The Sushi Law "Do not do what you would undo if caught" ~ Leah Arendt ~ Why is it a home buyer has so few options against a home seller when it is believed the home was fraudulently and intentionally misrepresented? Is it because, "Honesty is for the most part less profitable than dishonesty." ~ Plato ~ There should be a new law to protect the home buyers interests. As in the auto industry the "Lemon Law" was created to protect auto buyers. So should there be a law to protect vulnerable and innocent home buyers. The "Lemon Law" in summary is defined, "The manufacturer, not the dealer, takes care of the defects (State Lemon Law). In my proposed law, the seller, not the buyer, would take care of intentional …show more content…
I didn't say anything, but most importantly, neither did the seller. Sellers who try to cover up major problems, defects and flaws in the home by intentionally using large items, such as furniture are dishonest and fraudulent practices. The buyers recourse could be my proposal: The "Sushi Law". Gary Reeser, inspector with G.A.R. Home Inspection told me about a sellers home he had inspected for a client. As he was inspecting the home for the buyer he went past the kitchen and noticed the seller emptying the dishwasher. He said he didn't think anything about it either, at the time, until he went to inspect the appliances in the kitchen and the dishwasher didn't work. When he questioned the sellers about the dishwasher not working they had told him they only store dishes in it, because it didn't work. Gary felt if he had not inspected the appliance, because the impression was given the appliance worked, the buyer would have had a "raw deal". He felt the buyer would have been stuck with either fixing the appliance or replacing it all together once the defect was discovered, after the deal was signed and sealed (interview). This "raw deal" that should be included in the proposed law could state: the seller is responsible to detect and repair or replace any appliance that is not functioning properly, when the appliance is attached or connected to any part of the home, before a sale is finalized. Items intentionally manipulated to make them
An alternative would be for lenders to add a true customer service department which is not based on pay or get out, but is counseling based to keep Americans in the American Dream of home ownership. This would not only keep their customers for future business with new home loans, but would be noticed by neighbors and the community who are appreciative their home values are not decreasing. The lenders would counsel them through the sale by assisting them with getting the most they can for their home. By getting local community organizations involved to help with home repairs and curb appeal. Once the home is market ready and a dollar amount has been reached for these repairs the home owner will have to volunteer time and/or resources to assist another person going through the same situation. This would not only help the homeowner but will keep homes in the area selling at a fair market value and not bring down the values in their neighborhood. The assistance provided by the lenders and assistance from the community will help build their self confidence and make them feel like they are not alone.
According to Jones (2008), protected tenants within the regional authority increased reduction in right to buy their homes by means of the Housing Act 1980. Previous to this act, regional authorities sell their homes along with governmental permission in 1936. Chaney (2000) mentioned that about 7,000 houses were sold in UK in 1970, which were exceeded to approximately 46,000 within 2 years. Stephens (2012) demonstrated that right to buy housing policy offers
Mortgage law is as clear, consistent, and enforceable in the United States as in any place in the world, and far more so than in many countries. Why is this a vital element of an efficient real estate finance system?
The regulation that I have chosen for this paper is amendment in the Regulation X i.e. “Real Estate Settlement Procedures Act” and Regulation Z which is for “Truth in Lending”, for establishing the new disclosure requirements and forms in Regulation Z for the most closed-end consumer credit transactions secured by the real property. This regulation is controlled by the Bureau of Consumer Financial Protection. The role of the Consumer Financial Protection Bureau (CFPB) is to provide consumers information related to the terms of their agreements with financial companies during their application for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The mortgage market is the single largest market for the consumer of financial products and the services in the United States, with approximately $10.4 trillion in loans outstanding. Since last decade, market went through an unprecedented cycle of the expansion and the contraction that was fuelled in the part by securitization of mortgages and the creation of increasingly sophisticated derivative products. This led to the collapse of financial system in 2008 and sparked the most severe recession in United States.
The real estate industry is thriving with approximately sixty-eight percent of all Americans being homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there are some unethical lending practices that are threatening the housing industry as a whole.
On August 06, 2006, via telephone, Partner-D made the initial call to Partner-W as suggested by Goodfriend. Partner-W introduced herself as a licensed mortgage broker, working for Company-C, and that she was successful at finding affordable housing without the use of a real estate agent. Party-W was certain there were plenty of people to rent out any property obtained; that buying in the area required minimum down; a profit would occur within a year and the house would pay for itself. During this event, PartnerW was using interest-based persuasion (Shell et al., 2007) while at the same time, used the power to educate (Ury, 2007). Partner-W started out by identifying Partner-D’s interest and/or purpose for buying property, which was clearly defined (Fisher et al., 1991). And it was further determined, by the use of integrative bargaining, it would be a win-win situation and would create a shared goal for mutual gain (Fisher et al., 1991). Partner-D would be gaining extra income; and Partner-W would gain commission for the sell of the property. Partner-D went to the balcony to think about the information provided (Ury, 2007). Overall, the idea seemed like a good idea and Partner-D felt she was in good hands
Responsible for the increase in the housing market are foreign buyer’s - purchasing in cash, as well as the provincial government. Thus, the government may implicate laws and regulation in order to stop this increase. Although there are multiple efforts being made by the government, their negative repercussions may be more severe. The implementation of “price caps” by the government will aid in lowering the house market. These price caps will asses the property on the basis of its size and features and will have a “max price” it can be listed for. Likewise, the government may further their efforts by Imposing a speculation tax on people who flip houses within a short period, perhaps within two or four years of purchase. The tax could apply to all homes or be limited to non-principal residences. These possible efforts will lead to the demise of the GTA housing market
The real estate industry is thriving with approximately sixty-eight percent of all Americans being homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there are some unethical lending practices that are threatening the housing industry as a whole.
The housing crisis in America is a major problem plaguing the United States' economy. Before a solution is formulated, one must consider the history of the market and the causes of the problem. And after a solution is formulated, one must present an idea for prevention of the problem for the future.
As part of the home recovery process and in the protection of our lender’s interest — Wells Fargo— sent out a home inspector whose purpose was to verify the property damages against the submitted contract/estimates, and the repairs already made; namely the water mitigation, mold remediation, and the demolition. Although our home is technically 50% completed (water/mold remediation and demolition) and ready for the rebuild, Mr.
Issue: Does seller have a duty to disclose any facts that materially affect the value of a property?
There are a multitude of avenues by which a buyer may seek recourse for defective realty. Realty sales has moved from a caveat emptor state to that of strict liability. But, in the transition there has developed a combination of tort, contract, and warranty law precepts. One must distinguish the type of damages that are recoverable by the first owner and any subsequent owners. Damages that arise out of defective products that may threaten the safety of any occupant would lie under the auspices of strict tort liability. Whereas defects in workmanship that merely lower the value of the real estate should lie simply with the original owner and his/her relation with the original builder in breach of an implied warranty action. Any implied warranties
and many indirect victim of the fraud. This article is also reviews several factor of the
This suggests that there should be a change in Australian housing policies to focus on taxes, land supply and land-use planning policy.
Possibly one of the best actions on the buyers’ part was their decision to hire a real estate agent to assist them in their home purchase. Agents generally have more experience and know all the right forms and such needed to complete a purchase, which was especially important for these first time home buyers. The only interactions between the buyers and seller were through their respective agents. Because each party had an agent, the legality of Marsha and the sellers’ agent’s contract is stressed. Assuming that the seller granted her agent permission to accept offers on her behalf, the agent violated