Real Estate in Steamboat

Editor’s note: Robert Bruss is temporarily away and will return next week. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

Not too long ago, a neighbor asked if I knew where our sewer and storm drains are located. He apparently wants to adjust the drainage on his property to drain into the public storm sewer drain, which I knew adjoins our lots.

After that brief conversation, I checked the legal description for my property. All it says is the city has a public utility easement along the northerly 5 feet of my property. But the easement description doesn’t say what underground utilities are there and exactly where they are located.

Purchase Bob Bruss reports online.

Further research in the public records might reveal exactly what underground public utility easements pass through my property and exactly where they are located.

WHAT IS AN EASEMENT? Virtually every property in an urban area is subject to one or more easements. An easement is the legal right of a public or private entity to use part of a real property owner’s land.

The property that is burdened by an easement is called a “servient tenement” because the easement serves another parcel. The property that benefits from the easement is called the adjoining dominant tenement.”

There is always a servient tenement. However, there is not always an adjoining dominant tenement, such as for a public utility easement.

Private easement examples include a driveway, path or garden area of a neighbor’s property. Public easements include utility easements for water, sewer, storm drain, electric lines, phone lines, gas pipes and cable TV lines.

Most easements are obtained with permission of the original property owner, usually at the time a subdivision is developed. The utility easements are often granted free by the developer in return for the city or private utility bringing public services to the property.

But some easements are hostile, without the specific permission of the property owner. To illustrate, suppose I drive over part of your property to reach my garage because that route is shorter and easier than using my steep driveway to reach the public street. Even if you tell me to stop driving over your land, but I continue to do so for the number of years required by state law, eventually I can obtain a permanent prescriptive easement for that purpose.

To be valid, an easement must be recorded against the title of the property that is subject to the easement, such as a shared driveway between two houses.

A very rare easement is an easement by necessity. Most states have laws allowing creation of an easement by necessity to reach a landlocked parcel, which has no driveway or other access to a public road.

The legal theory is all land should have road access, and when the landlocked parcel was created the owner at that time forgot to include access. A quiet title lawsuit is usually required to create an easement by necessity over an adjoining parcel that has public road access and, at some time in the past, had common ownership with the landlocked parcel.

THREE BASIC TYPES OF EASEMENTS. Virtually every real estate parcel is burdened by some type of easement. To be valid, the easement must either be recorded in the public records affecting a specific parcel, or it must be capable of being perfected into a valid easement.

1. EASEMENTS APPURTENANT BENEFIT AN ADJOINING PARCEL. Where there is a dominant tenement that benefits from an easement, such as for a driveway, that is an easement appurtenant. Most easements appurtenant were created when a subdivision was developed, or when two adjoining lots were subdivided.

An easement appurtenant is usually recorded against both parcels, describing the details of that easement. To be valid, an easement appurtenant must be recorded against the servient tenement title. It is usually also recorded against the dominant tenement title.

When a parcel is landlocked without public road access, it is up to the owner of that parcel to prove entitlement to an easement by necessity. If the court approves such an easement, it becomes an easement appurtenant with dominant and servient tenements.

2. EASEMENTS IN GROSS AFFECT MOST PROPERTIES. Virtually every property with electricity, phone, TV cable, public water, sewer, and storm drain utility service is subject to one or more easements in gross. Most such easements are recorded in the public records against each property title affected.

An easement in gross has a servient tenement, but no dominant tenement. Sometimes such easements were not properly recorded. If the easement in gross is obvious, such as for overhead power lines, it is hard for the property owner to deny awareness.

But underground easements in gross, such as for water, sewer and gas pipes, might not be obvious. To avoid unexpected surprises, property buyers should insist on receiving an owner’s title insurance policy at the time of purchase. If an underground easement in gross is later discovered, but it was not disclosed in the owner’s title insurance policy, the title insurer may be liable to the property owner for damages.

For example, suppose you decide to build a swimming pool in your backyard. As the contractor is digging, he discovers a previously undisclosed city sewer through the middle of your backyard. If the city’s sewer easement was properly recorded, but the title insurer failed to discover and disclose it, the title insurer is liable to the property owner for either the cost of moving the sewer pipe or the diminished value of the property.

3. PRESCRIPTIVE EASEMENTS REQUIRE HOSTILITY. When someone uses part of your property without your permission, and without a prior recorded easement, he or she might become entitled to permanent use of that easement.

The legal requirements to acquire a prescriptive easement over someone’s land requires (a) open, (b) notorious (obvious), (c) hostile (without permission), and (d) continuous use of part of another’s property without permission for the number of years required by state law.

Payment of property taxes is not required, as it is to obtain title by adverse possession.

California has the shortest prescriptive easement period, only five years. But Texas requires 30 years to acquire a prescriptive easement. Other states have varying time tests.

Because prescriptive easements can be shared, the hostile use need not be exclusive. Use can be shared with the legal owner and/or other hostile prescriptive easement claimants.After meeting the time and use requirements, a prescriptive easement acquirer can perfect the easement by bringing a quiet title lawsuit against the property’s legal owner. An experienced real estate attorney is usually needed to prove the prescriptive easement requirements.

SUMMARY: Virtually every property is burdened by or benefits from an easement. Property owners should understand the legal consequences of those easements and where they are located. Unless properly recorded, an easement might not be valid except when it is obvious by long continuous use, such as overhead power lines. For full easement details, please consult a local real estate attorney.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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Copyright 2007 Inman News

When summer temperatures soar, the backyard is definitely the place to be. But if your patio or deck bakes in the sun more than you’d like, it might be time to consider a patio cover to get yourself some welcome shade.

Patio covers range from the simple to the ornate. They can be large or small, painted or natural wood, and covered with anything from wood slats to solid roofing. But remember that when summer’s sun is replaced with the ravages of winter your patio cover needs to stand up to the elements, so whatever your design, make sure it’s built correctly.

For most yards, patio covers are simply a shed roof with a moderate slope that extends off the rear or side of the house. Most designs consist of a ledger — a horizontal board to which joists or rafters are attached — against the house with a series of rafters extending from the ledger to a beam some distance out from the house. The beam is supported by posts, and the rafters are then covered with the roofing material.

The first temptation with a patio cover is to skip the ledger and attach the rafters directly to the fascia, but that can be a recipe for disaster. Roof fascias are primarily decorative, and are designed to carry little more than their own weight. Placing the load of a patio cover onto a board that was never intended to carry it can easily result in the fascia being torn loose from the house, especially in areas with winter snows.

Instead, begin with a ledger or a beam that is placed against the house itself, and is secured to the wall framing. The fasteners that secure the ledger in place must penetrate all the way through the siding and into the wall studs in order to provide adequate support. In some jurisdictions with heavy snow loads, the ledger must also have vertical supports under it that extend all the way down to piers or other adequate load supports.

At the other end is a set of posts that support a beam. The posts can be set into holes in the ground and secured with concrete, or, more commonly, they are placed on poured concrete pier pads. When the concrete is poured, a steel post base anchor is installed in the proper location, and the post is then secured into the anchor. After cutting the posts to the proper length to provide slope for the rafters, the beams are installed on top of the posts and secured with steel connection caps or other structural connectors (simple toenailing does not provide an adequate connection).

The rafters are added next. Depending on the design and the allowable codes, the rafters may be attached to the ledger using metal joist hangers, or they may sit on top of the ledger and be secured to it with metal ties. Metal ties are also used to secure the rafters to the beam at the other end, and solid blocking is typically required between the rafters over the beam, over the ledger, and at specific locations along the rafters’ length.

How you cover the basic framework depends on both aesthetics and function. For a patio cover that breaks up the sun and provides intermittent shade, you might want to consider spaced wooden slats. These can be 2-by-2s, 2-by-4s or other material, spaced from one to several inches apart. The slats can even be ripped at an angle along the bottom, which in turn will tip the slats to block the sun at specific times of the day. A grid of slats installed at right angles to one another will provide even more shade and architectural interest.

For a more solid cover that still provides plenty of light, you might want to consider a covering of corrugated fiberglass panels. Precut wooden strips that match the high and low corrugations of the panels — available wherever the panels are sold — are installed first. They are nailed over the tops of the joists and perpendicular to them, and provide solid support for the roofing panels.

Corrugated fiberglass panels are available in translucent and solid colors to suit your design and your sun-blocking requirements, and you can also use a combination of the two for both light and shade. If you intend to paint your patio cover, you’ll find the task much easier if you paint everything — including the corrugated wooden molding strips, if desired — prior to installing the roofing panels.

For solid shade, or to provide rain protection, a solid roof might be the answer. This can be made from plywood sheathing covered with singles to match your existing roof, or done with metal roofing panels or other materials.

Remember that patio covers are a structural element of your house. They are also big and subject to a lot of wind and snow loads, and can be highly dangerous if they are poorly designed or constructed. As such, they are subject to the provisions of the building codes, and also require a permit for their construction. Before beginning any patio cover project, be sure to consult with your local building department for complete requirements on lumber sizes, pier dimensions, ledger and rafter connections, and other important structural details.

Remodeling and repair questions? E-mail Paul at paul2887@ykwc.net.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Editor’s note: Robert Bruss is temporarily away and will return next week. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

DEAR BOB: My son and his wife live in a free-and-clear house that I own. He pays utilities and maintains the property. He proposes I add both their names to the title so that in 24 months we can sell the property and he would then purchase — in his name only — a more expensive home. My son says no tax will be due on such a sale under that $500,000 tax exemption rule you often discuss, and the sale isn’t even reportable to the Internal Revenue Service. I realize I would be passing on the value of the home to him, but I am not confident of the tax situation. Is he correct? –James S.

DEAR JAMES: When you gift the house to your son and his wife, that event requires you to file a federal gift tax return. However, no gift tax will be due if your total lifetime gifts exceeding the annual $12,000 per gift per donee exemption are not more than $1 million.

Purchase Bob Bruss reports online.

When you pass on, the value of your gift will be subtracted from your federal estate tax exemption, which is currently $2 million if you die in 2006.

As donees, your son and his wife will take over your presumably very low adjusted cost basis for the house. If they own and live in the home as their principal residence at least 24 of the 60 months before its sale, Internal Revenue Code 121 allows them to exclude up to $500,000 capital gains (up to $250,000 for a single homeowner) from tax upon sale.

Your son seems to be very sharp about the tax benefits of his acquiring ownership in the house. But before making any title transfer, please consult your personal tax adviser so you are fully aware of the tax consequences.

JOINT LISTING PROVES TO BE A DISASTER

DEAR BOB: In late April we listed our home for sale. Because two very good friends are real estate brokers, we signed a joint listing with both of them. Little did we know they hate each other’s guts and speak to each other only when absolutely necessary. It is a six-month listing. Although we were assured we listed at the correct asking price, we haven’t received any purchase offers or serious buyer interest so far. Since these agents work at different brokerages, neither one will hold a Sunday open house or even advertise our listing in the newspapers. What should we do? We already lost two good friends –Brooke W.

DEAR BROOKE: Joint listings with two competitive real estate agents rarely are successful, especially when each agent works at a competing brokerage. Those co-listing agents weren’t really your friends if they can’t get along to get your home sold for top dollar.

I am not surprised they refuse to cooperate on joint advertising or to hold weekend open houses. Each co-listing agent is probably worried the other listing agent will find an acceptable buyer and earn most of the sales commission.

But shame on you for signing a long six-month listing. As regular readers of this column know, a 90-day listing is the maximum suggested term to keep your listing agent highly motivated to find a buyer.

At this point, I suggest you ask the co-listing agents, and your former friends, to terminate their listing so you can re-list with another agent. Be sure to emphasize to each agent if they have a buyer for your home, they can still earn half of the sales commission. In the future, never sign a listing exceeding 90 days, especially with friends.

JOB TRANSFER ALLOWS PARTIAL HOME-SALE TAX BREAK

DEAR BOB: We bought our home in February 2005. At that time, my husband had just accepted a new job and we expected to stay at least five years, maybe “forever.” However, his employer filed Chapter 11 bankruptcy reorganization a few months ago. Although he still has a job, things look “dicey.” Meanwhile, word got around his industry and he recently received a superb unsolicited job offer at a much higher guaranteed salary for five years, plus moving benefits, bonus, etc. Our only problem is if we sell after less than 24 months of home ownership, we will owe capital gains tax on the tremendous increase in market value of our home. I recall you wrote about “unforeseen circumstances” as a reason the IRS grants partial principal residence sale tax exemptions. Would this qualify? –Jeanie T.

DEAR JEANIE: Yes. Your circumstance probably qualifies under the Internal Revenue Code 121 principal residence sale partial exemption for both job transfer and unforeseen circumstances. Using this exemption, when selling a principal residence after less than 24 months of ownership and occupancy, the sellers are entitled to a partial exemption based on the number of occupancy months.

For example, suppose you owned your principal residence and you qualify for one of the partial exemption rules for home sale (health reasons, employment change, or unforeseen circumstances). Then your exemption is based on the number of ownership months and occupancy.

If you sell after 20 months, that means you qualify for 20-24ths or about 83 percent of the $250,000 exemption ($500,000 for a married couple filing jointly. For full details, please consult your tax adviser.

The new Robert Bruss special report, “Probate Property Profit Secrets Revealed,” is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Editor’s note: Robert Bruss is temporarily away and will return next week. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

DEAR BOB: I own a two-acre lot in an area of mostly one-acre lots. A neighbor wants to buy a half acre from me so he can build what I call a “McMansion.” He needs a larger lot to accommodate the size home he and his wife want to build. We don’t mind because it won’t be close to our house and having a highly valued house next to ours should enhance our home’s market value. However, we don’t know how to value a half-acre lot where there are no lots for sale. Also, what legal steps must be followed to deed a half acre? –Walter H.

DEAR WALTER: I suggest you retain an appraiser and a real estate attorney. If you proceed with the half-acre lot sale, be sure to add your appraisal and legal costs to the sale price of the property.

Purchase Bob Bruss reports online.

As you will discover, subdividing a lot in an urban area usually is not simple. Although you have no objection, the neighbors might protest.

The appraiser can inform you of the market value of a half-acre lot in your neighborhood. But the real estate attorney will be needed to handle the legal details of obtaining subdivision approval from the appropriate local authorities. As you and your neighbor will soon discover, selling half a lot is not easy.

WHAT IS A “STARKER EXCHANGE”?

DEAR BOB: I am a relatively new real estate agent. But I have heard the term “Starker exchange” and am not familiar with it. What does that mean? –Beth W.

DEAR BETH: Internal Revenue Code 1031 authorizes owners of investment and business property, such as apartments, rental houses, warehouses, office buildings and commercial properties, to trade their property for “like kind” properties of equal or greater cost and equity so they can defer the capital gain tax that would be due upon an ordinary sale.

A so-called Starker exchange is authorized under IRC 1031(a)(3), which permits the sale of qualifying property, with the sales proceeds held by a third-party accommodator or intermediary beyond the seller’s “constructive receipt.”

The seller then has up to 45 days after the sale closes to designate a qualifying replacement property of equal or greater cost and equity, plus 180 days to complete the acquisition. For full details, please consult your personal tax adviser.

ARE HUD COUNSELORS TRULY INDEPENDENT?

DEAR BOB: Unknown to me, my 81-year-old mother recently took out a lifetime reverse mortgage. As her daughter, I was totally unaware she was doing this. The reverse mortgage lender sent a so-called “HUD counselor” to her house to spend an hour explaining reverse mortgages. About three months after this occurred, I learned my mother paid almost $6,000 in various up-front loan fees. Considering she is in declining health and will soon have to move to an assisted-living home, I find this outrageous conduct by the reverse mortgage company. Are the HUD counselors sent by a reverse mortgage company truly independent? –Sarah S.

DEAR SARAH: The three nationwide senior-citizen reverse mortgage lenders all require counseling by certified HUD counselors who are supposed to explain to the prospective borrowers the pros and cons of such mortgages.

Of course, nobody can vouch for such counselors being truly independent of the actual reverse mortgage lender. If a counselor discourages prospective borrowers from obtaining reverse mortgages, I’m sure that person won’t be recommended by a reverse mortgage lender again.

If your elderly mother plans to stay in her home at least five years, that $6,000 for various fees is not excessive. Please remember reverse mortgages pay money to the senior-citizen homeowner, without any repayment required until the homeowner either sells the home, vacates for more than 12 months, or dies. More details are in my special report, “The Whole Truth About Reverse Mortgages for Senior Citizen Homeowners,” available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Editor’s note: Robert Bruss is temporarily away. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

DEAR BOB: Recently you had an item about how husband and wife should hold title to their home and other real estate. It motivated me to go to our safe deposit box to check our home title deed. It says we own our home in the name of “Mark or Victoria Lastname.” No method of holding title, such as joint tenancy or tenancy in common, is specified. Do we have a problem? –Victoria W.

DEAR VICTORIA: Yes. As a real estate attorney, I can see many potential problems with the way you hold title to your home. The very troublesome word is “or.”

Purchase Bob Bruss reports online.

Also, the deed fails to specify how you hold title, such as tenants in common, joint tenancy with right of survivorship, or another method. Whoever prepared that deed obviously wasn’t looking out for your best interests.

While you are in “good standing” with each other and the marriage is going well, today is the ideal time to consult a local real estate or family law attorney to discuss your title choices. Then, you can execute a joint quitclaim deed to hold title with the method you select.

NO NEED TO DISCLOSE DEFECTS IN NEARBY HOMES

DEAR BOB: For the last 22 years we have owned and enjoyed our home in a subdivision where all the homes were built by the same builder with the same materials. In the last few years, several homes have encountered basement wall leaks. However, our home has no such problem. We enjoy our basement family room, laundry room and storage area with no evidence of any water leaks. When we sell in the next few months so we can move to a retirement community, do we have to disclose to our buyer that a few other homes in our subdivision have encountered basement water leaks? –Steve Y.

DEAR STEVE: No. Home-sale disclosure laws only apply to the residence being sold at the time of the sale. They do not require disclosure that nearby homes down the street built by the same builder have encountered construction defect problems. For full details, please consult a local real estate attorney.

IS LOT SELLER LIABLE FOR UNDERGROUND STORM-SEWER EASEMENT?

DEAR BOB: Three years ago, we sold the vacant lot adjacent to our home. The buyer told us he planned to build a house there. That was fine with us. But when he recently applied for a city building permit, he discovered there is a city storm sewer pipe easement beneath the property, which will bar him from building anything but a very small house. We had no idea there was such a pipe easement. However, his title insurance report clearly revealed that easement. Do we have any liability to him as he threatens to sue us for damages? –Helene P.

DEAR HELENE: From your description of the situation, it appears you have no liability since you didn’t know about the underground city storm sewer pipe easement and it was fully disclosed to the buyer in his owner’s title insurance policy. I find it amazing how many property owners (and their real estate agents) fail to read and understand their title insurance reports.

The lot buyer has nobody to blame but himself for failure to read his owner’s title insurance policy, which described that storm sewer pipe easement. If the buyer sues you, of course you should hire an attorney to answer the complaint.

Your attorney should politely remind the buyer’s attorney you didn’t know about the easement and the buyer had written evidence of it in his title insurance policy, which he failed to read. After you win such a “no brainer” lawsuit, you can then sue the buyer for damages, primarily your attorney fees, for malicious prosecution.

The new Robert Bruss special report, “Probate Property Profit Secrets Revealed,” is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Editor’s note: Robert Bruss is temporarily away. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

David and Suzanne McKenna own their home on Maybell Way in Palo Alto, Calif. Their residence suffered serious damage as the result of two backups of the city sewer serving their home.

After the first backup, their homeowner’s insurance company paid to install a new lateral sewer pipe from the house to the sewer located in the street.

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But about a month later, the sewer again backed up into the McKenna home. This time the insurance company hired Spectrum Leak Locators to investigate the cause of the second backup. Their video inspection found the replaced lateral pipe was clear of debris and in perfect condition.

Spectrum discovered tree roots at the city’s “wye” joint connecting with the McKenna’s new lateral pipe to the city’s main sewer. The video inspection revealed toilet paper and effluent on the tree roots in the sewer main pipe, which was half-filled with standing water.

After paying the McKenna’s second homeowner’s insurance claim, the insurance company filed a lawsuit as subrogee against the city for damages from the second backup. The insurer argued the City of Palo Alto was liable for “inverse condemnation” damages, meaning the city’s action took the use of private property without payment.

But the city submitted evidence it has a maintenance program, including hydroflush of each main sewer line every two years. The Maybell Way sewer had been hydroflushed 18 months before these sewer backups. The city also noted no other homes on Maybell Way suffered sewer backup damages.

If you were the judge would you require the city to pay inverse condemnation damages for the second sewer backup?

The judge said yes!

There is no dispute as to the three elements of inverse condemnation damages: the McKenna property was taken or damaged, the damage was caused by the sewer backup, and the city’s sanitary sewer system is a public project, the judge explained. The only missing element was proximate causation, he emphasized.

At the trial, evidence was presented as to three possible causes, he continued. They were (a) tree roots in the main sewer line, (b) the sewer main had an inadequate slope to carry sewage away from the homes, and/or (c) there was standing water in the sewer line.

No matter what caused the sewer backup damage to the McKenna home, the public sewer failed to function as it was intended, the judge ruled. “The blockage occurred on city land and in piping strictly under the control of the city…in this case there was a substantial cause-and-effect relationship between factors entirely within the control of the city,” he noted. Therefore, there is no need to distinguish among them to determine the “how and why” the blockage occurred; the city is therefore liable for inverse condemnation damages, he concluded.

Based on the 2006 California Court of Appeal decision in California State Automobile Association Inter-Insurance Bureau v. City of Palo Alto, 41 Cal.Rptr.3d 503.

(For more information on Bob Bruss publications, visit his Real Estate Center).

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Q: I have a hot water heater that is about 12 years old. It was top of the line when I bought it. About a year ago, it started making big boiling-bubble sounds when we used the hot water. It’s directly under our dining room, so the noise is very noticeable.

Also, my mom has a water heater that is brand-new and makes those same big popping noises. What causes this? Can it be repaired? Is it time to get a new heater, and if so what kind do you recommend? Is my mom’s new heater defective?

A: “Bubble, bubble, toil and trouble.” A gurgling water heater directly below your dining room table is annoying and cause for some alarm. Fear not, though. We doubt that the water heater is about to explode.

To answer two of your questions: Your water heater is toward the end of its useful life, but it may not need replacing just yet. Your mom’s water heater probably is not defective, but it sounds as if it could use some maintenance.

As to the cause of the noise, a noisy water system can be diagnosed by the sound it makes. Water hammer, for example, is pounding and vibration created when water flowing through a pipeline is stopped abruptly. This occurs when a faucet is abruptly closed or the solenoid valve in a dishwasher or washing machine closes.

Water hammer can be cured by installing arrestors in the water line. These dampen the shock waves causing the noise.

Although you report that the noise coming from your water heater and your mom’s is the same, the cause may be different.

Your heater is 12 years old, and it just started gurgling about a year ago. This indicates something’s changed. Attached to a service manual from A.O. Smith Water Products Co., a nationally known manufacturer of gas and electric water heaters, is a series of technical bulletins concerning noisy water heaters. These bulletins may be accessed on the Internet at www.hotwater.com/bulletin/main1.htm.

The boiling, bubbling sounds you describe are most likely the result of mineral buildup in the tank. A.O. Smith’s Technical Bulletin 13, titled “Mineral Build-up,” gives a detailed discussion about the symptoms, cause and cure for a “rumbling,” “crackling” or “popping” water heater.

Lime (CaCO3) is the most common element in “hard” water. It is present to some degree in virtually every water system in the United States.

Lime is inversely soluble. That is, the more heat applied to the water, the more lime leaches out. High usage, hard water and time can lead to a “limed-up” water heater tank.

Symptoms of lime buildup include popping of water escaping from under lime deposits or sizzling water trapped next to heating elements being boiled to steam.

Treatment of a limed-up tank is relatively simple and can be tackled yourself. Lime is a base, and the easiest way to neutralize it and dissolve it so that it may be flushed from the water heater is with an acid.

The most commonly used de-liming acid is phosphoric acid at a food-grade level. A well-stocked plumbing supply house should have a de-liming solution. Follow manufacturers’ instructions carefully when using these products.

Your mom’s newer water heater also might be suffering from mineral buildup. But there could be another cause.

In parts of the United States where the water supply has a high pH, it might react with the aluminum anode in newer water heaters and produce excessive amounts of aluminum hydroxide. This by-product settles to the bottom of the tank near the heating element and interferes with combustion.

Check for this condition by removing an aerator from a faucet. Blue, green or gray jellylike beads in the aerator are indicative of aluminum hydroxide. Excessive aluminum hydroxide buildup can be cured by replacing the aluminum anode with a magnesium anode. Unless you are skilled in working with pipes, this job is probably better left to a plumber.

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Copyright 2007 Bill and Kevin Burnett

Remember the tight, cute “kit” cottage you saw at the annual Home Show (one of five clustered in the featured vacation-home area) that would fit just perfectly on the wooded lot you’ve always wanted in the mountains?

It seems that builders and manufacturers always are urging consumers to dream — whether it be a stately primary residence or a precut timber home composed of hand-milled Montana logs trucked directly to your site.

More and more dream homes have gone inside — at least for all or part of the construction phase — as curious consumers research and locate the new creative designs, energy-efficient features, often lower costs and environmentally controlled production of prefabricated residences. And, the finished product absolutely demolishes the preconceived notion of a “kit.”

Modular, manufactured, structural insulated panels and other types of “prefab” housing are reaching a growing segment of new-home buyers yet they are very different in the way they are built. The built-to-be-towed house — in a custom, preassembled package or enclosed finished unit — has changed dramatically, and so have its occupants.

For example, modular home builders have begun to target last-time home buyers: customers who know what they want and are willing to pay outside the “affordable” range.

According to Sheri Koones, author of “Prefabulous: The House of Your Dreams Delivered Fresh from the Factory” (Taunton Press, $25), “prefab” has become a generic term that describes any type of construction that is partially or mostly done in the factory. Often the term “prefab” is associated only with manufactured homes or trailers that are built to a HUD code and have a metal chassis. These homes are brought to the house site on their own wheels and are not placed on a foundation.

“Today, there are many prefab houses that are built to adhere to residential building codes and are built with a variety of different methods,” Koones said. “Sometimes referred to as ‘system built’ houses, these include modular, panelized, timber-frame, log, concrete, steel and hybrid techniques. They are customized, beautiful and rival the most elaborate site-built homes.”

Manufactured homes and modular homes are two different products built under two different codes. Modular homes typically are custom-built and usually include a concrete foundation. They are not found in mobile-home parks and are governed by the same building codes as conventional stick-built homes. They are assembled in a factory and trucked to the building site. They are usually financed with conventional loan programs.

The big change for the manufactured-home industry occurred in 1976. That’s the year HUD enacted standardized building requirements for mobile homes, essentially substituting one national code for numerous state codes.

“Mobile” is a relative term. These days a custom prefab could roll into a home site with 4,000 square feet of living space and include everything except a basement, and even those have been added. The sunken bath, country kitchen and custom fireplace may be on wheels for the trip, but it’s very unlikely they will move again.

The size and topography of the lot often dictates the type of prefab system that can be used. And, system typically dictates price.

“There can be a savings in modular, panelized and structural insulated panels, depending on the location and complexity of the house,” Koones said. “Other methods may be more costly — such as timber-frame, log, concrete and steel. Some of these methods, such as concrete and steel, are particularly durable and will be standing for many years. In the long run, these might be considered cost-saving investments.”

Andy Constan, a Bainbridge Island, Wash.-based builder with more than a decade of experience in prefab and conventional “stick built” homes, said today’s large, custom prefab package can be more predictable for scheduling, but interior finishes can still take more time than expected.

Also, some of these prefab methods reduce the carrying costs because of the energy savings that can be achieved with the method of construction. Structural insulated panels (SIPs), for example, have shown to substantially cut down on the need for heating and cooling.

Scheduling can definitely be a benefit to families on the move, especially during the colder, wetter months of the year. Think about it … materials are stored and brought finished to the site, curtailing weather-related losses and the anxiety brought by the length of time your new home is “open” to the elements. Also, there could be less disruption to the neighborhood because much of the building process is completed in a warehouse.

The possibility of having most of your home built indoors during the rainy months? Sounds like an intriguing concept.

To get even more valuable advice from Tom, visit his Second Home Center.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Tom Kelly

Editor’s note: Robert Bruss is temporarily away. The following column from Bruss’ “Best of” collection first appeared Sunday, June 25, 2006.

The latest book from longtime real estate author Tyler G. Hicks, “How to Acquire $1 Million in Income Real Estate in One Year Using Borrowed Money in Your Free Time,” is really about how and where to obtain mortgage money to acquire investment property. Despite its long title, this is a resource guide — rather than a real estate “how to” book — explaining dozens of ways to finance property acquisitions and where to locate the necessary funds.

Among the book’s unique features is a list of more than 1,000 mortgage lenders specializing in mortgages for BWBs (beginning wealth builders), as Hicks refers to first-time investment property buyers. Among the mortgage resources are, according to the author, more than 700 sources of Internet loans (I didn’t personally count them).

Purchase Bob Bruss reports online.

In that chapter, Hicks carefully explains the pros and cons of Internet mortgages and the precautions borrowers should take to avoid disclosing confidential information to unknown lenders.

This new book is different from Hicks’ dozens of prior real estate investment books. Most of those books are ultra-enthusiastic about real estate investing. But this one, while extolling the benefits of acquiring rental income property, is more realistic and practical because Hicks advises over and over to structure the purchase to be certain there will be positive cash flow for the investor.

If the book has a flaw, it is that the explanations of important topics are often too short and incomplete. For example, the author suggests BWBs find a local mentor to guide them and offer advice. But he neglects to explain how to find prospective mentors or what the benefits might be for the mentor.

But Hicks’ sometimes too brief explanations are overcome by his sage advice based on many years as a real estate investor and as a director of a New York City mortgage lender (which he never names).

To illustrate, Hicks advises, “Never pay front money or advance fees for any loan.” After listing typical fees some lenders request, Hicks says, “None of these are necessary with a legitimate lender. So don’t let yourself be talked into front money or advance fees of any kind.”

However, this book is not just about investing in real estate and finding the mortgage money to do so (although these are the primary topics) because it is also about other real estate opportunities involving mortgage lending. The author suggests, for readers who are interested, becoming a loan officer, mortgage broker or a “money finder” based on his extensive lender contact lists. He even suggests to “form your own mortgage company and make loans,” but without details about how to do so.

Chapter topics include “Get Into, and Profit From, the World’s Best Borrowed-Money Business”; “Pick the Type of Income Real Estate You Want to Acquire”; “49 Mortgages That Can Give You the Real Estate Funding You Need”; “Internet Financing of Income Real Estate Can Save You Time”; “Private Lenders Can Be Your Real Estate Money Supply”; “Self-Starter Real Estate Financing for Beginning Wealth Builders”; “Bad Credit/No Credit Financing is Possible for You”; “Little-Known Alternative Money Sources for Real Estate Loans”; “100 Percent Financing is Alive and Well Today”; and “Use Property Appreciation to Build Your Real Estate Wealth.”

Tyler Hicks has a unique writing style, which takes some acclimation. He often uses the phrase “my good friend” and he even provides his phone number and other contact information to assist readers. Overall, this is a very good book about how to finance investment property acquisitions. On my scale of one to 10, it rates a solid 10.

“How to Acquire $1 Million in Income Real Estate on One Year Using Borrowed Money in Your Free Time,” by Tyler G. Hicks (John Wiley and Sons, Hoboken, NJ), 2006, 250 pages; $14.95; available in stock or by special order at local bookstores, public libraries, and www.Amazon.com.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Inman News

Dear Barry,

Shortly after buying my home, a problem developed with my neighbor. She built a fence about 3 feet on my side of the property line and now refuses to take it down. Is it legal for her to do this? I’m afraid that she may claim ownership of that part of my property if I do nothing. Am I allowed to take down her fence if it is on my property? –Robin

Dear Robin,

Your question is one for an attorney, not a home inspector, but here are a few observations and ideas that may be of help. When someone presumes to use another person’s property for a number of years, they can eventually assume permanent legal use on the basis of what is called a “prescriptive easement.” Therefore, you need to set this matter straight while the issue is still young.

First on the agenda is to obtain legal advice so that you know your rights and options under law. Unfortunately, legal procedures often involve protracted litigation, and this can be so costly that you come out losing, even when you win. In some cases, the creative, do-it-yourself approach can alleviate the need for courtroom dramas and legal fees, so here’s a possible solution that should be reviewed with an attorney before proceeding:

Step 1: Verify the actual location of the property line. This can be done by reviewing site maps or construction plans at the building department, or by hiring a licensed surveyor.

Step 2: Go to the building department and obtain a permit to build a fence, precisely on the property line. If you are told that a permit is not required for a fence, tell them that the fence will be 7 feet high. The building code requires permits for fences over 6 feet in height. Then proceed to have the fence constructed by a licensed contractor and approved by the municipal inspector.

Step 3: The neighbor’s fence in now located within the confines of your yard, separated from your neighbor’s yard by your permitted and approved fence. At that point, you simply remove the maverick fence that is within your yard. If, in response to these procedures, the neighbor sets foot on your side of the new fence, trespassing is still illegal. Simply call the police.

Best of luck with this situation.

Dear Barry,

What are the most common signs of foundation problems, and how much do repairs of this kind typically cost? –Sam

Dear Sam,

There are two basic kinds of foundation problems:

1. Cracks and displacement, usually caused by unstable soil conditions, tree roots too close to the foundation, and/or faulty construction;

2. Decomposition of the concrete or mortar, usually resulting from age, ongoing moisture exposure, or a substandard concrete mixture.

There is no formula for determining foundation repair costs. This depends entirely upon the extent of the problem, the size of the job, and numerous other variables that would affect the amount of labor and materials needed to make necessary corrections. If you suspect problems with your foundation, an inspection by a licensed structural engineer is recommended.

To write to Barry Stone, please visit him on the Web at www.housedetective.com.

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What’s your opinion? Send your Letter to the Editor to opinion@inman.com.

Copyright 2007 Barry Stone