Insurance carrier can field floodplain question
Q:
I am building in a flood zone. The floor of our home will be 4 feet above the FEMA flood elevation, because it is being constructed on top of a cinder block, uninhabited basement, garage and patio. However, I plan to put two conventional water heaters in the basement (it has proper venting), which will be below the flood elevation plane. I have had many responses on how this will affect the insurance rating on my home because of FEMA regulations. Do you have any advice you could share on this subject, or do you have FEMA contacts where I may seek advice? A:
In our opinion, that issue is best addressed by your insurance carrier. They have to get these quotes all the time, and FEMA rules do change. Q:
I am the listing broker in a transaction. Can I share commission with a Texas-licensed attorney who has presented an offer from a buyer the attorney represents? A: No. A licensed broker is prohibited from sharing compensation with anyone who acts in the capacity of a broker but is not licensed as a broker [TRELA §1101.651(a) and §1101.652(b)(11)]. In cases such as this, the listing broker still needs to present the offer to the seller. The listing broker should inform the seller the broker is prohibited from sharing compensation with the attorney. Assuming the attorney is licensed in Texas, the seller and buyer may work something out between themselves regarding any compensation to be paid to the Texas attorney. The listing broker can agree to reduce the commission if requested by the seller without violating the prohibition on splitting. For further detail, see the article “Can brokers share their fees with an attorney?” under Special Topics on our website page for News and Public Data. Q: We put in an offer on a house. The agent held the offer and then another offer came in on the same house. Isn’t it illegal or unethical for an agent to present two offers to the seller at the same time? Shouldn’t an agent present the first offer received so that the seller accepts or rejects it before presenting the second offer? A:
The listing agent represents the seller. He or she has a duty to present all offers in a “timely manner” to the seller. There is no prohibition against a license holder presenting more than one offer at a time to a seller. A seller may receive, review and negotiate several offers at the same time. Q:
If a buyer wishes to have a hydrostatic test performed on a home, can such a test be authorized in the standard contract? A:
A hydrostatic test is a way in which a pipeline, plumbing, gas cylinders, boilers and fuel tanks can be tested for strength and leaks. TREC forms 20-13 and 30-12, the one to four family residential contract (resale) and residential condominium contract (resale), state, “Any hydrostatic testing must be separately authorized by seller in writing.”
Therefore, there must be a separately signed document of authorization by the seller for a hydrostatic test. Thus, for example, any authorization language in the special provisions of the standard Resale contract is not separate consent by the seller.
To send a question visit and select the “Ask A Question” button. Answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.