Q & A: Maintenance Fees, Searching for Liens

---

My mother-in-law recently passed away and my husband and I are in the process of trying to sell her apartment. We went to contract and are awaiting board approval before we can close. We just learned that she had not paid maintenance for years and has $20,000 in maintenance fees. Do we have to pay this?

Yes, the payment of maintenance arrears is a condition which must be met before a Cooperative Corporation will permit the transfer of the shares you own to a new shareholder. The years that maintenance was not paid was a burden to the shareholders and is an obligation which now must be met.

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.? Please explain in simple detail.

You are looking for a few things.

First, you should confirm that the seller really owns the property, so that you know 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 usually 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, if any, 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.

I am thinking of changing careers. I have always had a passion for real estate. How would I go about becoming a real estate agent?

Choosing a career in real estate requires that you take a course of study in a licensed Real Estate School that meets the requirements of the state in which you live.

Once you have passed the State Approved courses, you must take the State Salesperson's Test. Once you have passed, you will need to find a real estate company that will sponsor you and hold your license.  It is helpful to begin your research of companies with which you may want to affiliate, before you take your licensing test so that you have a good idea of the firms that meet your criteria. Good luck and keep us posted!


Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to; Reporters@WPCnews.com