William E. Ward, Esq.William E. Ward, Esq.

Ward & Taylor LLC

The Leading-Edge Real Estate Settlement Law Firm

QUIRKS IN REAL QUIRKS IN REAL ESTATEESTATE

By a Quirky LawyerBy a Quirky Lawyer

TODAYS TODAYS GOALGOAL

TO REVIEW QUIRKY TO REVIEW QUIRKY SITUATIONS THAT CAN CAUSE SITUATIONS THAT CAN CAUSE PROBLEMS AND ISSUES FOR PROBLEMS AND ISSUES FOR

REALTORSREALTORS

QUOTABLE QUOTESQUOTABLE QUOTES WAR IS HELL.WAR IS HELL. WINNING ISN’T EVERYTHING, IT IS THE WINNING ISN’T EVERYTHING, IT IS THE

ONLY THING.ONLY THING. ONE SMALL STEP FOR MAN, ONE GIANT ONE SMALL STEP FOR MAN, ONE GIANT

LEAP FOR MANKIND.LEAP FOR MANKIND. I REGRET THAT I HAVE BUT ONE LIFE TO I REGRET THAT I HAVE BUT ONE LIFE TO

GIVE FOR MY COUNTRYGIVE FOR MY COUNTRY GO WEST YOUNG MANGO WEST YOUNG MAN WE’RE GOING TO ROCK, ROCK, ROCK TILL WE’RE GOING TO ROCK, ROCK, ROCK TILL

BROAD DAY LIGHTBROAD DAY LIGHT DUKE ROCKS, DUKE ROCKS, UNC STINKSUNC STINKS THE BEST REALTORS ARE THE BEST THE BEST REALTORS ARE THE BEST

EDUCATORSEDUCATORS

SELLERS WHO SELLERS WHO CAN’T SELLCAN’T SELL

DIVORCESDIVORCES NAMES ON DEEDSNAMES ON DEEDS

SPLIT PROCEEDSSPLIT PROCEEDS Divorce AgreementsDivorce Agreements Settlement Lawyer’s IssuesSettlement Lawyer’s Issues

POTENTIAL TITLE ISSUESPOTENTIAL TITLE ISSUES

SENSITIVITY DURING THE PROCESS AND AT THE SENSITIVITY DURING THE PROCESS AND AT THE SETTLEMENT TABLESETTLEMENT TABLE

ESTATESESTATES

WHO CAN SIGN DOCUMENTSWHO CAN SIGN DOCUMENTS

STATUS OF ESTATESTATUS OF ESTATE

RECOMMENDATIONS FOR LISTING RECOMMENDATIONS FOR LISTING AGENTSAGENTS

POTENTIAL TITLE ISSUESPOTENTIAL TITLE ISSUES

MORTGAGES AND MORTGAGES AND FORECLOSURESFORECLOSURES

MULTIPLE MORTGAGESMULTIPLE MORTGAGESARE THERE ENOUGH PROCEEDS TO ARE THERE ENOUGH PROCEEDS TO PAY THEM OFF?PAY THEM OFF?

SHORT SALESSHORT SALES

GETTING PAYOFFSGETTING PAYOFFS

RECOMMENDATIONS FOR LISTERSRECOMMENDATIONS FOR LISTERS

BANKRUPTCIES- SAY BANKRUPTCIES- SAY IT AIN’T SOIT AIN’T SO

IMPACT ON TRANSACTIONIMPACT ON TRANSACTION

WHAT DO YOU DO ???WHAT DO YOU DO ???

BUYERSBUYERS WHO WHO CAN’T BUYCAN’T BUY

SURVEYS – THE BANE SURVEYS – THE BANE OF OUR EXISTANCEOF OUR EXISTANCEWHY THE BIG DEAL?WHY THE BIG DEAL?DEED RESTRICTIONS VS. ZONINGDEED RESTRICTIONS VS. ZONINGHOW TO AVOID A PROBLEMHOW TO AVOID A PROBLEMWHAT TO DO WITH THAT LAST WHAT TO DO WITH THAT LAST MINUTE PHONE CALL FROM THE MINUTE PHONE CALL FROM THE ATTORNEYATTORNEY

ATTORNEY ATTORNEY APPROACHES TO APPROACHES TO SURVEY ISSUESSURVEY ISSUES

TITLE INSURANCETITLE INSURANCEVARIANCESVARIANCESEASEMENT AGREEMENTSEASEMENT AGREEMENTSTYPES OF ENCROACHMENTSTYPES OF ENCROACHMENTS

NEW THINGS TO NEW THINGS TO WORRY ABOUTWORRY ABOUT

OPEN PERMITS – NEW CASTLE OPEN PERMITS – NEW CASTLE COUNTY COUNTY

www.co.new-castle.de.us/parcelview VACANT PROPERTY REGISTRATION VACANT PROPERTY REGISTRATION

FEES – CITY OF WILMINGTONFEES – CITY OF WILMINGTON Duplex and Triplex – Duplex and Triplex – Loss of Non-Conforming Loss of Non-Conforming

UseUse

CONTRACT ISSUESCONTRACT ISSUES1.1. IMPROPERLY COMPLETED IMPROPERLY COMPLETED

CONTRACTSCONTRACTS DATESDATES ADDRESSESADDRESSES FIGURESFIGURES FHA or VA ADDENDUMFHA or VA ADDENDUM CONSEQUENCESCONSEQUENCES

MULTIPLE OFFERSMULTIPLE OFFERS HOW DO HOW DO YOUYOU HANDLE THEM? HANDLE THEM?

ETHICAL OBLIGATIONSETHICAL OBLIGATIONS

LEGAL OBLIGATIONSLEGAL OBLIGATIONS

ESCALATION CLAUSESESCALATION CLAUSES

INSPECTION CLAUSES ANS INSPECTION CLAUSES ANS SELLERS’ DISCLOSURESELLERS’ DISCLOSURE

HOME INSPECTION DATES- 1HOME INSPECTION DATES- 1STST and 2 and 2NDND HOME INSPECTION VERSUS OTHER HOME INSPECTION VERSUS OTHER

INSPECTIONSINSPECTIONS WORK INVOICES and RECEIPTSWORK INVOICES and RECEIPTS AFFECT of DISCLOSURE on BUYERAFFECT of DISCLOSURE on BUYER REALTORS’ LIABILITY for SELLERS’ REALTORS’ LIABILITY for SELLERS’

NONDISCLOSURENONDISCLOSURE

FLOOD and FLOOD and HOMEOWNER’S HOMEOWNER’S INSURANCEINSURANCE

HISTORY OF HOUSEHISTORY OF HOUSE

BUYER’S PAST CLAIMS and CREDITBUYER’S PAST CLAIMS and CREDIT

CONTRACT DISCUSSIONS CONTRACT DISCUSSIONS PA vs DEPA vs DE

POSSIBLE DISCLOSURE ISSUESPOSSIBLE DISCLOSURE ISSUES

WALKTHROUGH and WALKTHROUGH and SETTLEMENT ISSUESSETTLEMENT ISSUES

1.1. SELLER’S OBLIGATIONSSELLER’S OBLIGATIONS Vacant PropertyVacant Property UtilitiesUtilities

2.2. WALKTHROUGH and SETTLEMENT WALKTHROUGH and SETTLEMENT ISSUESISSUES

Early DetectionEarly Detection CommunicationCommunication ResolutionResolution

ESCROWS – ANOTHER BANE OF ESCROWS – ANOTHER BANE OF OUR EXISTANCEOUR EXISTANCE

PROSPROS ALLOWS SETTLEMENT TO OCCUR ON TIMEALLOWS SETTLEMENT TO OCCUR ON TIME

CONSCONS Buyer not happy with workBuyer not happy with work Buyer not happy with HouseBuyer not happy with House Escrow Amount Not EnoughEscrow Amount Not Enough Work Done – Parties Don’t Authorize DisbursementWork Done – Parties Don’t Authorize Disbursement Bad Estimates OR Incomplete Estimates and Job Bad Estimates OR Incomplete Estimates and Job

costs More Moneycosts More Money

DEFAULT SITUATIONSDEFAULT SITUATIONS

1.1. Initial Reactions – Do’s and Don’tsInitial Reactions – Do’s and Don’ts

2.2. Practice of LawPractice of Law

3.3. Practice v. Legal RemediesPractice v. Legal Remedies

4.4. Status of DepositStatus of Deposit

5.5. Sellers’ Options to Resell if Buyer is Sellers’ Options to Resell if Buyer is DefaultingDefaulting

6.6. MediationMediation

APPLICABLE DELAWARE APPLICABLE DELAWARE STATUTESSTATUTES

STIGMATIZED PROPERTIESSTIGMATIZED PROPERTIES Disclosure of Felonies other thanDisclosure of Felonies other than ArsonArson AIDS and Other Similar DiseasesAIDS and Other Similar Diseases

DISCLOSURE OF AGENCYDISCLOSURE OF AGENCY ESCROW OBLIGATIONSESCROW OBLIGATIONS SALE OF LANDSALE OF LAND PURCHASE MONEY MORTGAGESPURCHASE MONEY MORTGAGES

RISK MANAGEMENT TIPSRISK MANAGEMENT TIPS Consistency, Consistency, Consistency …….Consistency, Consistency, Consistency …….

Explanation of AgencyExplanation of Agency Explanation of DocumentsExplanation of Documents System for Keeping Track of DetailsSystem for Keeping Track of Details ProceduresProcedures

Education and TechnologyEducation and Technology Don’t Put Everything On Your ShouldersDon’t Put Everything On Your Shoulders Be Careful About Transactions Outside Your Be Careful About Transactions Outside Your

ExpertiseExpertise When Trouble Comes, Don’t RunWhen Trouble Comes, Don’t Run

““THE BEST THE BEST REALTORS ARE THE REALTORS ARE THE BEST EDUCATORS”BEST EDUCATORS”