A. That is actually a very important question. There are some very critical forms that need to be supplied to any prospective tenant. Not having them signed can mean a violation of the law and a fine.
First is the lead paint disclosure form, which basically explains that any property built prior to 1978 may contain lead-based paint. If you have a report regarding lead-based paint, it must be supplied to the tenant.
If not, it’s okay, but it does need to be disclosed. Also, a booklet entitled, “Protect your Family from Lead in Your Home,” must be supplied. These can be obtained from your realtor or the federal government website at epa.gov/lead.
Additionally, New York City now requires that a stove knob rider be signed by any tenant who has children under six years old residing there.
Q. I just accepted an offer for my home higher than I ever expected. I’m in a great position, correct?
A. Not exactly. Even though you might accept an offer that is very high in price, you may still encounter an obstacle. Namely, if the buyer is planning to obtain a mortgage, then the appraisal may not be high enough.
Banks generally will lend on the basis of what is known as LTV or loan-to-value. If they value your home for less than the purchase price, then the mortgage might not be enough for the buyer’s purchase.
At that time, you might have to renegotiate the price, and/or the buyer will have to come up with additional cash to cover the gap.
Always make sure that the broker checks the buyer’s assets to verify that they have sufficient funds in the event of a lower appraisal.
Another solution is to go to contract “not subject to appraisal.” This way it is solely the buyer’s responsibility to come up with the difference in funds needed to close. Always talk to your lawyer and real estate broker first.
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