“Facts underlying the hypothetical contract.”

Standard

 

How’d you spend your Saturday morning?  I was up at day break and thought about getting a run in but decided getting some ironing done would be more productive. . .then bustled off to my annual state mandated Real Estate Update Course.

Favorite quote of the day “Facts underlying the hypothetical contract.” . . .it’s sort of a snoozefest, basically, because so much of the information rolls out months prior.  Things like contract, addendum changes, disclosure updates and the like.  In the last year, we managed to keep (with the NC Bar Association) to keep our contract to nine pages but managed to nix lots of ineffective content and I feel make some of our documents have more “teeth.”

Do I feel smarter?  A tiny bit, I did manage to ask a question that stumped the proctor and instructor and that always makes me feel fancy.  Question:  Why aren’t funds granted to buyer or seller post real estate closing transaction, especially those paid by lending institutions (in particular, USAA, Navy Federal-basically anyone with federal ties) to a client to induce a sale, loan use, membership etc. required to be disclosed on the HUD-1 settlement statement? . . .it’s my singular “stand on soapbox beat on chest” issue that I hope gets resolved in the next renovation of the HUD-1 settlement statement.  (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm)  I should say, as things stand now, it SHOULD be included as the buyer/seller is receiving funds from the lender and any fund distribution with regards to a specific real estate transaction has to be disclosed on the HUD-1, however, some lenders and some closing attorneys don’t agree.  I happen to fundamentally disagree with the lender’s ability to contribute to the client/member due to the fact that REALTORS have very strict provisions on what we are allowed to use as thank you gifts, otherwise, things are denoted as “inducements.”  Anyhoo, catching my breath, I’m interested to see how things develop with regards to this specific topic in the next year as we as an industry undergo even more sweeping changes and updates.

Short version.  Thrilled I went today even if it took me three diet cokes to make it through.

About McKenzie Johnson

I am a Real Estate Broker with over 13 years experience in the industry. A fan of anything the color orange, long walks on the beach eating dried cuttlefish, four legged friends, new adventures in cooking or travel. A REALTOR and real estate consultant living and working in North Carolina with information to share. I would love to demystify the process for you. . .I think real estate is a tremendous investment for just about everyone. . .not just for the financial aspect, but also the idea of owning a piece of the American Dream, a chunk of earth, literally, with your name on it. I love what I do and who I get to meet through my job, the most rewarding part is handing a family their very first set of house keys! I hope you will find helpful information here, and it is just that, information, please don't take it as gospel, just my take on real estate and the world around me. For additional information and how to contact me, visit my website www.910Homes.net. I serve the Onslow County area which includes the military bases: Camp Lejeune, New River MCAS, Camp Johnson, Camp Gieger and more.

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