Inspection should be done during new construction, conversion
Q:
A building in my neighborhood is being renovated into condominiums. They are being marketed and pre-sold before they are finished. Do I need to have a home inspection done on a unit that is still under construction?
A:
Absolutely, you should have a home inspection done before purchasing a condominium, which is now being built.
When you purchase a condominium, you not only are buying a single unit, you also are buying interest in the entire building.
The quality of the construction will determine the long-term value of the building and of your unit and may dramatically affect your common area charges.
The inspector can check out the quality of the construction work in both the unit and the building more easily while the building is still under construction than after it is finished and all the important structural work is hidden.
Also, your building inspector may be able to advise you about any provisions you should add to your purchase-and-sale agreement regarding the quality of the remaining construction, as well as itemizing the work that needs to be done before you are required to take title and pay the balance of the purchase price.
Good news
Tenants in foreclosed properties and homeowners struggling to keep their properties from falling into foreclosure received some good news recently when the Massachusetts legislature passed An Act to Stabilize Neighborhoods.
Under the law, as long as tenants pay their rent, they cannot be evicted from a foreclosed property unless the lender sells the property to a third party.
The state law supersedes federal legislation that allows renters to remain in foreclosed properties for 90 days.
In addition to helping tenants in foreclosed properties, the new law requires lenders to make a good faith effort to work with delinquent homeowners before foreclosing on the property.
If lenders fail to work with these borrowers, the lender must wait an extra two months – 150 days instead of 90 days – before taking back the property.
A good faith effort is defined as at least one meeting or conversation with the homeowner about renegotiating the borrower’s mortgage.
The law also requires in-person counseling for low-income homeowners interested in taking out a reverse mortgage.
A reverse mortgage allows seniors, age 62 and older, to tap the equity in their homes. The loan does not have to be paid back until the senior dies or sells the home.
