Let's Get Smarter !* (For Realtors)

The year 2022 is coming to end. This past year I have been able to help many veterans secure housing in Condominium Projects in San Diego and throughout Southern California.

I was contacted by a realtor today to help with a purchase of a "Unit" already in escrow. He checked the VA website which noted the project approval request was "withdrawn" . Unusual but possible.

The listing agent advised the VA Buyer's agent the "HOA was low on reserves". My response was: "Lets see what the latest Reserve Funding Study provides so I can advise if this will be an issue with the VA" . The VA Buyer's realtor agreed.

As I was awaiting confirmation to move forward, I received a text from the VA Buyer's realtor which read: "Its a PUD, title company confirmed".

Do you know the meaning of the term "PUD" ? It is short for "Planned Unit Development". Why is this important for a VA Buyer ? Well, the VA does not require project approval for a "Planned Unit Development". A Planned Unit Development is not a Condominium Project.

A PUD is a development of homes on legal Lots with an HOA which owns and maintains the "Common Area" (i.e. a private street, a recreational amenity, etc.) within the planned development.

Did the listing agent look at the legal description in the title report before the property was listed for sale ? Probably not.

The name of the HOA included the word "Villas". The listing agent may have thought since the name of the HOA included "Villas", the Project must be a "Condominium". Sounds reasonable.

I understand a licensed real estate agent is not an attorney licensed to practice law. Here is an easy way to solve this issue when you are listing a property for sale.

You need to secure a preliminary title report for the real property from your favorite title company. Do not rely on a "Property Profile".

If you do not know how to read a legal property description, you can e-mail the title report to my office for my review at no charge.

I will advise if the "Villas" is a "PUD" or a "Condominium Project". I will also check the VA website to see if the Project is or is not VA approved.

Why should I do the foregoing ? It eliminates confusion among all of the parties mentioned above and helps a veteran purchase a home....

Maybe this is why the Project submission was "withdrawn" by the VA from their website. VA Project approval was not required.

My e-mail is [email protected]

My direct line is: 619.531.8858.

*apologies to (and credit due) Ms. Stephanie Ruhle from an attorney who appreciates her efforts to educate and inform non-attorneys.