Bonita Springs Fl Real Estate » Buyer Tips

Real Estate Disclosures and Paper Cuts

chrisgriffith — Wed, 01 Feb 2012 14:21:41 +0000

Why Are There So Many Real Estate Addendums

About a decade ago I faxed (fax machines were once bleeding edge) a contract to a prospective real estate purchaser. She worked in the Pennsylvania school system and gave me a number at work to fax it to. A few hours later she called and said, I had no idea it would be that many pages. Why are there so many pages? At the time it was a mere twelve or thirteen pages, total.

Since then, contracts have gradually expanded from four pages to ten pages. On top of that, there is a disclosure for just about everything except for disclosing the hair color of the buyers placing the offer. I just glanced at my last sales contract which happened to be a modest condo with no bank involvement or legal issues – twenty two brilliant white pages, half of the pages were contract and the other half disclosures.

Since we live in such a litigious society, it only takes one little lawsuit to inspire a new disclosure that will hopefully be a preventative measure to deter a similar situation from happening again. Buyers and sellers of real estate are consumers and the powers that be in the State of Florida want to make sure the consumers are protected and that they’ll enjoy their shopping experience. That is good … and with that protection comes the paperwork.

For example, they want to make sure you don’t wake up and suddenly realize that with your home purchase you ended up belonging to a homeowner association that you didn’t know you were going to belong to … and it’s mandatory. (Insert ominous, echo.) It obviously happened to someone, somewhere or the proper fee wasn’t disclosed to the buyers and that’s how that disclosure was born.

Any legal measure generally boils down to money and consumer safety. As a consumer they’re trying to make sure your money is safe, there are no hidden expenses or fees and, after you move in, your family lives in an environment free from toxins or hazardous materials.

There are disclosures, such as the defective drywall disclosure and a mold disclosure that are meant to protect your money and safety and disclose that a buyer is permitted to obtain those inspections at their own expense, of course. Certainly consumers from outside of the area may not know about or understand defective drywall so it brings it to their attention, or a new level of worry. It’s currently a mandatory disclosure by many real estate brokerages in the Southwest Florida area, whether the home was built in 2004 or 1973.

There’s a mountain of disclosures that accompany real estate transactions these days. It’s not going away any time soon. Hopefully, your agent will be joining the paperless movement so you can sign documents electronically and if you’re fortunate the lender involved will recognize and accept electronic signatures on the contract. They didn’t like fax machines once, either.

Before electronic signatures are mainstream consumers will still be printing, signing, and scanning a couple dozen pages just to make sure everyone is properly informed and that all material facts and defects are disclosed to all parties. The paper cuts and spent ink cartridges are the cost of doing business.

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Real Life in Bonita Springs is a project by Chris Griffith dedicated to writing useful blog posts for consumers about the Bonita Springs, Florida area. Find out what it is really like to live in Bonita Springs, Florida by reading about our fair city. You’ll get the latest in local real estate information, Bonita Springs real estate market reports and a little bit of humor. If you have topic ideas, feel free to request a story about the idea, after all, this site is just for you.

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Selling Your Soul for Real Estate Data

chrisgriffith — Wed, 11 Jan 2012 14:20:25 +0000

Real Estate Lead Capture

Maybe you’re curious about what your home is worth or you’re a serious buyer prowling the web for the latest new listings or price reductions in the area you want to buy a home in, sooner or later a pop up window will ask for more information. Whether you’re a buyer or a seller, getting free information online is probably one of the newest exercises in tolerance.

A home seller called me out of the blue to ask for information about selling their real estate, what the level of standing inventory was and what the probability of selling their condo was. The next question was why it is so hard to get info without “selling their soul” because so many websites require registration before consumers can get to the data or the balance of the restricted data.

Whether you’re buying an airline ticket, real estate or a custom Paul Jr. Designs chopper, there’s someone out there gaming the internet trying to make sure you click their web link first. As a consumer, it may have never occurred to you that there are web placement gamers who pay to be in ads and some pay to have better ranking websites which show up for the search terms specific to what you’ve searched for.

With the great advances of technology and searching for information on the internet comes the opportunity of generating information to make a little scratch, especially when it comes to real estate.

The field is wide open for “lead capture” when it comes to real estate. Yes, a good portion of the websites out there have now sized you, the consumer, up as a lead and not a person. Odds are that you can perform a search for “your city real estate” and the majority of the query shown in the top ten search engine results are mostly “helpful” websites that will ask you for more info so they can sell your information.

It’s not that difficult a task. A middle school student in Boise could create a mediocre website or pay per click ad campaign that focuses on Bonita Springs real estate or Naples real estate and either make money off of ad clicks or collect data to sell later. It’s all about the Benjamins.

What’s more is that there are the recognizable, so called “helpful” brand named real estate websites that appear to selflessly offer their assistance to consumers for a free home valuation only to gather your data to sell to the premium, subscribing real estate agents. Those same websites market to real estate agents with the promise of $X per month for the leads in a city or zip code. You, the consumer, are the lead and thought of with about the same regard as cattle in a herd.

It’s a challenge to get information out there unless you carefully search for a site that doesn’t need to know your blood type before you proceed. There are websites offering information which don’t always require registration or if registration is required, it’s disclosed that your data isn’t being mined and that your email address is simply a means to for automated updates on the saved searches you’ve created.

So if Jo Blow from Kokomo calls or emails you after you registered on a random website, now you know how they got your info.

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Real Estate Truth in Advertising Photos

chrisgriffith — Wed, 04 Jan 2012 00:19:03 +0000

Real Estate Photograph Fails

It’s a no brainer that pictures sell real estate, especially in the digital age. What is surprising is that there are still so many homes skating by or even floundering in the real estate market without proper or, at the very least, a weak representation of its unique characteristics whether they’re good or bad … and there are still some of them out there with “issues”.

There’s always been a question of whether using photos where major items are photoshopped into or out of existence regarding a home’s features is the right thing to do. The possibilities are endless with the photo editing technology available to anyone who cares to invest in the software.

I’ve seen several homes advertised with recycle old photos of homes before it was gutted or craigslisted by the former foreclosed home owner. “These photos are representative of how the home could look” is sometimes tucked away in the private remarks section of the report.

There isn’t a picture of the present condition but pictures of the possibilities one might enjoy if a fat wad of cash was dumped on top of the listed price. There are probably a few homes in the multiple listing service right now showing the potential of the home but not the fact that there is little left in it; no cabinets, no doors, no appliances.

It’s not fair to consumers who might want to know that sort of thing before they load up and waste their time seeing it if they’re not in the financial position or mind set to massively overhaul what remains of the structure.

I previewed a villa not long ago that had been completely looted. The front door was even gone, plywood on hinges in place and bare wires where coach lamps used to be. The only remaining item in the interior was a strip of tile on the kitchen wall where the back splash was. It was being marketed with “possibility pictures”.

A more truthful solution could be to show the actual condition of the interior and either shuffle the other images into the photo lineup or included them in the visual tour, along with the current photos of the home and the amenities and features of the community.

There are people who are actually looking for these sorts of warts and all projects so it would seem that it might be a good idea to market to them and not the people who don’t understand that mentioning “needs TLC” yet presenting a picture of granite tops and stainless appliances is, uh, not what they’re going to be getting.

The possibilities are endless for any property. There’s hope for my own home which could look just like Diane Keaton’s home as laid out in all its 1920’s, Hollywood splendor in Architectural Digest. I suppose it would be wrong for me to scan Diane’s pictures and add them to my marketing plan because my home technically “could” look like that, right? Everyone is allowed to dream.

It’s great to dream and also help consumers imagine the possibilities when looking at real estate. It just that when the dream version of a home is so far off from the reality of its current condition, maybe be part of the dream marketing plan should also be complete set of blue prints and detailed estimates for the services, labor and supplies it will take to make it look like the pictures.

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Real Estate Home Inspection Question & Answers

chrisgriffith — Wed, 26 Oct 2011 11:00:55 +0000

Condo Inspections, AS-IS Contracts and Nit Pickery

It’s mail day! There have been a variety of question regarding home inspections from both buyers and sellers. Here’s the latest and greatest from the mail bag that I’m able to squeeze into six-hundred-ish words or less:

Question: The home we’re interested in is offered as-is with the right to inspect? Are they trying to dump their can of worms on us?

Well I’m not sure who the “they” is but the “they” is usually giving you the opportunity to inspect the real estate thoroughly and decide whether or not you’d like to move forward with the purchase based upon those results. There are a variety of reasons why real estate can be for sale as-is. For example, it could be bank involved, either a short sale or foreclosure or part of an estate liquidation where the heirs have no knowledge of the condition.

As-Is with the right to inspect isn’t necessarily a hostage situation. It’s simply a situation where the sellers are willing to negotiate a sale price with you, you’re offered a period for inspections and due diligence and if the defects are too much for you to repair or undertake, you may exercise the right to excuse yourself from continuing with the purchase. If you have concerns you really should hire a real estate attorney to walk you through the process and explain your rights as a home buyer.

Question: The home inspection report for the home we are selling literally had a couple dozen items on it. Some of it seemed like the buyers are nit picking. Are we seriously expected to fix all of this?

First and foremost, even homes in the most pristine condition will have a few items on the inspection report. Some home sellers feel personally attacked because even the tiniest items end up in the report; discolored areas of walls, stains, torn screens, cracked tile, you name it. It doesn’t mean that the seller is responsible to remedy each item. The contract delineates which items are cosmetic and which items are actually considered a “defect” and warrant a repair or replacement.

Simply put, the buyers have hired a professional to inspect a property they may have only physically been inside of for a brief visit or two. The buyers are expecting and paying for a comprehensive report on the condition of the home. They didn’t personally type up the list to hurt anyone’s feelings.

Items like “cigarette smoke odor” or “several cracked tile which runs across the room” will be put on a on a report. Items that seem out of the ordinary get reported for the buyers benefit even if it isn’t something that is ordinarily covered as a seller’s responsibility to correct on template contracts.

Question: Should we get a home inspection on a condo?

Yes. Even a condo in the best condition can have issues that a buyer needs to know about. During an inspection all systems are checked, electrical, plumbing, HVAC, appliances, etc. Often times, inspectors will also recommend radon testing, air quality (mold) if they see reasons to do so. Most importantly, many inspectors now offer thermal imaging which can indicate moisture intrusion and wiring issues. It’s an absolutely lifesaving technology that can nearly see through walls for defects invisible to the naked human eye.

If you elect to not have an inspection you will likely be asked to sign a release for liability.

Until next week … that’s it, Fort Pitt.

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Real Estate Contracts | Hold The Emotion & Perform

chrisgriffith — Wed, 28 Sep 2011 14:23:32 +0000

Save The Drama For Your Mama

There’s no crying in real estate. At least there really shouldn’t be. Typically, all parties involved in the transaction have a common goal for real estate to change hands so what is it that makes it all go haywire?

So there everyone is, minding their own business when “exhibit A” rears its ugly head. We’ll call this generality “exhibit A” because most of the time these are legal matters and when a home owner or a home buyer is “not seeing things clearly” during the course of a transaction they’re fiddling with not performing to the terms of the contract. You know that contact, the legal, binding pile of paper that all parties have signed in an agreement to sell or purchase a home?

This so-called “exhibit A” can be anything from the buyers failing to apply for a mortgage in a timely fashion, failing to complete due diligence and inspections within the specified time line or not depositing earnest money in escrow. There are legal obligations on the seller’s side, too. They’re usually required to keep the property in condition in which the buyer previously viewed the property, keep the utilities on plus allow access for inspections and appraisals and close sale on a specific date.

Some folks simply thrive on drama. Maybe they live very dramatic lives because they just don’t feel alive unless there is a craptastic storm swirling around them. Sometimes when there is a breakdown in listening and communicating the reality of the contract doesn’t mesh with what’s going on in their mind’s eye and the difficulties begin.

When things start to get dicey, it’s important to not get emotional and to recognize the constants when dealing with the real estate transaction, especially when one of the participants starts to get dramatic.

What is the constant? The constant is the contract. It’s the instrument that dictates the who, what and when all things will take place. It’s the time frames and deadlines, the drop dead dates.

Even the most average transaction can get pulled into the circus of the dramatic buyer or seller. What generally compounds the issue is when others in the transaction start reacting to what is going on. That whole “you push me and I’ll push back” theory is counterproductive when trying to close a real estate transaction.

Recently, I overheard a disgruntled home owner say, “You’re making me do xyz.” The reality of the situation is that nobody is making anyone do anything; there is a contract that all parties agreed to and signed. The contract is telling all of us what to do and the timeframes in which to do it. The home owner looked at everything as a personal attack because they didn’t understand what they had signed.

The best reaction to most dramatic situations is to continue to perform under the terms of the executed contract and to always proceed to close. It might be beneficial for your real estate agent to go over the terms of the contract with the other party just to make sure there wasn’t a (finger quotes) misunderstanding and to help steward everyone back to the same page.

The overwhelming majority of the time emotionally charged transactions can and will work themselves out. Don’t become legally responsible for delays or for the transaction not closing because you allowed yourself to become distracted by drama and did not perform your portions contractual obligations.

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Condominium Fees & Keys to the Quarterly Kingdom

chrisgriffith — Wed, 14 Sep 2011 12:59:46 +0000

Making Sense of Condo Maintenance Fees

This is going to be exciting! There is nothing more exciting than talking about numbers, budgets and statistics to get everyone hanging on the edge of their seats … or the abyss to boredom.

One of the more consistent questions asked by real estate consumers is, what exactly is included in the fees and what exactly is the maintenance fee? If you’ve spent any time searching for real estate online you’ve probably realized just how confusing it is to come up with the correct condominium fees.

There is a rather large segment of the population who either decide to or toy with the idea of jumping into the condo market but know very little about condominium ownership or ownership of a condo in Florida. One of the most frequent request folks have when shopping for a condo is to look for a complex or building with low fees.

Maintenance fees are a fact of life when you own a condo. Naturally, everyone wants to pay the least amount for anything, condo quarterly fees included. The bright eyed consumer might be wondering, exactly what is the least amount of fee they can actually expect to pay? Well, for the most part in Southwest Florida the high $200’s per month is starting point with condo fees and the prices move upward from there, depending upon the complex and it’s amenities.

So who comes up with the fees or determines what they will be? The number isn’t plucked from thin air. Every condominium is, in fact, a business and has a budget for operation. Whether a condominium association is managed by the residents or a professional management company, estimates for services and upkeep of the common elements are collected and a new budget is typically proposed at the end of the year for the following year.

One of the largest bills a condominium association is going to have is for insurance; the building structure, common elements, flood insurance. As we all know, insurance can be expensive in Florida and condominium insurance is one of the larger constants in any association budget.

Add to the insurance the other expenses typically covered by the association, cable television, trash collection, water/sewer, legal expenses, lawn care, accounting/management expenses plus any of the amenity maintenance, tennis courts, pool, elevator, club rooms, the list goes on.

All of these times are itemized on the budget. There is, or should be, a spread sheet with every expense the association pays. This is also where the reserves for replacement are calculated and accounts receivable.

So, if you’ve embraced the idea of quarterly expenses and decided that condominium ownership is right for you, know that you should have the opportunity to review the condominium bylaws, rules/regulations, frequently asked questions, as well as the financial and the budget as part of the condominium buying process.

Now, there is always the chance that you’re dealing with a situation where that information is outdated or unavailable. You can take matters into your own hands and contact the management company for the association to ask pointed question or request current information as well as an application for ownership.

You can find out who the management company is by looking for their contact in a common, public location on site at the condominium complex; for example the club house or the community pool. You can also look up the association on www.SunBiz.org. The management company and the directors/officers of the association are published there, just like the principals of any other Florida corporation.

There you have it, the keys to the quarterly condo fee kingdom.

If you’d like to see an example of a condominium association budget, click here: Example of a Condominium Association Budget

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Foreclosure, Short Sale or Equity? What’s the Best Value?

chrisgriffith — Wed, 17 Aug 2011 13:29:33 +0000

Buy a Foreclosure and Earn a Foursquare Badge!

More often than not there is a buyer at the other end of the phone or an email requesting help to purchasing a foreclosure. Today, I actually received an email asking what’s the best value is, foreclosure or short sale?

It’s been years since a day has gone by without the word “foreclosure” in the morning paper, television news or on the home page of whatever internet browsers you’re using so it only makes sense that buyers ask about them. Add to that the rumors of great fortunes to be made, awesome opportunities and magical faeries found in kitchen drawers of foreclosures.

Everyone seems to know “someone” whose neighbor’s, college roommate knows met who allegedly purchased real estate, for “a song” (no price mentioned), in pristine condition with the appliances and light fixtures actually still in residence. Rumor also has it that there was a chive and cheese soufflé in the stainless steel oven and Pouilly Fuisse chilling on the counter, too.

While I have actually seen that rare animal of a veritable walk-away foreclosure, it’s not exactly the norm when it comes to many foreclosure purchases. Some home owners become a little bitter on their way out the door and have been known to Craigslist the innards of home before they bail.

For standard consumers who start out as foreclosure buyers, sweat equity is a noble investment until it involves a hazmat suit or commercial grade air scrubbers. Everyone is into a fixer upper until they realize it’s more than just new Berber carpet and a trip to the Lowes paint department.

Biohazards and other peoples DNA scattered about have a way of making short sales look mighty attractive. There’s something to be said for a home with the air conditioner still on and quite possibly someone living in it caring for the home.

Most of the “I’m looking for a foreclosure” buyers are really looking for a good, sound deal and they should be. The difference is getting value in their purchase versus just a low price.

Foreclosures aren’t necessarily the best possible deal for all buyers. Put into perspective that the banks/investors do get appraisals on their assets and don’t necessarily sell them under current market value. Those properties are also listed at a juicy price to stimulate an offer. This often results in multiple offers, so there is a good chance a buyer will be asked to revise their offer to the highest price and best terms which can actually be over list price. Silent auctions … they’re not just at charity events for a bag full of Pings.

Foreclosures may have waiting or “first look” periods for “owner occupant” buyers so while investor buyers or second home owners can place an offer on the property, the offer may not even be considered until the waiting period expires. Since inventory is being absorbed, fewer properties have been making beyond the waiting period, especially in the price bracket of $400,000 and under, which accounts for about seventy-five percent of our closed sales last month.

Don’t forget that equity sales are still an everyday occurrence out there. Last month, as a matter of fact, sixty-six percent of the closed sales were equity sales which did not involve a bank or third party approval.

Unless a buyer is a rehabilitating real estate to flip, most consumers should still be investing their time in researching the neighborhood that fits their lifestyle and then make a decision to purchase real estate there. They can then negotiate the best possible deal for the current market conditions whether it’s a short sale, equity sale or a foreclosure.

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Hiring a Bonita Springs Real Estate Attorney

chrisgriffith — Wed, 06 Jul 2011 22:49:23 +0000

Choosing a Real Estate Attorney or Law Office

You may have already asked or someone may have told you but using a real estate attorney to close your real estate transaction isn’t required in Florida. It is, in professional opinion of most real estate agents, a very wise choice for most transactions.

The real estate market has changed dramatically in the last few years. The fact of the matter is that there are many real estate transactions which involve more than just a buyer, a seller and the standard boiler plate contract at this point. There are lenders, short sale lenders, lien holders, foreclosed lenders, servicing lenders and investors who all have a finger in the pie, so to speak.

Any number of surprising glitches can occur in a real estate transaction but just add the complication of bank involvement or a sale in distress and matters can spin out of control easily.

Many consumers wait until there is an issue that pops up and then they call for an attorney, instead of hiring one to overlook the entire transaction.

As a real estate agent, I’ve heard consumers state that they thought that an attorney would be expensive or that they are just too intimidated to involve one. In my experience, an attorney provides very affordable advice for such a large financial decision. Why not empower yourself and have the best possible advice and a professional looking out for your best interests?

From the standpoint of a real estate buyer, it is someone to review all documents to make sure a closing takes place with an unencumbered title and that you are getting exactly what you are paying for. The so-called T’s get crossed and I’s get dotted. Should there be a surprise, there is someone already in place to take action for you and protect your real estate transaction.

Map to Henderson Franklin Law Offices

If you are selling real estate, you should know that often times there isn’t much difference in cost between what a title insurance company charges and most real estate law firms.

The bonus with using a law firm to close your real estate transaction is your own personal real estate attorney who has reviewed documents and the transaction thereby protecting you from unseen surprises, title issues and liens to something as pedestrian as a buyer who gets cold feet.

Just like choosing a real estate agent, choosing a real estate attorney may take some research. If you’ve done your research for the real estate agent, ask for their advice on which real estate attorneys they can refer. Your real estate agent have likely worked with most of the attorneys in the area and can recommend those who have proven track records and are experienced, responsive and efficient.

I whole heartedly recommend using a real estate attorney for both buyers and sellers of real estate and my professional recommendation for my client’s real estate transactions is Sharon Zuccaro.

Henderson Franklin Attorneys at Law.

3451 Bonita Bay Boulevard, Suite 206

Bonita Springs, FL 34134

(239) 344-1100

Protected Classes, Fair Housing and Alleged Crazy Neighbors

chrisgriffith — Wed, 29 Jun 2011 13:21:06 +0000

What We Can’t Tell You About Your Neighbors

Prior to ushering buyers around in my car I’ve occasionally recommended buyers drive around a little to familiarize themselves with the area. If, for example, there is a cute little cottage that buyers think they just have to see but I know it’s built between a Quikkie Mart and a funeral home, maybe a drive by is in order before we load up in the car.

After emailing a few properties to buyers, some of which may have had Quikkie-Mart-like issues, they headed out for a delightful day of sight seeing and neighborhood previewing. They more or less drove by most of the properties that fit their criteria.

When I spoke with them about taking an actual tour of the homes they remarked, “You know that home on La-di-dah Street? Well, we drove by it and now we have some concerns about the crime.”

It turns out that one of the neighbors had a sign up in their front yard, right beside the "posted no trespassing” sign, that read something to the effect that their home was being stolen from on a regular basis and that the help of any and all good Samaritans was being called upon to dial the sheriff and/or the home owner if said alleged thief was spotted mid-crime by passers by.

Florida real estate law precludes real estate agents from sharing so very many important things such as crime rates and whether or not we know the subject property is circled by homes occupied with sex offenders. Dateline NBC can show their faces on TV but your real estate agent is only allowed to be “the source of the source”.

So I “source of the sourced” an email to the buyers a few crime tip websites like the local sheriff’s site, plus www.crimereports.com, www.spotcrime.com and www.familywatchdog.us so they could vet to their own satisfaction and then I hit the road.

I decided that I needed to see the alleged criminal complaint sign for myself. For what it’s worth, my search turned up very little crime in quite a wide vicinity. I was curious and just had to look.

When I drove by the property I spoke with a neighbor who volunteered their opinion of what was going on with the crime sign. That explanation included the words “cheese sliding off the cracker”. (His words) He was one of a few neighbors who was over the shenanigans but just didn’t know what to do.

As law would have it, it turns out that mental illness is a protected class (disability) and probably a fair housing violation if brought into the equation. So even if the neighbor shared with me that the sign maker was crazier than a June bug in May and patrolled their property line on a unicycle, wearing a tin foil hat, Mardi Gras beads and brandishing a machete, I have no place telling the potential buyer.

It’s not considered a material defect of the property and there is no “check box” on the seller’s disclosure for “unusual neighbors”. In case you were curious, the other protected classes are race, color, national origin, religion, sex, familial status, age, disability or marital status.

So the lesson for home buyers and even prospective tenants is to talk to neighbors and research a neighborhood on your own regardless of “signs of crimes”. Crime rates, sex offenders and the protected classes are off limits to your real estate agent but you can ask for information on how to research it.

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Quit Claims, Quick Claims and a Mortgage Note

chrisgriffith — Wed, 08 Jun 2011 11:57:59 +0000

Take the L Out of Lover & It’s Over

… Unless There’s a Note

So a while back I’m at this party … when the room thinned out and got a little quieter “Rick” mentioned that he was on his way across town to sign some papers. As a matter of fact, it had just occurred to him that maybe he should run it by a real-a-tor since it involved real estate.

Insert sordid story about how wrong he was about his future Mrs. Right, who was just a Ms. Right-Now or something to that effect. As luck would have it (his words), they never did make it to the alter. A few years of playing house was just enough to help them wise up before they accidentally promised each other, “unto death do us part”.

In this fairy tale, everyone is deciding to go their separate ways peacefully which is a whole bunch better than the traditional ritual burning of clothing and keepsakes in the driveway. Things were going along so nicely, in fact, that the “She” in this situation has already found another love interest. She and her new Mr. Right-Now are planning on keeping house in the same house.

The only thing left to do is to do to tidy up this situation is to let “Rick” out of his obligations of ownership of the home since he won’t be living there any more. He decided to take the high road and not cause a stink over the home since it wasn’t a divorce and there were no kids involved.

It turns out that “Rick” is on his way to visit everyone involved in this three ring bees nest to sign off on a “quick claim deed” (his words) that She was nice enough to buy at Office Max or armchair-lawyer-dot-com. He wanted to know what I thought about the whole darn thing.

Obviously there must have been some little voice deep down inside that was telling him something was amiss. It only took a question or two to get back to the warm glow of they day when they were in l-o-v-e and buying a house together.

So I asked “Rick” a couple of questions like, did you pay for that home by obtaining a mortgage and did you maybe sign a whole bunch of paperwork and part of that could have been a promise to pay the lender back for the money you borrowed?

He sort of settled at a whole new level of quiet and then I ask the most important question, “Do you realize that you may be relinquishing ownership of that home by “quit claim” deed but you’re probably keeping the “note”, the promise to pay for it?” You might want to talk to an attorney, first.

Everyone may be amicable and maybe She will continue to make payments in a timely fashion and maybe it might never become a problem. That is, until “Rick” decides to buy another home and can’t qualify partly because he’s financially responsible for a home he’s no longer living in or because his credit was damaged post quit claim.

Let us now imagine how much fun that tale of woe is going to be for him to tell his next significant other he decides to venture into home ownership with. That’s generally when the note hits the fan.

Ya take the “L” out of lover and it’s over … unless there’s a note. When you cut those ties make sure you don’t get stuck paying for someone else’s love shack or render yourself less credit worthy because you’ve unwittingly left yourself strapped with invisi-debt simply by being a nice guy.