‘Tis the season for giving and gratitude!

November 22, 2019

‘Tis the season for giving and gratitude! I’m honored and humbled to have participated in the following charities this past year. If you’re preparing your house with a “winter clean” in anticipation of guests (or the new year for that tax write-off) and are looking for places to donate clothing and household goods, please see my suggested charities. Feel free to post charities of your choice as well—always good to expand the list!

Charity Roundup

Children’s Cancer Association Wonderball While this year’s figures are not yet available, CCA raised $1.2 Million at last year’s Wonderball. My wife and I were proud to attend and contribute in association with Mark Aalto of Advantage Mortgage and his wife who hosted our table.

SOLVE Beach Cleanup has become a family tradition. This year’s efforts were the result of over 4,900 volunteers collecting and removing an estimated 21,000 pounds of litter. Sign up with me for 2020: https://www.solveoregon.org

22KILL – Veterans suicide prevention through mental wellness and empowerment programs. This organization is especially important to me since my dad was a veteran of the Vietnam War. I have donated to and participated in golf tournaments benefiting 22KILL. Please visit their website for more info.

Cat Adoption Team Not only have I donated to CAT, but we have adopted cat family members from this great organization. They also accept donations at their charity thrift store, so please check out what they accept before donating.

We have also donated to and adopted cat family members from Oregon Humane Society – https://www.oregonhumane.org

From L-R: Chris Kane of Portland Bankruptcy Law Group, Me, Kyra Olsen of Rose & Thistle, and Al Ekman.

Kiwanis Doernbecher Children’s Cancer Program Portland Golf Tournament I’ve been a volunteer organizer and hosted two golf teams for this event for the last four years.

Friends of Outdoor School I was an Outdoor School counselor at Camp Meriwether when I was a Junior and Senior at Tillamook High School, so donating to this charity is close to my roots.

Friends of the Columbia Gorge I have donated to and volunteered at FCG since the Eagle Creek Fire in 2017. My wife and I have also purchased Timbers/Thorns scarves representing Columbia River and Multnomah Falls. Those purchases have helped fund efforts to restore the area.

Donation Guide

If you would like to donate to a local charity, below are some organizations to consider. Always check with the charity for donation guidelines prior to donating. Some of these organizations offer to pick up your items for a small fee.

Community Warehouse
William Temple House
Schoolhouse Supplies
Mainspring
Transition Projects

Surveying Portland, One Marker At A Time

Ever wonder how a lot that a house or condo complex sits on came about in the Portland metro area?

I was walking in Southeast Portland recently and noticed a stone marker near Lone Fir Cemetery. Curious about it, as it clearly wasn’t a headstone, I discovered that it is one of many old survey markers in the area. My thirst for history, as always, lead me on an inquisitive search for more information.

One of the cemetery boundaries used to be called Baseline Road. You may now recognize it by its current name, Southeast Stark Street. It is named for the baseline of the Willamette Meridian (see photos at end of this article), which runs east to the Idaho border and west to the Pacific Ocean. The Willamette Meridian was established in 1851 by Oregon’s first Surveyor General, John B. Preston. According to the Oregon Encyclopedia, the “Willamette Meridian was selected as the only principal meridian necessary to survey all of what is now Oregon and Washington.” This designation is the basis for all Pacific Northwest land surveys to this day.

why is this relevant to you?

If you want to modify something on your property, such as putting up a fence, it’s always a good idea to check your property’s plat to verify the legal boundaries. Sometimes a neighbor has something built beyond the boundary, and depending on conditions such as use of land or other factors, adverse possession may be enforced. Adverse possession is different from an easement. An easement is a legal allowance for access to property, such as allowing Comcast to provide cable lines up to your dwelling. If you would like to have a property properly surveyed, you should hire a Professional Land Surveyor who is licensed by the state.

Resources

SAIL – Survey and Assessor Image Locator is a place to find survey certificates for an address in Multnomah County. This ESRI map provides more detailed information on property boundaries than PortlandMaps.com.

Professional Land Surveyors’ Guide to Selecting an Oregon Land Surveyor.

To look up a license of a land surveyor, the state website advises to call their office at 503-362-2666 to get the most accurate information.

Advantages to Buying a Home in Oregon During Winter

There is a misperception that because Oregon is rainy in the winter, house hunting should happen between March and August. Sure, most new homes come onto the market then, but it is also the most competitive time to buy. You can often expect bids over asking price with multiple-offer situations, depending on the home’s price, condition, and location. Contrary to popular belief, for those who have not lived in Oregon, everything is dry in the summer. So if you’re looking in the fall/winter, you’ll be able to detect:

If the roof leaks
How well gutters drain
Standing water issues
If the basement leaks

These issues could indicate a bigger problem such as mold, which could require expensive remediation. They may also contribute to reducing the purchase price and/or ensuring repairs are completed prior to closing.

More advantages to a home search in the winter, aside from walking in the rain:

Sellers in winter months may have a home that was either overpriced, had condition issues, or is in not as a desirable location. These factors can cause their home to sit on the market.
There could be personal reasons driving the desire to sell in off-season, such as a job change.
Sellers are more motivated on price and repairs.
Motivation to sell before the holidays could be about getting the family settled quickly into a new home and having a budget to buy family presents.
Perhaps there’s a tax reason for trying to sell before the close of the year.

If you are hesitant to start your home search now, I hope this information helps with a different perspective on timing your search. I’d be happy to show you around Portland. Just drop me a line.

Donuts, Dive Bars, Drinks, and Dual-Needs Dining

August 7, 2019

Portland has experienced explosive growth over the last 20 years. This means some mainstays have weathered the influx of population, while new places have given us a fresh look at culinary experiences. Here is my list of top fives in the categories of donuts, dive bars, drinks, and dual-needs dining. Tell me if your favorites are missing from this list!

Donuts

Coco Donuts – Six locations in Portland where you can choose from cake or yeast. Apple fritter, hello!

bite taken out of custard-filled donut with coffee in background — *Boston Creme donut at Coco Donuts on NE Broadway*

Blue Star – Known for their brioche-style donuts, Blue Star also has vegan options. Eight locations in Portland.
Sesame Donuts – Seven locations in the Portland-metro area, with one right downtown.
Pip’s Original – This place always has a line on weekends, so better to visit during the week. 4759 NE Fremont
Annie’s Donuts – My personal favorite! 3449 NE 72^nd (at Sandy Blvd.)

Dive Bars

I’ve culled these selections to represent different neighborhoods across Portland. Enter at your own risk!

Goose Hollow Inn / Southwest – Founded over 50 years ago by former Mayor Bud Clark, the Goose Hollow Inn is a cozy local watering hole serving up sandwiches with carrot sticks in lieu of French fries. 1927 SW Jefferson St.
Rose & Thistle / Northeast – Going strong for over 25 years, the back patio of this place can easily accommodate large groups. 2341 NE Broadway
Rose & Thistle Pub

My Father’s Place / Inner Southeast – Serving up copious amounts of grease and beer, you’ll never know you are no longer in 1978. Rumor has it, the carpet was replaced recently. 523 SE Grand Ave.
Joe’s Cellar / Northwest – a staple for Longshoreman and industrial graveyard shift workers (opens at 7 am), Joe’s has pool tables, video lottery, cozy booths and a u-shaped bar for patrons’ easy access to drinks. 1332 NW 21st Ave.
The Lodge Bar & Grill / Southeast – Spacious patio, occasional live music, pool table and breakfast, lunch, and dinner. 6605 SE Powell Blvd.

Drinks

Cabezon – hands down the best Old Fashioned I’ve ever had. Try the cioppino to get a taste of everything.
Taqueria Nueve – extensive tequila and mezcal offerings in a bright, colorful, airy setting. Within walking distance to Doug Fir Lounge if you’re headed to a show.
Matador East – speaking of extensive tequila menu, this place also has an amazing happy hour food value. The watermelon aqua fresca is a great non-alcoholic option. Choose from eastside or westside location.
The Goose (formerly Esparza’s) – Open for happy hour!
Teote House Café – Awesome back patio; counter service; gluten-free. 1615 SE 12th Ave.

When you’ve converted to veganism and your relatives visit:

La Cocina – No website to show you their giant menu, but they easily and willingly (gasp) accommodate dietary specifications. Open Monday – Saturday, 11 am – 9 pm; closed Sunday. 3939 NE Martin Luther King, Jr. Blvd.
Gravy – Mini iron-skillet-shaped crispy hash browns? Vegan or non-vegan namesake gravy? This breakfast joint has you covered. 3957 NE Mississippi and 3101 NE Sandy
Harlow – Vegan by default, adding eggs is optional. Breakfast and lunch. 3632 SE Hawthorne Blvd.
Laughing Planet – Super casual, quick lunchtime options that won’t break your diet. Ten locations in Portland!
Shandong – Lunchtime is the best deal for this modern Chinese food joint, but dinnertime is also popular. 3724 NE Broadway

Honorable Mention goes to Eclectic Café for being a paleo-leaning casual eatery.

Landlord-Tenant Law in Portland, Oregon

July 12, 2019

Are you a homeowner who rents your property for residential use?

The recent landlord-tenant law changes in Oregon, and Portland specifically, might have you wondering where you stand. The correlation between housing costs/availability and the homeless crisis has spurred lawmakers of the state and City of Portland to enact legally enforceable regulations regarding rent increase caps, no-cause eviction notification timelines, and sizeable penalties for such violations. One thing is for certain: the tenant-landlord regulations are more stringent, making it more important than ever for small-time landlords to know how to properly navigate them.

If you own four or fewer rental properties, you need to know that in some no-cause eviction cases, you will want to file an exemption and have it approved prior to providing your tenant a 90-day notice to vacate. The city lists those 12 exemptions on its website (also below). True to form, the devil is in the details, including times. An eviction notice should have not just the vacancy deadline date, but the time as well. For example, state: “November 1, 2019 by 11:59 pm.” Better yet, hire a rental management company who can help you with the details. Otherwise, you will want to review your options with a legal professional before making any decisions. In the meantime, here is a starting point for navigating the new regulations as they pertain to landlord-tenant law in Oregon and the City of Portland.

Oregon Senate Bill 608 summary reads:

Prohibits landlord from terminating month-to-month tenancy without cause after 12 months of occupancy. Provides exception for certain tenancies on building or lot used by landlord as residence. Allows landlord to terminate tenancy with 90 days’ written notice and payment of one month’s rent under certain conditions. Exempts landlord managing four or fewer units from payment of one month’s rent. Provides that fixed term tenancy becomes month-to-month tenancy upon ending date if not renewed or terminated. Allows landlord to not renew fixed term tenancy if tenant receives three lease violation warnings within 12 months during term and landlord gives 90 days’ notice. Limits rent increases for residential tenancies to one per year. Limits maximum annual rent increase to seven percent above annual change in consumer price index. Requires Oregon Department of Administrative Services to publish maximum annual rent increase percentage.

There are 12 exemptions for landlords who otherwise would be required to pay relocation assistance in the City of Portland.

Rental Agreements for week-to-week tenancies.
Landlords whose Principal Residence is in the same Dwelling Unit as the Tenant. *
Landlords whose Principal Residence is in the same Duplex as the Tenant. *
Tenants who live in an Accessory Dwelling Unit (ADU) on the same property as the Landlord.
Landlords who temporarily rent out their Principal Residence during an absence of 3 years or less. *
Landlords who temporarily rent out their Principal Residence during an absence due to active duty military service. *
Termination of a Rental Agreement so the Landlord can move an immediate family member into the Dwelling Unit. The immediate family member CANNOT be the Landlord, their spouse, or any person who has been an owner of the Dwelling Unit within the past 12 months.
Dwelling Units regulated by federal, state or local governments as Affordable Housing for a period of at least 60 years.
Dwelling Units undergoing acquisition, rehabilitation or demolition for federally funded projects subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. These Dwelling Units are subject to federal, rather than city, relocation assistance laws.
Dwelling Units rendered immediately uninhabitable NOT due to the action or inaction of the Landlord or Tenant. Such events include, but are not limited to, natural or human-caused disasters.
Dwelling Units rented for less than 6 months while subject to a demolition permit submitted BEFORE the Rental Agreement began.
Dwelling Units where the Landlord provides a fixed-term Rental Agreement (example: 1-year lease), notifying the Tenant in writing BEFORE the Rental Agreement began that upon expiration of the lease the Dwelling Unit would be sold or permanently converted to a use OTHER THAN as a Dwelling Unit subject to Oregon’s Residential Landlord and Tenant Act.

*See Interim Administrative Rules for definition of principal residence.

Re-printed from PortlandOregon.gov

Rental Cap

Most importantly, the rental cap in Portland is ~7% plus prime (about 10% as of this publish date). How likely are you to rent or sell your investment property because of the landlord-tenant laws? Do you think these laws will affect the housing market in any way? Will renters have fewer options if landlords sell? Will future renters be protected by rent that has already seen historically high rates? As usual, time will tell. In the meantime, protect your investment by knowing what the rules are. If you are not in Portland, Oregon, please check with your city’s ordinance for particular Acts relating to landlord-tenant law.

Ordinances and codes are subject to change. I am not an attorney and may not dispense legal advice. Please contact me if you would like a referral to an attorney.

Portland Murals Gallery

Published June 21, 2019

There’s been a growing fascination with emerging murals in Portland, Oregon, over the last few years.

The efforts to change mundane spaces into visually appealing and thought-provoking large-scale creative monuments have provided expressive avenues for artists. These projects have, in turn, enhanced the environment for residents and visitors alike.

Some of the artists featured in this gallery are:

David Flores
Rudi Broschofsky
Thomas Jackson
Jessie Weitz
Brianna Farin
@klutcho
@dominatah
@rupeezy
@opasit
@theearwig22
J. Shea
PablosMurals.com

You’ll notice not all murals are created by local artists. Incorporating international artists has stoked greater awareness of Portland’s art scene. If you’re interested in learning more, or if you’re an artist who would like to get involved, Forest For the Trees and Portland Street Art Alliance are local organizations that produce and promote street art (murals) in Portland. Some restaurants, bars, and retail shops have also commissioned works independently.

I hope you enjoy the following photos that highlight some of my finds in Portland. Let me know what you think, and feel free to tag me on Instagram (@seanbessorealty) with your Portland mural finds! I’ll be sure to add more as I come across them.

The Helping Hand mural in Portland, Oregon — The Helping Hand by David Flores and Rudi Broschofsky in Southwest Portland. @davidfloresart @rudibro

Beetle mural by Thomas Jackson 2016 - detail — Beetle mural by Thomas Jackson – detail

Bridgetown Aikido Mural by Jessie Weitz and Brianna Farin

2019 Mural behind NE Sandy Blvd. along north side of I-84. Like jelly beans for the eyes! Enjoy the show. Thank your artists for keeping Portland colorful:@klutcho @dominatah @rupeezy @opasit @theearwig22

grizzly bear mural at sunshine dairy portland — 2019 Sunshine Dairy Mural on NE 20th Ave. Artists, collaborators, producers: @noteszulu @aerosolsmith @theearwig22 @gee_ive @levelheadedpress @plasticbirdie @portlandstreetartalliance

mural at sunshine dairy portland — Sunshine Dairy Mural on NE 20th Ave. Artists, collaborators, producers: @noteszulu @aerosolsmith @theearwig22 @gee_ive @levelheadedpress @plasticbirdie @portlandstreetartalliance

skeletor mural at sunshine dairy portland — Sunshine Dairy Mural on NE 20th Ave. Artists, collaborators, producers: @noteszulu @aerosolsmith @theearwig22 @gee_ive @levelheadedpress @plasticbirdie @portlandstreetartalliance

light blue dreamy cat fantasy mural in portland — Mural by J. Shea 2014 – Forest For The Trees NW

light blue dreamy cat fantasy mural in portland - detail — Mural by J. Shea 2014 – Forest For The Trees NW

monkey in spacesuit mural by pablo in portland — Space Monkey mural by PablosMurals.com

Portland’s Sullivan’s Gulch Neighborhood

architectural heritage center walking tour — 1913 – Graham Woodlaw house. He was a theater owner who owned the Bagdad Theater, along with many other old theaters in Portland.

On this Architectural Heritage Center’s Walking Tour, Jim and Robert lead us through Portland’s Sullivan’s Gulch neighborhood. Tucked in between the Irvington neighborhood (which is north of Northeast Broadway) and I-84 in Northeast Portland, Sullivan’s Gulch is named for Thomas Sullivan. Sullivan received the land as a donation land claim in the 1860’s and had a cabin on the edge of the Gulch. When Sullivan died, he left all of his land to his daughter, who became a nun and donated the 360-acre parcel to Sisters of Providence Church.

Holladay’s Addition

Ben Holladay bought land and started to develop it, with the first house having been built in 1871. About 500 homes were built in total. Holladay Park was a town square for Victorian colonial mansions, a major part of the development of the train going south from Portland and the bridge going across the river from downtown. Irvington Street car and Broadway Street car came to the Addition from what was the first Morrison Bridge street car and the river ferry from Portland.

By 1920, many of the former owners had moved to places like Dunthorpe neighborhood, so there was a question of what to do with hundreds of these large, swanky homes. Holladay had gone bankrupt with railroad development, so portions of Holladay’s Addition were sold off. Ralph Lloyd ended up buying all the land and tore down 500 homes in the area for commercial development. The area had been cleared of the homes by the 1940s. Lloyd Center was built in the area in 1960.

Planning and Liveability

One of the interesting planning features is the use of cul de sacs. Between Northeast 21st and Northeast 28th Avenues, there are no outlets, except to either Northeast 21st, NE Weidler or NE Broadway. This intentional feature greatly reduces vehicle through-traffic and associated noise.

If you’re ever at Hollywood Fred Meyer, you’ll see enlarged historic photos of Sullivan’s Gulch in the entryway and throughout the store. The area continues to evolve as new residential and commercial buildings are constructed. Contact me if you’re interested in seeing what is for sale in this neighborhood. For more information about the Architectural Heritage Center, please visit their website.

What does Oregon’s SB608 mean for investment property owners?

If you are a residential landlord in Oregon, and Portland specifically, SB608 is the newly enacted law regarding no-cause evictions. While I cannot provide legal advice, I wanted to share highlights of the new law, recently presented by Leah Sykes, Attorney, Greenspoon Marder LLP. The law is in effect as of February 28, 2019.

There are four different kinds of notices, depending on the length and term of tenancy:

End of Tenancy Notice
- Usually after one year
- Applies to month-to-month leases
- 90 days’ notice in Portland
Termination Without Cause
- After one year of occupancy, landlord must give 60 days
- If landlord is planning to sell unit, other provisions and timelines apply
- Applies to landlords if primary residence is a duplex or smaller
- If lease is a fixed term after the first year of occupancy, landlord must give 30 days’ notice prior to end of fixed term or 30 days prior to specified ending date, whichever is later.
90-Day Termination For Cause Qualifying Owner Reason
- Specify reason and supporting evidence/facts.
- Include payment with notice to tenant in the amount equal to one month’s rent
- Reasons include: owner intends to demolish or convert unit to use other than residential; owner intends to undertake repairs or renovations to the dwelling unit and either: 1) premises are unsafe or unfit for occupancy or 2) unit will be unsafe or unfit for occupancy during repairs or renovations.
- Owner intends to occupy unit as primary residence.
- Owner has accepted an offer to purchase unit from someone who intends in good faith to occupy the unit as their primary residence.
Termination For Cause
- Tenant violates terms of rental agreement three times within twelve months.
- 90 days’ notice required.
- Landlord will need to follow the guidelines for communicating violations to ensure termination is successful.

Rent Control (Portland)

Landlords may increase rent after one year of tenancy at an increase of maximum 7% plus Consumer Price Index (CPI) as published by the Bureau of Labor and Statistics in September of the prior calendar year. As of 2019, the total cap is 10.3%. Rent may not be increased by more than 7% plus CPI when next tenant moves in, if prior tenant was evicted without cause.

Penalties

According to City of Portland’s Charter, Code, and Policies 30.01.085:

“A Landlord that fails to comply with any of the requirements set forth…shall be liable to the Tenant for an amount up to 3 times the monthly Rent as well as actual damages, Relocation Assistance, reasonable attorney fees and costs (collectively, ‘Damages.’)”

Bear in mind, there are always caveats and exceptions, so if you have further questions, please contact me for a referral to an attorney.

Meet Your Oregon Real Estate Broker, Sean Besso

Sean Besso, Managing Principal Broker, Oregon Realty Co.

Sean Besso first became an Oregon resident in 1985 and a Portland homeowner in 1996. His father’s work in food service management lead his family to vastly different areas of the country: Oahu, North Carolina, Montana, and Tillamook, Oregon. His first job was in the family restaurant at the Crust and Kettle in Montana. When the recession hit in 1985, the family moved to Tillamook, where his father opened the first Edward Jones office. Sean moved to Eugene after high school to attend the University of Oregon, where he majored in Sociology and Political Science, with a minor in Japanese studies. University of Oregon is also a significant stop in Sean’s life, where he met his wife, now a Portland school teacher.

Other work experience includes: Enterprise Rent-A-Car in San Francisco, West Coast Event Productions as an event manager, American Show Management producing IT trade shows in California and the southwest, and Contractor Project Manager for Phoenix Redevelopment. This job was his first exposure to real estate. He learned valuable lessons about buying homes, fixing them up, reselling them, and contractor dos and don’ts.

Why Real Estate?

A conversation with his father-in-law inspired Sean to become a real estate broker. He counted working for himself as a plus. And after all, his mother had been a broker in Billings, so he was familiar with the work ethics of unconventional hours, navigating a competitive climate, and importance of client care. In the meantime, he attended classes at Portland State University in the Urban and Regional Planning School. Bartending during the day, he took classes at night to obtain his real estate license.

Once he obtained his broker’s license, he sought out a company that was not of the traditional “hard sell” school of sales. ABC is more about “Always Be Caring” than “Always Be Closing” for Sean. He counts having the experience with the development group and buying his first home as pivotal learning points. He knows from personal experience how important it is to have a broker who is your advocate, is knowledgeable, and is not going to be that slimy, unqualified salesperson pushing a quota agenda.

Personal Real Estate Experience

His former landlord, who had recently gotten his real estate license, sold them their first house. It was his landlord’s first and last real estate transaction. A few years after the sale, Sean discovered the roof had multiple layers, where only two layers are allowed. In fact, the fascia popped off when the roof was replaced, because the weight of all the roofing layers had been lifted. They experienced a sewer line and furnace failure within the first two years of ownership. These were not just nightmares, but real circumstances they could have planned for or even negotiated, had they had competent representation. Sean shares these experiences to help clients understand the importance of advocacy and guide them through the inspection process.

Credentials and Continuing Education

As the market changes, it is crucial to stay on top of rules and regulations, while keeping current with continuing education. See the blog post about 2019 real estate contract changes. Thirty-three credits of continuing education are required every two years for brokers. From 2017-2018, Sean achieved 86 credits, including obtaining his Principal Broker’s License. Other certifications include:

Graduate, REALTOR® Institute (GRI), which includes additional ethics and advocacy training
ABR® – Accredited Buyer’s Representative
SRS – Seller Representative Specialist
Short Sales and Foreclosure Resource (SFR®)
Earth Advantage Broker
ADU Specialist (Earth Advantage)

Community Involvement

Sean’s volunteer activities include:

Neighborhood Emergency Team
Kiwanis Doernbecher Children’s Cancer Program Golf Tournament Volunteer Board
Surfrider Foundation
Oregon Food Bank
SOLVE Beach Cleanups

Man at beach cleanup in Oregon — At Nye Beach for SOLVE

Two men in a warehouse facility wearing hair nets — At Oregon Food Bank with Mark Aalto

Books, Movies, Life

Sean’s favorite books and movies are:

Jonathan Livingston Seagull
Adventures of a Reluctant Messiah
The Hobbit
Razor’s Edge
Great Waldo Pepper
Seven Samurai
Jeremiah Johnson

The story of Jeremiah Johnson is especially poignant for Sean. Ask about how his grandfather knew him in “The Old West” of Montana.

The best advice he’s received? Do unto others as you would have them do unto you.

Next travel destination? Italy or Japan. He’d love to learn more about the Italian side of his family. He is drawn to Japan to embark upon a Shinto pilgrimage. He has always felt an inexplicably close connection with Japanese culture.

5 Oregon Real Estate Contract Changes You Need to Know Now

One of the many things I respect about Oregon Realty Company, our brokerage, is that management makes every effort to protect our clients. One of the ways they do this is by conducting an annual forms review training session with our brokers. Laws and regulations, like in any industry, are always subject to change. As concerns arise, the regulations evolve. This year’s Annual Forms Review was presented by Richard Mario of Buckley Law P.C. Mr. Mario has been with Buckley Law since 1989. Admitted to both state of Arizona and Oregon State Bars, he practices from his Lake Oswego office. If anyone knows real estate disputes, it’s Richard Mario.

If you’ve ever purchased a home, you know there is an extensive, detailed, 11-page sales contract. With my track record of almost 15 years of real estate experience, I have helped clients navigate the wordy waters of contracts. Most recently, I had a situation where a buyer made an offer, then withdrew it, and because the buying party’s broker (not affiliated with my company) was not up to speed on latest contract laws, the buyers lost their earnest money when a deadline was not met. I encouraged the other agent to provide a timely response, but I discovered the agent was not aware of the new law. We all want sales and purchases to happen seamlessly, so it is in everyone’s interests to work cooperatively.

1. OREF 093 FIRPTA

One example of a recent law change pertains to FIRPTA. The Foreign Investment in Real Property Tax Act of 1980 is a tax law that imposes a 10-15% gross sales tax on foreign persons disposing of US real property interests. For instance, if you’re my client, and regardless of whether you are an American citizen or not, and you are selling the property you own, you would need to fill out the form and submit it to a title company. The law states I can only provide you with the form, but not help fill it out. My next step is to confirm the form has been submitted to the title company, so that the buyer may proceed with writing an offer. Two additional documents are required for submittal to be compliant with federal law.

2. OREF 011 Condo Sale Agreement

There is now a hard date for the delivery and review period for buyers and sellers. Previously, there was a flexible deadline. Extensions to the review period must be written and agreed to. Condo documents should be gathered by the seller prior to the agreement to maximize the time for review. If the buyer does not have ample time to review documents, the sale could be postponed and then the process would need to start all over again. It is recommended to state which documents were provided and that no other documents are available. When a hard deadline is set and the deadline is missed, your broker will need to submit a new offer. This is reflected due to a change in 2018 with regards to the offer deadlines as stated in OREF 001 Residential Sale Agreement.

3. OREF 083 Contingent Right to Purchase

“…buyer may not accept an offer contingent on the sale of the Offeror’s property without written permission of the Seller”
This wording in the agreement prevents contingency chains of sale. Previously, for example, Bob could sell his home to Sally, as long as Sally could sell her home to Joe, as long as Joe could sell his home to Alicia, and so on. The new language prevents this situation from happening.

4. OREF 070 Investment Property Addendum

A few lines were reformatted for readability and ease of understanding. Three sections were removed and combined in the Document Review period (note the hard date where a written extension is required).

5. OREF 007 Commercial Sales Agreement

There are numerous nuanced changes in this section, but perhaps most notable is the section where personal property transfers require the use of a Bill of Sale. There are tax implications. For example, if you were to buy a fully-stocked grocery store, you would need a Bill of Sale to transfer the contents of the store to your ownership. Otherwise, you only own the building.

These changes are five of over 25 sections we learned about. I am not a real estate attorney, so I cannot provide legal advice. However, I have the resources to call upon the experts whenever a situation may be in question. I advocate for you, so you may focus on enjoying your new home and prosper.

Photo: JESHOOTS.COM