Understanding the "As Is" clause in Your Real Estate Purchase Agreement.

Every once in a while you will encounter a home for sale that expressly states in the listing that the home is to be sold in "As Is" condition.

"As is" means exactly that. What you see is what you get. It doesn't mean that the seller has any knowledge of any problems, it just means that they don't want to continue to negotiate after a purchase price is agreed to. Sure, there are sellers who aren't as honorable as others, that's why it's always best to be prepared in this type of situation.  Remember the term Caveat Emptor? It means let the buyer beware. See this article  on Caveat Emptor.

Just remember to submit your bid accordingly, if you do decide to make an offer on a property that has this specific condition.

That means considering getting a building inspection prior to your offer if you can, or realizing that you should put aside monies for any unforeseen issues that arise out of an inspection that will not be addressed by the seller on an "as is" sale.

Sometimes you don't have the luxury of the time or availability to have an inspection beforehand. You could be in a bidding war, or tough negotiating on your part could lead the seller to counter you with an absolute bottom line, where they just say, "Okay, you can have the house at the price that you want, but you will also agree to take the home in "as is condition". That means you can go ahead and have a building inspection, but do not come back and try and renegotiate anything or the deal is off.

Going back to a seller and asking for monies off after you have agreed to an "as is sale" will most certainly kill the deal, if not handled properly, and there really aren't too many ways to reasonably address it. An issue or issues would have to be substantial.

If you are in the situation where you need to make a decision on buying a home "as is", do your homework first,and be prepared to walk away if the inspection doesn't go as well as you want it to, and you aren't willing to address the concerns yourself.

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

The Latest from Case-Shiller "We are at 2003 Price Levels"

The S&P Case Shiller report came out this week and showed that while prices are up since their low in March of this year, prices in general for the 20 Metropolitan Statistical Area (MSA's) are at 2003 levels. The shocking national indices show prices are down an average of 32.1 percent since their mid-2006 peak.  
 
Although consumer confidence is at its highest level since April, home prices have registered a 3.4 percent decline for the year as of October. The New York area MSA once again fared better than the majority of cities indexed, and  showed only a -2.0 annual change from last year. Our area still remains at one of the highest rates at  168.12, and is second only to the Washington D.C area. The worst area decline over last year was in Atlanta with a -11.7 percentage annual return.

The Standard & Poor's Case–Shiller Home Price Indices are constant-quality house price indices for the U.S.. There are a number of Case–Shiller home price indices: A national home price index, a 20-city composite index, a 10-city composite index, and twenty individual metro area indices. The indices are calculated from data on repeat sales of single-family homes, which was developed by economists Karl Case, Robert Shiller and Allan Weiss. Our area of Fairfield County is located on the perimeter of the New York City Metropolitan Statistical Area (MSA).

The S&P/Case-Shiller Home Price Indices are calculated monthly using a three-month moving average and published with a two month lag time. New index levels are released at 9 am on the last Tuesday of every month. More about Case Shiller

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Six Must Know Facts About "Escrow" and Your Real Estate Transaction

Six Must-Know Escrow Facts: Know Your  Rights 

1. Escrow instructions should specify in writing how and under what conditions monies will be disbursed, especially if the transaction doesn't close.

2. Escrow is a fiduciary relationship but is limited to the duties involved in the escrow. The escrow agent is a trustee of both parties and is equally responsible to both parties for the administration of the escrow.

3. If a transaction fails to close as scheduled, monies may continue to be held in escrow provided there is no written demand from one party to cancel the contract. Monies are typically held after the closing date if a date to obtain the loan has passed but the parties still want to proceed with the transaction.

4. If the transaction is cancelled by either party, the agent holding the escrow monies shouldn't disburse any funds until all parties agree in writing how to disburse them.

5. If parties can't agree on how to disburse funds, the escrow agent may file an interpleader, which names all the parties that might have an interest in the monies and asks a court to decide how to disburse the money. Otherwise, an escrow agent may be obligated to keep funds indefinitely.

6. If a transaction is cancelled by the parties, real estate brokers and other third-party vendors may have first claim to escrow funds. That claim would depend on procuring cause.

To learn more about escrow accounts and how they are used in real estate transactions click here or call Only Closings at 203-581-1712.

(Source: REALTOR® Magazine, Mar. 2005).

The weekly Tip-of-the-Week* is supplied by Only Closings --

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  To learn more about Only Closings and how they can help you quickly close a property transaction, call them at 203-563-9677 or visit them online at www.OnlyClosings.com

*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

Fire Safety Tips for Your Connecticut Home With an Attached Garage

An attached garage is a garage that is physically attached to a house. Fires that begin in attached garages are more likely to spread to living areas than fires that originate in detached garages. For this reason, combined with the multitude of flammable materials commonly found in garages, attached garages should be adequately sealed from living areas. A properly sealed attached garage will ideally restrict the potential spread of fire long enough to allow the occupants time to escape the home or building.

Why are garages (both attached and detached) fire hazards?

• Oil or gasoline can drip from cars. These fluids may collect unnoticed and eventually ignite.
• Flammable liquids, such as gasoline, oil and paint, are commonly stored in garages. Some other examples are brake fluid, degreaser, motor oil, varnish, lighter fluid, and fluids containing solvents, such as paint thinner. These chemicals are flammable in their fluid form, and some may create explosive vapors.
• Heaters and boilers, which are frequently installed in garages, create sparks that can ignite fumes or fluids. Car batteries, too, will spark under certain conditions.
• Mechanical or electrical building projects are often undertaken in the garage. Fires can easily start while a careless occupant is welding near flammable materials.

Doors

The 2006 edition of the International Residential Code (IRC) states the following concerning doors that separate garages from living areas:

R309.1 Opening Penetration

Openings from a private garage directly into a room used for sleeping purposes shall not be permitted. Other openings between the garage and the residence shall be equipped with solid wood doors not less than 1-3/8” (35 mm) in thickness, solid- or honeycomb-core steel doors not less than 1-3/8” (35 mm) thick, or 20-minute fire-rated doors.

In addition, InterNACHI inspectors can check for the following while inspecting doors that separate garages from living areas:

• While not required by the IRC, it is helpful if there is at least one step leading up to the door from the garage. Gasoline fumes and other explosive gases are heavier than air, and they will accumulate at ground level. Their entry beneath a door will be slowed by an elevation increase.
• Doors should have tight seals around their joints to prevent seepage of fumes into the living areas of the house. Carbon monoxide, with the same approximate density as air (and often warmer than surrounding air), will easily rise above the base of an elevated door and leak through unsealed joints.
• Doors should be self-closing. Many homeowners find these doors inconvenient, but they are safer than doors that can be left ajar. While this requirement is no longer listed in the IRC, it is still a valuable recommendation.
• If doors have windows, the glass should be fire-rated.
• Pet doors should not be installed in fire-rated doors. Pet doors will violate the integrity of a fire barrier. 

Walls and Ceilings

The 2006 edition of the IRC states the following concerning garage walls and ceilings:

          R309.2 Separation Required 

The garage shall be separated from the residence and its attic area by not less than ½-inch (12.7 mm) gypsum board applied to the garage side. Garages beneath habitable rooms shall be separated from all habitable rooms above by not less than 5/8-inch (15.9 mm) Type X gypsum board or equivalent. Where the separation is a floor-ceiling assembly, the structure supporting the separation shall also be protected by not less than ½-inch (12.7 mm) gypsum board or equivalent. Garages located less than 3 feet (914 mm) from a dwelling unit on the same lot shall be protected with not less than 1/2–inch (12.7 mm) gypsum board applied to the interior side of exterior walls that are within this area. Openings in these walls shall be regulated by Section 309.1. This provision does not apply to garage walls that are perpendicular to the adjacent dwelling unit wall.

In addition, inspectors can check for the following while inspecting walls and ceilings:

• In garages that have access to the attic, a hatch cover made from an approved, fire-rated material should protect this access at all times. Missing or opened covers should be called out, as should covers made from flammable materials, such as thin plywood. Garage attic door must be constructed such that the 45 minute rating is maintained; any drywall edges on both the hatch and the surrounding area exposed to physical damage are protected. The cover or door is installed so that it is permanent (non removable) with hardware to maintain it in a closed position with latching hardware to maintain it in a closed position. This could be accomplished by the use of spring loaded hinges, door closer, or hardware that will not allow it to be left in an open position when not in use. A single bolt type or hook and eye hardware does not provide a positive closure since these would allow the door to be left open. Likewise drywall screws are "fasteners" and not hardware so they cannot be used as the only means of keeping access doors closed.
• The living space is separated from the garage by a firewall that extends from the floor to the roof. If the ceiling material is fire-rated, the firewall can terminate at the ceiling.
• Drywall joints shall be taped or sealed. Joints shall be fitted so that the gap is no more than 1/20-inch with joints backed by either solid wood or another layer of drywall such that the joints are staggered. 

Ducts

The 2006 edition of the IRC states the following concerning ducts that penetrate garage walls and ceilings:

R309.1.1 Duct Penetration

Ducts in the garage and ducts penetrating the walls or ceilings separating the dwelling from the garage shall be constructed of a minimum No. 26 gauge (0.48 mm) steel sheet or other approved material, and shall have no openings in the garage.

Dryer exhaust ducts that penetrate garage walls are serious fire hazards. These ducts are generally made from plastic and will easily melt during a fire, creating a large breach in the firewall.

Floors

The 2006 edition of the IRC states the following concerning floors in garages:

          R309.3 Floor Surface 

Garage floor surfaces shall be of approved, non-combustible material. The area of the floor used for parking of automobiles or other vehicles shall be sloped to facilitate the movement of liquids to a drain or toward the main vehicle entry doorway.

Inspectors should also check for the following:

• A curb is present along the perimeter of the garage floor. This curb is designed to prevent fluids from entering the living areas of the house. Curbs are often useful barriers for melted snow carried into the garage by automobiles, but curbs can also keep chemical spills contained in the garage.
• Water heaters should be elevated above the floor by at least 18 inches. A pilot light may ignite spilled fluid or floor-level flammable fumes if the water heater is placed at floor level.

Concerning items placed on the floor, inspectors should check for the following:

• All flammable liquids are stored in clearly labeled, self-closing containers, and in small amounts. They should be stored away from heaters, appliances, pilot lights and other sources of heat and flame.
• Propane tanks should never be stored indoors. If they catch fire, a serious explosion may result. Propane tanks are sturdy enough to be stored outdoors.
• The floor should be clear of clutter. Loose papers, matches, oily rags, and other flammable items are dangerous if they are strewn about the garage floor.

General safety tips that inspectors can pass onto their clients:

• Use light bulbs with the proper wattage.
• Do not overload electrical outlets.
• Tape down all cords and wires so they are not twisted or accidentally yanked.

In summary, attached garages should be sealed off from the living space so that fire may be contained.

by Nick Gromicko, Rob London and Kenton Shepard

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

Warm Wishes for a Happy and Safe Holiday to All

I would like to extend warm wishes and a heartfelt thank you to my family, friends, clients and followers and wish all a Happy and Safe Holiday.