Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was hoping to get some opinions from real estate professionals on this matter. I found a 1948 cottage on a nice lot with a decent price. I found out on my own that it is in a shaded X zone flood plain....not a big deal, and being fairly close to a river, might even be automatic. First, I just called a buyer's agent....he denied it, and even showed me some print out by an insurance company. I think his interpretation is that if flood insurance isn't required by a lender; it is not in a flood plain...I am a cash buyer, so not too worried about compulsory insurance. But still, why are they playing dumb?
Next. Did some checking in the Recorder's Office (online). Property has a lien against it since 2010, with no release. I think it is likely this municipal lien survived the foreclosure. Now, I am in direct contact with the LA. Again, he is trying to play dumb about it.
Now does a Realtor have an obligation to disclose important facts that he is well aware of, about the property he has listed? Fire, Aim, Ready! Seems like it could delay closing at a minimum and possibly blow the deal.
It is a Fannie Mae. From many reports, it seems like they are operating like thugs with some real horror stories out there.
One aspect of your post needs more consideration if you are serious about flood zoned property. ".... flood plain...I am a cash buyer"....yes, cash buyers need not worry about mandatory flood insurance as would someone who financed. But flood zoned properties fall under federal regulations when it comes to updating the property, say as in additions or renovations. There are limits imposed by the feds, that local building code officials adhere to. Such as....say you plan to renovate and those renovations exceed by 50% (not sure of the percentage trigger), the appraised value of your home...your 1948 home could be required to be brought into compliance with current codes....meaning everything....plumbing, electrical...and more important, be physically raised above the current listed flood elevation. Research carefully, there is more to buying a home in a flood plain than facing possible flood water damage.
Good Luck
Prior flood plain home owner....never again
You contacted a "buyer's agent?" What does that mean? Did you consider hiring that buyer's agent?
The agent may have no idea about the property, and may not be "playing dumb."
You have flood plain information, which is a good start. Is the structure itself in the flood plain, or only a portion of the property?
If the latter, a blanket statement that "It is in the flood plain" may be imprecise or inaccurate.
How much is the lien, with penalties and other costs?
is it so high that it is a total barrier to purchase, or is it palatable to cover it yourself if you can get the right price for the property?
Often on REOs, listing agents don't know what they have, and don't want to know.
If you are contacting a buyer's agent out of the blue, who has little knowledge of the property, that agent is smart to not commit to making representations without further research.
Interesting...but like the loans...rules might be a lot different for A zones vs. X zones (100 vs. 500 year). But, then again, some 500 year zones got hit three years in a row in Houston. Which mathematically would be one in 125,000,000. FEMA? Yikes!
You contacted a "buyer's agent?" What does that mean? Did you consider hiring that buyer's agent?
The agent may have no idea about the property, and may not be "playing dumb."
You have flood plain information, which is a good start. Is the structure itself in the flood plain, or only a portion of the property?
If the latter, a blanket statement that "It is in the flood plain" may be imprecise or inaccurate.
How much is the lien, with penalties and other costs?
is it so high that it is a total barrier to purchase, or is it palatable to cover it yourself if you can get the right price for the property?
Often on REOs, listing agents don't know what they have, and don't want to know.
If you are contacting a buyer's agent out of the blue, who has little knowledge of the property, that agent is smart to not commit to making representations without further research.
He physically visited the property. I was looking for someone to make an offer for me and contacted an agency I dealt with 18 years ago..unfortunately, the specific agent I was looking for is now so hard of hearing at age 80; he can't communicate on a phone. Their agency is also an insurance company, and I suppose they think they are experts on flood zones. The entire property is in the shaded X. Would post a map if you want to see it. He didn't know the difference in shaded X and unshaded X, for one thing. I can deal with it, but I am interested in the "ethics" aspects of not revealing known information, that can be found by some easily enough, but not many first time buyers can find liens and flood maps...and that is who Fannie acts like they are trying to help.
We were in agreement on the version of the map...dated 2009. I did a FSBO a few years ago, and the buyer had all these illusions of grander about building a Mcmansion and wanted a bunch of guarantees from me. I suggested he simply go into zoning and planning and ask them...closed three weeks later.
He physically visited the property. I was looking for someone to make an offer for me and contacted an agency I dealt with 18 years ago..unfortunately, the specific agent I was looking for is now so hard of hearing at age 80; he can't communicate on a phone. Their agency is also an insurance company, and I suppose they think they are experts on flood zones. The entire property is in the shaded X. Would post a map if you want to see it. He didn't know the difference in shaded X and unshaded X, for one thing. I can deal with it, but I am interested in the "ethics" aspects of not revealing known information, that can be found by some easily enough, but not many first time buyers can find liens and flood maps...and that is who Fannie acts like they are trying to help.
We were in agreement on the version of the map...dated 2009. I did a FSBO a few years ago, and the buyer had all these illusions of grander about building a Mcmansion and wanted a bunch of guarantees from me. I suggested he simply go into zoning and planning and ask them...closed three weeks later.
What did he know that he did not reveal?
That would be an ethical consideration.
What does the site visit have to do with your issue?
He couldn't learn about the lien or the flood plain with a site visit.
Yeah, you may have bumped into someone with limited skill and knowledge.
But, one cannot reveal what they don't know.
The ethical consideration may well be that of an agent working outside his areas of expertise.
Dumb people really don't have to "play" dumb. It is a facet that comes to them naturally and sincerely.
The site visit just shows that he was close by and familiar with the area..."been here since 79," were his words. But, since he was not really interested in making his first sale in a year, I spoke directly with the LA...he said "trust your agent about the plain." So basically they are saying brown ain't brown. And it took me ten minutes to get the basics on the lien..from more than a few thousand miles away. But, the listing agent had "no idea," what I was referring to.
I had a bad experience with Hubzu a few years ago. Two days from contracted close date, and they had a mountain of stuff to take care of with a pending lawsuit from the HOA...plane tix..hotels..not cheap...and absolutely no remedy for their failure to perform. "Time is of the essence," unless you work for a scamming auction company....But this time, I thought I could get some peace of mind with the MLS, and their contract I know well in that state...apparently they practically throw it in the garbage and compell you to sign their own with Fannie.
You contacted a "buyer's agent?" What does that mean? Did you consider hiring that buyer's agent?
The agent may have no idea about the property, and may not be "playing dumb."
....
He said that the agent made a representation about its flood plain status. He did not say the agent said 'I don't know' or something similar. This is clear in his post.
First of all, from your description it sounds like you just called an agent. He wouldn't be a "Buyer's agent" unless there was an agreement that he would represent you. But that's really beside the point of your inquiry.
It's possible that he had information specific to that property which indicated that the house was elevated above the flood plain. Perhaps not, but we don't know what information he had. Nonetheless, it's good for you to be skeptical and to check things out.
As to a lien on a property, that is really not a big deal and it's not at all unusual. As long as things are handled correctly, liens are routinely removed before or at closing. Most title searches don't happen until after a purchase agreement is signed and I rather assume that most listing agents don't do their own title searches on each property that they list. (And never rely on their information if they do.)
As a Buyer's agent, I would feel it my duty to find out all of the correct information for you. That's why I would recommend working with a Buyer's agent over dealing directly with a Listing (Seller's) agent.
You can get objective info from the city codes office on the flood plain and rebuild requirements, which are very important. Gemstone's post is VERY important and should not be glossed over. Federal flood guidelines are VERY restrictive and could prevent you from changing the house's footprint in any way. One you sign on as the owner of that property, you have to comply no matter what. I lived in a flood plain for 13 years (the house wasn't in the flood plain but the back half of the property was.) Somehow our house had no water issues during the catastrophic 1,000-year flood of 2010, but neighbors who had basements had water problems. You really never know. We had no problems selling. But when you're talking about dealing with a lien? No thanks.
Go to the codes office and ask them to show you the plat map and the flood zone overlay and get some more specifics on the lien.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
