Estate and mortgageAsk George: Questions From Consumers
Dear George: We signed a builder contract in February. It was for $128,990. The home was supposed to be 2,690 square feet. By mid-April the builder had poured the foundation and begun the framing. While visiting the site, a sales counselor informed me the builder had made a mistake. The home was now going to be 2,290 square feet. The builder offered $3,000 in "upgrades" to compensate us for the difference. We think the difference of 400 square feet should be closer to $15,000. The builder won"t budge. We can abandon the home. In that case, we"d get our money back. But we love the neighborhood. We feel cheated and misled despite our emotional attachments to the area. What could be our course of action? -- Misled
Dear Misled: You should consult an attorney as to your legal rights and obligations under the contract. You might discover you have more options available than the builder offered.
Strictly from a real estate broker"s perspective, I find it difficult to imagine a home nearly two rooms smaller in total area would be adequate to fill your needs. If that"s the case, I would get the money returned. Locate another home in the area. Make sure a broker or an attorney represents you in those negotiations.
Dear George: Does the Texas Association of Realtors allow a salesperson to be listed as the "Designated Realtor" with a local Association"s board? -- Curious
Dear Curious: The TAR bylaws do not contain the term "Designated Realtor." However, one local association that is a TAR Member does use the term "Designated Realtor" in its bylaws. According to that local association, a Designated Realtor must be "...a Texas real estate broker or licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property." Have you asked the local association your question?
Dear George: "We listed our lake property with a broker. The county records state the home is 1,942 square feet. However, we told the agent who listed the property that it was right at 1,500 square feet. The agent said we should list it at 1,942 feet because that"s what the county records state. We then learned that folks who have viewed our property usually comment there is "no way" it is nearly 2,000 square feet. We contacted the agent. We instructed her to change the listing to 1,500 feet. She said that we"d have to adjust the asking price. We did that. During a recent visit to the property, we saw marketing brochures that still give the area as 2,000 square feet. We now want to cancel our listing. We have lost confidence in the agent. What do you suggest? -- Unconfident
Dear Unconfident: Communicate with the agent"s broker. Let him or her know what occurred. Perhaps the broker will assign a different agent. It is also possible that the broker can arrange something else that will be mutually satisfactory. A unilateral termination of your listing agreement might also expose you to some liability.
Dear George: I disagree with your answer to "Unconfident." That real estate agent just lied about the size of the property, period -- end of story! -- Furious
Dear Furious: You may be correct. But under the listing agreement widely used in their state, the sellers would risk significant cost by terminating without the written consent of the listing broker. I believe that communicating with the firm"s broker of record is the most sensible starting place.
Dear George: "I want to purchase an investor home. I do not plan to live in it. As far as I know, the seller has not lived in it either. My agent was not able to tell me the details regarding whether a seller"s disclosure is required for this home. She knows there are some exceptions, but cannot put her finger on the source. Can you help? -- Investor
Dear Investor: Seller disclosure laws vary by state. In Texas the source is Section 5.008, Title 2 Chapter 5 of the Texas Property Code. To see if rules for your state are online, visit the site operated by the Association of Real Estate License law Officials and look for your jurisdiction under "Regulatory Agencies."
Dear George: "Is it OK for a real estate agent to come into your home when you are not there? My home is not for sale. I did not know it was being shown." -- Invaded
Dear Invaded: No it is not okay, provided you are the owner of the home.
If you lease the property the answer may be different. Some leases allow the landlord (owner) or manager to show the property for sale or for lease without first obtaining permission from the current tenant. Such permission usually requires the showing be during reasonable hours.
Dear George: I am a new homeowner of a two-family home in New York. I rented a one-bedroom apartment to a woman who has a twenty-one year old son. They are very quiet, clean, and pay the rent on time. Since then, the woman"s boyfriend appears to also be living there. Neighbors are beginning to ask questions. There are some complaints about overcrowded parking. I am not comfortable having three adults occupying a one bedroom apartment. I have a lease agreement. Do I have any rights about this matter? -- Uncomfortable.
Dear Uncomfortable: You stated in your email that you rented to the tenant and her son against your better judgment. However, it appears that a third, undisclosed occupant was never disclosed to you. Many lease agreements, or the documents that accompany them such as rental applications, contain a disclosure as to how many people will occupy the leased premises. Some even contain a provision limiting the number of days a "guest" can occupy.
Additionally, some cities have housing occupancy ordinances that limit the number of adults per bedroom, but such limitations have been attacked as discriminatory. Have a qualified attorney review your lease in light of local regulations and then, if appropriate, talk to the woman about your dilemma. See if you can find a mutually-acceptable solution.
For more articles by George Stephens, please press here.
George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.