Category: Legal

I am asked so many times about what a real estate broker can or can’t do with licensees who have no board membership. Board membership refers to a local real estate board. In Orlando, our primary board is the Orlando Regional Realtor Association (ORRA). Some of our friends in Osceola County may be a member of the Osceola County Association of Realtors (OSCAR).

Either way, you are a member of a local Real Estate Board, MLS, and the National Association of Realtors. All real estate licensees are real estate sales associates, but only board members can call themselves Realtors.

Local boards have specific rules stating whether brokerages can have non-members as licensees with their company. In some circumstances it is possible, but the liability to the broker can be enormous.

Local boards are bound by the National Association of Realtors (NAR) rules. These rules say that Brokers hold dues-related responsibilities for the non-member agents who are licensed with their firms. The NAR dues formula, which ORRA and others are bound by its charter to enforce, states that a broker’s personal dues must be increased by an amount equal to the annual dues for each non-member the broker allows to be licensed with their firm.

Here’s an example of how to calculate the dues of a broker with 10 licensees, four of whom hold board memberships and six of whom do not. For argument’s sake, lets say the annual broker dues are $600 and individual agent dues are $500.

• Broker’s individual dues – $600
• Broker’s increased assessment based on six non-members – $ 3000
• Broker’s total dues – $3600. The non-member assessment fee must be paid by the Broker.

Payment of non-member dues assessment does not make a non-member a member. If a Broker does not pay the increased assessment dues for all non-member salespersons with his or her office, the ORRA Board of Directors must suspend the Broker until the non-members join ORRA. Other liabilities could apply as well.

To all you brokers who are board members, be very careful to only hire licensees who are also board members. If you are a non-board member licensee who has joined a brokerage with board membership, be careful to not get involved in any legal issues with your broker or the local board. If you need any further information about this subject matter, I recommend you contact your local board with questions.

Buying a home is the largest and most important purchase you will make in your life. This purchase will involve many legal issues that don’t exist with other purchases you will make. A skilled lawyer is trained to deal with these problems.

Home Buying Process

When you find a home you want to buy, negotiations are conducted through the real estate agents for both buyer and seller. Once an informal agreement is reached, the parties then execute a formal Purchase and Sale Agreement. This is a legally binding contract. The parties then have about 30 to 45 days to close the deal. During this time, the buyer must apply for and obtain a home mortgage – unless he/she is paying cash. Title is then searched to see if there are any liens or clouds on the title. If all goes well, the property is then transferred from the seller to the buyer by way of a Warranty Deed. This process seems simple, but without a lawyer, the consequences can be disastrous.

Avoid Unclear Terms

A real estate lawyer can help you avoid some major problems with the purchase. Real estate agents typically use standard forms, expecting that they will cover all circumstances and conditions. Well, they don’t. The standard Purchase and Sale Agreement does not deal with a number of legal problems. Thus, a skilled agent, or real estate lawyer, will often add additional terms to the contract.

A lawyer can explain the consequences of not getting a loan commitment on time, the effects of latent (hidden) damages to the property, the strict tax liability the buyer has when seller is a foreign national, failure of the seller to deliver good marketable title, any many more. The standard forms used by most agents can have the blanks filled in easily in about 7 or 8 minutes. However, there are 12 pages of detailed legal language that you need to understand. After all, one misinterpretation could cost you thousands of dollars, or even the loss of your dream home. An attorney should also determine if the contract was properly signed.

The purchase contract is the most important document in the transaction. A lawyer can explain the contract and modify it so that it benefits the buyer. Typical contract issues that a lawyer will address are:

* If the property has been altered in any way, was it done legally?
* If the buyer plans to change the property, can it be done legally?
* What happens if the buyer finds termites, asbestos, radon, or lead-based paint on the   property after a sale contract is signed?
* What if the buyer finds hazardous material on the property?
* What if the closing does not take place when scheduled, and what happens to the down payment?
* Will the down payment be held in escrow by a lawyer?
* What if the buyer cannot obtain financing?

Title Search

After the contract is signed, buyer must determine whether seller has good and complete title to the property. This is done by a title search by the title insurance company who is conducting the closing. A lawyer will review the title search and explain the title exceptions as to what is not insured, and determine whether the legal description is correct. He can also explain any easements, restrictions and other clouds on title.

The Closing

The closing is the final step. This is the process whereby title transfers to buyer. The title company will prepare a closing statement, reflecting the debits and credits to both buyer and seller. A lawyer can explain the nature, amount, and fairness of the closing costs. The Warranty Deed and loan documents are signed at this time and the lawyer can verify that all documents are legally executed.

The closing process can be confusing and complex to the buyer and seller. Those present at the closing often include the buyer and seller, their respective attorneys, the title closer (representative of the title company), an attorney for any lending institution, and the real estate broker. There may also be last minute disputes about delivering possession and personal property or the adjustment of various costs, such as fuel and taxes. If you are the only person there without a lawyer, your rights may be at risk.

For more information on how a lawyer can help you when you buy a home, please contact real estate broker and attorney at law David Dowell, by phone/text at (407) 864-2265, email at david@PanAmOrlando.com, or visit us online at www.PanAmOrlando.com

The United States welcomes thousands of foreign workers in multiple occupations or employment categories every year. Some workers are only here temporarily, while others can stay and work permanently. All foreign workers must first obtain permission to work legally in the United States. There are many different categories and types of work visas and each has different requirements, conditions and authorized periods of stay. It is important that you understand the specific terms of your visa category, as any violation could result in removal or denial of future re-entry into the United States. As a general rule, most work visas can be broken down into two categories – temporary and permanent.

Temporary (Nonimmigrant) Worker
A temporary worker is an individual seeking to enter the United States temporarily for a specific purpose. Nonimmigrants enter the United States for a temporary period of time, and once in the United States, are restricted to the activity or reason for which their nonimmigrant visa was issued. The most common visas are as follows:

E-1 treaty Trader
E-2 Treaty Investor
H-1B Workers in a specialty occupation
H-2 Temporary or seasonal workers
L-1 Intracompany transferees
O-1 Persons with extraordinary ability
P-1 Internationally recognized athletes and entertainers
TN NAFTA temporary professionals

Permanent (Immigrant) Worker
A permanent worker is an individual who is authorized to live and work permanently in the United States. The most common categories are as follows:

EB-1 Persons of extraordinary ability in the sciences, arts, education, business, or athletics
EB-2 Persons who are members of the professions holding advanced degrees
EB-3 Professionals and skilled workers
EB-4 Special Immigrants, which includes certain religious workers and employees of U.S. foreign service posts
EB-5 Business investors who invest $1 million or $500,000 in a commercial enterprise

To stay updated on current USCIS issues or for more information on United States work visas, please visit Central Florida’s premier real estate & legal team at www.PanAmOrlando.com, or call us at (407) 864-2265.

It’s summer time and you’re ready to landscape the lawn or build that backyard deck! But you may have a homeowners association that wants to know exactly what you are doing. So, what will your HOA allow you to do?

Here in central Florida, many of us live in homes that are part of a homeowners association. The main purpose of an HOA is to make sure that the houses are in significant conformity with pre-established regulations so that the value of all houses, and the neighborhood as a whole, remains as high as possible.

If your neighbor decides to paint his house bright orange with nude murals on the exterior walls, that may not be the best thing for you or any future buyers. Or, if your neighbor tries to put a jacuzzi in the 10-foot deep front yard, without a fence, that could pose a danger issue to the kids in the area.

So, there’s a lot to be said for having HOA regulations for the houses in your neighborhood. But what exactly will they let you do and what do they regulate? First and foremost, the HOA will regulate what you can do to the appearance of your home. You will need permission to paint your house, to change the surface or size of your driveway, and to even use certain types of furniture or decorations on your front porch. Anything which could affect the aesthetics of the exterior will be regulated.

Some HOAs are very easy to work with, but you must first go through the formalities. That means, anytime you are ready to make a major change to your home’s exterior, you will need to notify the HOA. Most will have a form for you to fill out to send in for their review. The HOA’s Architectural Review Board will look at your plans and issue a decision. It typically takes an HOA about 30 days to make a decision, so don’t schedule the pool company to come out the day after you submit your HOA request!

HOA regulations are good for your community, and many are easy to work with. Unfortunately, there have been too many horror stories of HOAs that are not quite friendly. I hope yours is the former!

For more information on what your HOA will allow you to do, please contact real estate broker and real estate attorney, David Dowell, by phone/text at (407) 864-2265, or by email at david@PanAmOrlando.com

Foreclosure is a complicated legal process but with everyone talking about it, and real estate agents discussing these homes with their clients, we felt that we should briefly describe the foreclosure process. Foreclosure occurs when a home owner cannot, or does not want to, make the monthly loan payments on the mortgage loan.

Fortunately for the home owner, he or she has an opportunity up to the day the home is sold to bring the loan current and avoid foreclosure. The home owner would simply have to pay all arrearages plus attorney fees and costs for bringing the action. The foreclosure attorney will always have that specific number available if the home owner is interested.

After about three to six months of missed loan payments, the bank will file a document called a Lis Pendens in the county where the home is located. This puts everyone on notice that a foreclosure action has commenced.

If the loan is never brought current, then a foreclosure sale date is ordered by the court. The home owner will receive notice of the foreclosure sale date and this notice will also be posted on the property and published in a local newspaper for a three or four week period.

The foreclosure sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are spelled out in the court document which ordered the sale. At this foreclosure sale, the property is sold in an auction to the highest bidder. An opening bid on the property is usually set by the foreclosing bank. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the foreclosure process. If there are no bids higher than the opening bid, the property will be purchased by the bank itself. The winning bidder must pay the winning bid amount in cash. Most counties require this be accomplished with a deposit up front and the balance within 24 hours. The winner of the foreclosure auction will then receive the deed to the property.

If no one bids an amount equal to the opening bid then the property is called an REO,  or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure sales are worth less than the total amount owed to the bank.

When a property is purchased at a foreclosure sale, all junior liens other than property taxes are eliminated. The priority of all liens is determined by the date of recording. When an REO is  purchased the owner receives the property with a clean title.

For more information of the legal foreclosure process, please contact an attorney who is knowledgeable in this area. If you would like to contact us at www.YourOrlandoRealty.com, we will have our staff attorney/agent review your questions.

The foreclosure process can be a little confusing. And one small article is not sufficient to completely explain it. However, we want to give you a very brief summary description of the foreclosure process with some foreclosure information. Banks, or any lender for that matter, decide to initiate foreclose proceedings on a property when the monthly payments are not being timely made on the mortgage loan. Most mortgage loan agreements allow for a ‘grace period’ of around 30. That means that the loan is not in default during that time. After the grace period, the loan becomes in default. Most banks still will not initiate the foreclosure proceedings at this point. They prefer to give the home owner/borrower at least 90 days to get payments current or to work out some sort of payment plan. This gives the borrower some time to recover if a temporary financial hardship has happened, and it also convinces the bank that foreclosure is likely inevitable. Banks only like to start foreclosures as a last resort.

When the bank finally decides that they need to start the foreclosure the first thing they normally do is file a document with the local court called a Lis Pendens. From this point, it could take up to a year or more before the court orders that the home be sold and that the home owner needs to move out. During this time, the home owner still retains all rights of ownership to the property and they can stay in the home.

Once the court orders the sale, the foreclosure auction is normally held in a public place, such as the steps in front of the courthouse in the county where the property is located. A notice of auction is usually placed in some public place, such as on the property or in  a local newspaper. Delays in the auction are fairly common, but when an auction is held, either a third party bidder or the lender will be the new property owner at the end of the auction.

If the bank is the buyer of the property, they may or may not perform needed repairs. On the other hand, homes purchased by independent third parties are usually repaired and brought to marketable condition before being resold to another buyer. For more foreclosure information we recommend that you speak to a qualified real estate agent or attorney. To see a complete list of foreclosure properties in the Orlando and Central Florida area please visit YourOrlandoRealty.com.