REMERGE KEEPS UP SO YOU DON'T HAVE TO!
Generally, disclosure requirements are revised twice a year; in April and October. REMERGE saves you time because we do the all-consuming transaction coordination AND we keep current with the ever-changing D.R.E. demands for disclosures, so you don't have to. Having said that, we urge you to read articles regarding new and revised disclosures on and the C.A.R. website at: www.car.org
Following is a cursory review of the new disclosures and reports scheduled for 2006: the Methamphetamine-Lab and the Supplemental Property Tax disclosures. These will be added to the REMERGE Seller's and Buyer's Disclosure Package for 2006. The Insurance Claims Report was added to the Seller's Disclosure Package October 2005.
NEW: METHAMPHETAMINE LAB DISCLOSURE
Assembly Bill 1078 that was passed into a law requires the Seller to disclose their knowledge of past or present use of a property to manufacture illegal substances.
ASSEMBLY BILL 1078.
Effective January 1, 2006
A property owner must disclose in writing to a prospective buyer or tenant if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by Meth Lab activity. The owner must also give a copy of the pending order to the buyer or tenant to acknowledge receipt in writing. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with Meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs. "Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000."
REMERGE will be including a METHAMPHETAMINE LAB DISCLOSURE in all disclosure packages when we are on the Seller's side. A copy will be sent to the Listing Agent for the Seller to sign when we are on the Buyer's side. This will begin January 1, 2006.
NEW: SUPPLEMENTAL PROPERTY TAX NOTIFICATION
Property taxes are not zeroed out at the close escrow. The Buyer is startled when he receives a sizable Supplemental Property Tax bill. It can arrive as late as 18 months after the close of escrow. The first disconcerting call he makes is to his Agent. Evidently, many Agents got this call.
C.A.R. is preparing a new document for 2006 that alerts the Buyer that he will receive a Supplemental Property Tax bill some time after the close of escrow. It is yet unclear whether this will be an addendum to the Purchase Agreement or a disclosure. If it is an addendum, the Agent will have the Buyer sign it along with the Purchase Agreement. If it is a disclosure, it will be included in the REMERGE Buyer's Disclosure Package as soon as it is available.
SELLER'S INSURANCE CLAIM REPORT UP TO 5 YEARS
Insurance Claims is an emerging concern to the real estate transaction. The Seller may not want to disclose or may not know about insurance claims that were filed against his property in the past 5 years. In some cases, he may not consider repairs made using a home warranty policy as claim item that is reported to the insurance claim database.
Regardless of what the Seller knows or doesn’t know, the findings of the Insurance Claims Report may result in a much higher than expected insurance rate for the Buyer, or, in extreme cases, the uninsurability of the property. If you were the Buyer, wouldn't you want this information earlier rather than later?
By ordering a report from this professional source, the Seller shifts his liability for insurance claims information to a third party. If you were the Seller, wouldn't you want to shift liability?
On the Seller's side, REMERGE includes an authorization and order form for the Insurance Claim Report from A-1 PLUS in the disclosure package sent to the Seller. The Seller's signature is required. The order form notifies the Seller that the cost of this report is $25 and will be billed to the Seller in escrow and that there is no charge if the listing cancels.
On the Buyer's side, we can only request that the Listing Agent provide the Insurance Claims report unless you specify a demand for the report in the purchase agreement, page 2, 4B OTHER INSPECTIONS AND REPORTS lines (4) or (5).
OPT OUT OF SELLER'S INSURANCE CLAIMS REPORT?
If you or your Broker do not want the Insurance Claim Report as part of the Seller's disclosures, please e-mail or fax a statement to that effect to your REMERGE coordinator. REMERGE will send you a Waiver request that includes language that you acknowledge the availability of the Insurance Claims report and that you instruct REMERGE Transaction Coordinators to not include it in your Sellers' disclosure packages.
IMPORTANT!!
REMERGE 2006 FEE SCHEDULE
In order to keep up with the rising cost of upgrading services, supplies, maintenance, utilities, and GAS so that coordinators can make it to the office to work on your files, the fee for REMERGE Basic and optional services will increase beginning January 1, 2006.
Effective January 1, 2006, the REMERGE fee for Basic Service will be $400 per side ordered. This includes: continuous updating of the disclosure requirements, full service transaction coordination, C.A.R. disclosure forms, REMERGE "Election to Order or Waive" for all contractually named inspections, Environmental Hazard and Earthquake booklets, archived files, regular mailing costs and one complete transaction file in paper or CD format. The cost of the Zone Disclosure, Property Tax and Insurance Claims reports are invoiced in escrow to the Seller or Buyer as indicated in the contract.
The complete REMERGE 2006 Fee Schedule Menu, will be posted on-line December 1, 2005. You will receive 2nd notification in the December edition of the REMERGE Gazette.
All Listing and Sale transactions registered on www.remerge.com through midnight December 31, 2005 will maintain the current fee of $350 .
SI! REMERGE HABLA ESPANOL!
REMERGE Transaction Coordinators introduces our newest staff member, DORA CASTRO. We welcome the opportunity to increase our service to the California Community of Latino Realtors and their clients.