Cleveland Ohio's
Certified Home and Commercial
Property Inspectors
BUILDING A HOME
If you want to build a new home, there are other things you need to know before you begin. Learn about construction standards and about buying land, so you know your rights. Total Care Property Inspection can be your set of eyes with experience during the building process.
Buying Lots from Developers
Be well informed when shopping for land. Lots may be marketed as sites for future retirement homes, for second home locations, or for recreational or campsite use. However, be wary of any investment aspect that may be stressed by sales personnel. If you plan to purchase a lot which is offered by promotional land sales, take plenty of time before coming to a decision. Before signing a purchase agreement, a contract, or a check:
- Know Your Rights as a Buyer.
- Know Something about the Developer.
- Know the Facts about the Development and the Lot You Plan to Buy.
- Know What You Are Doing When You Encounter High-Pressure Sales Campaigns.
- Read the Property Report Before Signing Anything
This report is prepared and issued by the developer of this subdivision. It is not prepared or issued by the Federal Government. Federal law requires that you receive this report prior to signing a contract or agreement to buy or lease a lot in this subdivision. However, no federal agency has judged the merits or value of the property. If you received the report prior to signing a contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement. If you did not receive this report before you signed a contract or agreement, you may cancel the contract or agreement any time within two years from the date of signing.
Your Contract Rights
If the lot you are buying is subject to the jurisdiction of the Interstate Land Sales Full Disclosure Act, the contract or purchase agreement must inform you of certain rights given to buyers by that Act. The contract should state that the buyer has a "cooling-off" period of 7 days (or longer if allowed by State law) following the day that the contract is signed to cancel the contract, for any reason, by notice to the seller, and get his or her money back. Furthermore, unless the contract states that the seller will give the buyer a warranty deed, within 180 days after the contract is signed, the buyer has a right to cancel the contract for up to 2 years from the day that the contract is signed.
"Cooling-Off" Period
Even if you received the property report prior to the time of your signing of the contract or agreement, you have the right to revoke the contract or agreement by notice to the seller until midnight of the seventh day following the signing of the contract. You should contact the developer, preferably in writing, if you wish to revoke your contract and receive a refund of any money paid to date. Even if the property report is delivered to you before you sign a sales agreement ... the law gives you a "cooling off " period. This right cannot be waived.
Exemptions from the Law
The prospective buyer should be aware that not all promotional land sales operations are covered by the law. If the land sales program is exempt, no registration is required by HUD and there will be no property report. Here are some of the specific situations for which the statute allows exemptions without review by HUD.
Know the Developer
Knowing your rights under the law is the first step in making a sensible land purchase. To exercise those rights you also must know something about the honesty and reliability of the developer who offers the subdivision that interest you. Don’t fail to ask questions. Whether you are contacted by a sales agent on the telephone or by mail, at a promotional luncheon or dinner, in a sales booth at a shop-ping center, or in the course of your own inspection of the subdivision, make it your business to find out all you can about the company and the property. In addition, get any oral promises or representations in writing. Don’t fail to ask questions. If you are seriously interested in buying a lot, ask if the company is registered with HUD or is entitled to an exemption. Request a copy of the property report and take the time to study it carefully and thoroughly. If you still have unanswered questions, delay any commitment until you have investigated. Discuss current prices in the area with local independent brokers. Talk to other people who have purchased lots. A local Chamber of Commerce, Better Business Bureau, or consumer protection group may have information about the seller's reputation. Inquire through county or municipal authorities about local ordinances or regulations affecting property similar to that which you plan to buy. Don't be high-pressured by sales agents.
Know the Facts about the Lot
Once you have decided on an appealing subdivision, inspect the property. Don't buy "site unseen." Check the developer's plans for the project and know what you are getting with your lot purchase. It's a good idea to make a list of the facts you will need to know.
Know What You are Doing
Interstate land sales promotions often are conducted in a high-pressure atmosphere that sweeps unsophisticated buyers along. Before they are aware that they have made a commitment, these buyers may have signed a sales contract and started to make payments on a lot. They may be delighted with the selection made but, if not, it may be too late for a change of mind.
TOTAL CARE PROPERTY INSPECTION
871 Richmond Road
Lyndhurst, OH 44124
(216) 544-9322
Cleveland, Ohio
Home, Commercial and Mold Inspections
