Frequently Asked Real Estate Questions
Here are some of the common questions we get regarding real estate sales and purchases.
As a seller, it means you will not do any repairs on the property before the sale is closed. However, in California there are two things that you must be sure are done prior to closing the sale.
- There must be operable smoke and carbon monoxide detectors in the property that conform to local codes.
- Any water heaters must be strapped and braced to avoid movement during an earthquake.
There’s one more caveat. If the buyer has an inspection contingency in the offer you’ve agreed to, they will have the right to ask for repairs later even if it was an “As-Is” offer. That doesn’t mean you have to agree to do the repairs if they ask, but this contingency will give them the option of walking away from the transaction and getting their deposit back. Again, this would be the case even in an “As-Is” offer, depending on how the contract was written.
In the Bay Area, there is no requirement that anyone do termite repairs, Section 1 or Section 2. Many years ago it was the case that a home could not change hands unless the active infestation was corrected. This is no longer the case. Certain types of loans may dictate that certain repairs are made, but it is not a state law. If you do not want to do these repairs when you sell, do not accept an offer from a buyer that requires these items to be repairs.
If it’s an all cash buyer and you have already moved out, we’ve done them as quickly as 3 days. If it’s all cash and you need more time to move, you can negotiate a counteroffer with a timeline that better suits you or negotiate a way to stay in the home for a period of time after the sale closes. If a loan is involved, it can take 25-30 days. Sometimes longer if it’s a VA loan or a loan with less than 10% down payment. Again, if that’s too fast for you, you can negotiate a counteroffer to give you more time, or negotiate a way to stay in the home for a period of time after the sale closes.
This is an IRS code (law) that allows you to sell an investment property and acquire another investment property without paying Capital Gains tax at the time of the sale. We are not CPAs and recommend you consult with your CPA before making investment decisions.
You must identify the replacement property within 45 days of the closing date on the sale of your existing property. You must close on the replacement property within 180 days. We are not CPAs and recommend you consult with your CPA before making investment decisions.
No. When you sell your existing investment property you will need to have a third party 1031 Exchange intermediary involved in the closing process. They will hold your proceeds until you buy your new property. Once you place the money into your account, it’s too late and a 1031 Exchange will not be allowed by the IRS. We are not CPAs and recommend you consult with your CPA before making investment decisions.
You should disclose you’re the Trustee, you have limited knowledge about the condition of the home, and have not lived there. You can use an abbreviated disclosure form for Trustees. In that form you can disclose if, to your knowledge, someone passed away inside the home.
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Gary Nobile
Realtor, MBA