The old town and surrounding post-war suburbs of many cities provides countless opportunities for the unexpected when selling and purchasing vintage homes. As an architect experienced in preservation and the renovation work of older structures, I have a tendency to look for the trouble spots of a building first. As a Realtor I’m conscience of trying not to find trouble, queer the deal, or get in the way of a contract. I do wish to protect my client’s interests while avoiding panic. Most of the time, problems that are detected can be remedied by not overreacting and understanding the facts.
I have found through my years in real estate that many agents are not well educated when it comes to Underground Storage Tanks – no disrespect intended, but a little education can make a difference. In most instances when a home owner tells the listing agent the house is supplied by gas or electric fuel they take them at their word and continue the interview about the property. The same thing happens when a buyer’s representative visits a property where the listing brochure indicates electric or gas fuel. When a tank is discovered agents are not sure how to respond and sometimes overreact unnecessarily.
Agent responsibility and culpability aside, often a good home inspector can tell if a home was once supplied with fuel oil. In some instances they can tell you if there still is or could possibly be an underground storage tank present. Evidence includes abandon supply lines, converted boiler units, concrete stains, exterior vent stacks or fill valves. It’s all a matter of knowing what evidence to look for in and around the home. This evidence may warrant further investigation by a purchaser. Once there is discovery, contacting a qualified, reputable environmental engineer is the next step.
There are instances of course where no evidence of a past UST is present; while the age of the house, typical neighborhood conditions, or the possibility of an above ground tank may indicate otherwise, we have to go on the documentation or word of the seller. In this case it’s up to the purchaser as to whether they wish to proceed with further testing or investigation – Virginia is a buyer-be-ware State.
The point to all this is that of discovering the point of responsibility, or the “Responsible Party” (RP). I have had several sellers come to me after discovery of a UST, saying “the agent who sold this property assured me there was no underground tank; how could there possibly be one now” or more likely “how could they possibly miss something you saw in five seconds”? Now they have become the State’s RP instead of the previous owner. This is unfortunate and unnecessary, and they are probably not too pleased with the agent who sold them the home.
The point of responsibility simply means the current owner of the property goes on record as the “Responsible Party” for the UST. It is unlikely if the tank is properly addressed, but they are the party the State will engage should something go wrong, now or in the future. John Pollard, of Pollard Environmental, LLC, states that 70% of the UST’s still in use have been found to be leaking; 80% of tanks abandoned are leaking or had leaked at some time. For more information about contamination and remediation you can visit their website.
Fortunately, Virginia has been proactive in the removal or remediation of UST’s. All of this started as part of the efforts to save the Chesapeake Bay through the “Chesapeake Bay Preservation Act of 1988”. While there is no legal requirement to have existing tanks inspected for leaks, it is in the best interest of purchasers to have them inspected. If a seller knows one is present, it is a matter of disclosure. The seller may as well have it tested and remediate it in accordance with Department of Environmental Quality (DEQ) recommendations. Local codes like the BOCA National Fire Prevention Code and the Uniform Statewide Building Code, as well as local ordnances, may also be applicable.
To assist the RP, there is currently financial assistance through the Virginia Petroleum Storage Tank Fund (VPSTF). There is a deductible of approximately $500 but the remainder of the work is covered by the Fund. Some remediation companies charge additionally for costs outside the Fund, but these costs should not be a “deal breaker”. After all, the goal is to sell the house.
UST’s are only one obstacle face by people working with older homes, but if you love established neighborhoods and the character of vintage architecture, this kind of thing should not prevent you from purchasing or selling a property. Speak to your professional Realtor, get another expert involved if necessary, kick the pebble off the path, and make the deal happen!
For more insight, information and any questions on this and other important issues, please contact your most valued real estate professional, we are here to serve you!
Sources: Virginia Department of Environmental Quality; Chesapeake Bay Act of 1998; Pollard Environmental, LLC
John VanderSyde, Associate Broker, Virginia Properties, A Long & Foster Company
Tuesday, March 31, 2009
Representation: Full Service vs. Limited Service - In Virginia
I am a full service REALTOR® so I believe you should always seek Full Service representation when selling or purchasing a home. The benefits far out weigh the risks, and the security of having a true real estate professional’s guidance is worth the cost of this service. Why would you wish anything less for your most valued asset?
It used to be that “Discount” Brokers seemed to offer Sellers the same level of service that Full Service Brokers provide, but for less cost to you; now, in accordance with Virginia law, they must call themselves “Limited Service Representatives”. They must disclose what services you are or are not receiving, at whatever cost you agree to do business with them. Surprising to some, there is no guarantee a Seller will be saving money through a lack of representation. In fact, statistics show, in most cases they are leaving money on the table!
Limited service disclosure was legislated into effect on July 1st, 2007. Law makers felt it was necessary to eliminate any confusion that existed as to exactly what services one should expect to be provided in real estate by a limited service agent as defined in Virginia agency law. This law of “disclosure” requires limited service representatives to tell sellers they are contracting with exactly what services they will and will not provide to you.
A Limited Service Brokerage Agreement must include: a) a list of duties NOT provided; b) a list of duties TO BE Provided. They are also required to furnish sellers all required disclosure forms along with disclosure of all rights and obligations with regard to: 1) The Virginia Residential Property Disclosure; 2) Condominium Resale Certificates; 3) Property Owners’ Associations Act. Beyond these requirements, the Limited Service Representative may or may not submit property information to the area Multiple Listing Service, and a Seller should not expect to receive any representation with regard to the home they have on the market. One can pay more to get more from their menu of services, but you are otherwise on your own!
While this article is targeted at Sellers, the same applies for Purchasers believing a better deal is available without using a Realtor. This is most often not the case. It is customary for the commission to be negotiated with the Seller prior to a home being put on the market. A purchaser will receive no assistance from a listing agent. Further more, without representation most purchasers don’t know what to look for, what questions to ask, how to review and negotiate a contract, or what the actual value of a property is under current market conditions.
In contrast, the security of knowing you have a Full Service Real Estate Professional helping you is priceless. We are working on the job to serve you continuously from start to finish, and we know market trends. A Full Service provider will have a comprehensive plan of representation available to you along with their marketing plan for both Sellers and Purchasers. You’ll come out ahead more often when you work with a REALTOR® you trust!
For more insight, information and any questions on this and other important issues, please contact your most valued real estate professional, we are here to serve you!
Sources: Virginia Legislation (HB 316) Chapter 627 of the Code of Virginia; Central Virginia Regional MLS Limited Service Representation, CVRMLS_LSLA form REV. 6/07
John VanderSyde, Associate Broker, Virginia Properties, A Long & Foster Company
It used to be that “Discount” Brokers seemed to offer Sellers the same level of service that Full Service Brokers provide, but for less cost to you; now, in accordance with Virginia law, they must call themselves “Limited Service Representatives”. They must disclose what services you are or are not receiving, at whatever cost you agree to do business with them. Surprising to some, there is no guarantee a Seller will be saving money through a lack of representation. In fact, statistics show, in most cases they are leaving money on the table!
Limited service disclosure was legislated into effect on July 1st, 2007. Law makers felt it was necessary to eliminate any confusion that existed as to exactly what services one should expect to be provided in real estate by a limited service agent as defined in Virginia agency law. This law of “disclosure” requires limited service representatives to tell sellers they are contracting with exactly what services they will and will not provide to you.
A Limited Service Brokerage Agreement must include: a) a list of duties NOT provided; b) a list of duties TO BE Provided. They are also required to furnish sellers all required disclosure forms along with disclosure of all rights and obligations with regard to: 1) The Virginia Residential Property Disclosure; 2) Condominium Resale Certificates; 3) Property Owners’ Associations Act. Beyond these requirements, the Limited Service Representative may or may not submit property information to the area Multiple Listing Service, and a Seller should not expect to receive any representation with regard to the home they have on the market. One can pay more to get more from their menu of services, but you are otherwise on your own!
While this article is targeted at Sellers, the same applies for Purchasers believing a better deal is available without using a Realtor. This is most often not the case. It is customary for the commission to be negotiated with the Seller prior to a home being put on the market. A purchaser will receive no assistance from a listing agent. Further more, without representation most purchasers don’t know what to look for, what questions to ask, how to review and negotiate a contract, or what the actual value of a property is under current market conditions.
In contrast, the security of knowing you have a Full Service Real Estate Professional helping you is priceless. We are working on the job to serve you continuously from start to finish, and we know market trends. A Full Service provider will have a comprehensive plan of representation available to you along with their marketing plan for both Sellers and Purchasers. You’ll come out ahead more often when you work with a REALTOR® you trust!
For more insight, information and any questions on this and other important issues, please contact your most valued real estate professional, we are here to serve you!
Sources: Virginia Legislation (HB 316) Chapter 627 of the Code of Virginia; Central Virginia Regional MLS Limited Service Representation, CVRMLS_LSLA form REV. 6/07
John VanderSyde, Associate Broker, Virginia Properties, A Long & Foster Company
Monday, March 30, 2009
Opening Blog From InSydeHomes
March 30, 2009 - Opening Blog From John VanderSyde, Associate Broker
It's a sunny, warm, spring morning; what better day could there be to get started with a new BLOG? There is certainly no better day to sell Real Estate!
Ann & John VanderSyde are Realtors with Virginia Properties, a Long & Foster Company, in Richmond, Virginia. You may visit our web site at www.InSydeHomes.com for a complete list of services and profiles. Please let us know if we can help you or someone you know with Real Estate in the Richmond Metro area!
Our Mission is to provide specialized professional service to our clients in order to reach all stated goals; we live through respect, ethics, accountability, and measure our success through your satisfaction.
Please look for more posts to come.
It's a sunny, warm, spring morning; what better day could there be to get started with a new BLOG? There is certainly no better day to sell Real Estate!
Ann & John VanderSyde are Realtors with Virginia Properties, a Long & Foster Company, in Richmond, Virginia. You may visit our web site at www.InSydeHomes.com for a complete list of services and profiles. Please let us know if we can help you or someone you know with Real Estate in the Richmond Metro area!
Our Mission is to provide specialized professional service to our clients in order to reach all stated goals; we live through respect, ethics, accountability, and measure our success through your satisfaction.
Please look for more posts to come.
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