Sandra Haswell

News Articles
I've selected the following articles as "recommended reading" to keep Buyers and Sellers informed about current news items and legislation.

Headline: SOME IMPROVEMENTS ARE BETTER THAN OTHERS AT INCREASING HOME'S VALUE   Back to Top
Thinking about improving your current home or buying a fixer-upper? Before you start spending money doing either, here are five things you should know:
  1. Quality improvements to a kitchen or bathroom - such as replacing laminate countertops with granite ones - almost always increase the value of a home, so they are your best investment.

  2. Maintenance improvements are necessary, but don't expect the value of your home to go up as a result. Exterior paint jobs may help increase the curb appeal of your home but maintenance is a necessary part of home ownership. Failing to maintain your property adequately will decrease the value by whatever it wil cost to repair the damage or implement necessary maintenance improvements. Protect your home's value by keeping up with minor repairs.

  3. Cosmetic improvements neutrally affect a home's value.

  4. Be aware of over-improving your home.

  5. Keep up with home values in your neighbourhood.
Headline: CONDO OWNERS' DISCLOSURE   Back to Top
(excerpt from article by Mark Pearlstein, Chicago Tribune, 2/15/04)
Question:  Last September, I sold my condo. The Condo assn board ordered all owners to replace their windows. I did not replace my windows and I did not make my real estate agent aware of this fact. Three weeks after the closing, the association sent a letter to me reminding the "owner" of the deadline for the window replacement. The new owner who received this letter contacted my attorney and is seeking to collect the money from me. Can I avoid paying for the replacement of the windows because I sold before the deadline of the window replacement? What do you advise I do?
Answer:  Write a check to the buyer. You were required to disclose a key or material fact to the purchaser of your unit. This misrepresentation is a basis for the buyer to seek reimbursement from you for the cost of installing the windows. Because you were placed on notice to install the windows before the sale, this fact should have been disclosed to the purchaser.

Headline: IS YOUR TENANT A TERRORIST?   Back to Top
(excerpt from the National Association of REALTORS newsletter: RCA Report (REALTORS Commercial Alliance, Fall 2004 issue)
SECURITY WATCH
Tenant screening and evaluation have been long-established practices in both multifamily and commercial properties. But in the wake of Sept. 11, the goal of screening is distinctly different.

"It used to be that the ability to pay was the only major criterion for a tenant. Now commercial owners have to take a harder look at what companies do and any limitations or risks that may pose," says Sal Lifrieri, president and CEO of Protective Countermeasures and Consulting Inc., and former director of security and intelligence operations for New York City's Mayor Rudolph Giuliani.

Unlike financial institutions, commercial real estate owners and managers are not responsible for implementing a Customer Identification Program or for meeting other anti-money laundering provisions of the USA Patriot Act. However, real estate professionals are covered by Executive Order 13224, which prohibits any business from entering into business relationships with SDN entities listed on the Specially Designated Nationals and Blocked Persons list at The Deparment of the Treasury.

An SDN check is often included as part of a personal credit check, but larger commercial companies may find it desirable to purchase special interdiction software for this type of screening.

Another critical piece of identification that commercial owners and managers should require of every prospective residential tenant is a Social Security or Individual Tax Identification number, which are available to both U.S. citizens and resident aliens legally entitled to work in the United States. ITIN numbers, which are issued by the Internal Revenue Service, are available to non-citizens who need to report income for tax purposes, but are not eligble for SS numbers. Social Security numbers - but not yet ITINs - can be verified electronically through such major credit reporting agencies as Equifax and Experian.

"By requiring that all prospective residential tenants have either an SSN or ITIN and a driver's license or passport, you're able to do what I call 'verification by proxy'," says Robyn Guidara, director of training and corporate development for RegistrySafeRent in Rockville, Md. "Because - at least in principle - state and federal issuing agencies will have verified immigration status before granting these documents, you have some assurance that a tenant's citizenship records and identity are correct," she says.

In the case of residential tenants, it's also important to ensure that a company's identification verification policies don't violate Fair Housing regulations, warns Guidara. Apply the same procedures to every applicant as a protection against charges of discrimination. Also review Department of Housing and Urban Development regulations that define what types of documents are acceptable.

Christopher Falkenberg, president of Insite Security in New York City, suggests looking at a new company's articles of incorporation and other corporate documents and confirming them with the state of incorporation.

Many of the same practices you'd use in hiring an employee, such as checking references and recent or pending lawsuits, can also provide valuable information on commercial tenants, suggests Lifrieri. When doing this type of screening, also consider whether a company might be a likely target for terrorism or violent demonstrations. A good overall manual is Preparing for Terrorism published by IREM ($40 plus tax & shipping at 800/837-0706).

Any odd behavior should also trigger concerns. "If you're leasing to a company that would normally operate 9 to 5, and they're asking you questions about access at 2:00 am, it should raise a red flag," says Lifrieri. Ultimately, the most important element in successful tenant screening is to be concerned. "The rule is, 'Don't heistate to make the call'," says David Cid, president of Salus International. "It may be nothing, but in the post-9/11 era, the government will take you seriously."

Six Screening Tips
No one factor is a sure-fire indication of trouble, but several combined should raise your suspicions, says David Cid.
  1. BE SURE ID IS CURRENT. Look at expiration dates, and add a note to your tenant tickler file to recheck near the time a document expires.
  2. LOOK FOR MISALIGNMENTS, raised letters, misspelled words, or fading that might indicate a forgery.
  3. GET A COPY of the passport or driver's license and keep it on file.
  4. LET YOUR MIND BE COGNIZANT of anything that seems inconsistent. Don't just ignore your instincts.
  5. BE SUSPICIOUS OF CASH. There may be a good reason, but most people conduct major business transactions such as rent payments in other ways.
  6. WATCH FOR TENANTS who seem to avoid contact with you or other tenants.
For a copy of the complete article email me at sandhaswell@comcast.net

Sandra Haswell