Laurelee Blanchard, Realtor

Maui Island

Real Estate News

Volume 4

In this Issue:

Real Estate Market Report

Prepare for the Close

Real Estate Law Requirements of Fiduciary Responsibility

Coldwell Banker Island Properties

24 Baldwin Avenue

Paia, Maui, HI 96779

Phone:

(808) 298-8544

E-mail:

Laurelee@MauiResidences.com

We’re on the Web!

www.mauiresidences.com

Real Estate Market Report

As of July 31, 2007, there were 707 home sales on Maui, compared with 587 a year ago. The average sales price was $958,906, compared with $1,002,286 a year ago – a 4% decrease. The median price was $640,000, compared with $715,000 a year ago, representing a 10% decrease. Total dollar volume increased 15% during this twelve month period.

Prepare for the Close

Homeowners Insurance

The financial institution providing your mortgage will require that the home you are purchasing is insured, so you must obtain homeowners insurance before closing and provide proof of the policy. Allow plenty of lead time before closing to find homeowners insurance. Costs and coverage can vary, so obtain at least three quotes from different companies. When evaluating the policies to find the right one for you, consider questions such as:

What is covered?

What is not covered?

How much will the insurance cost?

Are discounts available for such things as smoke detectors and fire alarms, burglar alarms, non-smoking owners, combined auto and home policies, higher deductibles?

What is the deductible?

Is the home in an area prone to hurricanes where wind insurance may be a separate policy?

Is the home in a flood zone where separate flood insurance is required?

Complete a Home Inspection

Have the home professionally inspected—even if it’s new construction—to identify potential expenses that might not be immediately detectable during your viewings of the home. Schedule an inspection with a qualified home inspector within the time specified in the inspection contingency of the purchase contract.

Final walk-through – a final check to ensure that the property is in the same condition it was during the inspection, and that any contracted items, such as appliances, at still in the home.

Real Estate Law Requirements of Fiduciary Responsibility

As a fiduciary, an agent is held by law to owe specific duties to his/her principal (the person who they are representing), in addition to duties or obligations set forth in a buyer representation agreement. These specific fiduciary duties include:

Loyalty - One of the most fundamental fiduciary duties an agent owes to the principal. The duty obligates a real estate broker to act at all times, solely in the best interests of the principal, excluding all other interests, including that of the broker.

Obedience - An agent is obligated to promptly and efficiently obey all lawful instructions of his/her principal that conform to the purpose of the agency relationship.

Disclosure - An agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency. The duty includes any facts affecting the value or desirability of the property, as well as any other relevant information pertaining to the transaction, such as the other party's bargaining position, the identity of all potential purchasers, and information concerning the ability or willingness of the seller to offer a lower price.

Confidentiality - An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.

Reasonable Care and Diligence - An agent is obligated to use reasonable care and diligence when pursuing the principal's affairs. The standard of care expected of a buyer's or seller's real estate broker is that of a competent real estate professional. By reason of his/her license, a broker is considered to have skill and expertise in real estate matters superior to that of the average person.

Accounting - An agent is obligated to account for all money, property or documents that belong to his/her principal entrusted to that agent. The duty compels a real estate broker to safeguard any money, deeds, or other documents entrusted to them relative to their client's transactions of affairs.

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