Post-Harvey, buyer is all set for closing, needs flood insurance
Q: I have a house under contract to purchase and then came Hurricane Harvey. This house did not flood, but now I’m worried about mold and the neighbors who did flood. What do I do?
A: Welcome to Houston. The standard contract gives you the option of walking away or getting the insurance process assigned to you in the event of damage. You have no damage. Go close and buy flood insurance.
Q: My title company no longer accepts cashier’s checks. I thought they were “good funds” under the Insurance Code.
A: The Insurance Code hasn’t changed, but business practices have. Anyone can print off a pretty good fake cashier’s check — it is now a pretty common scam.
Wiring funds is a lot safer, but they can be hacked. It’s a different business today, so title companies are doubling down in their due diligence.
Q: I heard there are new forms for a power of attorney transactions. How are they different?
A: Lots of new rules. Title companies probably will require the agent (there are no attorneys-in-fact anymore) to execute the new certification form to certify that the power of attorney is still in effect. Again, super careful business practices.
Q: I’m a residential real estate agent. A friend has asked me to work with him in purchasing a commercial property. This seems much more complicated than my usual transactions. Where can I learn more about commercial deals?
A: We suggest you get help from an experienced commercial real estate broker. There are much more serious issues on surveys, title insurance endorsements, cash flows, building inspections and market changes. This is no game for amateurs, and this is no time to be incompetent for your friend. You do have very important fiduciary duties here.
To send a question visit www.AskGeorge.net and select the “Ask A Question” button. Our 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.