Video Summary

Do I have any recourse in obtaining a home warranty that was promised by never delivered by my contractor?  The answer to the question is yes, if that’s part of the contract and they don’t deliver it, you’re entitled to sue them for breach of contract and what your damages are.

The problem is, is measuring your damages and what it will cost you to obtain that warranty through another source, or whoever it was going to be issued through.  So it’s a question of coming up with the measure of your damage as far as getting the home warranty contract.  Any time you have a breach of contract by your contractor, the first thing that I will advise if you call me about the problem, is call in another contractor, ask him to advise you how much it’s going to cost to complete the job that you contracted for.  And so then we take his costs, add it to what you’ve already paid to the contractor, and then subtract the total contract price to see what your damages may be.  In the case of a home warranty, that will be interesting to see if another contractor would be able to issue that home warranty and then assigning a value to it as far as your damages are concerned.  A tough question, not a very good answer.  But it is what it is.  So if you have any questions about your contractor and your home warranties, well call me at 727-847-2288.

Video Summary

Is a land contract still a viable means of purchasing a home?  The answer to the question is, is that Florida does not have land contracts.

I know Michigan has land contracts and any number of other states.  And the reason why many people use land contracts is that they’re in a state that has a non-judicial foreclosure statute which allows them to foreclosure, or get the property back through non-judicial procedures.  Florida is a judicial procedure state which requires you to go through a court proceeding to foreclose and take back property.  And so a land contract, the closest thing we have to it in Florida is called an agreement for deed.  An agreement for deed is the same as – has to be enforced the same as a note and mortgage and therefore you don’t see too many agreements for deed, because although the seller retains the title to the property and puts you in possession, if the buyer defaults they still have to go through a foreclosure process and so it defeats the purpose of using a land contract.

The other way of avoiding going through a foreclosure process if you’re the seller, and the buyer has a very small down payment, is to go with a lease with an option to purchase.  And that way if the buyer defaults in the payment, you’re then in a position to evict them rather than going through a foreclosure process, which is much quicker and less expensive than a foreclosure process.  It’ll probably take six, nine months to a year to foreclose a piece of property and costs and anywhere from $4,000.00 to $5,000.00.  Whereas with an eviction process you’re looking at probably 30 to 45 days and approximately $1,500.00 to $2,000.00 for an eviction process.  So if you talk land contracts in Florida, they’re gonna look at you with a blank stare, because it’s something that comes out of the Midwest or a state that has non-judicial foreclosures, and they are so you don’t have those in Florida.

If you have any questions about land contracts or buying and selling real property with owner financing, well give me a call at 727-847-2288.

Video Summary

Is a home warranty worth the price when purchasing a home?  Well, that is a real great question, and I do not think I have a good answer for it.  I guess if any of the appliances go out, the answer is yes.  If none of the appliances go out, well, the answer is no.

So that is the nature of the beast whenever you are talking about insurance.  Any time that you get insurance, well, if you do not have a casualty loss, you have paid the premium and therefore it was not a good deal.  However, you are getting the home warranty or buying the home warranty to have peace of mind so you do not have an unexpected expense.

If you want to further analyze the situation, look at how old the appliances are.  And if they are relatively old, there is a higher possibility of them breaking down, well then you can go ahead and buy a warranty so you are not surprised later on.  I suggest that you really understand the warranty so you know how much it is going to pay, whether you have to pay a service call or any of the deductibles, and whether there is a maximum they have to pay, let’s say, for an air conditioning system.

Also look at the value of what you are trying to insure against.  As far as an air conditioning system, you are looking at thousands of dollars.  If you are looking at a refrigerator, well, that could be depending on the refrigerator – could also be in the thousands.  And then look at how long the warranty runs for.  Because if you are paying $500.00 to insure a $1,000.00 refrigerator or a couple of thousand dollars worth of appliances, well that is a pretty steep premium to be paying for that.

So hopefully I have answered your question, and I do not think there is a cut-and-dry answer.  You need to look at the circumstances, and what your tolerances are as far as whether or not you could stand the surprise or have the money to pay for it.  You might also ask that the seller provide you with the home warranty whenever you purchase the home and negotiate that into the contract.

If you have any more questions about it, please give me a call at 727-847-2288.

Video Summary

Can a home equity loan be used to purchase investment property?  The answer is yes.  You can use the proceeds from a home equity line of credit to purchase investment property.

Once you obtain this line of credit on your home, the bank does not monitor what you use the money for.  You can use it for entertainment, to pay off credit cards; you can use it for anything you like.  The downside of it is, you put a mortgage against your home.  So if you do not repay it, your home is at risk.

So yes, you can use the proceeds from your home equity line of credit to buy investment property, or for that matter, to take your bride out to dinner.

If you have any questions about a home equity line of credit, give me a call at 727-847-2288.

Video Summary

What recourse do I have if my builder does not finish my home by the agreed upon completion date?  This is a very troublesome problem whenever builders do not complete the houses or complete the improvements by the specified date.  Most contracts on new construction have a clause that says that the builder does not have any responsibility, and you cannot charge them with any expenses.

If they do not complete it on the agreed upon date, it is great if you can negotiate it in the contract what the damages are.  That is called a liquidated damage clause, and say, $100.00 a day.  If you can prove your damages, you can probably sue the contractor for damages for delaying completion, which is a difficult lawsuit.  So the best thing to do is try and cover that in the contract whenever you contract with the contractor to say how much it is going to cost them.  And there is a great deal of pushback by builders on not agreeing to put a liquidated damages clause in there.

What I have found is, whenever the builder really drags their feet and they have not shown up and have pretty much abandoned this job, then it is my suggestion you contact an attorney, send them a notice of termination, tell them that you are going to hire somebody else, and then sue them for any damages that you have if it is going to be worthwhile.

So if you have any problems with your builder and need some guidance, well, give me a call at 727-847-2288.