Real Estate & Property Law

Eliminate Your Exposure to the Elements!

By Francine D'Elia Wirsching

The snow is beautiful, for a while, but eventually you must take shovel in hand, especially if your husband is sick with the flu, and then when the power goes out at eight o’clock in the evening, reality sets in and the beauty fades. Actually, the enormity of 24 inches of white crystals was not lost on me when I ventured outside for the fifth time just trying to keep up (did I mention my husband has the flu!).

As a title insurance professional, the reality of unprecedented back to back snow storms in the Northeast and mid-Atlantic regions means one thing for your business: Don’t rely on verbal information when obtaining figures from a condominium or homeowners’ association.

Major snow events equate to major expenses for homeowners living in a community development; and unfortunately, there may not be enough money in the coffer to pay for the salting, de-icing, and snow removal.

Special Assessments are not uncommon when major storms hit; therefore, make sure when you are insuring a purchase or even a refinance, that you speak directly with the association manager the day of closing if not at the time of closing (start calling the day before) and get in writing any outstanding dues and in particular, ask when the next meeting is to occur and if any special assessments have already been voted upon. I would also suggest speaking with your underwriter to further determine how you can protect yourself against special assessments not revealed to you and the unsuspecting homeowner.

Start the dialogue between buyers, sellers, and agents and do all that is possible and necessary to eliminate the risk of exposure.

Back to shoveling.

Full post as published by Clearing Title on February 11, 2010 (boomark / email).