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Show REVIEW. May 26. 1966 C7 Seller Shouldnt Have Paid by Bernard C. Meltzer Mortgage money has tightened in recent months. In some areas, lenders are now asking for premiums on conventional a mortgages phenomenon missing from the mortgage market for some years. Brokers and attorneys, to judge from the mail, are apparently confusing, these premiums with FHA and VA mortgage discounts. Dear Mr. Meltzer: As best I can make out from the garbled explanation at settlement, the Federal Reserve Bank in Washington raised interest rates and it cost me $160. Perhaps you can explain. I sold my house for $20,000. The buyer needed a $16,000 The broker semortgage. cured it from a local bank. They tell me that in the three months between the sale and settlement, mortgage money tightened. At settlement, the bank demanded a one percent premium, or no deal. I paid.,, - why! Mr. A. Y. .1, too, ask the why? You should question not have paid the $160. The only explanation I can offer is that the broker or attorney who represented you did not know real estate practice. Also, perhaps you offered the least resistance of the parties involved. In a conventional mortgage transaction (about 85 percent of the market), the buyer must If get his own mortgage. premiums are demanded by the lender, then the buyer pays such bonuses. In FHA or VA mortgages, ANSWER: on the tion of other hand, by regulathese two government agencies, the buyer is prohibited from paying premiums or , (Continued from page C6) trimmed in white and tassled. An inviting oval rug covers a wide area of the vinyl floor. It is red as is the cone-ty- pe fireplace. A painting, with a Mexican flavor, in brilliant shades of red, looks as if it were painted with this room in mind. Mrs. Moreton rented it from the Art Center, but, as with all of the paintings shes rented, it became such a part of her home that she bought it. The walls of the family room are paneled in oak and built-i- n cabinets, shelves and drawers of the same wood cover one wall. The master bedroom apartment looks out cm to its own private flagstone patio, sepa-nd- ad from the main patio by a wall of the same stone. The dancings and flowers of this .'ook surround a small pool ino uhich a white marble cherub vinpties a large urn. A switch inside the bedroom allows water to pour out of this torn. One might suppose that Mrs. Moreton would be forced to don roller skates in order to cover the distance of this rambling home. Indeed, she would probably find it necessary were it not for the marvelous inier-co- m system in the kitchen which enables her to talk to or hear from any room in the house. discounts. It is for this reason that the seller usually pays. 1 am afraid your representative has confused the type of mortgage transaction involved. The only exception I can think of requiring the seller to pay is if the agreement contained a clause wherein the seller agreed to deliver to the buyer a mortgage at a interest rate and specific terms. If the market for this type of mortgage commanded a premium at settlement, then the seller would be required to pay. in all other cases involving conventional mortgages, the practice is for the buyer to pay premiums or bonuses. Dear Mr. Meltzer. We are two college seniors renting an apartment In our commercial law class the professor explained that a lauid-lo- rd has no right to enter the leased premises of a tenant without permission. landlord very often Our comes into our apartment when we are out. When we protested, and showed him our lecture notes, he laughed. He said that since he never went to college, his lecture notes state that he can come into our apartment, and he will continue to do so. Can our professor be wrong? Two students As a general rule, a landlord has no right to enter a leased premise which is in exclusive occupation of the tenant (your apartment). Thus your lecture notes are right. However, your professor should have explained that usually this is only part of the story, Im sure the landlords lecture notes (the lease you signed) state otherwise. The ANSWER: lease you signed so lightly, without doubt gives the landlord the right to inspect the premises at his option (provided it is at a reastore-boug- ht REALTOR ' sonable time). This is customary in apartment management, unless the tenant insists on a modification of the clause. I hope this incident has furthered your education an individual may have rights, but if he carelessly signs them away, they are gone. WEEK as - SB MAY MOVING SETTLING UP? DOWN? IJ SEE A REALTOR! Dear Mr. Meltzer: Every time I shut off a faucet, a loud bang similar to a junior explosion berates through the house. Also, although I keep replacwashers almost ing faucet every month, every faucet in the house constantly drips. Plumbers are always working on the pipes with no appreciable results. Whats the solution? REALTOR; A professional in real estate whs subscribes to a strict Code of Ethics as a member if the local hoard and of the National Association of Real Estate Boards. for INTEGRITY DEPENDABILITY COMPETENCE PROFESSIONAL SERVICE see a G.S.S. ANSWER: Both the banging pipes and the constantly dripping faucets are due to the same cause. In some locations, the municipal water pressure in the mains may be 100 pounds or very high more. House plumbing cannot take such pressures. The solution is to install a pressure regulator valve in the water main where it enters the house. Setting the pressure at about 45 pounds will cure your problem and, at the same time, is adequate for the many fixtures running without reducing water flow. The cost of a pressure regulator valve is about $25, and the installation will cost about the same. The Realtor's Pledge I am a REALTOR. I pledge myself to protect the individual right of real estate ownership and to widen the opportunity to enjoy it; To be honorable and honest in alt dealings; To seek better to represent my clients by building my knowledge and .competence; To act daily towards all in the spirit of the Golden Rule To serve well my community, & through it my country; To observe the Realtor's Code of Ethics and conform , my conduct to its lofty ideals. America weepsttakes If REGISTER HERE NO OBLIGATION TO BUY hi Model 1966 M150BBG ADVENTURER 15 I DODGE CHARGER! $5,000 12" PORTABLE CASH and a Pounds of Persor.pl Viewing Pleasure! 74 sq, in. Picture! 12" Diag. Tube HOW! PRIZE 30 TV PORTA-COLO- R mm DAY CREDIT CARD WmM yw NHtvt talar TO at tkta law prteef -- a new Personal TV and only 24 pound light! 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