Q & A with Dottie Herman

---

Q1 - I know that before you purchase a house, you should do a title and lien search to protect yourself as the buyer. What are the key factors to look for? What are some "red flags"? What parts of each search document are vital? What are the terms I need to know, their meaning, etc.?

A - You are looking for a few things.

First, you should confirm that the seller really owns the property, and that you have a valid contract. Sometimes you will discover that there is a co-owner that was not previously disclosed. That co-owner must participate in the sale.

Second, confirm that there are no liens against the property and, if there are, that they get paid off at or prior to closing. If there is an open mortgage, it must be paid in full at the time of the closing. Other liens can be handled depending on the type. A mechanics lien sometimes shows up, and the seller must either pay the contractor who filed it, or "bond" it, which makes someone other than the buyer responsible to pay.

Third, a survey is done, or updated, to ensure that the house you are buying is within the plot lines of the property it is built on, and that the fences that surround the property follow the boundary properly. Be sure to have your lawyer review the title report carefully to ensure that each of these items is reviewed and explained to you.

---

Q2 - My co-op is raising again the monthly maintenance fee. I live in one of the largest apartments in the co-op; my quota is going very soon to be equal to my monthly mortgage. What are the consequences of this?

A - Excessive monthly maintenance fees for a co-op building tend to have an adverse impact on the values of the co-op apartments. For a potential purchaser of your co-op apartment, the higher the maintenance charges are, the less will be available for the mortgage payment, which often means a lower value. Sometimes the causes of excessive maintenance charges can make it more difficult for a shareholder to refinance or a purchaser to obtain a mortgage.

In many, if not most, cases, co-ops that already have high maintenance charges and are raising them to even higher levels are not doing it because they are adding additional services that would add enough value to offset the impact of the higher maintenance costs. The board may be in a difficult situation as a result of a prior event or unforeseen condition that forces them to raise the maintenance charges.

Whatever the reason for the increase, a co-op building with high maintenance charges is usually at a competitive disadvantage when compared to a co-op building with similar amenities but lower maintenance charges. This disadvantage could be reflected with lower apartment values in your co-op building.

---

Q3 - My home has been on the market for almost 2 years. I just received an offer, however, it is incredibly low. I don't know how much they will realistically come up in their price. What is the best way to counter? Should I just give them the lowest offer I will take, or start somewhere in the middle and work my way up? I am not sure if there is a strategy to negotiating.

A - Before you enter into a negotiation, it is advisable that you have a realistic price evaluation from a real estate broker or a Certified Appraiser so that you have the data and will know what your property is worth in today's marketplace. Properties that are priced correctly, sell. Once you have the proper information, you may want to lower your price just to start a dialogue, or just say that the offer is below the Appraised Valuation, if that turns out to be the case. Alternatively, the offer may be in keeping with the current market, in which case you will have to decide whether or not you are ready and willing to accept it.

---

Q4 - I am looking to buy a one bedroom apartment in Manhattan. I have a number of pets: 2 dogs, 2 cats and a bird. I know some buildings do not allow pets. How would I go about making sure I only go to buildings that are pet friendly? Are there certain buildings that like pets?

A - As you may be aware, even pet-friendly buildings have limitations as to the number of pets and the kinds of pets that are permissible. While Dogs may be allowed, cats and birds may not.  You can save yourself a lot of time by hiring a real estate professional  to try to meet this special criteria, but be prepared to maybe have to make  a hard decision.

---

If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com