REO Properties and Legal Requirements

REO Properties and Legal Requirements

I've written a few recent posts about keeping REO / vacant properties safe. Two of the latest are Squatters in the House! Police were called and Be Careful of the Squatters.

I live in San Francisco, which is only 47 square miles (according to Wikipedia) , roughly 7 miles by 7 miles. So my work as a REALTOR often takes me outside City boundaries. And we have to keep up with all neighboring city requirements if we want to work there. I'm talking about Best Practices in Real Estate.

I have another REO listing coming up soon in South San Francisco. It is a great opportunity for an Investor or someone who wants to live in a home and have great income. There is a 3 Bedroom home on one street and a 3-unit building in back on another street. More on that later.

Since it is an REO and now vacant, I've been talking with the Fire Department about their required Safety Inspections (another post to come soon on that requirement). Then I found another item of interest. Each REO has to be registered with the city as a Distressed Residential Property. And there are specific requirements regarding notices / signage on the property.

The following from Ordinance 1402-2008:

Signage Requirements

Any abandoned property shall be posted with the name and 24 hour contact phone number of the trustee beneficiary or a local property management / realtor company that must be retained by the beneficiary.

The posting shall be no less than 18 inches by 24 inches and shall be of a font that that is legible from a distance of 45 feet., and shall contain along with the name of the 24 hour contact number, the words "THIS PROPERTY MANAGED BY........and TO REPORT PROBLEMS OR CONCERNS CALL ......."

The posting shall be placed on the interior of a window facing the street to the front of the abandoned property so it is visible from the street but not readily accessible to vandals.

It's just not enough for a Realtor to be good at buying or selling properties. We MUST know all the rules and regulations set by any local community we work in. We must be educated and adept at what we do in order to skillfully represent our clients.