The Palm Beach Post from West Palm Beach, Florida on March 29, 1998 · Page 341
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March 29, 1998

A Publisher Extra Newspaper

The Palm Beach Post from West Palm Beach, Florida · Page 341

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West Palm Beach, Florida
Issue Date:
Sunday, March 29, 1998
Page:
Page 341
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12 THE PALM BEACH POST ' RESIDENCES ADVERTISING SECTION SUNDAY, MARCH 29, 1998 h Weasel clause allows buyer to slip out of sale Real Estate Law The clause allows the buyer to cancel the sale and get the deposit back for just about any reason. Question: I saw a sales agent on TV mention that sellers have to be careful about "weasel clauses," but she didn't explain anything about them. What's a weasel clause? Answer: A weasel clause is a powerful contingency that buyers sometimes try to slip into a purchase offer. If the offer is accepted, the clause allows the buyer to cancel the sale and get the deposit back for just about any reason. A typical weasel clause might simply read, "This offer is subject to written approval of buyer's attorney" or "This offer is contingent upon approval of buyer's adviser." The seller might think it's a harmless condition, but it essentially gives the buyer power to unilaterally cancel the contract If the buyer gets cold feet or finds a different house to buy, all he needs to do is tell his lawyer or "adviser" to withhold his approval of the sales offer. Most sellers should be willing to accept commonplace contingencies, such as those that allow the buyer to cancel the sale if the home fails an inspection or suitable financing can't be arranged. Accepting an all-encompassing "weasel clause" is a different matter. It should be rejected unless the seller is unusually desperate. Documents needed for a loan Q: My husband and I have started looking for a home. What documents will policy, you'll save money if you buy it now rather than later: It's cheaper for the insurer to issue two policies at once. Good news from home Q: I am in the Army and am writing to you from Germany. My wife has been sending me your articles because we would like to buy a house when I get back home. Can active military personnel use the VA loan program? A: I've got good news from the home front Yes, you and other active military personnel qualify for the Veterans Administration home-loan program. The VA will need one of two documents to establish your eligibility. You'll need to provide either Form DD 13, "Statement of Service," or a letter from your personnel or commanding officer on military letterhead that states your name, service serial number, the length of your active duty and some other basic information about your service record. we need to show a lender in order to get a loan? A: Different lenders require different levels of documentation. At a minimum, expect to show complete copies of your past two tax returns (including your federal W-2 or 1099 forms) and your most recent pay stubs. Your lender or mortgage broker will also want statements for all your banking and investment accounts for the past three months, and a coupon book or recent statements for all your outstanding loans and credit card accounts. You'll also need to provide a current profit-and-loss statement and balance sheet if you're self-employed. If either of you have filed for bankruptcy over the past two years, be prepared to provide a written explanation of the reasons behind the filing and a copy of the final discharge papers. And if you've been divorced, the lender will want copies of the final divorce decree. Title insurance is good business Q: I agreed to buy a home last week, and yesterday the bank gave me an estimate of my closing costs. It includes a $325 charge for "lender's title insurance." When I called the bank for an explanation of this charge, I was told that it protects the bank's interest in my home and that all borrowers have to pay for the insurance before their loan is approved. If the insurance protects the bank instead of myself, shouldn't the bank have to pay for it instead of me? A: Lenders won't make a home loan until the property is covered by a lender's title insurance policy. Though the policy benefits the bank, the home-buyer is usually required to pay for it as a prerequisite for getting the mortgage. A lender's title policy will reimburse the bank for its losses in the unlikely event that your ownership of the home is stripped away by a legal challenge. Say the seller's long-lost niece shows up a few years from now and can prove that she was secretly deeded the home a week beore you bought it A judge might award the property to her and toss you out in the cold, but the lender wouldn't lose any money because its loss would be covered by the title insurance. You can get similar protection for yourself by purchasing an "owner's title policy" in addition to the policy you must buy for the lender. If you want an owner's Ellen James Martin is a columnist and senior financial reporter for The Baltimore Sun. 627-1 1 1 iaUAliU)1 US BERMAN REALTY . r-. r servwg KOfrmewt palm beach county P.A.f M K K AC H 6973 Donald Ross Rd. Palm Beach Gardens, FL 33418 1 mile West of 1-95 since 1VM ma tit Country Estates in j - PCTT f?7 sir --k r"" -rv .p Mil t I ; J B(Wim& Tmmi Sf awaaac 32i1S Po W maaxai laleWBAFOtBaFratBDawlpoaM a ahadrnd 3iii4 eMU Pa t n feme OR lA X R amwaaw w ?ta arcal puna sic 3577i Piwate 4 Treed" 4.22 CBS sour heated 4 to pool, open tat etaewtasl rm trapiace i Im rm lot matter ba aRoarm tub sec. Storm srurteis 20il2 Tufty shed, covered RV port arconc PAD -229 900 tC USTtG PtRFECT CC0TW VUl wnt poa 36i1(ici dp0i aMieMi rmNni penal ant caM AC. mmvm 1 nt wrvi ongt on pr4 195K Lush landscaping" 32.2 screened pool 4 porch, ararjiaoe ft tanary mv. Sec system scat Br plan, lot awwvy rm cabana ba. an wak-at closets. dm) rd 179 900 1 yr new" CBS 322. Me. cent vac. sp BR plan. eal-n kitchen opens to family room agr 4 bngnt, cone DR. 2 30 acres. $152 900 I - T ----- ll'a-. v - ... 3d pe eot ctaemd pato 4 c m CaTeoa cewqs I m pa im iwer Spa Cuson CBS. a mo Co owl m 12? pus iti0 AC arjrtthce Or mens V ft twig m 3 one AC. bmaaji noon. cafwM oaeij. hucf mtaar at mt S0 IUMBI ' u J A.' 4 aar ai t 1 1 W tarn &m t Vi r aaa Uml iaaMiX jaa:ValBaari aa.'taaaraiia5ms'iaBiaat Heated pootspa" CBS 122 cheTs Mcnen ereaxtast bar 4 noc. trapiace skytnts m Mcnen 4 Im rm scat BR pan. cabana ba Iga raoe laundn mi Sec syst core OR '196 900 Pvam 4.2? wry mm aw pool afroirteJ by wo 4 s at aofi anr MutnariaHMr Potsee tow u' YlI SmpM t 1 15 n wnt w-K, tor (rK I or 500 I W a efeeata not rl nrV wee I law m tgr KMl( rmeneepwen 15590) 4 i LOTS We Have The Largest Selection Of Acre Lots. Starting At 30,000 With Owner Financing Fenced w w cvte 4 i 2 CbS, are root, sor pnotpetto. stryhcm areptace. format a . dr an rm eat-i 1(4 Heavily eed. M cone dr. 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