Memphis, TN Real Estate News

By David Saks
((retired))
                                           The reconveyance deed is an instrument used by a trustee to give back a title to a trustor. When a loan secured by a deed of trust has been satisfied and paid off the lender will contact the trustee on the deed and request that the trustee reconvey, or return the property, with a reconveyance deed to the trustor. The best policy afterwards is that the reconveyance deed should always be recorded to prevent any problems with the title from rearing their ugly heads. What experiences have you had with a reconveyance deed?
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By David Saks
((retired))
                                                 The quitclaim deed provides the least protection of all of the deeds that I've discussed up until now. It hasn't got any covenants or warranties and basically conveys only the interest or whatever interest the grantor may have when the deed is delivered to the grantee. If the grantor doesn't have any interest neither will the grantee and the grantee gets nothing. Also, the grantee isn't given any rights to make a warranty claim of any kind against the grantor. On another note, a quitclaim deed can convey title just as well as a warranty deed if the grantor has a good title when the deed is delivered, but none of the guarantees are included like you would have with a warranty deed. The language includes the words 'remises, releases and qui...
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By David Saks
((retired))
                                                First of all, a bargain and sale deed doesn't contain an express warranty against an encumberance. It does say that the grantor holds title and possession to the property. What kind of words are used? The granting clause usually says that so and so 'grants, bargains and sells' or 'grants and releases'. A warranty is not specifically stated and the grantee or the buyer doesn't have much legal ammunition to go on if a title defect rears it's ugly head. The grantor can add a covenant against any encumberances to create what is commonly referred to as a 'bargain and sale deed with covenant against the grantor's acts' which makes it kind of like a special warranty deed. What kind of experiences have you had with a bargain and sale deed?
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                                            We generally recognize that the special warranty deed generally has two basic warranties : 1. The Grantor received title. 2. That the property wasn't encumbered during the time that the grantor held the title, unless something contrary to that position is actually noted in the deed. Strangely enough, the grantor is actually defending the title against himself. (huh?) The clause which grants the deed usually contains the words, 'Grantor remises, releases, alienates and conveys'. A grantor may also include additional warranties in the deed, but they're always specifically stated. Title insurance should be adequate protection to the buyer or grantee. Trustees, executors and corporations like to use the special warranty deed because they don't hav...
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                                             Do you know about the changes to the laws in the Federal Fair Housing Amendments Act of 1988? What are some of the changes and how do they affect individuals with disabilities and families with children? Do the fair housing laws require that the same tenant rules be applied to families with children that are applied to adults? Can landlords charge different amounts for rent or security deposits because a child is a tenant? The common landlord argument is that children are unruly and destroy property. We all know that adults can become much worse than children, however. What are your experiences with this type of landlord-tenant issue, and how do you view fair housing and the laws affecting the relationship?
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                                              It's been said that the bundle of legal rights originated from the laws of merry old England. Sellers were known to transfer property by giving the buyer a small bundle of sticks from a tree, or a shovel full of earth, from the property they bought. If the buyer accepted the dirt and the sticks he then become the owner of the tree that the sticks or branches came from and the land to which the tree was attached. The sticks were a symbolic representation of the rights to transfer ownership of the property. I remember a Woody Allen film where a peasant in medieval Russia carried a small piece of square land in his pocket and would proudly display it to his family by removing it from his coat, and equally as proudly announce that he was a lando...
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                                               Does the general warranty deed provide the greatest protection for a buyer? We call it a general warranty deed because the seller or grantor is bound by law to honor definite warranties and covenants. Usually, your state will require that certain words be used that are codified by a legislative act which imply the warranties in a general warranty deed. The warranties are explicitly written into the deed with specific intentions; for an express purpose to honor the deed. Some of the words we look for are 'convey and warrant' and 'warrant generally'. The canonic warranties are five: 1. The covenant of sesin : The grantor warrants that they own the property and has the right to convey title. 2. The covenant against encumberance : The grantor w...
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By David Saks
((retired))
                                A fixture is personal property that's been appended to a building, property or some land in such a manner that it actually becomes part of the real property. Usually, it's considered that if an item has been included as a permanent part of a building it's considered a fixture, like plumbing. Laws govern the distinction. We have what we call legal test for determing whether or not an item is a fixture or personal property. These tests may include: 1. How permanent is the thing that's attached to the property? Usually this is referred to as the method of annexation. 2. How are they using the item? Are they using it as personal property or real property? This is sometimes called adaptation to real estate. 3. Have your seller and buyer agreed as to whether or...
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                                                  Do you use the broker protection clause? It usually says that a property owner will pay the listing broker a commission if, after a specified number of days after the expiration of the listing, the owner sells the property to someone the broker showed the house to or introduced to the seller. Can this clause protect a broker who was the procuring cause of the sale from losing a commission because the home was sold after the listing agreement expired? How long does the clause usually last and when may and when may it not be enforced? If the owner signs a new listing with a new broker after the expiration of the contract and a broker protection clause is in place under the old listing, can the original listing broker seek a commission if t...
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By David Saks
((retired))
                                              Escheat is a way in which the state can get their hands on privately owned private property or real estate when an owner dies without any heirs or a will that presents some kind of final disposition for the personal property or real estate. Sometimes it goes to the state and sometimes it stays in the county where the owner died. The state basically just doesn't want the property to be abandoned and left without an owner or without any final disposition. Have you had to deal with escheat?
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                                   Some public sentiment regards that the very best agents among us are the ones that allow their clients to flake out whenever they want to. Usually it's because the client isn't happy with the way you deal with them. What kind of situations have you had like this and what do you require, by the way of an explanation, from your client before you allow them to run ? Would you insist that they give you the chance to make things better first, or just tear up the contract ? Thanks to all for your thoughts and comments.
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                                     Do you do more than gather listings? What's your track record of actually selling houses? Clients demand agents with a good track record. Agents who sell houses. Agents who can sell houses in a lousy, downturned market. I'm not a salesperson, although a broker.  Just an info-tech manager for a brokerage, immersed in geekdom. What's your story? Thanks for answering.
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                                           What kind of liability are we up against when we state our opinions? Salespeople, brokers and company employees have to be careful with the statements they make to clients, customers and others in our profession. Should we be certain that the party to whom we direct our statements understand whether the statement is an opinion or fact? When is a statement of opinion permissable? When can the question of deception arise in a statement of opinion? How about statements of fact? Should a statement of fact be considered an accurate statement, and when if not always? Do you know what Puffing is? It's not a nasty cigar or cigarette? It's an outright exaggeration of the benefits of any property. Is puffing legal? You bet it is ! But you better make sur...
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By David Saks
((retired))
                                                    What we call an estate in land is a term used primarily to define the extent of an owner's interest in real property. In it's general sense, an estate in land also defines the quantity, nature and degree of the ownership. There are a bunch of different types of estates but not all interests in real estate are estates. To be considered an estate in land the interest has to allow possession to tke place as we speak or at some time down the road and has to be continuous in some way. An example might be the owner of a restaurant who has all the right to the income from the restaurant and the right to do whatever they want to with the property which might be part of their bundle of legal rights. They can build something else there, sell it,...
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By David Saks
((retired))
                                   What kind of an employment agreement do you have with your broker? Should the employment agreement define your obligations and responsibilities? There really are only two alternatives to working for a brokerage: A salesperson has to be either an independent contractor or an employee. What would impact the organization of a salespersons responsibilities when they're treated as an independent contractor? As an employee? How does it affect the broker's responsibility to withold taxes or pay the saleperson? How do you view your position with your company and how does your broker treat you? Thanks..... -David-
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By David Saks
((retired))
                                                       Before a salesperson is compensated, doesn't an agreement have to exist between the broker and the salesperson regarding the amount or type of compensation with the company? Do you share the commission from the transaction or receive a fixed salary? To be entitled to a commission one must be licensed, a procuring cause of the sale, and employed by your seller, or buyer, under a legitimate, binding, and legally acceptable contract. What kind of commission plans have you experienced in your career as a real estate professional? 100%, splits of varying degree, 50/50, graduated, compensated with service charges ? Thanks to all for your good thoughts.
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                                        We're not talking about whips and chains here, although I know some of you might be disappointed.                                            :-) Discipline is serious business for any brokerage. Violation of the code of ethics can result in some bad news including damage to the companies reputation, the destruction of the well-earned confidence of it's customers and clients, it's credibility and the image of the company. Heavy fines, penalties, and worst of all, prison sentences can round out the flogging. Needless to say, the operation of the company would be disabled, possibly beyond measure, which could result in it's collapse. These are the reasons why every real estate company needs to insure that it's agents and employees will not impose irr...
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By David Saks
((retired))
                                                   I know your sick of hearing about it. But it doesn't hurt to keep the old armour polished. We all know that there are many different types of situations that could lead to a conflict of interest and possibly a RESPA violation, the Real Estate Settlement Procedures Act, and we don't want that to happen, by golly. The most common conflicts of interest I can think of are those that involve accepting gifts from our suppliers or vendors, or having some ownership in one of those 'other companies' involving those suppliers and vendors. I suppose the bottom line is that we just have to avoid showing any preferences, or receiving any for that matter, which means receiving things that create some kind of personal benefit for either you, your frie...
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By David Saks
((retired))
                                                     Listening to your client or customer shouldn't be difficult. I know that it can be. It's hard for me at times. I sometimes fail to hear what's embedded in the meaning of the language that's being transmitted to me. Sometimes I can jump ahead and predict what the client's going to say next, like a bad movie script. We ignore their body language and get sidetracked. Tolerating what they're saying is important. If what they're conveying to you is unclouded and lucid then it makes listening a great experience. Look for clarity. What are some problems you've encountered when listening to your clients and customers?
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By David Saks
((retired))
                                                 Do you linger around after you've gotten your buyer and seller to shake hands? How long should one linger around before the contract's been signed? Isn't the best advice "Go In...get it over with.....and get out"? You shouldn't run like the house is on fire...doesn't walking away, after everyone's signed, a bit too quickly arouse negative sentimentality or mawkishness? You've left the taste of insincere pathos in your clients mouth. Can social conversation kill the deal before the contract's signed? What are your thoughts? Many thanks to everyone for your input.
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