Can an HOA prevent you from leasing your real property?

Yes and no – depending on your existing HOA CCRs and your HOA reaction to limitations placed on certain types loans (i.e., FHA) by lenders allowed to be used by Buyers if rentals/leases exceed certain thresholds and whether or not the HOA has elected to submit itself to the 1994 Georgia Property Owners Act (POA).

HOAs that agree to be compliant with the POA are not subject to Section 44-5-60 (4) of the Georgia Code. This code section states that “no change in the covenants which imposes a greater restriction on the use or development of the land will be enforced unless agreed to in writing by the owner of the affected property at the time such change is made.” This advantage is most readily apparent in those Associations who wish to pass amendments to their Declaration to enact stricter leasing restrictions.

So in the case where your HOA is now in compliance with the POA, leasing regulations can be enacted and the renewed lease with your tenant may be denied and you will no longer be allowed to lease the property.

Source: The Georgia POA Act and Your Association.

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Georgia Intangibles Tax – How much Does Georgia Collect each year?

Good question – since it amounts to HUNDRED$ of DOLLARS per mortgage transaction and it’s rolled into Georgia’s General Budget, nobody knows.

What is it?

Each time a real estate property (house, land, condo, etc) is purchased (not refinanced) with a mortgage, the Buyer is charged a fee at closing and the mortgage is filed/recorded in the public county real estate records where it is located in Georgia.

The fee is calculated by multiplying $1.50 by each $500 (or equivalent) of mortgage amount. For example, in the mortgage amount is $100,200, then divide it by 500 and you get 200.4 – round up to 205 and multiply by $1.50 and you get $301.50 Intangibles Tax.

The total proceeds are distributed to several State and local tax jurisdictions within the counties where the money is collected.

The total collected by each jurisdiction depends on the county’s millage rate multiplied by the standard state rate of 0.25.

It is unknown as of this writing how much Intangibles Tax collected each year in Georgia, but the most recent amount I’ve seen is 2002 number where the State of Georgia collected about $1.75 million. I’m sure there has been at least that much collected each year over the years…but somehow those numbers are hard to find – lack of transparency based on such a small portion of everyone’s budget I guess.

Source: Intangible Recording Tax information by the State of Georgia.

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How was the $110 Billion in bank fines spent?

Your guess is as good as the US Government’s!

Make sure you put on your big boy and big girl panties when you read this….

Major US banks paid about $110 Billion in fines over the mortgage banking crisis.

New York State spent some of their money on a new stable and horse barn at the state fair…

A mortgage firm in New Jersey received $8.5 million for reporting a bank’s bad conduct.

Large portion (about $50 Billion) of the fines stayed with the agency/organization levying the fines with limited disclosure where the money was spent.

The U.S. Treasury Department received about $49 Billion and there is no accountability where that money went.

The U.S. Justice Department collected about $450 Million and hasn’t disclosed any details about how that money has been spent. And by the way, there is a “Three Percent Fund” administered by the Justice Department. The fund is comprised of 3% of all civil fines or penalties collected by the department and yes – there is no accountability of funds.

Almost all US States received about $5 Million to spend as they saw fit.

The Federal Housing Finance Agency (FHFA) collected about $34 Billion, of which most went into the US Treasury which in turn $187 Billion helped bail out Fannie and Freddie, who subsequently were taken over (under receivership) by the Federal Government and all profits were also turned over to the US Treasury, with no accountability where those funds were spent (if any on housing related matters). And both Fannie and Freddie have been profitable since 2012 and have paid over $245 Billion in dividends to the US Treasury – and where have those funds been spent?

There has just been no disclosure as to where the fines went!

The U.S. Treasury has stated that the settlement money isn’t specifically tracked.

Source: WSJ, 3-10-2016, Page A1.

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HOAs might need FCAR’s 2015 Community Association Fact Book 2015

The Foundation for Community Association Research (FCAR) provides authoritative research and analysis on community association trends, issues and operations. FCAR supports and conducts research and makes that information available to those involved in association development, governance and management.

This publication is designed to provide accurate and authoritative information in regard to the subject matter: 2015 Community Association Fact Book.

References to articles, sources, products, or services are not a specific endorsement and not guaranteed to be true or accurate, but the user must perform their due diligence and investigate whether the information provided is valid, or the product or service is right for them. I welcome any or all comments that would help others. Be careful – if it sounds too good, it probably is!

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HUD’s reverse-mortgage program (HECM)

Update 2-14-2017: CONSIDERING A REVERSE MORTGAGE? (Pulished by CFPB)

I have no dog in this fight. I’ve heard closing costs may be high (especially lender costs) to get the equity but for those who are 62 or older who are cash strapped and need supplemental income to live or other emergency needs, this is a source of funds.

How does a reverse mortgage work?

Reverse Mortgage is a way to borrow from the sizable portion of equity if you are 62 years of age or older. It is a financial arrangement withdrawing the eligible equity (it is not all of the equity – but lender determines ultimate level) in your home in (a) lump sum, (b) fixed monthly payment, or (c) line of credit after loan closing costs are covered. The home must be your primary personal residence and the loan continues until (a) owner dies or (b) total amount of eligible equity is depleted. The loan must be repaid from the proceeds of its sale after (a) owner’s death, (b) owner moves out, (c) house is sold. Now, in addition to any other restrictions, the homeowner agrees to continue to (a) pay homeowner’s insurance, (b) pay property taxes, and (c) maintain the home in a livable condition and retain its value (i.e., exterior paint, deck, roof, hvac, and other repairs).

What are some features and benefits to the reverse mortgage loan?

  • Supplement their monthly income;
  • Pay off an existing loan;
  • Use funds to make home improvements or maintenance repairs;
  • Pay for health care expenses; or
  • Pay off debts or any other legal expenditure.

What are the closing costs?

  • Loan Origination fee – A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are capped at $6,000.
  • 3rd party fees about the same as a typical mortgage (i.e., appraisal, inspections, title insurance, surveys, recording fees, credit checks, title searches, etc.).
  • FHA Mortgage Insurance Premium (MIP) – both the up front fee and annual fee (annual fee never disappears)
  • Loan Servicing Fees – typically less that $40/month.

Source #1: FHA website on reverse mortgages.

Source #2: Some features, pros and cons of reverse mortgages from bankrate.com.

Source #3: AJC, Buyer’s Edge Section, 11-6-2016, A2.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

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Criminal background checks for Real Estate Agents in Georgia?

Are criminal background checks being performed for real estate agents in Georgia?

Yes and No – d-“pending” on how you look at it…

As far as I know, a criminal background check is made for any real estate applicant for new or renewed license by the Georgia Real Estate Commission to verify that any charges are pending for certain crimes but not a “complete” history of “charged” criminal background checks are researched or considered, only those “convictions” that are less than 5 years ago and only 2 years for a single conviction.

Georgia Code – 43-40-15-(1.2) A person who has a conviction in a court of competent jurisdiction of this state or any other state shall be eligible to become an applicant for a licensure or an approval authorized by this chapter only if:

(A) Such person has satisfied all terms and conditions of any conviction such person may have had before making application for licensure or approval, provided that if such individual has multiple convictions, at least five years shall have passed since the individual satisfied all terms and conditions of any sentence imposed for the last conviction before making application for licensure or approval; and provided, further, that if such individual has been convicted of a single felony or of a single crime of moral turpitude, at least two years shall have passed since the individual satisfied all terms and conditions of any sentence imposed for the last conviction before making application for licensure or approval;

Per Georgia Code 43-40-15: Grant of licenses; grounds for suspension or revocation of license; other sanctions; surrender or lapse; conviction, there are certain circumstances which would prohibit issuance or revocation of licenses covered in Georgia Law – Georgia Code:. These circumstances only apply if “charges are pending” against an applicant for new or renewed license. Georgia Code 43-40-15 (1.2) (B) says “No criminal charges for forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, a felony, a sexual offense, a probation violation, or a crime involving moral turpitude are pending against the person;”

Bottom line: As long as you only commit certain crimes every 2+ years and even if you are accused and charged but “NOT” convicted of the crime – you too can be a REAL-A-TOR in Georgia!

Hope you feel safer now – Merry Christmas!

Source of inspiration for post: Measure was proposed in South Carolina legislature after kidnapping and murder charges were filed against a currently licensed real estate agent. The proposed legislation would require background checks to renew real estate licenses.

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Who owns the interior and exterior photos of your home?

Are Google’s satellite photos of your home an invasion of privacy or does everyone not care because they now see into their neighbor’s back yards?

Take it one step further, when you are marketing your home to the public, do you also have interior photos of the home to show features of your home to prospective home buyers? Do you care to share your personal furnishings with the general public, some of whom are either nosy neighbors (i.e., self-proclaimed decorating critics) or maybe local criminals? And what does it matter if you do show photos, you are moving, right? So why care? Even the nosy neighbors are going to come over to see inside and get ideas for their home.

Well, how about the new Home Buyer caring not to show the interior views of a home to total strangers and where all possible access points, alarm panels, or otherwise revealing the interior of your new home. It’s one thing to see the photos of home interiors to compare features of various possible homes, but once you move in and even though you change furniture placement, paint, or flooring…do you feel uncomfortable that basically your home is viewable from anyone in the entire world?

Can you remove previous photos of your new home’s interior or exterior from the internet? Probably not entirely. Or perhaps the realtors can use your home’s exterior photo to advertise previous properties that have been sold. Also, Realtor Multiple Listing Services (MLS) normally delete those photos after a specified length of time (i.e., probably about 90 days after to use as sales listing or appraisal comparables). I’m sure if you pressed the issue with them, you can request them to do so and they should comply. Please consult with your real estate agent to address concerns, or contact the local MLS to remove photos.

In these days of smartphones and the number of cameras out there, even the potential Buyers visiting the home will snap photos of interior to help remember the homes they visit…are you ok with that?

Bottom line: In this day and age, if you are really paranoid of who sees the interior of your home, you have concern and not sure how you can stop it in the short run…maybe an enterprising unemployed attorney will file a class action lawsuit, but not sure of the extent of “damages”???

Source of ide for blog Post: Some buyers don’t want to show off the photos of their new home.

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Violent Crimes Against Real Estate Agents

This blog post is dedicated to those in the real estate industry who, while performing their real estate duties, were either killed or severely injured by worthless human beings. May they rest in peace and their families be comforted with their memories.

Real estate is sometimes a dangerous occupation…especially if you are alone in a model home in a new subdivision or showing properties to unknown prospects.

Given the wrong circumstances at the wrong time, it can be downright deadly. About 10 years ago, I recall a couple of agents in a new home subdivision in Acworth, Georgia who were at the model home and a man murdered both of them. He was convicted of the murders but I believe he still is alive today – lucky him but he didn’t give his victims a chance to live.

My hope and prayer is that this senseless killing stops. I also wish that builders install security cameras throughout the model homes so if something happens, they can get a better image for police to track those animals who perform these violent acts of crime. And agents need to be on the alert when single men stumble into the model home with nobody else around.

Inman News reported that in 2012 (the latest year for which figures are available), there were 50 workplace fatalities in the real estate industry subcategory. Source: http://www.inman.com/2014/04/28/real-estate-workplace-deaths-again-on-the-rise/

These cases are but a few and I could list more, but I plan to update this blog post when I encounter another case.

NEWS: Even though a Florida statute has been proposed to increase penalties for crimes against real estate professionals, is this the right thing to do to favor one group of people over another, or equal treatment under the law? I believe it is a knee jerk reaction to real estate professionals complaints. If anything at all, review the penalties for all crimes to see if they are commensurate of the crime.

12-14-2016: Real estate agent shot inside partially renovated home. Residents who live near the home say it has been left partially renovated for about a year. They worry the agent stumbled upon an armed drifter, but police have not released what happened.

10-8-2016: Killer of Dallas-area real estate agent gets execution date.

10-7-2016: Real estate agent stabbed while showing North Las Vegas home.

10-3-2016: Man who beat, bit, stabbed McKinney real-estate agent to death loses appeal to Supreme Court The agent had been beaten, bitten and stabbed and the medical examiner testified at trial that 10 of her 33 stab wounds were fatal.

6-21-2016: Man found guilty of raping real estate agent. Well, it wasn’t a murder, but it was a major crime against a real estate agent.

6-14-2016: Police ask for help solving 36-year-old (1979) murder of real-estate agent.

5-17-2016: 2 men arrested in October shooting that killed real estate agent in San Jose.

3-22-2016: Real estate agent shot dead near home in Lapu in the Philippines. And yes, agents are murdered in other countries too.

Read more: http://cebudailynews.inquirer.net/89955/real-estate-agent-shot-dead-near-home-in-lapu#ixzz43dCDXHw5
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

Update 11-4-2015: The Ashley Oakland murder in Des Moines, Iowa on April 8, 2011 “still” remains unsolved.

7-18-2015: Realtors taking huge steps to protect real estate agents

7-7-2015: Woman sentenced to 30 years in prison after pleading guilty to first-degree murder and kidnapping charges in the death of 50-year-old Beverly Carter.

6-3-2015: St. Petersburg police searching for man who held two real estate agents at gunpoint . This didn’t result in a murder, but it’s a crime using a gun against a real estate agent – almost as bad!

2-28-2015: The killing of Vern Holbrook, owner of Aspen Real Estate, was premeditated by a man who started plotting to kill Holbrook after his plans to purchase Aspen Real Estate fell through.

2-8-2015: Just a warning to real estate agents… Safety Alert: More Agents Report Strange Calls

12-26-2014: Many Realtor organizations continue to develop training and precautionary warnings for realtor safety. Florida Realtors group released a new 75-minute safety video on Oct. 29 that covers self-protection and tips on avoiding harm. Source: http://www.idahostatesman.com/2014/12/26/3560201/after-killing-real-estate-agents.html

11-23-2014: Roswell, New Mexico police are investigating the death of a prominent real estate agent – David Duer.

10-5-2014: Just to show you how long this trend of murdering real estate agents has been going on is disclosed by the recent news of the murderer of real estate agent Dorothy Greene in Nevada back in 1989 has just died.

9-30-2014: Arkansas real estate agent found in shallow grave after meeting with fake cash buyer alone at a vacant foreclosure.

8-5-2014: Man Pleads Guilty to Murder of Ohio Real Estate Agent The suspect pleaded guilty to charges of involuntary manslaughter, aggravated robbery, aggravated arson, and kidnapping in connection with Martin’s death on Sept. 20, 2010. The real crime here is that it took almost 4 years to nail this scumbag!

—Update 10-2-2014: One of the two killers sentenced to life without parole

—Update 10-1-2014: Should sentencing matter if the convicted murderer of Ohio agent was abused as a child and served in the Military?

—Update: 9-19-2014: Second suspect guilty of killing Youngstown real estate agent

Washington state – Earlier in 2014, 4 people were accused of fatally injuring a 78-year-old Yakima real estate agent while he was showing a home alone. Source: http://www.columbian.com/news/2014/jan/31/murder-charged-in-yakima-real-estate-agents-death/

Update: 10-31-2014: 3 sentenced for ambushing Yakima real estate agent

Iowa Real Estate Agent was murdered in a model home of a new home subdivision. Source: http://www.cbsnews.com/pictures/iowa-real-estate-agent-murdered-in-model-home/

Texas Murder of real estate agent in a model home in a new subdivision http://activerain.trulia.com/blogsview/2365016/the-murder-of-real-estate-agent-sarah-walker”

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Property Trespass – Do Drones commit trespass on your property in your Airspace?

Do you have any rights to the airspace above your home?

Yes you do….or maybe you don’t.

New rules on small drones kick in today: What you need to know.

Real estate law and guidelines have alway stated you own from the center of earth through the sky on below and above your property.

However, government allows developers, utility companies, and themselves to install pipes, wires, lines, etc. throughout your property to deliver home based services people need or demand. Normally, these are called “utility easements” and are declared in existence whenever you purchase our home and can be discovered through a property survey. Also, commercial and military planes and other aircraft have been allowed to pass over your “property” in to permit passing in the interests of commerce and other reasons including free movement of goods, services, people, and military training exercises.

Does the use of a drone aircraft invade not only your privacy, but does it also commit property trespass?

Who knows what data is collected and how far into your home with a good quality camera can peer (through windows), or of your real or personal property can to examine details of your private property? Who controls the data collected and how fast do you think it could spread given our whet appetites for instantaneous social media broadcasts?

Will local governments now use drones to capture detail about your property like dimensions, exterior or interior improvements, or verify if your home improvements have satisfied zoning or permitting requirements?

Example #1: Did you pull a permit for that new deck, pool, or other addition to your home? They county may be watching.

Example #2: Can the county use a drone to fly over your driveway or backyard to examine the condition of property (based on a neighbor complaint of potential code violation) either too many cars parked in the driveway or backyard hidden from view by a fence or some other obstruction that the homeowner uses to prevent access by county employees?

Congress delegated to the FAA the ability to define “navigable airspace” and the authority to regulate “navigable airspace” of aircraft by regulation or order. 49 U.S.C. § 40103(b)(1).

So where do private or commercial drones fit in to that freedom or air restriction above your home and create a “property trespass” situation?

Definition of airspace trespass: An entry into another’s airspace is a trespass even if the trespasser doesn’t touch the surface of the earth. Airplanes may trespass by flying low over a person’s property, for example. An airplane trespasses by flying low enough over the surface to interfere with the owner’s reasonable use and enjoyment of her surface.

Not to mention the fact your privacy is threatened even if the drone doesn’t pass into your “airspace” but alongside your property viewing you inside or outside your home. Does that matter to you?

Bottom line: Expect a number of violations of your privacy and trespass for years to come while the FAA decides on just how far a drone can travel into YOUR airspace until YOU stand up and express your concern to your local, State, and Federal officials!

FAA can be contacted via email at UAShelp@faa.gov or call 844-FLY-MY-UA.

Source: THE PROPERTY RIGHTS OF AIRSPACE.

Source: Navigable Airspace: Where Private Property Rights End and Navigable Airspace Begins.

Source: 49 U.S. Code § 40103 – Sovereignty and use of airspace.

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Who pays for tree cleanup on your property?

You…

Is that your final answer?

In general, whereever the tree falls, it’s your problem.

Yep – regardless if that big, ugly tree in your neighbor’s yard falls on your property, it’s on your nickel…

However, it is suggested that you contact your insurance agent to verify that fact.

And be careful trimming a fallen tree yourself. Wear appropriate personal injury protection…branches trapped against a fixed object often spring back and can send you flying…

Source: Atlanta Journal Constitution, 8-21-2016, A7.

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