For Buyers, as frustrating as short sales can be, primarily the long waiting period for lender approval and the possibility of being bumped out of primary position because a better offer arrives than yours, there is one distinct advantage  over purchasing a short sale vs. bank owned home.

Seller Transfer Disclosure Statements.  Point in fact. 

REOs are exempt from the statutory requirement to provide the standard form Real Estate Transfer Disclosure Statement by a Seller for properties 1-4 units.  Why, the reasoning is basic, the bank has never lived in the property. 

These disclosures are invaluable for Buyers.  There purpose is to disclose any known material fact about the property that affects value. 

Many material facts about the property may not be upfront to the eye when a property is viewed or inspected.  Take for example drainage problems.  You are lucky if you are purchasing a home in the midst of a rainy season to see how the property is draining, but this may not be evident during the dry season. 

Transfer Disclosure Statements become a resource to plan on what inspections you need – perhaps specialty beyond the basic home and pest, like geotechnical, structural, environmental.  They can identify neighborhood nuisances such as animals or uncivilized human behavior in a neighborhood. 

Without these disclosures, you are on your own, and best be advised to be many times more diligent in your inspections and inquiry, because you don’t have the benefit of a guide post to reference in the Transfer disclosure Statement

Transfer Disclsoure Statements should be obtained even before making an offer.  Before you open escrow and spend money on inspections, there may be something there you are not prepared to tackle either in negotiations with the seller or by inheritance of the problem in the future.

Disclosure laws are there to protect the consumer, but with REOs being exempt from the statutory TDS requirement, a word to the wise, buyer beware.  Do your homework. 

You can get some great deals with bank owned properties, no doubt, but you are working with a different set of rules when it comes to disclosure you should be aware of. 

Recently I viewed a bank owned property in Rohnert Park.  The former owner did something I have never seen before.  In black ink on the walls, there were numerous disclosures made by the prior owner.  Some were very revealing, things a bank would never have any way of knowing.  Hence in the absence of  the  Seller Transfer Disclsoure Statement, no disclosure benefit for the buyer.  But with the prior owner’s disclosure statements on the walls, it was a great substitute.  But this is uncommon, and certainly not the norm.

When does the California Subdivison Map Act(CSMA) apply.  When recorded subdivision maps create five or more “legal lots”, and recorded parcel maps create four or fewer “legal lots.” So, how do you know if there’s a violation of the CSMA?  A clue can be found in the legal description.

According to Linda A. Kirios, Esq., Counsel to the California Association of Realtors,  if your legal description reads,

” ‘Parcel 2 of Parcel Map 12345 on a particular recording date in Maps of Los Angeles County California,’ or ‘Track 11  of Tract Map 12345 recorded on a particular recording date in Maps of Los Angeles County California,’ ”  Kirios suggests chances are the lot is “legal.” 

On the other hand, if you see wording in the legal description such as “a portion of Lot…” or “the north 10 feet of Parcel…” , Kirios suggests  there might be a CSMA violation. 

Metes and bounds legal descriptions should also be further investigated. 

Certificates of Compliance (COC) may be necessary to verify that the parcel complies with the CSMA deeming that the lot legal at the time of creation.  Kirios indicates that “If one sells all of one’s property, then one may be safe.” 

If in doubt contact  a licensed Real Estate Broker who can request that the title company issue a subdivision map act endorsement to the title policy whereby ensuring no violation of the CSMA.  If the title company won’t issue the endorsement, a COC may be necessary. 

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Local Grocer wants to sell.  Just listed in MLS today, you’ll find a new business opportunity for sale.  Quoting from the Bay Area Real Estate Information Services(BARIES MLS), the business is described as such,

“Very long established country general and liquor store as this store has been in existence since 1867! It is a locally owned & operated with a unique location and old fashioned country charm. This 3000 square foot facility has a current rent of $1,700 per month. Lease term expires 5/2015, & there is one five year option to extend the lease. If you have ever dreamed of owning your own country general store, this is a once in a lifetime opportunity.”

To locals, it is the cornerstone and mainstay of Tomales and surrounding areas.  The bread and butter place and a whole lot more. 

Generations of kids have bought candy there, locals can run a credit tag, purchase  fishing licenses or hardware.  It is our community’s lifeblood being a distance away from urban life. 

It is for sale!  Whoaaa!.  This could mean more change than Tomales is ready for.  Either the nature of the business as we know it and have become accustomed to, or just the possibility of a new management style makes you put some thought to it.  It is an opportunity, a business opportunity.   

This will be an interesting development in the center of Tomales’s Historic District.  All eyes are watching now, ears are listening.  

It has prime commercial potential on Highway One located at the gateway to the Coast in West Marin.