One of the many questions a purchaser will be asked during a transaction is whether or not they would like to order a survey on the property.  Many buyers only consider the expense when making their decision and will decline if the title company will give the lender coverage on the transaction.  This may not be the best decision based on the following:

• Be sure that a buyer understands that even if the title company agrees to give the lender coverage- they WILL NOT receive coverage.
• The time to argue a point about the survey is during the time period set out in the contract.  Any issues that come up after the fact will be the buyer’s problem- the seller will not be responsible for helping “cure” the issue.
• If the purchaser is constructing a fence or other improvement upon closing, they should consider purchasing a Boundary Survey because many municipalities will require one in order to grant a permit.
• A title company will only give COMPLETE survey coverage to the purchaser with a new boundary survey or a recent boundary survey and fully executed survey affidavit.
• Existing surveys must be ten years old or less to be used in a real estate transaction.
• A Surveyor’s Real Property Report, while cheaper, has a greater margin of error than a boundary survey.
• A Surveyor’s Real Property Report may not be used for commercial property or multi-family structures which share a common entrance way or stairwell.

Any questions regarding survey issues can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

When involved with a transaction where the seller or one of the sellers is deceased it is important to contact your title company early in the listing process:

• It is critical to determine current ownership in this situation.  Obtaining a copy of the deed to the property is the best place to start.
• A copy of the death certificate will typically be required by the title company.
• If the deceased party left a will, the title company may require a copy prior to closing.
• If the deceased party did not leave a will, the title company may need to determine the heirs of the deceased party.
• Don’t assume that if one spouse is deceased that the property will automatically go to the surviving spouse.
• Depending on ownership, only one person may need to sign or all heirs and spouses may need to sign.  So be sure to allow enough time to deal with any out of town heirs.
• The proceeds of the sale may need to be held in an escrow account until any potential claims period has expired.

Any questions regarding the above can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

When handling a transaction where the buyer or seller are considered a corporation or the property being transferred is considered commercial, please remember the following:

• A corporation name is required to contain the words “corporation,” “company,” “incorporated,” or “limited” or end with an abbreviation of one of those words.
• The title company will normally require a copy of the Articles of Incorporation prior to closing.
• The corporation needs to be in “Good Standing” with the Secretary of States office.
• A corporate resolution will also be required by the title company, pertinent to that particular transaction.
• Any properties deemed to be commercial will require a survey in order to give survey coverage.
• Commercial properties may have specific zoning issues and may require special endorsements to the title insurance policy.
Any questions regarding commercial transactions can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

When handling a transaction where a buyer or seller are involved in a 1031 Tax Deferred Exchange please remember the following:

• In order to qualify for a 1031 Exchange, the real estate being sold must be investment property; that is, it must be held “for productive use in trade or business.”
• Once the property has been sold, a qualified intermediary will maintain possession of the sale proceeds until a replacement property is identified and purchased.
• An exchanger has 45 days (calendar days) from the date relinquished property is sold in which to identify replacement property.
• The exchanger has 180 days (calendar days) from which the relinquished property has closed to close upon the replacement property.
• The replacement property must have a value being the same or greater than the relinquished property.
• 1031 Exchanges are governed by Section 1031 of the Internal Revenue Code.
• While Security Title can act as the qualified intermediary, we recommend that you retain a tax attorney or accountant to insure that your transaction qualifies under the code.

In the St. Louis area the swimming pool season is basically over.  Most homeowners are closing their pools for the season this month.  Which means the excitement of the swimming season is over providing a good time to answer the question I get asked often from January until about June.  “Will adding a swimming pool increase the value of my home?” 

The National Association of Realtors report on value characteristics sited that swimming pools add approximately 8% to the value of a home while above ground pools ads no value in a similar market.  Keep this in mind when you are deciding what you will spend on a pool.  The pool needs to be a part of the overall package.  Adding a $60,000 pool to a $150,000 home will provide a smaller percentage return.

For the most part the answer is, “it depends” in the St. Louis real estate market.  The general rule of thumb is that if you plan to live in your home until you have used and enjoyed the cost of the pool then you should have it installed.  Beyond that you should expect to recover only a portion of the cost of the pool.  Pool appeal is very important.  Features such as decking, pathways, landscaping and waterfalls add to the attraction of outdoor lifestyle a pool offers.

For above ground pools the answer is simply no.  If you decide to have an above ground pool installed you should be prepared to remove it and repair the landscaping when you sell and you should either do just that, or at minimum make that offer to potential home buyers.

In summary having a pool limits the number of buyers that will be interested in your property which may extend the marketing term.  An extended marketing term may result in a lower than expected sale price.  So install the pool and enjoy it, but don’t expect to recover all of the cost.