EscrowCoord.com

HOA Holds Transaction Hostage!

2008-10-01T16:42:44Z

Whaaattt? It's true folks! I'm working on an REO representing the buyer. The seller's agent requested the escrow officer order the HOA docs after we had an accepted contract. After 3 days of no communication from the HOA, the officer was informed that docs would not be released until after the property had an inspection performed by the HOA.

Oh, course the inspector happened to be going on vacation and wouldn't be returning until 2 days prior to our closing date!

What can we do? Absolutely nothing, in my opinion! What should have been done? At the time of the listing, the listing agent SHOULD have contacted the HOA to find out if they had any weird rules that could delay closing a pending sale!

You know, I rarely contact the HOA to ask questions. They are so darned hard to get in contact with, are usually impatient with my "dumb" questions, or just started working there and don't know what the heck they are doing!

It would be prudent just to check in with the HOA when you first list the property to verify the name of the association is correct, that you have the correct phone number (50% of time the phone number is wrong on the MLS) and a contact person.

In addition, ask;

How much is the doc fee?

How do want to be paid for the docs? Upfront/through escrow?

Will you accept a check/credit card/cash for payment?

Is there a doc request form that needs to be completed?

How much time does it take for you to process the order?

Do you deliver the docs or will we need to have them picked up?

Do you require any inspections of the property prior to closing?

Is there anything else we need to know?

OK, it's a phone call I hate to make, but if means our transactions won't be held hostage by the HOA, I guess I'll have to swallow what little is left of my pride and sanity and just do it!

Buyer's Notice to Perform-When does it begin?

2008-09-18T16:36:46Z

When does a Buyer's Notice to Perform timeframe begin?

Had a friend who sold her out of area home through another agent. The seller's had completed a 24 hour notice for the Buyer's to Perform on Friday 8pm and sent it to their agent to forward to the buyer's agent.

The buyer's did not respond to the notice until Sunday evening (48 hours later). My friend cancelled the escrow on Monday. Now of course, the buyers are threatening to sue.

My first question to her was when did the buyer's agent receive the notice to perform? She wasn't sure but a local real estate attorney informed her that the time began when she emailed the notice to her agent!

And the broker representing her told her the notice to perform is BUSINESS days not calendar days!

Something's fishy here. When I looked at our California Association of Realtors Notice to Perform, it does NOT specify when the timeframe begins, however it DOES have an area for the buyer or buyer's representative to sign acknowledging receipt. There is no indication of the days being represented at business or calendar days.

I did leave a message with the legal department at the California Association of Realtors to get the skinny from them.

Thinking the worse case scenario, what if a buyer's agent and/or buyer declines to acknowledge this notice? I can see where they might string out the deal to their advantage in this manner.

A purchase agreement contract and counter must be acknowledged verbally and/or in writing in order to have acceptance. I would think the same rule applies for a notice to perform. Did my friend get some bad advice? I think she might have!

By the way, her agent and his broker have "washed their hands" from the deal and are no longer representing her. This is a sad situation were the seller's really didn't have to sell and the buyers nitpicked and stalled trying to negotiate a great deal for themselves to the point where the seller's said "enough."

We Are the Champions!

2008-09-10T12:19:30Z

I did it! I achieved my goal and rode my bike around Lake Tahoe, CA on Sunday! It was an especially poignant moment for me, as I've been plagued with back problems for the last year. At one point, I was unsure I would ever be able to ride again much less work.

My time around the lake was stellar with an average speed of 16.5 miles an hour. Pretty impressive when you consider the route is 72 miles long with 3740 feet of vertical climb! I had the biggest smile on my face as I passed the finish line with other cyclists cheering me on.

I attribute my success to a lot of self education and training these past several months. One of the key training methods I incorporated was to ride once a week with my hubby's riding buddies (The Martinez, CA Old Fart Cycling Team)...Old Fart, my you know what!! These guys consistently kicked my butt on 3 and 4 hour rides. The pain was intense as well as the fear (can I keep up with them?). But eventually, the hard work paid off. Now I can ride in the middle of the Old Fart pack most days. And when I ride with my girl friends, I'm always the leader.

When I think about the year my hubby and I started in the real estate industry, there were many times when I experienced getting my butt kicked by other successful agents and I experienced the fear of being left behind or worse failing.

Eventually, we adopted a similar approach to my bike training. Find someone who is extremely successful in real estate or another business and try to emulate them. Educate ourselves as much as possible. Let go of the fear of failure and step through the fog.

What's the worse that can happen? You don't make it...So what? Pick yourself up, dust of your dungarees and try something else.

My personal mantra for years has been "If you don't ask/try, you'll never know." I would rather try to achieve a goal, than to always wonder about the shoulda, coulda, wouldas.

Was it a risk for my hubby and me to delve into the real estate industry 23 years ago when the market had crashed? You bet! The training was hard, but the reward sweet!

I wish all of you success with your next goal, be it personal, business or athletic.

Zoom, Zoom!

Do you Take Prisoners Along the Way?

2008-09-03T16:38:47Z

You know the type, every bit of information or update you give this team member, they blow it out of proportion looking for reasons for an issue to go south and cause a disaster.

Listen, I believe in Karma. If you're the type with a vivid imagination and worry about issues that are simply not there, they will somehow develop along the way due to your negative vibe.

The bottom line is team players can negotiate a contract to death and never come up with terms that protect the buyer or seller from every possible scenario.

My broker hubby always says, "We have to remember as agents it's about what our clients want out of the transaction. The seller wants to sell and the buyer wants to buy. Our job is to negotiate and facilitate the goal of a successful transaction that's hopefully in the best interest of both the seller and buyer."

I can't agree more! Several weeks ago I was working on a somewhat challenging transaction. The buyer and seller were not the problem but the other AGENT representing the buyer was.

The agent was extremely diligent protecting his buyers--from what? I'm not sure! As a result, his addenda (and there were plenty of them) were convoluted with lots of legal terms that contradicted themselves. Being a somewhat neutral third party (Transaction Coordinator), I attempted to decipher, but it was simply not clear!

Now I don't claim to be a genius on contract law but I do know a clearly written addendum when I see one! And isn't that what it's about? That all parties, especially the buyer and seller are able to understand the terms?

A half hour plus several questions later, I finally got the intent of the addendum. Unfortunately, by using impressive legal language and lengthy explanations, the agent created a huge potential problem with termite repairs, thus creating more harm than good for his clients!

Now my hubby Steve and I are not in the business of taking prisoners along the way, and this agent was SO difficult to work with, we let the slip go and worked around it so that his clients wouldn't get burned!

My point to this story is that the more you mess around with the terms of any contract and try to cover every conceivable possibility to protect your client, the more you leave your client open to the other 1000's of possibilities you did not consider-not to mention putting the other agent and client on the defensive!

Keep the contract and terms clear. Focus on the things you can control and let the pieces fall in place as you proceed through the contingency and inspection timeframes. Although there are an infinite number of potential scenarios, we must go with the flow of client's wants and needs and address challenges as they arise.

Transaction Management Questions

2008-08-27T10:35:18Z

Hey, Hey, Hey!

Just got back from teaching a class in Sacramento, CA. What an awesome group of people!

They had some great questions that I wanted to share with you about transaction management.

"Is it important to track the buyer's deposit into escrow?"

Absolutely! I'm a real stickler when it comes to deposits. I want to see them in escrow in the time frame specified in the contract! Upon receipt of the deposit, the escrow officer SHOULD send out a copy of the deposit receipt showing the copy of the check and amount deposited. A deposit placed into escrow tells me the buyer is serious about purchasing the property and has the money to do so!

What happens if the property is an REO and signatures cannot be received from the bank for at least 2 weeks after verbal acceptance? Do we still have a deal? When is our acceptance date?

Yes, you do! Welcome to the exception of the rule that a contract must be fully executed and acknowledged to have a deal. It all comes down to the intent of the buyer and seller. If their actions are showing that an agreement has been made, then we have an agreement. The acceptance date will be upon verbal acceptance from the bank. This should be documented in writing and agreed upon between both the buyer and seller's agents.

Which side orders the termite, home inspections and natural hazard reports?

Whoever is responsible for paying for the report typically orders and provides access for the inspection. The exception to this rule is the appraisal.

When I give terms to the escrow officer, do I need to tell the officer what escrow and title insurance fees are?

No! Unless you had a specific agreement with the escrow/title company to charge a certain fee. They already know what fees they will charge. You simply need to identify who is going to pay for those fees.

Check me Off, Baby!

2008-08-13T14:35:55Z

Tyrone, an AR member asked me to share my top producer systems this week. I have many systems but I'm going to give you my best and easiest secret to success.

My numero uno most favorite system I've incorporated into our office is my legendary

What's a Check-off list? It's a form I put together giving step-by-step instructions on tasks to perform to complete something. For example, let's say I need to change the price on a listing.

I whip out my "Change of Price" Check-Off List. On it is a list (in timeframe order) of all the things I need to accomplish in order to complete the price change.

Believe it or not in our office there are 13 individual tasks that must be accomplished before a price reduction can be completed!Stuff like; changing the price in MLS (multiple listing system), brochure and website, delivering the updated brochure to the property and adding a "price reduced" rider.

Now, you may be one of very few humanoids who have a photographic memory and can remember to do all this stuff while being interrupted every 2 minutes by the phone and other agents who need an emergency real estate ectomy. But for the majority of us a Check-Off List will help us in a number of ways.

1.) Helps to remind us of the tasks we need to accomplish.

2.) By documenting (checking off) each task, it helps to remind us where we are in the process (Did I already change the price in MLS?) and prevents redundancy.

3.) If you have more than one listing that requires a price reduction program on a particular day, it helps to identify what you've done with each listing and prevents confusion.

4.) Ensures accountability and consistency with each listing/pending sale plus saves time (Who wants to write out "the price in MLS was changed"? Just check a box and you're done!).

5.) Check-Off Lists help to quickly train staff on systems for an office.

We have Check-Off Lists for everything in our office; New Listing Check-Off, Pending Sale Check-Off, Back on the Market Check-Off, Pick Your Nose Check-Off. You name it, there's a Check-Off List for it!

When training others, Check-Off Lists make it so much easier for new staff to understand steps required to accomplish something. I usually go over the list once or twice with them using a real life scenario, and that's it! Rarely, do I get "How do I do it again?" questions after orientation.

Speaking of training, I want y'all to know that assistants L-O-V-E Check-Off Lists! There is no better feeling than checking a box after you have completed a task. Trust me, I know (Mmmm, check box, baby!).

Here's another hint I'll share with you. Keep Check-Off Lists paper clipped to the front of the file until all the tasks are checked or completed. Why? Ever heard of "Out of sight, out of mind"? As soon as we put something into the file, we will never think about it again!

Whenever we pull the file from the cabinet, and notice a Check-Off List on the front, it reminds us that there is something outstanding that needs to be done with the file. Once all tasks are completed, the assistant/agent then signs and dates the bottom of the list indicating all items are completed as of a certain date. NOW the check-list can go into the file.

Some of you smarties have taken this Check-Off List system a step further and incorporated into your real estate software program. I say, "Good for you!" But for the rest of the agents and assistants who are not computer savvy, can't afford to purchase the software, or MUST have a piece of paper with instructions that they can touch, smell and see (that would be my broker, hubby Steve), Check-Off Lists are an excellent plan B!

Cleanin' Out My Closet

2008-08-07T10:47:23Z

I'm back after my month long reprieve from work (yeah right!). I actually felt my days were longer and more complicated than working! The month of July for me was catch up time...doing the things I haven't gotten around to in the last, oh 19 years!

One of my many projects goals was to organize some of the rooms, drawers, etc. in my house. This is something I actually do at work every couple of months, but I just don't seem to get around to it at home.

When business suddenly gets busy (and in real estate it's feast or famine), sometimes I'm caught off guard and not prepared for the influx of work.

A typical example is when I pull out the last form from the file cabinet without replenishing or, saving a really important form I created in an obscure place on my computer because I didn't have time to put it in the correct folder. So I spend 20 minutes of my precious time when I need it again trying to locate it in the black hole of my computer. Of course, I can't so I spend another 20 minutes re-writing the form/letter again! (Sound familiar?).

This stuff drives me crazy! I mean, I'm already swamped and yet I double my workload by not being prepared for the meltdown days!

So what are some of things I do to organize my desk when I have a little down time at the office?

The first item I start with is my computer

I create only 5-10 folders (categories) on my desktop to keep things neat and clean. For example;

Websites (Sites you use most often)

Escrows (Forms and letters)

Listings (Forms and letters)

Ads (For listings and company ads)

Employees (Goes without saying)

Company phone list (Agents in your office, title companies, carpet dudes, etc.). Create using an excel spreadsheet for faster access.

Personal (That really hot picture of me at my brother's wedding)

Misc. (Product information that I'm thinking of purchasing (see bobble head example below) but I don't know where else to put it.

Next I drop kick all the floating documents and links I've left in my documents folder, desktop, outlook, etc. into the appropriate folder listed above. This makes it much easier for me to locate stuff when I'm in a hurry. The rest of the junk I don't need or want anymore gets trashed. A GREAT idea is to add the location of the document in your computer directly on the form or letter. It will save you mounds of time looking for the illusive form or letter.

Then I pull out all pre-printed forms from my file cabinet, and check to see if anything needs to be corrected like an incorrect FAX number on a FAX sheet, or typo on an intake sheet. I locate the original document on the computer, make the corrections, save, than print out new copies for myself. If the form is something I don't use anymore, I'll save it in my computer under "archive" but toss out the copies.

The number of copies I print depends upon how often I use the form. Because my hubby Steve is constantly changing his mind about the forms...well form, I don't print more than a couple of month's worth. Also, I ALWAYS keep an emergency original in the folder with a sticky note that says "ORIGINAL DO NOT USE!" If I don't, I'll set myself up for a bad Kharma situation where I really, really need that form but low and behold, my computer/printer's down.

Once I've identified the pre-printed forms I need to have at hand, I create file sleeves with the name of the form on the tab and put in alphabetical order (Oh come on, you can do it!). Here's a hint for you lovelies that need access to multiple areas of the biz (listing, escrow, whatever info.) at your fingertips. File each section of the business separately. In my office, I have one drawer for escrows, another drawer for listings, etc. It's saves time riffling through multiple folders to find the form I want.

OK, the paperwork is in order. Now let's take a look at Winforms, the desktop/internet program used for writing contracts. I look over the templates I've created for listings and offers and make sure all the information is correct and the forms are up to date.

Wait...you haven't created templates?!

If you do nothing else, create templates for your software! This will save you countless hours of time. Come on! You usually type in the same stuff for most clients anyway. Your listing template should include not only the listing agreement contract, but also all the disclosures that are required for a listing.

Make sure you have enough of the hardware, baby. Paperclips (I only like the big kind), scissors, highlighter, sharpie, pencil, notepads, hole puncher, file folders, staple remover, etc.

Inventory your supply closet. Do you have enough paper and toner or will you run out at page 2 of the offer you and your seller have been anxiously waiting for?

Finally, go through that pile on your desk that you promised you would look at 2 years ago. Toss out what's not needed (like the info on the bobble head dolls with your likeness imprinted on the face for your clients that in a weak moment you thought might be "cute") and file or create folders for those items you want keep.

Having an organized desk/office will save you valuable seconds when you're swamped and prevent you from pulling your hair out and screaming, "Why is it when I'm always busy, I run out of stuff or can't find it?!!!"

Can you think of any other helpful ideas to organize a workspace?

I'm on Vacation!

2008-07-10T10:15:33Z

Hello my friends! I'm on vacation for the month of July (first time since my 19 year old son was born!) I'm going to learn how to be a professional housewife. So far I've been running around with my head cut off--not sure what to do. But I'll be back again in August to share my transaction management knowledge with you!

Are ya gonna blackball me?

2008-06-25T14:09:58Z

The other day, I was informed by a seller that a local real estate company may be blackballing our listing!

My hubby and I just listed my brother-in-law's mother's home in an adult community. There is a real estate company that only works within that community. As a result many of the listings are represented by them.

Our seller hired a local handyman to perform some repairs on the home and he expressed his concern that she had not listed with the "other real estate company." "Oh, you shouldn't have listed with Turnbloom. The rest of the agents are going to blackball your listing and refuse to show it to their clients! You'll never get it sold!

This is not the first time I've heard vicious rumors of listings being "blackballed" for one stupid reason or another. But is there such a thing? And is it something we all should be worried about?

Here's my take on it and what we explained to our seller;

If you were a buyer's agent, and that buyer absolutely, positively wanted to see our listing (which is priced pretty damn well, I might add!), AND was ready, willing and able to write an offer, would you REFUSE to show the home?

How about this, if your client wanted to write up an offer on our listing, would you REFUSE and recommend the buyer write an offer with someone else?

I don't know too many agents representing buyers who would pass the opportunity to put bread on their table and pay bills (especially in a market like this!).

For all the "blackballing" rumors I've heard over the years, I believe properties will still sell, as long as there is a willing buyer and seller.

I find agents who "blackball" are usually the ones who need a sale in the worst way (nothing like shootin' yourself in the foot!).

Do you worry your being blackballed and not allowed into the club? Do you think there really is such a thing as blackballing? Or is just another urban myth used to keep all of us in the real estate industry "in line"?

My Humbling Experience

2008-06-18T13:48:41Z

I finally did it...

I reduced the prices of my classes to the lowest of the low ($39.95). After getting little to no action for what I consider to be VERY IMPORTANT STUFF AGENTS NEED TO KNOW, I decided to take the plunge and work in the red for a while.

The real estate market has been such a humbling experience for me. You know, from being at the top your game where everybody loves you, to having doors slammed in your face!

But I really believe I needed to have this experience. Humbling makes me more well rounded and a stronger person. I truly believe that my webinars WILL make a difference in the real estate industry (even if no one else thinks so right now!).

Did you know that Harland David (Colonel) Sanders had many doors slammed in his face for years before someone finally believed in his product and took a chance with his secret fried chicken recipe?

Even more incredible is that he started Kentucky Fried Chicken in his mid 60's!

Sometimes, when I'm having my pity party, I try to remember the inspirational people like the Colonel who did not give up because of a few hundred (thousand?) doors slammed in their face. Their perseverance eventually paid off.

Also, I am trying to allow myself to be more open to opportunities. Even if the square peg is not exactly what I was looking for, I find by being creative and open to new experiences, I can still do what I love.

For example, a couple of weeks ago, I agreed to teach a private class to a couple of new assistants for 2 agents. Normally, I wouldn't do this-too busy, not enough money in it, etc. But I decided to go for it. As a result, I had a GREAT day teaching, and it allowed me to think about offering private training sessions to other agents in need of help. From there, it opened my mind up to dozens of possibilities/opportunities that I would really enjoy doing!

Amazing, immediately after I decided to reduce the costs of my webinars, I received a call from Sacramento Association of Realtors who approved to use my webinars as part of their education program!

I did ask a big favor of Leon, one the education board members. Was it possible for me to get a job cleaning toilets at night at the association to help supplement my income?

Hah! Being humble is not so bad!

What you need to know about becoming a Top Producer

2008-06-11T14:10:35Z

Yesterday, I was invited to train a NEW transaction coordinator for an agent. In meeting the agent, I could tell she was a little rattled. She told me, "I'm really stressed and overwhelmed with everything right now. I've got 4 pending sales and 6 more coming in!"

Ah, I remember those days when my hubby and I first made it to the illusive "Top Producer" circle. "Overwhelming" and "Stressful" are perfect descriptions of how we were also feeling at that time!

With a sympathetic ear I responded to the agent; "Take a deep breath. You're doing all the right things. You WILL get through this!"

In my years of working in the industry, I've seen some pretty sharp and dynamic agents claw their way to the top only to crash and burn big time. Why? No systems for higher volume listing/sales!

Some agents are able to work well with a certain number of listings and sales, but the service falters once their business peaks beyond this limit. They have no one to help out. They don't know how to train staff and they don't know how to delegate responsibility once they get help!

The reason I believe this agent has a shot at the big time is because she has taken some of the first steps at developing a higher volume business plan. Step 1 is to hire help. Step 2 is to educate your assistant so they can help you! Step 3 is to develop systems with your assistant that are easy to learn and can be applied over and over again to other listings/sales and used by other assistants/staff that are hired in the future.

Some of you may argue the point that you prefer to keep your business model small and more intimate to provide one-on-one service for your clients. "It's impossible to provide great customer service when you have 20 listings." I have to disagree with this statement. My hubby and I started our real estate company committing that our services will provide the best customer service available. How can we do this when we have 24 listings and 10 pending sales? Easily! With our high volume systems that eliminate wasted time and duplicated efforts plus top quality trained staff.

Another Top Producer secret is to use the best technology available for your team (even if YOU don't use it). We save a tremendous amount of staff time by purchasing the fastest copiers, scanners, computers and printers. Internet speed is critical for Top Producers to give and receive information more quickly and good real estate software programs keep the entire team on track with daily tasks. You don't have to have 7 assistants to be a Top Producer! Great systems and one really good assistant will get you to Top Producer status in no time at all!

Oh, and by the way, we rarely work weekends!

What's with the Kinder, Gentler FHA Loan? (Part 3)

2008-06-11T13:09:31Z

Well, I cannot believe it! After only one extension on the FHA loan approval, the buyers have approval today! Right on time, too! Maybe my perception of FHA needs to change....a lot! I'll keep you posted to the end. Although, it ain't over till it's over, I'm starting to feel better about this transction!

What's with the Kinder, Gentler FHA Loan? (Part 2)

2008-06-04T10:40:06Z

I promised I would give you updates on my FHA transaction I'm working on. The buyer's loan approval was due yesterday (6/3), however-FHA did an appraisal review and they are having a second appraiser go out today. The loan officer did say that they are putting a "rush" on the second appraiser's report to get it pushed through the approval process and the buyer's should get loan approval by Monday 6/9. OK, that seems reasonable. But I am VERY nervous about the second appraisal! The sales price the buyer's and sellers negotiated were well within comps. So what gives?! Is this regular operating procedure? Why doesn't FHA trust the first appraiser (which is their own appraiser)?

If you have any thoughts on FHA loans, please let me know! Meanwhile, stay tuned for upcoming episodes on "As the FHA World Turns."

What's Included in a PITI Payment?

2008-06-04T10:27:22Z

Should first/second/equity lines include rent-back PITI payments?

Yesterday, I was working on a terms class I'm teaching in a few weeks and stumbled across some interesting facts on seller's rent-back and buyer's PITI (principal, interest, taxes and insurance) payments.

In defining what a buyer's PITI payment is on the California Purchase Agreement contract, it doesn't clarify whether that payment includes a second, seller financing and/or an equity line!

In discussing (arguing really!) with my Broker hubby, the fact that it does NOT clarify what specifically the PITI payment is, therefore it includes ALL loans the buyer has on the property, right?

When I contacted my favorite escrow officer, she told me that 99.9% of the time the PITI payment is calculated based upon the 1^st loan only!

Here's another interesting question that has come up on transaction or two in the past for me. If the buyer obtains an interest only loan, is the seller still obligated to pay the principal on the loan? What if the loan is a neg-amortization loan?

If we look at the potential cost of rent-back for the seller and incorporate all these loans into the mix, that PITI payment could become astronomical!

So my hubby Steve and I discussed (OK, argued again!) how to protect the seller from signing a blank check for rent-back based upon the buyer's PITI payment.

We came up with this;

"Seller to rent-back property for 4 days after close at the buyer's minimum PITI payment." OR "Seller to rent-back property for 4 days after close at no less than buyer's full interest only or minimum neg. am. loan payment."

Still, we have the problem of buyer's possibly switching loans during the pending sale transaction, and then we're back to writing a blank check!

Is the best way to negotiate a seller rent-back to simply put in a per diem dollar amount that the seller is willing to pay and "fa-get-about" the PITI payment?

How do you define PITI payments in your area?

What's with the Kinder, Gentler FHA Loan?

2008-05-28T14:31:11Z

Am I missing something here?

I work in an area that up till now rarely dealt with FHA loans due to the high home sales prices and low FHA loan caps.

I just started working on a pending sale transaction where the buyer is going with an FHA loan. Horror of Horrors! My first thought was to load up extra heavy on the old Prozac until the transaction fell apart, then finish up with heavy drinking and deep resentment.

But wait! Something has changed here since my last FHA transaction (about 7 years ago).

When I called the loan officer and asked him if the seller still has to complete section 1 AND section 2 items on the termite report, he said "No, they don't require that anymore. Just whatever the buyers and sellers agree to." EXCUSE ME?!!!

Then I asked him if the appraisers still take forever to schedule the appraisal appointment, then do they perform a home inspection on the property and call safety issues that the seller has to fix (the appraiser would go out a second time to verify the repairs had been made). He said, "No, they don't really do that anymore either." HUUHHH?

So I asked, "Well, what is it FHAis GOING to want from the seller? There's got to be something! An inspection of the attic, the seller's first born son, something!" And he says, "Ummm, not really-FHA has loosened up their criteria so buyer's who get this kind of loan are just as attractive to a seller as a conventional loan buyer." WHAT THE....?

So here's my worry (I guess I don't trust the government to make anything easy), NO ONE on this transaction has much experience with FHA loans. The loan officer has one FHA transaction under his belt in the last 6 months.

I was trying to look up FHA loanson the Internet and I'm just not finding the snag... The "Yeah but...," or the "Oh we forgot to tell you..." information that is going to tank this transaction or at the very least, give me a migraine and more gray hair!

Could it be true that this is going to be a hassle-free transaction? So far the appraisal and termite have been completed and there are no unusual repair requests from FHA. The buyers are contracted to have loan approval in another week. Then we close in another 30 days.

Is there anybody out there in Real Estate land who can share their recent FHA experience with me?

I hate to be a pessimist, but I want to make sure I'm prepared for any potential ensuing disaster. In the meantime, I'll keep y'all updated on my FHA transaction experience!

Liability During a Pending Sale Transaction

2008-05-21T15:30:28Z

When are agents most exposed to potential liability?

Tomorrow I'm offering a free info webinar on transaction management courses I teach to real estate professionals.

In thinking about the benefits of taking the classes it occurred to me that most disputes arising from clients and agents occurs during the pending sale transaction period.

In discussing this with several associations of realtors, they agreed wholeheartedly with my assessment and added that most disputes were a result of lack of education on behalf of the agent.

I know there is a lot of focus with new agents to teach them marketing skills to get the listing or buyer. Certainly this is an important stepping stone to developing a solid business plan.

However, I believe that clear instructions should be given to the new agent on how to manage their pending sale transaction. There are so MANY tasks that must be coordinated, a lot of negotiation and working together as a team.

In my 16 years experience as a coordinator and office manager, I have seen agents destroy perfectly good deals due to lack of knowledge with contractual law, the inability to create win-win negotiations, and work as a positive contributing team member.

Transaction management is COMPLEX. Agents must understand not only what the role is of the other team members and provide them with the tools necessary to do a good job, but they must also know what part THEY play in the transaction.

Contractual obligations such as contingency removals are so important because they can make or break a deal and put the buyers and seller in vulnerable positions.

Understanding the ramifications of removing a contingency is also important and protects not only the clients but the agent and broker as well.

Finally, having some sort of system to keep the agent on track with the many tasks and contract timeframes is always good practice whether an agent is working on one or fifty transactions at once! I use a computer software program to track my transactions and at least 100 tasks are assigned to an average pending sale file (Ok, Ok I'm a teeny bit obsessive compulsive!).

What kind of training/tools have you received thus far in your real estate practice to help you successfully close pending sale transactions? Perhaps it's time for brokers to consider investing a little time and effort into this important aspect of real estate. Think of all the millions of dollars worth of deals that could be saved through reduced liability and successful closes!

The Mysterious Loan Contingency

2008-05-15T13:24:41Z

This post is Part 2 of my Contingency Removal lesson and research I'm doing for my upcoming one hour webinar Understanding Contingency Removals

I actually went through the California Association of Realtor's purchase agreement contract and could not find anything specific other than the buyer has "obtained a loan." But what does this mean? When has the buyer actually obtained a loan?

First let's try and define a loan contingency removal. Most buyers and sellers agree that when the buyer has loan approval from a bank with acceptable terms, the buyer then removes the loan contingency. In essence, the buyer is making a commitment to move forward with the transaction.

There is a clause in the CAR contract that allows a buyer to remove the loan contingency when the loan has FUNDED. Funding usually occurs on the day of or one business day prior to recording/closing. Most sellers prefer to see the loan contingency sooner than this. They don't want the deal to be strung out for days on end waiting for loan approval only to find out the buyer could not qualify and selling time was wasted.

So when does the buyer have loan approval? I've have many a loan officer tell me the loan is approved only to find out the approval was CONDITIONAL. Below are typical types of approval and risk factors;

Pre-Approval-You will usually see this in a pre-approval letter for a borrower prior to a contract, home selected, appraisal report, etc. I'm going to be brutally honest here. In my opinion, sometimes a pre-approval from a loan officer is about as valuable as the paper it's written on. But that's another post I'll get to later.....

THIS IS NOT LOAN APPROVAL!

Buyer's chances of obtaining loan approval-Apx. 50/50

Conditional Approval-Now we have a contract and house selected, perhaps an appraisal report has been completed and the bank has reviewed the loan application and supporting documentation and given conditional approval. THIS IS NOT LOAN APPROVAL!

Buyer's chances of obtaining loan approval-Apx. 70/30

Approval with prior to doc conditions-Similar to conditional approval. The bank has approved the loan with conditions that must be met/approved prior to preparing the loan documents. These conditions could be minor such as a missing initial on a purchase agreement, OR they may be major such as 10 years of the buyer's tax returns meeting a certain annual gross salary figure. THIS IS NOT LOAN APPROVAL!

Buyer's chances of obtaining loan approval-Apx. 70/30

Approval with funding conditions-Similar to conditional approval. The loan is approved with all prior to doc conditions met and a letter of commitment from the BANK who is giving the loan is prepared.

The loan docs are then prepared and delivered to title. The bank will submit prior to funding conditions that must be met prior to the bank wiring the loan money into the escrow account. They should be minor such as a clear termite certification, evidence of fire insurance, etc. THIS MAY BE LOAN APPROVAL

Buyer's chance of closing escrow-Apx. 95/5 depending on what the funding conditions are.

Approved-The loan is approved with all prior to doc and funding conditions met Now we are getting closer. THIS IS LOAN APPROVAL!

Buyer's chances of loan docs going to title 98/2

Use the buyer's deposit (especially if it's incorporated as liquidated damages) and the above formulas to determine buyer's risk. If you remove the loan contingency too soon (approval with prior to doc conditions) there is an approximate 30% risk the buyer may not obtain loan approval and as a result may lose their deposit.

The least risky time to remove the loan contingency is when the loan has funded. HOWEVER, most sellers will not accept this. So as a compromise, the best time for the buyers to remove the loan contingency is when all prior to doc conditions have been removed.

HINT- SOMETIMES, a mortgage officer will MOVE a prior to doc condition to a prior to funding condition (very difficult to do, and requires a lot of begging and pleading from the mortgage officer to make this happen!).Before your buyer removes the loan contingency, ask the loan officer if he moved any of the prior to doc conditions to prior to funding conditions. Find out what the conditions are and DIALOGE with the lender and the buyer to determine risk.

Tell me, when do YOU submit a loan contingency removal-Hmmmm?

What Would Judge Judy Say?

2008-05-08T13:08:01Z

I'm teaching a class in a couple of weeks on Contingency Removals. I would have to say one of my biggest challenges is to get the buyer's agents to properly remove a contingency!

I want to share with you who your contingency removal should measure up to.

That would be Judge Judy. Heaven forbid should you have to go to court because of a misunderstanding about the removal and Judge Judy shows up in the courtroom. YOU ARE TOAST-unless you have used the right verbiage!

Here is a list of some INCORRECT ways to remove an inspection contingency and Judge Judy's possible response to the buyer's agent;

"The agent has reviewed all reports and disclosures and removes the contingency"

Judge Judy's possible response: "Who the hell is this agent? Is he buying the house, did he sign the contract? What the hell is this ‘contingency' he's removing-is it a contingency that the agent can't purchase the home unless he drives me crazy first!!? Because that's what he's doing!!!!"

"The buyer has reviewed all reports and disclosures and removes the contingency"

Judge Judy's possible response: "WHAT CONTINGENCY?!!! Read my lips!!!! What the hell are you tawking about?!!!!"

The agent signs and removes the contingency on behalf of the buyer because the buyer is unavailable to sign

Judge Judy's possible response: "What, are you an idiot?!!! Are you in fact licensed? Do you have a NOTARIZED power of attorney in which your clients gave you permission to sign on behalf of them? Son, you have opened such a big can of worms-GAWD HELP YOU!!!!!"

"The buyer has read the home inspection report"

Judge Judy's possible response: "OIYYY DON'T CARE!!!!!! Did they remove the inspection contingency with this statement? NO!! Look at me. Hey, LOOK AT ME!....Oiyy said NO!!!!"

"The buyer removes the home inspection report contingency"

Judge Judy's possible response: "What the hell is this????!!! What about the other reports and disclosures and inspections-Did the buyer decide not to remove those or WAS that the buyer's intention but you were too STUPID to properly prepare the contingency removal???!!!!!"

Ok, Ok, I could go on and on and on with the examples. But you see what a terrifying experience this could turn out to be if you have not properly prepared the contingency removal!

So (drum roll here), the correct way to remove a contingency in writing is to use the following language;

"The buyer(s) hereby remove the inspection contingency." TA, DA!

See, according to MOST contracts, when the buyers remove the inspection contingency using this language they have in fact;

Completed all investigations

Approved all disclosures

Negotiated repairs, if applicable

Now, for other contingency removals, just replace the word "inspection" with whatever the other contingency is (ex. loan, appraisal, closing of another property, etc.)

So here's a question you should always ask yourself if the contract or addendum you just wrote is not 100% clear in its intent. "What would Judge Judy say?"

Sheesh, even better, TAKE THE CLASS!

Is my yellow highlighter illegal?

2008-04-30T14:43:15Z

No, I have not been sniffing the fumes to get high. But I have been using it to highlight the areas we want our clients to sign and date.

I was teaching a transaction management class last week in Sacramento and while I was boasting about my highlighting expertise, a student mentioned she had taken a contract class earlier in the week and the instructor said use of a highlighter on a contract/addendum or disclosure is a no-no! However, using a "sign here" sticky is acceptable.

The reason given is that it encourages the client to sign documents without fully reading what it says!

I have heard that some brokerages have a rule for this but I just chalked it up to corporate attorneys who are trying to earn their retainer fee by creating these ah, rules. Now I'm worried that the California Association of Realtors has adopted this which changes the whole game.

I left a message with the legal department at CAR and to date have not heard back, but I'll let you know what the outcome is when I do!

I can think of a couple of reasons this rule does NOT make sense.

•1.) If highlighting areas distract clients from reading the document, then wouldn't text in bold or CAPS or a slightly bigger or smaller font also distract the reader?

•2.) How do "sign here" stickies not distract the client from reading a document but a highlighter does? The only advantage I see is you can rip them off before you are put in front of Judge Judy and deny you ever directed your client to sign.

•3.) Clients DO have difficulty knowing where to sign. If you do not direct them, they either don't sign or sign in the wrong area (how about the broker's review line on the CAR contracts--grrrrr!).

I believe in keeping things as simple as possible for our clients and ourselves. Keeping paperwork moving in a smooth and hassle-free manner ensures all documents are properly signed for DRE compliance.

Can you think of any reason why someone would want to support or dispute a ban on highlighting?

Please don't take away my highlighter-I'm an addict, I can't help myself!

Curious Brad

2008-04-18T10:33:37Z

Hey, I'm on video!

My hubby Steve and I had dinner a couple of weeks ago with my buddies Brad Andersohn of Active Rainand his lovely wife Debra, Rod Verette of First American Title and his wife Joyce at a great restaurant in Vallejo, CA. called Baci. (I'm a picky eater-the food was excellent, ambiance wonderful and the entertainment, a 3 piece jazz band, superb!)

We had a fabulous time talking about all the wonderful benefits AR has to offer to members. Brad asked if he could try out his new flip video camera on Steve and me. Well, being the hams we are, we agreed wholeheartedly! So there we were outside at 11:00 on a Saturday night in a quiet entryway, being interviewed by the big guy himself!

You're probably wondering how I know Brad. We met about 14 years ago when I first started working for my husband as a real estate assistant and Brad was working at First American Title.

Back then, Brad was so full of enthusiasm and assisted many of our clients with escrow issues. His ease with technology was astounding and I learned a thing or three from him. I lost contact with him when his territory changed, but I never forgot him!

He hasn't changed much-OK a little more gray hair but all of us who have been in the real estate business as long as Brad has gray hair! Let's just call it our "badge of honor."

But he is still the same ole' Brad...enthusiastic, with an almost child-like curious nature about how things work.

I can tell he truly loves what he is doing and is having a blast! Brad is a fiercely loyal team player. AR picked a winner! My thanks to Rod for hooking me up again with Brad to give me a little one on one about blogging. His information and knowledge has been invaluable to my business. I look forward to our growing professional and personal relationship!

Comcast Issues

2008-04-18T10:26:24Z

I'm back from my hellish nightmare with Comcast! For the last month, I've been having trouble accessing Active Rain. I could open the site, poke around for about 3 minutes, then I would be kicked out. When I tried to open the site, I was getting a "page not found" message. I would be blocked from the site for 72 hours, then suddenly I was allowed in again for 3 minutes!

I contacted Comcast who is my internet service provider 4 times about the issue and was even referred to Level 2 tech support. I was given the usual run around "It's not our fault", "It's the ISP addresses, etc. Finally, yesterday, I noticed I was being kicked off Wordpress and couple of other sites. I called Comcast again, got a Level 1 technician who in 5 seconds told me that a "Smartpacket Detection" on Comcast's modem that they provided me was blocking these sites. It's easy enough to disable this, but every time the power goes off or the reset button is hit on the modem, the system will default back to this mode!

Of course I expressed my frustration at the lack of knowledge the other 3 technicians had with my problem :-\

I wanted to share this with the AR group in case you're experiencing this headache. For now, it seems to be working. So here are the instructions to disable the Smartpacket Detection, which by the way is some sort of anti-spoofing device Comcast seems to feel their customers need.

Step 1.) Go to the modem settings. You will need to type in your IP address into Internet Explorer, Firefox, etc. (If you don't know what your modem's IP address is, contact Comcast.

Step 2.) Enter your username and password

Step 3.) Click on "Firewall"

Step 4.) Check the box next to "Disable Smartpacket Detection"

Step 5.) Your done!

Keep these instructions so that the next time your power goes out, you can immediately reset this. My friends, I do not want you to go through the hell I've been through.

Oh, and a big THANK YOU to Rich Jacobson and Brad Anderson for listening to my melt-downs and their attempts at trying to help me. I really appreciate it! :-)

No! Not Pain in the Rear!

2008-04-09T15:10:26Z

This is part 2 of my Title Issues posting. As I mentioned in my earlier post, I'm teaching a Comprehensive Title Issues class next Thursday, April 17^th. In researching for this class, I came across some interesting information that I thought you would like to know about.

Most of the escrow officers I interviewed said the top misunderstandings clients have is mortgage payments and payments in arrears.

Let's start by identifying what happens when a buyer closes escrow on a property. If the date of close is April 10^th, then the first payment will be scheduled on May 1^st. That payment will be loan money owed from April 10^th through April 30^th.

This is the opposite of what happens when a tenant pays rent. They will typically pay on May 1^st (upfront) for the following or subsequent 31 days (May 1-31^st).

Now let's use the example of a seller who has his property under contract and it is scheduled to close escrow on May 15^th.

If he makes a regularly scheduled payment on May 1st(Remember-this payment is for the month of April), then he will owe another 15 days of mortgage payments assuming escrow closes on the May 15^th.

This amount is typically calculated on the pay-off demand from the bank. If the transaction closes sooner, the difference between what was paid and what was owed will be refunded back to the seller.

So there you have it-A simple explanation to a common question-Payment in arrears!

Loan Officer Requires Review of Seller Disclosures??!!

2008-03-26T14:49:30Z

Made with free image tools @ TXT2PIC.com

As the transaction coordinator for my office, I am working on a pending real estate sale we opened a week ago. When I emailed the loan officer to find out if she had ordered the appraisal yet, she replied she was waiting for the buyer's signature on the seller disclosures!

Well, this is a new one for me! Perhaps a new "Prior to Appraisal Condition?" Being cautious of banks now days, I immediately responded back asking her if this was a new bank condition OR if the buyers simply wanted to wait to order and pay for the appraisal until they had a chance to review the disclosures? (By the way, I submitted the seller disclosures to the buyer's agent the day of acceptance).

She replied, "No it's not a bank condition or the buyer wanting to wait to review disclosures, but SHE wanted to be sure the buyers where serious about purchasing the home."

Hmmm. I responded back again asking if SHE was paying for the appraisal report? I could understand her concern if this cost was coming out of her pocket! She responded, "No!"

I'm still not clear as to why she felt it her responsibility to review the signatures on the disclosures. I immediately contacted the buyer's agent to let her know that this was the request of the loan officer. So far, I've heard from neither the appraiser to schedule the appointment NOR the buyer's agent. I'll give them one more day to think about it. We have only 7 more business days left for the appraisal appointment to happen, the report to be generated and underwriting to approve it before loan approval is due.

One of my peers mentioned that since the loan officer feels the need to review the disclosures, perhaps she and the buyer should sign a disclosure regarding agency relationships? My question is wouldn't the buyer's decision to purchase or not purchase also be contingent upon the home and termite inspection review as well (which have not yet been completed)?

If this is the case, then we are talking about significant loan approval delays!

Bottom line--is the lender stepping outside of her bounds by requesting these items? Especially when she does not appear to understand the process of buyer's acceptance of a property? Maybe it doesn't matter what banks request?

If the buyer is waiting to order the appraisal until they review the disclosures and reports, then shouldn't the appraisal and loan contingency timeframe allow for this to happen?

If the loan officer is requiring this on all her loans, then it would be prudent for her to send out a memo to the team at the beginning of the escrow so the team can respond quickly to her request and prevent delays in loan approval!

Listen, I understand some buyers may want to wait a bit to order the appraisal. But I would prefer honesty (these expectations explained up front) and reasonable time frames that are not going to end up disappointing team members plus having to write and track a loan contingency extension which the seller may or may NOT accept! "Welcome to My World!"

Termite Reports. Get caught with your frame exposed!

2008-03-19T13:03:17Z

Last week, I discussed the different types of Section 1, Section 2 and Further Unknown Damage in a termite report. This week, as promised, I wanted to talk about open frame inspections and how they can affect your buyer AND seller!

If the inspector is aware that someone else will be doing the repairs on the termite report, he/she will call for an open frame inspection. You will typically see this on items that have the sentence "If further damage is found, a supplemental report and bid will be issued."

If you are having the termite companyperform repairs, no problemo! They will look behind the damaged wood and check for further damage during the course of their repairs.

However, if you have hired another contractor or the homeowner is to perform repairs, the contractor/homeowner must first remove the rot. THEN call the termite company to perform an open frame inspection to ensure there is no further damage. AFTER the open frame inspection, the contractor/homeowner can put everything back together!

What is the advantage of an open frame inspection?

Let's start with an example. The termite company has called Section 1 damage to a bathroom floor. The contractor (or homeowner) rips out the flooring (let's say linoleum) and underlayment that is damaged.

Now that the framing/wood underneath is exposed, it's time to call the termite inspector to re-inspect the area to confirm;

a.) All the rot/damage has been removed and

b.) That there is no further damage to the framing or wood underneath the sub-floor.

This protects the buyer by ensuring all the rot has been removed and if further damage was found, that it was removed as well.

Yes, the inspector will need to come out a second time and charge to re-inspect if further damage is found. He needs to visually verify that all damage has been removed!

No, he cannot rely on a "promise" by the contractor/homeowner that they will remove the damage as soon as he leaves! (Don't get angry-This is the protocol the company must follow in order to keep their license!).

The seller is protected by ensuring the buyer won't come back 4 months later complaining the sub-floor in the bathroom is sagging due to damaged framing.

If the contractor or homeowner covers the framing with new sub-floor BEFORE the inspector has had a chance to perform an open frame inspection, he cannot give a full certification of the area. This could create funding problems if the buyers and sellers had agreed to section 1 clearance!

OK listen up folks! For those clients who insist on doing the work themselves, or hiring a local handyman, in California, the purchase agreement contract states that any work performed must be completed with good workmanship and any necessary permits. When is a permit required? Check your local building inspection website. You will be surprised at what work requires a permit!

If you found this topic fascinating, be sure to register for my 1 hour live webinar on Understanding Pest Control Issues Monday March 24^th 1:00-2:00 pm PST. You'll learn how to read a report, deadly sentences to look for, plus client letters that explain termite issues step by step!

Termite Goodies Typically Found in Homes

2008-03-12T19:06:17Z

This post is Part 2 of Holy Termites Batman!

Last week, I talked about the different types of termite reports you may see on a property. Today, my little winged friends, we are going to talk about the different types of damage you may see in a report. I cannot stress enough how important it is to get yourself and your client educated on these matters to help reduce frustration and seller's writing "blank checks."

But before we start, I wanted to give y'all a tip when ordering a termite inspection. Make sure the termite company is aware the inspection is for a real estate transaction. Some of the companies have a cheesy little report they will give to the homeowner at no cost that does not identify the damage in a format we real estate folks can use.

Damage is typically divided up into Section 1, Section 2 and Section 3/Further Unknown or Further Bid items. The following describes the type of damage and possible solutions.

SECTION 1 Items. Damage that has already happened.

There are 4 different types of Section 1 damage and treatment.

1.) Damage-Dry-rot (when you can stick a screwdriver into the wood and it's spongy)

Treatment-Remove dry-rotted wood.

2.) Damage-Fungus (Green, yellow, etc., stuff you can scrap off wood)

Treatment-Either scrap off the fungus and/or treat with a fungicide (most must be purchased and used by a licensed pest control operator), OR removed the infected wood.

3.) Damage-Subterranean Termites (They come from the ground and create "tubes" along walls or mud sills and chew away wood. Although you may see only a few tubes, these critters can infest the entire building!)

Treatment- Drill holes into the cement and "inject" a chemical or perform a "broadcast" treatment (spray under the house/on the ground) that kills the termites (must be purchased and used by a licensed pest control operator). There is a time limit on the guarantee/certification because termites could still be hanging around in the yard.

4.) Damage- Drywood Beetles (Nasty little bugs scatter throughout the property, eating wood. Typically a real estate team's worst nightmare!).

Treatment- Fumigation-You know--the circus tent around the entire house for a few days. This eradicates the beetles from the house. This does not mean that beetle have been removed from the lawn or yard, or neighbors yard or....That's why there is a time limit on the guarantees/certifications! Also, special challenges occur when the beetles are located in a condominium complex with attached walls.

SECTION 2 Items-Issues or problems that can CAUSE or LEAD TO Section 1 damage if left untreated or un-repaired. There are many different types of Section 2. Here are a few examples;

Problem-A plumbing pipe is leaking water onto a wood member under the house. The wood itself is NOT rotted, but if the problem is left unchecked, it may eventually lead to dry-rot (Section 1)

Treatment-Repair the leak.

Problem-Wood siding is "weathered" or has exposed wood (paint is missing or has flaked off). The wood itself is not rotted, but may be "damp". Again if the problem is left unchecked, it may eventually lead to dry-rot (Section 1)

Treatment- Paint or treat the wood with some sort of water resistant barrier.

Problem - Toilet is loose. There is no damage to the floor, but if... well, you get the picture!

Treatment - Re-secure the toilet with a new wax ring.

SECTION 3, Further unknown or Further bid items-These are areas that were inaccessible to the termite inspector at the time of the inspection. Depending upon the location and the buyer, the buyer may elect to schedule a further inspection on one or more of these items. Again, there many different types of Further unknowns. Here are just a few common examples.

Problem -Area under the family room not inspected due to inaccessibility. (Perhaps this room was an addition and the contractor forgot to allow access to the sub-floor-I've seen it happen people!)

Treatment - The buyer can compare the termite, home and any other related reports and decide whether it's worth it to create an access to inspect or not. An access hole may mean cutting into wood or cement. Sometimes the access will be from the inside, outside or under the house. In California, our contracts indicate the buyer can request a further inspection but must pay for the inspection. If further damage is found, then whoever is responsible for paying (usually the seller) must pay for the Section 1 damage PLUS the inspection (which would include paying to access the area).

Problem -A shower tile in the bathroom is missing grout at the time of inspection, but no "visible" damage was found. Most termite inspectors are very cautious about shower areas. Obviously due to constant water exposure, they are more likely to have dry-rot issues if not well maintained!

Treatment - Again it's up to the buyer whether they want to further inspect this. It will require removal of tile. If the tile breaks, it may be difficult to find an exact match to replace it if no further damage is found.

Problem-Garage was inaccessible due to stored articles and finished walls.

Treatment- I see this especially when the seller has not been properly prepared for the inspection. The inspectors will not move furniture, etc. from the walls of the garage to inspect. It is the homeowner's responsibility. Let your seller know that they must move as many items as they can from the walls of the garage to the center prior to the inspection. They can leave washer/dryers or refrigerators and attached cabinets. If the cabinet is open in the back exposing the garage walls, then remove all articles from the cabinets as well. We can't do anything about the finished walls, but it's the sill that the inspector at least will want to inspect. If the seller gripes, remind them they are moving and have to pack the stuff anyway!

Note these are general problems and treatments. Unique problems and areas require the expertise of the termite company performing or recommending the work and cooperation/agreement between the buyer and seller. Always dialog with the termite inspector if you are unsure about an item called. Encourage the buyer and seller to also contact the inspector directly for any questions.

Tune in next time for my lively topic on Open Frame Inspection-Don't get caught without your frame exposed! BTW-If you are looking for more information on pest control issues, be sure to register for my webinar Understanding Pest Control Issues on Monday March 24^th from 1-2pm PST. "Welcome to My World" kiddos!