Just another cautionary tale in a sea of industry constraints: keep the personal property out of the sales agreement.
While pool equipment and flat screens and brand new hot tubs can sweeten the offer, they can neither:
- Be described in the public remarks about the property in: MLS, Realtor.com, or any other Internet-based home buying source
- Be written into the contract as part of the deal
While there has not traditionally been anything wrong with advertising the extras and while the detailing what’s included answers the question as to whether or not the slate pool table in the family room conveys; the game’s over.
In additional investigative attempts, lenders today are going so far as to check out MLS real estate listings to confirm that nothing but the property and what is physically attached to it has made its way onto the contract.
Call it dirty pool, but if discovered these “extras” will have to be appraised by an estate appraiser. Then the mortgage loan amount will potentially be reduced to compensate for the value of the goods. On top of that, since such an appraisal is a fee-based service, it will hit the borrower’s pocket as just another cost of the transaction.
At the end of the day…need I say more?