RealtyVan.com 's - Helpful Information

  State of Alabama Real Estate Brokerage Services Disclosure

Alabama law requires you, the consumer, be informed about the types of services you may acquire from a real estate licensees. the purpose of this disclosure is to give you a summary of these services. [brackets are my additions]

A SINGLE AGENT is a licensee who represents only one party in a sale. That is, a single agent represents their client.  [Note a distinction is made between customer and client with a client having an agency relationship with the licensee & the customer not having an agency relationship] .  The client may be either the seller or the buyer. A single agent must be completely loyal and faithful to the client.  [i.e. a listing agent or a buyer's agent would usually be a "single agent"]

A SUB-AGENT is another agent/licensee who also represent only one party in a sale. A sub-agent helps the agent represent the same client. The client may be either the seller or the buyer. A sub-agent must also be completely loyal and faithful to the client.   [this form of agency is rarely used today but was widely used for MLS transactions in the past]

A LIMITED CONSENSUAL DUAL AGENT is an agent for both the buyer and the seller. This may only be done with the written, informed consent of all parties. This type of agent must also be loyal and faithful to the client, except where the duties owed to the clients conflict with one another.   [unless you have an exclusive buyer's agency agreement with a company that has no listings, this form of agency would allow an agent to work with other clients whom properties may be listed by the agent of the company the agent represents]

A TRANSACTION BROKER assists one or more parties in a sale.  A transaction broker is not an agent and does not have the same obligations as an agent. The transaction broker and licensees working with him or her perform the services set out in their contract.  [the licensee provides general information not specific information which would benefit one party over another in a transaction] Alabama law imposes the following obligations on all real estate licensees to all parties, no matter their relationship:

• To provide services honestly and in good faith;
• To exercise reasonable care and skill;
• To keep confidential any information gained in confidence, unless disclosure is required by law or duty to a client, the information becomes public knowledge, or disclosure is authorized in writing;
• Present all written offers promptly to the seller;
• Answer your questions completely and accurately.

Further Discussion on Agency

A more complete discussion on agency is contained in The Consumer Information Booklet which is published as an information service by the Alabama Real Estate Commission and developed with the assistance of the Alabama Research and Education Center of the University of Alabama.

An agency relationship is created when:  1. the principal delegates authority to the agent to perform acts on behalf of the principle which is usually done in writing which the state requires to represent a client as their agent.  AND  2. an agent owes specific duties to the principal. In addition to other duties or obligations set forth in writing between the parties, an agent owes fiduciary duties to the principle which include: loyalty, obedience, disclosure, confidentiality, reasonable care & diligence, and accounting.

• Loyalty- obligates a real estate broker to act at all times, solely in the best interest of the principal, excluding all other interests, including that of the broker.

• Obedience- obligates the agent to promptly and efficiently obey all lawful instructions within the scope of the agency established.

• Disclosure- an agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency

• Confidentiality- obligates the agent to safeguard a principal's lawful confidences and secrets. The duty of confidentiality does NOT include an obligation by a broker who represents a seller to withhold known material facts about the condition of the seller's property from the purchaser, or to misrepresent the property's condition.

• Reasonable care and diligence- The standard of care expected of a real estate broker is that of a competent real estate professional. By reason of this license, a broker is considered to have skill and expertise in real estate matters superior to that of the average person.

• Accounting - An agent is obligated to account for all money and property belonging to the principal that is entrusted to the agent.

A licensee can assist you without being your agent in the capacity of a "transaction broker ." If you are working with a licensee who is not your agent, there are many things that the licensee may do to assist you, the customer. Some examples are:

• Provide information about properties;
• Show properties;
• Assist in making a written offer;
• Provide information on financing

Montgomery Metro Realty Inc. Company Policy

Our Company Agency Policy Disclosure & Acknowledgment Form, delineates our company policy on agency and is provided to our customers in the initial stages of establishing a relationship. Until the disclosure form is provided and prior to the establishment of an agency relationship the company licensee acts in the capacity of a transaction broker providing general information. Our Company Agency Policy Disclosure & Acknowledgment  Form will be provided to any individual upon request.

Buyer agency

Agents at Montgomery Metro Realty Inc.not only list homes but also work as buyer's agents within the scope of the agency agreement.  Some other companies offer services as exclusive buyers' agents.  This would infer that their company does not list homes and would not have their own listings to show you thereby never requiring a limited consensual dual agency relationship.  Upon being asked if this were not the "better" way to go, I have provided my answer with discussion on this question.

One area of caution, in signing some agency agreements, the buyers may find themselves obligated to pay a commission on ANY home they purchase within an agreed period of time, even if the property is found without the assistance of the agent. Read the agency agreement carefully and insure you are aware of when a commission is to be paid, how much, who is to pay the commission and the period of the agreement for which you are obligated. And most importantly, is their any guarantee provided with the agency agreement on the services you will be provided.

Always read thoroughly all agreements and make sure you understand what is written and not what you are being told when you are signing.  If you have questions always seek professional advice. Our company's Buyer's Agency Agreement is available to any individual upon request.

Equal Opportunity Housing

The body of federal law that is commonly called the fair housing laws consists of the Civil Rights Act of 1866, 42 U.S.C. §1982 and Title VIII of the Civil Rights Act of 1968, 42 U.S.C. §3601-3619 . The 1866 act prohibits racial discrimination in real estate, whether committed by the government or private parties. Title VIII is a more comprehensive fair housing law that addresses not only racial discrimination, but also discrimination on the basis of religion, color, national origin, sex, handicap and familial status*. Title VIII prohibits five types of discrimination:

• Refusals to sell or rent, or otherwise making unavailable a dwelling because of a prohibited classification.
• Discrimination in the terms, conditions or privileges of sale or rental, or in the provision or services.
• Use of advertising that expresses a preference for a persons of a particular race, color, religion, sex, national origin, handicap or familial status.
• Representations of a dwelling not available for sale or rent, when in fact the dwelling is available.
• Attempts to induce a person to sell or rent a dwelling by referring to the prospective entry of persons of a particular race, color, sex, religion, national origin, handicap, or familial status.

*These protected categories of people (7) can and have been expanded by some states and local laws.  In California for example the protected classes are 11 adding: ancestry, sexual orientation, marital status, and income source and in 2001 also included medical condition as part of of the definition of handicap. (California Fair Employment and Housing Act of 1964)

Montgomery Metro Realty Inc.company's policy requires not only adherence to the law but the licensee's to actively pursue positive relationships with all people without regard to a persons race, color, sex, religion, national origin, handicap, or familial status. For more complete guidelines along with information on filing equal opportunity complaints see HUD's Fair Housing Home Page   At this site there is an online complaint form and a form which can be printed and mailed to HUD.

GEOGRAPHY

Location  Location  Location

It has been said that the three most important factors to consider in buying a house are: location, location, location. It is hard to argue that any thing could be more important than location!

For most of us the purchase of a house is the single largest investment we will make in our life. Protecting that investment becomes a major concern. It gets back to the old supply and demand rule. If you own a home where every one wants to live, the supply of homes becomes scarce, demand for your home goes up. You profit from the higher resale because you initially purchased your home in a area which appreciated over time.  Sadly  the  opposite can also be true.

The problem becomes not where is the most desirable area to buy a house now, but what will be the most desirable living area when you go to sell your home in the future and how do I determine this now. Well, if life were simple I would have bought IBM low sold high only to invest in Microsoft when it was just getting started. Suffice it to say that it is good to optimize future desirable factors which will help to insure future resale potential. Try to visualize what future factors could have an impact upon my area. What are the zoning rules? Can the lot behind me suddenly become the new shopping center? Can my neighbors choose to live in a trailer? What factors will increase noise or nuisance level in my neighborhood, traffic, smells, pollution, and yes can I predict the future high crime areas, etc.

Other links with public information on location:

1.  Salary calculator   shows the different cost of living between two cities.
2.  Alabama, City statistics  by City-Data.com 
3.  U.S. Gazetteer over 260 census categories listed by city or zip (not for the faint of   heart). 
4.  ForSaleByOwner.com , crime statistics by city and state.

Area Geography

A map of the area can be found at Yahoo (Montgomery) this map can be scaled in or out or moved around to include the surrounding area: Prattville (north on Hwy. 31 or north on Interstate 65), Millbrook (north of Montgomery, located between Prattville and Wetumpka on Hwy. 14), and Wetumpka (north east up hwy. 231). These cities are a part of 3 counties which have a total of 12 incorporated cities, some being rather small. The counties of Autauga and Elmore are considered bedroom communities of Montgomery with more people working outside their county going into Montgomery. Before traveling check on the local weather forecast . Additionally you may want to visit or call the Alabama Bureau of Tourism and Travel site 1-800-ALABAMA.

Montgomery' s population is just over 195,000. It shares its name with the county of which it is a part. A few other smaller cities have incorporated in Montgomery County. Montgomery is the 3rd largest city in the state but is just 6,000 behind Mobile.  Montgomery is the site of the recently built Hyundai Automobile factory.  Their $1.1 billion manufacturing facility builds the Sonata and now also build Santa Fe.  A new $1.2 billion KIA manufacturing facility is being built just across the Alabama Border (I-85) in West Point Ga.

Prattville on the other hand is the 16th most populous city in the state with a population just under 25,000 and is located in the county of Autauga.  The city has a little industry and is within 100 miles of the new Mercedes plant which is the only factory in the world building their sports (all) utility 4x4. A 100 mile circle around the plant anticipates a growth impact from the factory. Prattville's most recent industry is a plastics fabrication company which builds parts for the Mercedes vehicle. Also recently completed is the new Robert Trent Jones Golf course  built near the city, a public country club and motel.  Robert Trent Jones was the designer of the 8 golf courses which are located throughout Alabama. This was an ambitious project put together by Dr. David Bronner, CEO of the Retirement Systems of Alabama. Dr. Boner's desires were to diversify the assets of the state's pension fund; and secondly, help the state of Alabama. His philosophy was this: "The stronger the Retirement Systems of Alabama can make Alabama, the stronger the Retirement Systems will be." A web page with facts on the Robert Trent Jones Golf Trail and the history of the project are both rather interesting.  A complete list of all local area golf courses has been included in this web site.

Millbrook was the second fastest growing city in the state during the 1990's in cities with more than 8,500. As the largest city in Elmore county it boasts a population of over 8,900.

Wetumpka is the county seat for Elmore county and is a much older city than Millbrook.

Area growth patterns; "Go east young man go east". In Montgomery the newest hospital and mall are located on the east side of the city. This is caused, in part, by the flood plain. If you look at the flood plain map it shows the flood plain forming a C around Montgomery forcing new growth in an easterly direction. Since Prattville is a bedroom community of Montgomery, being close to the interstate-65 access which is east of the city is an important factor. The newest medical facility is on the east side of Prattville along with its newest outdoor mall, theaters, etc.

Anticipated road construction over the next few years includes a widening, third lane, on I-65 from Montgomery north to Prattville (soon to be completed). A major project for an outer loop around the south east portion of Montgomery which has been started. The first portion will connect I-85 to hwy. 231, Troy Hwy., which proceeds from Montgomery to south Alabama and Florida.  Additionally I-65 access to Millbrook has been widened to 4 lanes on Hwy. 14.

Flood Plain

The Flood Disaster Protection Act of 1973 holds the lender (mortgage company) responsible for making the determination as to whether a property to be financed is located in a special flood hazard area and whether or not flood insurance is required. Those homes noted by a survey or mortgage lender to be in the "100 year flood plain" will require flood insurance in order to obtain a mortgage. There are homes throughout the tri-county area which require flood insurance. A normal home owners policy does not cover damage by flood water and owners should consider flood plain insurance especially in lower areas.

Since this is a federal program the amount the insurance companies can charge is the same and is based upon the value of the home and its risk (elevation?) in relation to the flood plain. The program is a responsibility of the Federal Emergency Management Agency (FEMA).

A separate website page has been created to assist you in obtaining a copy of the current flood map dated August 2003 which are available to order or view on line from FEMA by accessing their website.

Schools

Local area public schools have a two fold importance. First and most obvious would be the education of the children living in the area. Different school districts have different schools which can be compared and evaluated against each other. Better schools should provide a better education. What makes a school "better" would include any number of variables with some important variables including: School Administration, Quality of Teachers, and Parental Involvement. Other variables may include: Physical Structure, Local School Board, Student Population & its makeup i.e. how many plan to go on to college etc., Size and Community Support.  If you have an address in Montgomery and desire to find which schools currently support a location, the Montgomery County Board of Education has provided a school zone search engine for Montgomery County.

Standardized testing using the SAT occurs throughout the state of Alabama. Scores are available for each school by the supervising school board. A link to the county map of the State of Alabama with links to the county or city school system along with their test scores is provided by the State Department of Education. Schools are further important because the affect they have on property values.  Although there is no guarantee that a change may not occur for which school supports which area, this is a location factor which should be considered. Generally the people who will eventually buy your home will have the average 1.90 children and place value on the supporting schools which then becomes a contributing factor on the future value on your home.

Three pages are  included at this site with additional links and further discussion on schools and education.  First:  School Information, Links and Comments  Second: Colleges / Universities in the local Montgomery Area and lastly: Facts on Alabama's Public School.

Registered Sex Offenders - List

Sections 15,20,21 to 37, Code of Alabama 1975, makes it a class C felony for any criminal sex offender to establish a residence of accept employment within 2,000 feet of the property on which any public school, private or parochial school, licensed day care center, or any other child care facility.   Alabama Department of Public Safety maintains a list of registered sex offenders by city, zip code, or county and a list  of criminal sex offenders with no known address. A LINK to their site can be found on our information page "A Concern for Safety".

Soil, Termites & Environmental Concerns

Alabama is considered a Caveat Emptor state. CAVEAT EMPTOR is Latin for "buyer beware." This rule generally applies to all sales between individuals. It gives the buyer full responsibility for determining the quality of the goods in question. The seller generally has no duty to offer warranties or to disclose defects in the goods. Again all this is subject to the agreed contract between the parties. Additionally, a sellers disclosure form is now starting to be used in Alabama to disclose information on the property known to the seller. Further discussion of Caveat Emptor as applied to home buying and Alabama law can be found in one of our first guest article - a guest article by Charles R. Sowell, General Counsel to the Alabama Real Estate Commission.

Many factors can adversely affect your home ownership experience. A few of these are listed below. Considering all these items one may question why am I considering buying a house. Suffice it to say that most people, find home ownership a rewarding experience. It has always been categorized as part of the American dream, right up there with motherhood, apple pie and America.

SOIL The overwhelming majority of homes in this area are concrete slab construction. The slab is a thick piece of concrete supported by a foundation which has footings resting on soil. Bed rock, I have been told, does not exist in this area with the hardest substrate being the Selma Chalk Line. Between this hard substrate and the foundation's footings is soil. Soil in the area can be either an expansive called plastic soil or clay or some mixture. Although these sites are from areas other than Montgomery they can give you an appreciation for the problem which  expansive soil can create with your home's foundation. A site with a map of the individual states and a discussion on the topic.  The best way to determine foundation problems would be to obtain an inspection report by a licensed structural engineer.  Suggestions to an effective foundation  maintenance  monitoring  program  and take special note of the recommendation on tree placement and how tree roots absorb soil moisture and possibly cause and uneven moisture level under your foundation.

TERMITES "They say there are only two types of houses in Alabama- those that have termites and those that will have termites". A comprehensive site dealing with the insect The entomology Termite Web Site has a number of links and would provide an excellent understanding. A good article by Eric P. Benson, Extension Entomologist, formerly of Auburn University , on Termites [pdf document] and Controlling Wood Boring Beetles in Houses [pdf document] would aid your understanding . Even Bob Villa has a termite page on the net which includes helpful identifying pictures.

LEAD PAINT & ENVIRONMENTAL CONCERNS Lead base paint has not been used since 1978 so homes built before 1978 may have lead paint as a part of their construction. If you purchase a home built before 1978 a pamphlet explaining the hazard of lead based paint is required to be given to you by your agent.  This is the Federal pamphlet explaining the hazards of lead base paint.  If lead is ingested by a child brain damage can occur.  So it is important not to minimize the importance of keeping lead from our bodies.  Further, expanded, discussion of this issue can be found in my "article" Lead is harmful to your health especially - children. 

A list of other environmental concerns developed in conjunction with EPA would provide additional insight. Radon tests in the area generally show most homes tested do not have elevated levels of radon. This may be due in part to the preponderance of homes with slab construction since basements usually act as collecting areas for the gas.

INSPECTION CHECK LIST An excellent overall inspection check list  (written for another state & may have some state differences) would be valuable to print (multiple pages, use link at bottom  "Print A Free Home Inspector Checklist To Take On Your Home Inspection") and use when finalizing a decision on purchasing a home. The multi-page checklist is rather comprehensive. I would always recommend that a home inspections be accomplished by a professional home inspector prior to the purchase of any home. See inspections  page 4 of Helpful Information as listed below.