We closed two transactions recently that have fraudulent undertones which we discovered after the properties closed escrow. Here they are:
On a property purchase when we represented the buyers, we heard that the owner said he previously purchased the property as a short sale and offered the previous sellers a cash amount outside of escrow. This is a BIG no-no! Short sale lenders have to approve of the terms of sale because the previous sellers owed more than what the property was worth. They did not have the ethical right to receive any money out of that transaction unless under very specific above-board circumstances.
On a property when we represented the sellers, the buyers who were represented by another agent contacted us after escrow closed asking for a property manager referral. They wanted to rent out the property. The property was purchased with OWNER-OCCUPIED financing! Fraud! Of course, how to prove it? The buyers’ agent never returned my calls or emails when I attempted to confront him about it.
We would love for our questions to be answered when Deputy District Attorney for Alameda County David Lim speaks at our HispanicReal Estate Group on Friday September 20th. DETAILS HERE on Education, Prevention and Prosecution on real estate fraud issues.
Fellow REALTORS, what shady stuff have you run into in your business lately? Please share your comments here.
Update on AB 1229
The California Association of REALTORS has been opposing AB 1229 (Atkins), a bill that would dramatically weaken the rent control limitations contained in the landmark “Costa-Hawkins” law sponsored by C.A.R. in 1995. AB 1229 proposes to undo Costa-Hawkins’ protections by allowing local governments to impose inclusionary zoning on newly constructed housing. AB 1229 effectively repeals that part of the C.A.R.-sponsored Costa-Hawkins legislation that says new construction in a rent control jurisdiction is exempt, or NOT subject to rent control.
AB 1229 was voted on last week in the state Senate and unfortunately passed. While disappointed in the outcome, we are grateful to all the REALTORS® who contacted their legislators to oppose the bill. We came very close. The bill received 21 votes, the minimum necessary to pass.
Here is how state Senators voted. Yes votes (in opposition to C.A.R.’s OPPOSE position): Beall, Block, Corbett, De León, DeSaulnier, Evans, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno, Lieu, Liu, Monning, Padilla, Pavley, Steinberg, Torres and Wolk. No votes (in support of C.A.R.’s OPPOSE position): Anderson, Berryhill, Calderon, Cannella, Emmerson, Fuller, Gaines, Galgiani, Huff, Knight, Nielsen, Vidak, Walters, Wright, Wyland and Yee Not voting (also in support of C.A.R.’s position): Correa and Roth
Now that AB 1229 has passed both houses of the legislature, it will go to the Governor.
C.A.R. will be asking him to veto the bill. In the meantime, if you have any questions, please contact DeAnn Kerr at firstname.lastname@example.org.
A home is no different than a Hollywood star:
Slap a little make-up and color on it, scrub it clean, polish it up and voila! You have a goddess!
A couple weeks ago, we threw a party that started at 8 p.m. because everyone looks better in the dark! We figured that after 8 p.m., our guests wouldn’t be able to tell we needed a paint job.
The week before the party, however, the husband AKA “Caveman” did make time to paint. Why? I asked him if he was making an excuse to stay home while I slaved away at work. He insisted that he needs to be surrounded by beauty and that our work is what makes our home life worthwhile.
No argument from me! Let him paint, scrape, patch, plant, tear up, put back together, cook those tomatoes in the bowl before they go bad, etc.
In the last month, our goddess has had a new interior paint job, a new roof and solar and an electric car charger installed, new tile floor*, stove and exhaust hood in the kitchen and staining some of the wood and wood cabinets throughout the house.
There will always be more to do but better to do it now and enjoy it than do what many folks do and wait to sell before making improvements…
*New tile floor was installed due to our dog Piglet chewing the former linoleum and baseboards. The hubby hated that white floor anyway!