The
The Cover
Revised April 14, 2010
HOMEOWNER'S RIGHTS
This is an in process draft web page
WE NEED YOUR INPUT TO PROTECT FUTURE HOMEBUYERS. THIS WEB PAGE WILL RESULT IN THE IN PROCESS PAMPHLET BELOW THAT CAN BE PRODUCED VERY INEXPENSIVELY BY VARIOUS ORGANIZATIONS FOR THEIR CUSTOMERS, MEMBERS, CONGREGATIONS.
The
The Cover
HOMEOWNER'S RIGHTS
Buyers Beware When Purchasing a Home
Real Estate Developers
Homeowners
Associations
Political Sub-Divisions
Utilizing honest proven traditional
management practices
POORLY MANAGED?
You
need the enclosed check list for
you protection.
Donald
P. Crivellone
A
resident of Crooked Creek Development, Dahlonega, Georgia
Potential
contents
IDEAS / THOUGHTS ONLY - Your input is needed
The author is visually impaired; so before this is
published formally errors will be corrected.
Introduction
Many developers are fair and have outstanding reputations.. this document is NOT for them. However, stuff happens, there fore protecting your selves is a wise and good thing to do.
The author was a banker most of his life and was a senior lender and manager in the original California Bank of America the largest bank in the world and First Interstate Bank the 7th largest bank in the USA - when I worked for these banks. Review my web page which includes my resume and experiences – at: http://doncriv.com.
DEVELOPER
Best product for price, honesty
is good, but buyers beware, use some
tips learned the hard way by others.
Protection for purchasers
Completion Bonds
Protect yourself be sure your developer has purchased bonds (insurance policy from A ratted insurance companies) to complete roads, entrances, park areas, club house and other amenities
Punch out bond to assure your unfinished or defective construction is completed/corrected
Full Disclosure
Sub division regulations in your County or political subdivision
Grading Issues and other inspections by County or political subdivision
Situations that affect purchasers
Nuclear Plant next door
Garbage Dump coming soon
Zoning in your area
Good faith estimates
Is the developer current on his bank loan, they can authorized the bank to at least tell you yes or no.
Ask developer for its financial statement for the development, usually a LLC (limited Liability Corporation) which protects the developer from any personal liability beyond the development itself. Financial institutions can and do ask developers to guarantee their loans to specific LLC developers.. why not ask developer to personally guarantee your home purchase/sub-division and ask for his personal financial statement.
Is the developer current on his property taxes? Information available at taxing authority
Service after sale
Warranties from sub-contractors or manufacturers of installed equipment
Service Contacts to assure punch outs are completed
Use the internet (not the developer’s site) and BBB to see what purchasers say about the developer.
Fire hydrants - insurance considerations
A smelly story: sewage & storm drains
State, County and Cities have regulations that developers must follow, again ask the political-subdivision for the regulations
HOME
OWNERS ASSOCIATIONS
HOAs can be a onerous factor in a communities tranquility. A little homework may avoid future issues for residents.
Check who the outside management company or resident controlled HOA is if you are entering a HOA – check with the BBB, internet, talk to residents. Don’t be bashful to knock on doors, ask current home owners.
Before you decide to actually commit to buying a home in a HOA community, demand and read the covenants
Require HOA to furnish new members with justification of their management fee and additional fees, such as a cost to plant trees.
Require the HOAs to use accrual accounting rather than cash accounting. Accrual disclose non listed receivables and non listed liabilities. Your banker can help you with that.
Have your HOA provide monthly the check register to all residents, view every expense.
Disclosure relationship of developer and HOA general management fee and ANY other arrangement such as a commission for placing the management company
Require the process the HOA of your development obtains information and sends violations letters to residents. Who votes - there are methods to poll residents electronically where by decisions can be totally majority rules. No computer? Most homeowners have computer, phone follow-ups would be minimum.
Simpler covenants easier to read and understand
Request fee schedule that the HOA charges: $25.00 to plant a tree, $100.00 to refinance your home for clearance that your HOA dues are paid, etc.
States have statues that regulate HOAs, and consider your investment and desired tranquility it is worth reading. Call your State Representative to locate the laws
APPRAISALS AND INSPECTIONS
Get a home inspection by a qualified home inspector even on a new home
Consider getting your own appraisal even though the lender is ordering one. Even if you don't at least insist on getting a copy of the lender's appraisal before closing and read it.
Buy an Owner's Title Insurance policy even if you're putting $0.00 down. Make sure it has no unexpected exceptions or exclusions
View
previous sales on various Internet Sites
POLITICAL SUB-DIVISIONS States, Counties, Cities
While many Political Sub-Divisions have regulations to protect home buyers overall, there seems to be a lack of protection for buyers in new home developments. Requiring developers to adhere to regulations would benefit our fellow citizens. Need to finish gathering information before suggestions are formulated, however so fart this future documents has already found areas for improvement.
If you are in a development that needed better protection attend public meetings, visit you reprehensive, email, call and write them to enact protective regulations.
Obtain a copy of regulations that related to home builders, including communities/sub-division
Determine if the regulations in you State, County, City clearly require in their approval process weather roads are private ore brick.gif public roads and who maintains them.
FINANCING HOMES Worth including in this document? ? ?
Would this be too much for this document discussing:
APR, Annual Percentage Rate
PMI, Private Mortgage Insurance
Points
Good faith estimates
Real Estate Taxes, exemptions
Taxing authority's financial position
Distribute as far and wide as [possible
Certainly purchasers of homes in developments or any house
Regulators
Chambers of Commerce
Churches
Real Estate Agents, who want to be totally honest with their fee paying clients,
Financial Institutions
Builders supply houses, Home Depot, Lowes
THE CHECK LIST
Outline could look like this after thoughts and issues are accumulated
____ Copy of homeowners covenants
____ Copy of Completion Bonds
____ Many more when book is completed
TO DOS
Talk to regulators
Prepare mailing listing when further along
Continue interview real estate agents
Continue interview developers
Continue interview Homeowners Associations
Consider an appendix with samples of various documents (completion bond) if web page is the final document - lots of space, might be too large for printed document
BACK PAGE
Organizations could add their sponsorship on the back page if document is printed and they want to help home buyers.
Such as:
Good Town Chamber of Commerce
Mid Town Comity Bank
Local Community Church
Not really a place in this document:
Check soil if you are a gardener - one can observe the foliage and flowers in the neighborhood by driving around.