Tuesday, September 8, 2009

Vacant home in Carbondale? Ordinance Affects Selling/Renting Homes in the City.


Nothing contained within this post should be considered Legal advice.
The poster is not liable or responsible for any errors omission or mistakes in the quoting of any applicable ordinances, laws or regulations.
The readers of this post are advised to seek the advice of legal counsel before taking any action.

 
If you are an owner, agent for an owner of a property for sale or rent in the City of Carbondale or the owner of a vacant property in general you may want to be aware of an ordinance that affects you.

Carbondale enacted an ordinance in December 2008 which has an important to any vacant properties in the city.

File of Council No. 14:2008: City of Carbondale Vacant Property Registration Ordinance"

Any vacant property in the city must be registered with the city. This is an attempt by the City to monitor and maintain a list of properties which are or shall be vacant for an extended period of time (45 days or more). This will allow the city to have a degree of oversight into what can potentially create blight or pose a "…threat to public health, safety or welfare of the citizens of Carbondale."

The fees for registration are as follows:

       

Time period of the vacancyFEE
45 days-1 year    $100.00
1 year vacant$250.00
2 years vacant$500.00
3 years vacant$1,000.00
4 to 5 years vacant$2,500.00
6 to 9 years vacant$3,500.00
10 years vacant$5,000.00
10+ years vacant$5,000 + $500/year thereafter


Failure to pay the fees may result in a municipal lien against the property which could cloud the title and prevent resale or of mortgage financing.

Failure to pay the fee may result in additional penalties which depending on the severity of the circumstances could be as high as 50% of the total fee.

A local agent is needed if none of the persons listed on the registration statement are within the state. Said local agent must be within 20 miles of the City of Carbondale. (I like the wording of this much more then the wording of the rental registered agent ordinance which requires the local agent to be in the City of Carbondale, just my two cents…)

There are some exceptions to the fees. A One Time Waiver of the Registration Fee can be obtained if…

    The owner is in the process of demolition, construction, rehab, or major repairs with valid city permits.

That the owner is actively attempting to sell or lease the property during the vacancy period through a licensed broker or by owner and is regularly advertising in local papers. However the property cannot be listed for more than 25% over market value to qualify for the wavier as evidenced by comparables.
You cannot just assume that well the house is for sale and I am exempt. You must still go through the process of registering the property the wavier is for the fee not for the registration.

2 year waivers are available for qualified no-profit organizations.

Now granted most homes are occupied when they are on the market but a large number of them are not, especially REO/foreclosed properties. Failure of the agent to advise the seller/landlord of this ordinance could present a RELA violation and result in files and disciplinary actions, as all licensed agents are required to "…advise the consumer regarding compliance with laws pertaining to real estate transactions." It is simple, when discussing the marketing of the property and the services you perform



I would also caution you to not just volunteer to be the "local agent" as defined in the ordinance. The ordinance requires someone to be available in the event the City needs to service notices or contact someone in event of an emergency. You may be biting off more than you can chew, vacant properties can present a major liability and can be a pain in the butt!!! This issue is especially bad in winter. It is one thing sell a vacant property in winter it is an entirely different animal to be "responsible" for one. Suggest the owner hire a property manager or seek the services of a responsible friend or relative to really be responsible for the preservation of the property. Even a responsible friend or relative may lack the necessary "crisis management" skills needed to handle this type of issue. Do you want to get a call from the City at 3:30 am telling you that someone needs to come down to the property cause the pipes burst!!! Do you want that call? I get paid to take those calls and I dread them!!!



This is part of our effort to help educate and inform property owners, investors, and real estate agents to local and pressing issues. Your suggestions and comments are always appreciated.


Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting BetterByDesignRE.com. Nothing Contained within this post shall constitute the creation of an agency relationship between Better by Design Real Estate, LLC and the reader of this post. An agency relationship shall only be created upon mutual written agreement. The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you. Nothing contained within this post shall be construed as providing legal advice. Anyone with specific questions regarding legal matters should consult the advice of a licensed attorney.

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