REAL ESTATE
by Jim Coleman, REALTOR®
GOLDEN RULE HAS NEW MEANING
From a human relations perspective, especially with religious influences and affiliations of various faiths, the idea of "the Golden Rule" usually is set forth in matters of service and treatment of others. In this day of economic stress, mortgage and real estate turbulence, the term of the Golden Rule seems to have a new definition or interpretation. It has to do with the policy and posture posed by lenders, mortgage entities and note holders. It goes something like this: "Those who have the gold, rule." Here is my point.
Notwithstanding the terms and conditions set forth in the standard state approved Real Estate Contract providing that the dates and time-lines specified are to be strictly honored, when it comes to a bank-owned property or one that is in default and approaching the condition of what is now known in the industry as a "short sale," the dates and times generally mean nothing. In fact, a whole new set of guidelines — rules, if you will, are established by the seller, the bank. They typically dictate: "If you are going to play ball on our court, you will play according to our rules."
In addition to mandating the dates and times for performance, these &334Golden Rulers" require that their documents be used. They establish what terms and conditions will be permitted as part of the agreement. Generally, there are no contingencies or protections to the buyer, in the usual sense of most purchase agreements. Usually, the property must be accepted in "As-Is" condition.
Probably, the most frustrating and disturbing aspects of the relationship, if an agreement or contract is formed, is the fact that the "Golden Ruler" responds if and when it is convenient or essential according to the whim or wishes of the "Golden Ruler," unless there is a need important to the "Golden Ruler." Then, if the buyer does not comply precisely, the buyer may be considered in default and may stand to be denied the opportunity to continue to conclusion and settlement of the transaction. It reminds me of a statement from an attorney when pushed for a response: "I don't live my life by threats or deadlines."
In fairness to the system, it needs to be recognized and remembered that the unfortunate situation of the short sale or foreclosed, bank-owned properties would not exist if the owners of a property never defaulted in the first place and caused the banks, lenders, mortgagees and note holders to have to exercise their rights to protect their economic interest in the property.
As one engages in the sales process with these properties, one would hope there could be a more genuine negotiation and agreement formulation between purchasers and the Golden Rulers that would result in a feeling and attitude, if not actual reality, that there was more of a give-and-take and an effort to bring about a more mutually agreed arrangement and process to bring the experience to settlement.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.