To "DUAL or not to DUAL"

Virginia law allows for disclosed dual agency (representation) in a real estate transaction. That means the same real state agent may represent BOTH the buyer and seller in the SAME transaction.
My only question is:  would you hire an attorney to represent both the Commonwealth against you, and the same attorney to represent you in a court of law?  The short answer is - you can't!  Provisions have been made by the Commonwealth to ensure full loyalty to one party - either for you, or against you. Now, that said, we don't anticipate a real estate transaction to get as combative as a court scene can. However, we hear stories too often, (after the fact) of how one buyer or seller in the above scenario felt  abandoned by their shared agent and would never do it again..  Hmmmm.... who couldn't see that one coming? 
Why do buyers and sellers agree to this?  Too often to save money.
The consumers may have been told there will be a discount offered in compensation to the agent involved should only that singular agent be involved in the transaction. Again, the analogy: should it save me money to have one attorney represent the Commonwealth, and that same attorney represent me in a court of law, would I do it? I think most would think long and hard on if that was a sound decision. Did the explanation go beyond the reduced compensation? Were the required forms used and explained well?  Have all the details been advertised openly in MRIS for all agents to see those details in the event of a competitive situation? 
At Hanrahan Properties, as a matter of policy, we will not represent both sides to a transaction.  We can assist the other party without representing them. Feel free to call to discuss how to be fully represented in any transaction.

Delinquent HOA fees may begin affecting credit scores

Sometimes when money is tight, a homeowner might have to make a decision which bills are urgent and which might be able to be put off.  A thought that might cross one's mind, is to delay paying the HOA fees, thinking that they won't affect credit scores.  Well, that may be soon to change. 

Sperlonga, a credit data aggregator, is the first company to provide HOA payment and account status data to Equifax, which is one of the three major credit-reporting agencies. A full rollout of the new HOA reporting to Equifax will go live in October.

Homeowner associations and property management companies collect about $70 billion in HOA payments yearly among at least 333,000 community associations, according to the Community Association Institute.

For property owners who are late or delinquent on their HOA payments, they will likely see a negative effect on their credit score, just as if they had missed a mortgage payment.

“Introducing new sources of data beyond what has traditionally been found on credit files can provide additional insight into a consumer’s financial behavior and help deliver expanded credit access,” says Mike Gardner, senior vice president at Equifax.

Source: NAR, Sperlonga and “Your HOA Payments May Now Affect Your Credit Score,” Credit.com (May 4, 2016)

Hurricane Season Begins June 1 - Nov 30!

Can you believe it? We haven't had consistent spring weather and yet, here we are already talking hurricane season!  Having spent the 1st half of my life in the Midwest where tornadoes were our largest violent weather threat, I quickly found out that with hurricanes you have some time to prepare. Here are some tips that might be helpful.

Some items recommended by the Virginia Dept of  Emergency Management:

• Check your insurance coverage, damages caused by flooding are not covered under normal homeowner’s insurance policies.
• Create an emergency communication plan with your family before a hurricane.
• Have emergency supplies in place at home, at work, and in the car.
• Download the Ready Virginia mobile app, an interactive tool that makes it easier than ever to be prepared for emergencies.  The free app for iPhone® and Android™ devices provides emergency planning and guidance and other robust features.
• Know your local community’s evacuation plan and evacuation routes and how to receive alerts.

Learn more about hurricane and flooding preparedness at the Virginia Department of Emergency Management website.

TRID Buyer Side Considerations

A few posts back, we covered some of the seller side ramifications.  Let's discuss the buyer side today.
1st: ALL ducks must be in a row.  There is no more "let's find the house then I'll talk to a lender". That needs to be done right after the initial buyer consultation!! NO ifs, ands, or buts... please don't even try that one.
2nd:  things will move rapidly immediately after ratification (all parties have signed and received a copy of the signed contract)

Ideal order after ratification:
a) set up appointment with lender for formal loan application 
b) set up home and radon inspections (if radon is included in contract). Your agent will attend so consider their schedule when setting the appointment
c) attend and negotiate home inspection.  It is the seller's responsibility for all remedies to take place in timely manner for a walk-thru 5-7 days prior to settlement
d) PURCHASER selects settlement date and time with settlement company. Many sellers are choosing to settle at a different location or at a separate time. This should occur PRIOR to buyer's time. An addendum is NOT required, however, courtesy of a written Notice form is usually provided by listing agent when seller signs at another location. 
e) Purchaser's top priority while all this is going on is to keep in communication with your lender to ensure all forms are complete, all items requested by lender are provided, etc.  PLAN on a last minute request of a copy of both sides of the canceled check for the EMD (earnest money deposit). It is more common than not.
f) Complete any forms/provide information requested by the settlement company. Determine early on if you want a survey, and if you would like the corner boundaries marked.
g) order WDI (wood destroying insect) inspection - some home inspectors now do this at the same time as the home inspection. Report is to go to buyer's settlement company and usually comes with a 1 year warranty. This must be done sooner than in the past as it must clear the underwriter's desk now to provide the CD (closing disclosure) 3 days prior to settlement
h) attend a pre-settlement walk-thru inspection 5-7 days prior to settlement. We realize that the seller is most likely in a state of packing, but due to the new Federal regulations, there is a need to determine if the contract items negotiated on the home inspection have been remedied and there are no issues. Ideally, another walk-thru will take place once the home is vacant and prior to settlement.  This brings an excellent point considered in the seller side article - a post occupancy of 3 days by the seller can cover a myriad of unfortunate circumstances at the very end. Trying to move in on settlement day may be a thing of the past.
i) have a cashier's check or certified funds to take to settlement (lender or settlement company will provide you the amount)
j) bring a photo ID with you to settlement (to prove you are YOU!)
k) leave smiling and Thank your agent for a smooth process

Your agent should be with you every step of the way. 

Don't be a lone wolf and do any of this without the consult of your agent! 

HAPPY Home Hunting!

Please note:  This states "ideal" order. There may be times when the order fluctuates as not all situations are the same. In a perfect world, this order and all parties working towards settlement in a timely fashion should produce agreeable results for all.

This information is not for reprint without the express written authorization by the owner.