Law Office of John E. Hudson

04/05/2023

In routine Purchase and Sale Agreements for residential real estate, it is common to see a mortgage contingency date and a closing date. Missing from the standard contracts in use by Connecticut realtors in Hartford and Litchfield Counties is verbage about the importance of closing on time. Sometimes buyers will have made big plans to have movers showing up at the house or buyers have to vacate an apartment and they expect the new house to be ready to close on the contract closing date. As those of us who regularly handle mortgage financed closings know, a lender or a seller may want some sort of delay in the process. Connecticut case law holds that a contract which does not specify "time is of the essence" will allow the seller or the buyer or the lender some wiggle room on the closing date. Unfortunately, for a buyer who has to be out of his or her apartment or has the moving van guys showing up - a last minute hold on the closing date can spell disaster. The same could be said for a seller who needs the buyer's funds in order to enable the seller to purchase another house which the seller has under contract. I understand that many realtors hesitate to insert "time is of the essence" clauses in contracts, as that clause can be a double-edged sword. The only solution to these dilemmas is good planning. Both the realtors and the attorneys need to talk to their clients as early as possible in the contracting process to make sure that the buyer or the seller will not have any undue timing issues. If there is going to be a need for a "hard closing date" then it should be addressed in the original contract rather than causing issues later on in the process. Even if you don't specify "time is of the essence" it would be good practice to express something in the contract which reflects the buyer's or the seller's sense of urgency and provides some recourse in the event that one party cannot perform by the specified date. A stitch in time saves nine.

03/22/2023

Just ran into Shannon Proscino of Total Mortgage, Winsted office, at a Chamber of Commerce event. For anyone looking for a helpful loan officer in their search for home financing, here is the link to her page! https://www.facebook.com/profile.php?id=100087041828099

Spread the word! I am licensed and ready to Pre-Approve you!

03/01/2023

Lawyers representing buyers of multi-family homes are increasingly requesting that sellers provide an "estoppel certificate" with regards to any tenants who will be holding over after the sale. I do not know of any law that requires these in Connecticut, but it is good practice for a buyer's representative to request them. If you are not familiar with the term "estoppel certificate," here is a short informal synopsis: The certificate would be signed by both the tenant in occupancy and the landlord, wherein both are confirming to the buyer that the tenant is in good standing with his or her rent, the amount of the security deposit, the copy of the Lease and that the landlord and tenant have no other disputes (so, the tenants are not complaining about mold issues or housing defects). This is good reassurance for the buyer. The buyer needs to know that the tenants are not in default at the time of purchase. I frequently get lawyers from outside the Litchfield County area who bristle at the thought of having to have their client slog around getting tenant signatures. Some landlords don't want the tenants to know that a sale is in the works. If an estoppel certificate is not going to happen, you as the buyer have to make a careful decision about whether or not to proceed with the sale. Why won't the seller cooperate with a request for an estoppel certificate? It's a good question to ask. At the very least, raise the issue, see how the seller responds, and evaluate the situation with the tenants before you buy.

DISCLAIMER: This foregoing are general comments only. These are not statements of the law, nor are they intended specific legal advice for any one person's transaction. Every case must be evaluated on a case-by-case basis with your attorney and a qualified realtor.

02/20/2023

There have been some recent TV commercials promoting "new" or supposedly innovative ways to sell your home. These two businesses appear to suggest that a home can be sold for a fraction of the commission that would normally be paid to a realtor, at a fraction of the time. Now, I cannot name them specifically in this post, because the last time I did that, Facebook automatically attached advertisements promoting both of them to my post! If you have seen the advertisements, then you might know of the businesses to which I refer. Buyers and sellers should be advised that these "new" innovations are not new at all. The model is simple: Once you sign up with one of these companies, they essentially hold a private auction of your home as quickly as possible. Granted, that might cut down on the amount of showings that would have to be done, but for 95% of the customers that I have, the loss of potential buyers by running a "fast sale" would ultimately deprive the seller of a better pick of potential buyers. Furthermore, buyers don't have the ability to thoroughly inspect the property that they are looking to buy. I think for some situations, such as a person in poor health or under some urgent circumstance, the quick sale auction might not be a bad option. For most people looking for a home or a good investment, I would not recommend listing or consulting the companies who simply are looking for a quick turnover of your valuable asset.

02/07/2023

Never underestimate the value that an experienced and energetic real estate agent can bring to anyone looking to buy or sell their property. An increasing number of folks are coming to my office with an "agreement" to buy or sell but the parties don't want any realtor involved. Oftentimes, the "deal" is horrible and not well thought through. Frequently, the buyer and seller are not on an equal footing. Here is what a good realtor can do:

(1). For Sellers: A realtor can drastically increase the number of potential buyers. Just as important, a realtor affiliated with a Connecticut licensed reputable brokerage will have pre-printed contract forms, and these will help to protect you against the schemes of "tire kickers" and unscrupulous buyers looking to take advantage of you - even before your closing attorney sees the contract. The realtor can make sure that certain State of Connecticut required forms will be prepared and attached, so that you don't have to pay penalties at closing.

(2). For Buyers: You would be surprised to find that not all properties coming up for sale are on the MLS. Sometimes, a good realtor who has his or her pulse on the local market will find out about a property that has become available long before the crowd hears about it, and can get you the information before it goes onto the MLS. Of equal value, a realtor affiliated with a Connecticut licensed brokerage, will have a pre-printed contract that will have important contingencies that you will need, for inspections and your mortgage commitment. There will be other State disclosures that you will need to evaluate whether or not to go with that particular seller and property.

In summary: You are better off with an experienced realtor at the time of contracting for sale or purchase. Don't sell them or yourself short. You are better off with a good realtor.

10/04/2018

Need help with a real estate transaction, bankruptcy issue or probate matter in Connecticut? Give us a call.

10/04/2018

Need help with real estate, bankruptcy or probate matters in Connecticut? Give us a call.

Attorney at law focusing practice on real estate, probate and bankruptcy matters

06/22/2018

We provide legal services in the areas of bankruptcy, real estate law and probate matters.