Many buyers and sellers think they can save some money by not hiring a real estate attorney.  Lawyers that specialize in Real Estate add value to a transaction by reviewing the contract, deed and title work, responding to inspection issues, and making sure the contract is performed according to its terms. In the end, the lack of legal representation could cost much more than the money saved. If issues come up, you need somebody on your side who can act quickly within the terms of the contract. This week Rich and Steve had Sheila Harrington from the Law offices of Harrington and Rhodes LTD. to talk about some of the issues that might come up in a Real Estate transaction, and how they can be adressed, here are some of her points:

•  Financing: most contracts call for 5 days to get your financing in place, this is an important deadline to remember, especially in this lender climate.
• Insurance: make sure you have your insurance squared away at least two weeks prior to cloing so the lender is able to process the loan.
• Disclosures: Inspection issues that were not disclosed  can be negotiated
• Deposit disputes: Both parties have to agree to return the deposit.
• Title Insurance: It makes sense to purchase a buyer’s policy in addition to the lender’s ploicy, often things come up that can’t br found in a title search, contractor’s have up to 200 days to file a Mechanic’s Lien after work is done, and towns can make recording errors; title insurance will cover these issues.

This Week’s Real Estate Insight: A closing attorney represents the bank, not the buyer. Considering the complexities of a real estate transaction, an experienced Real Estate lawyer can help protect your interests, and ensure a smooth transaction.

 The  Rhode Island Department of Enviromental Management estimates that 50,000 cesspools still exist in the state contributing  to pollution of drinking water and water in beach areas which is why it filed legislation to inspect and replace failed cesspools that are located near these key water resources. Cesspools don’t treat wastewater, they merely dispose of it; In contrast, conventional INDIVIDUAL SEWAGE DISPOSAL SYSTEM, (ISDS) AKA septic systems, place the wastewater well above the level of soils saturated by groundwater and they disperse over a large area, which results in substantial removal of pollutants.

Although DEM has not yet written the regulations to enforce all provisions of the  new law,  if you are buying a property that is currently served by a cesspool – you should determine whether your property is  subject to this law. High risk areas include those  within 200 feet of a public drinking well, surface drinking water supply, or inland edge of a shoreline bordering a tidal water area. The mandatory Disclosure form that sellers sign has been revised to inform buyers about the new cesspool law and their right to an inspection. Buyers will have 10 days to have a cesspool inspected. (Can be waived ) Failed cesspools in high risk areas must be replaced within one year after failure with an ISDS system or linked to a sewer system where available.
Some communities, such as South Kingstown, Charlestown, and Block Island have adopted local ordinances that are stricter than this legislation, so make sure to check local requirements as well.

Here are some of the costs associated with this new regulation:

• The   average cost to replace a cesspool with a proper septic system:  $10,000, unless you have special requirements, small lot, proximity to water, then it could be double that
• The average cost to tie-in to a sewer system:    $1,000- $2,000
• Average inspection costs are likely to range from $75-$250, plus an additional $175 to $200 if it needs to be pumped.

 This Week’s Real Estate Insight:

The new regulations only apply to those cesspools in high risk areas, to find out more check out the DEM FAQ sheet here

Listen to the entire show with Sally and Rich.

 

 Real Estate Insight: 6/8/2008: Play Now | Play in Popup | Download