potential buyer you will want an inspection period to review the rental agreement, the rental deposit amounts, and the rental payment dates to see if you are in approval of continuing the purchase with the rent agreements as they are written. 

During the recent recession buyers and sellers also needed to be aware of the legality of “who has possession” of the residence. Some sellers had left the property vacant only to find months later that someone had “moved in” to their unawares. The buyer would follow through with a purchase only to find they then had to “legally” extract the person(s) in possession of the home. I admit this is infrequent, but it is an issue to pay attention to. If you go into a vacant home and see mattresses lying in the corner don’t just assume it is the sellers. Ask.

If you intend to rent the property you are about to purchase

 

There are many investors that purchase a property with the intent to rent it out to someone. I’ve seen buyers who want to purchase a home in a popular tourist area with the hope they can rent it out on a nightly or weekly basis to vacationers. They have no idea that many towns in southern Utah have special zoning regulations for rental properties and residences. 

These zones are either commercial or resort or some other type of zone. The governing municipality then requires you to register the rental and pay a “bed tax” on your income. Since I focus most of my efforts in Zion Canyon area, I have talked with many hopeful buyers who want to rent their property to help pay for it as their vacation home. Springdale and Rockville do not allow nightly or weekly rentals in residential zones. Springdale allows it in two commercial zones. Rockville discourages any commercial use whatsoever. Springdale, Rockville and Virgin all allow rentals that are considered “month to month”. 

Renting a residence in a subdivision

 

Wherever you purchase your home, you need to discuss your intentions to rent with the local zoning office, as well as review any C,C & R’s of any subdivision you may be buying into. 

Many subdivisions in St. George began to disallow rentals or greatly discourage them due to the large increase of investors buying in the area with the only intent to rent back to people. The subdivisions found that as the area became largely a rental population the grounds around the homes became disheveled and unsightly. Renters  are often not encouraged to take care of the grounds and out-of-state homeowners do not necessarily have the same pride of home ownership as an owner occupied residence. 

To sum it all up:

So motto of the story is always research the home thoroughly for rental and occupancy issues. If your intent is to become a landlord, look into all possible issues with legality of your use, as well as what kind of “bed taxes" or "use fees" you may be required to pay.

Next week:

Hazardous waste and toxic substances.

Types of Loans for a Home Mortgage

John Staples, Loan Officer for Patriot Home Mortgage, has put together some great information on the different types of loans available including the requirements. This is a good, basic introduction.

More information on how to contact John Staples is listed below.

Conventional Loans 

• Minimum FICO of 620 (If loan requires PMI, 680-700 FICO will be required) 
• Debt Ratios of 28/36, must have AUS approval 
• As low as 3% down payment 
• Private Mortgage Insurance (PMI) required for LTV greater than 80% 

FHA Loans 

• Minimum FICO requirement: 580 (620 for most lenders) 
• Down payment as low as 3.5%
• Up Front Mortgage Insurance Premium (UFMIP) is 1.75% 
• Annual mortgage insurance as high as 1.35% 
• Debt Ratios of 31/43 

VA Loans 

• Minimum credit score not imposed by VA but most lenders require 620
• Max Loan amount based on county limits and borrower eligibility 
• 100% financing available if veteran has sufficient entitlement 
• VA Funding Fee (can be financed into loan) 
    o 2.15% First use for Veteran 
    o 2.4% First use for qualifying Reservist 
    o 3.3% subsequent use 

USDA/ Rural Development Loans 

• Areas in Southern Utah include: Parts of Ivins, La Verkin, Toquerville, and Hurricane (Hurricane and Cedar City will be removed on Oct. 1, 2013) 
• Minimum FICO requirement: 640 
• No down payment required
• Debt ratios limited to 37/47, must have GUS approval 
   o County Income limits: http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html
   o Geographic Eligibility: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee). 

For more information or to contact John Staples:

John Staples | Loan Officer

Patriot Home Mortgage

Direct: (435) 215-1324

Office: (435) 256-8813

Email: john (at) patriothomemortgage (dot) com

Marcia's Input

This is some really great info on the types of loans available out there. The basics anyways.  It is certainly beyond the scope of this blog to go into information like ARM Loans, Balloons etc., so I am not going to go there. If you maintain an interest in some of these alternative loans, then I will recommend you talk with a lender about them.

I will give a plug here for John Staples at Patriot Home Mortgage. He went out of his way to get me this information for the blog. I really appreciate that!! He has done a bang up job for a few of my clients recently. He was able to procure loans for their home purchases in a very quick turn around. He kept up with me and my clients throughout the whole process and we got the loans closed very quickly. Great job!

As a Realtor, I am supposed to give out the names and numbers of a different lenders. If you want to get a list of the lenders some of my clients have used in the past that have received great results, then feel free to email, text or call me and I will furnish you with a list of their names and numbers.