Tag Archives: Real Estate Market

When a Phone Call is Not Enough

7 Mar

MetroBoston Publication Date February 20, 2013
By Attorney George Warshaw

Ms. M, a nice young girl, found an affordable South End Condo. It was her first real estate purchase. Mom even liked it.

Her offer was accepted and she paid a $1,000 deposit. .

The offer contained the usual mortgage clause. She had to submit a written application for a loan by a certain date.  If after making a diligent effort she didn’t get a commitment for financing by a later date she could cancel and get her money back.

Ms. M called a mortgage broker who gave her bad news. The condo didn’t qualify under Fannie Mae guidelines. A minimum percentage of condos had to sold or under agreement to owner-occupants. Since hers was the very first sale in a new development, the building didn’t qualify.

Ms. M asked for her deposit back. The seller refused claiming “a phone call was not enough.”

The offer required she submit a written application for a mortgage and make a diligent effort to obtain a loan. She never submitted a written application and never called any banks that might possibly give her a loan.

Is Ms. M entitled to her money back?

No, the court ruled. A phone call is not a written application and a diligent effort requires more than a phone call. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

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Getting Ready for the New Economy

19 Sep

MetroBoston, Publication Date September 19, 2012
By Attorney George Warshaw

Anyone who reads the events of the day, follows the economic and political news and takes a moment to assess it all, may conclude that we are in the midst of a new economic model. That new economic model can be summed up in one word: Turmoil.      

Turmoil is “a state or condition of extreme confusion, agitation, or commotion.” Merriam-Webster Dictionary. That, I believe, fairly sums up our present and future economy and the state of mind of those who manage it.

The good news for real estate is that the Federal Reserve recognized the turmoil and in a desperation measure last week agreed to pour a great deal of money into the economy to bolster it. This will keep interest rates extremely low for a long period of time to come.

But as Fed Reserve Chairman Bernanke admitted, there is not much more they can do if this last round of Fed magic doesn’t work. Since Washington politicians have abandoned common sense in order to make the opposing party and themselves look bad, there are several things one should consider: carefully manage your personal finances, cut your expenses, get rid of debt, but take advantage of opportunities in real estate when you see them. There will still be many ahead.

That’s my plan.  © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

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