A Salute to Robert Bruss

September 28, 2007

I had an e mail yesterday reporting that Robert J. Bruss had died on September 26, 2007. Many of you may be acquainted with Bob's column in the LA Times and other news media. It was a Q and A for questions having to do with many aspects of real estate and home ownership. I believe that it will be difficult to find a replacement who speaks with such a background and with such authority as Bob Bruss.

I have read his column weekly for as long as I can remember. Since I began posting this blog, I have sometimes referenced his articles and his recommendations and reviews of real estate oriented publications. I know that I will miss his expertise. I also know that I will continue to refer to the articles that I have saved on many subjects.

If some of my readers do have questions about any aspect of real estate, I would be honored to research answers and to provide a source for information. As the internet moves into a more interactive phase, perhaps the posting of questions and the providing of not just one answer, but rather a discussion of possible solutions or of other persons' experience with the same issue will give a more in depth understanding of an issuse. I stand ready, willing and hopefully able to provide you with assistance.

What Exactly is a Lease Option?

September 27, 2007

Recently I have noticed that Sellers have been offering "lease-option" opportunities in their "for sale" advertising. It has been a while since the real estate environment has used a "lease-option " as a method to "sell" a home.

Back in the 1990s, when properties were not selling and sellers were leaving the area, and rental properties were scarce, buyers began writing "lease-options" on properties that were listed for sale. The main drawback of a "lease-option contract is that if the value of the property drops, the lessee will not exercise the option and if the value of the property increases, the lessor(seller) will lose any increased value.

So what exactly is a "lease-option"?

It is not a contract but rather consists of 3 separate agreements or contracts which are tied together. A breach of one of the 3 contracts will void all 3.

#1 is an option to purchase. This agreement sets the amount of money the optionee will pay the optionor for the right to purchase the house at some later specified date, usually in one year. It will specify how and when the option must be exercised.

#2 is a purchase agreement. It will specify the purchase price, the earnest money deposit to be made, the length of the escrow period if the option is exercised, any contingency, the loan amount, the escrow holder, the title company and any other conditions that buyer and seller might negotiate.

#3 is a lease agreement. It will specify all the terms of the lease. How much security deposit, the monthly rent, when and where the rent is to be paid and the length of the lease.

Sometimes a "lease-option" is referred to as a "lease-purchase". These agreements differ in a significant manner. The "lease-option gives the lessee the choice to purchase the property at the agreed price and terms at a later date. The "lease-purchase" obligates the lessee to purchase at the agreed price and terms within the specified time.

If you are planning to enter into either type of agreement, you might want to seek legal advice.

Foreclosure Looming - Beware of Scams

September 26, 2007
It seems that the slowdown in the housing market coupled with that variety of exotic loans that were created to assist buyers in a purchase has resulted in a scenario of crisis. Houses that were financed with 100% financing are often worth less than the existing loan. Homeowners whose payments have risen find that they no longer are to make the payments. People finding themselves in these situations often react in panic. They become prey for the unscrupulous.

Some of the scams are: 1) We'll save your credit. Pay us a fee and sign the house over to us. The foreclosure will be recorded against us not you. Wrong. You are the borrower.
2)We'll give you some money. Just sign the house over to us and we will cure the default. This would not be a problem IF you know how much equity you are selling and IF the purchaser really will cure the default and IF the purchaser will make the payments and IF you still want to be responsible for the loan. Too many IFS. Be careful!
3) We'll buy the property, lease it to you, you have the option to buy it back. The reality is you will not be able to get the new loan and if you could the chances are you would have higher payments and when the lease is up, the now owner can make you move out.

These are just a few of the proposal the homeowner might get. Far better to seek other solutions, the first of which is to find a trustworthy advisor. You will need to know what your options may be. There are several legitimate routes that you could follow but it is important to educate yourself as to what options are possible for your particular situation.

If you read this blog and have a personal situational question, click on comment and send me the question. No comments are published until I have read them and determined whether they will be of interest to the broader public. You can also e mail me at shirleyh@loislauer.com.

Grass will be Greener in Spring If....

September 25, 2007
So your house didn't sell and you decided to wait until spring to put it back on the market. With the "drought" of the past year, lawns are often not as green as the local golf course and the curb appeal of a well manicured lawn is priceless.

The arrival of cooler nights and moderating daytime temperatures make autumn the best time of year to revitalize turf grasses. Now is the time to do reseeding, feeding and watering.

Reseeding of an entire lawn should be done one time, in the fall. Getting seed in the ground now allows the grass sufficient time to grow before the colder season arrives. Reseeding bare spots can also be done anytime, but like a full reseeding, fall is the optimum time for the best results.

You can reseed without feeding, but eventually you will need to add nutrients. Fertilizing for traditional grass growers (non-organic) should be done at least twice a year. When you purchase a good lawn fertilizer, the bag will be marked for the best way to apply the product - usually spread it and water it.

Before you reseed or fertilize, you should take the time to prepare the soil. Incorporate organic matter into the soil, especially our typical adobe or decomposed granite soils, is the best defense against drought. These supplements allow lawns to maximize watering efficiency and keep the lawns greener longer.

Watering a lawn properly is the key element to a healthy and green lawn. With the prospect of water rationing because of the drought conditions, keeping tabs on enough water, but not too much is critical. One expert suggest that a quarter-inch of water per week will keep the crown of the plant alive even if the stems are dormant (i.e. brown). It is o.k. to let the lawn remain dormant for awhile. If you must water during a drought to keep the lawn green, be consistent. Water deeply once or twice a week, not more. Mornings are the best time to water.

A word about mowing - if no rain is in the 10 day forecast, one expert says you should not mow at all as mowing stresses the lawn. In any event the mower should have the blade set as high as the machine allows.

When putting in a lawn or revitalizing an existing lawn, fescues have extremely high drought tolerance and if properly nurtured will provide the green lawn that makes for great curb appeal.

If Foreclosure Looms

September 24, 2007

If, for whatever reason, you are wondering how you will make the next payment on your home loan, here are some steps that could be helpful.

1) Find a knowledgeable realtor, a housing counselor or a financial advisor and set up an appointment.

2) Be completely straightforward about your situation. (Why you are in a bind. How much you are in debt. What your future prospects may be.)

3) Call your loan servicer. (The company to which you make your monthly payments.) Ask for the "loss-mitigation" or "work-out" department and try to modify the loan terms.

4) Don't wait to do the above if you are not yet in trouble. Start now to find a solution.



It seems that a strategy some folks are using is to borrow money to pay the loan. Often credit cards are used which just puts you deeper in debt. I believe that over borrowing is what has created the credit crunch. I cannot believe that more borrowing will cure the crunch.



The government and the housing and financial markets are wanting you to keep your home. Use their expertise and find the solution that best fits your situation. This is no time to play head in the sand. This is the time to do something.

Weekend Activities -

September 21, 2007

This weekend there are many opportunities for residents to enjoy. Depending on your particular interests, you can choose from these free events.

1. Author J.R. Sanders will be signing copies of his book"Oak Glen and Los Rios Rancho" from 9 a.m. to 2 p.m. Saturday at the Los Rios Rancho Store at Rileys, 39611 Oak Glen Road. http://www.losriosrancho.com/ or 909-797-1005

2. Arrowhead Medical Center will host its fifth annual Health and Safety Fair from 10 a.m. to 2 p.m. Saturday at Arrowhead Regional, 400 Pepper Avenue. There will be a variety of free health screenings including hearing, vision, prostate and oral cancer. Attendees will also have the opportunity to use a fire extinguisher and see a demonstration of the "jaws of life". First 500 children will receive Teddy Bears and the first 3000 attendees will be provided a free lunch.

3. Learn art at the Art Depot, 16822 Spring St., Fontana. There will be an open studio from noon to 5 p.m. today, Friday and from1 to 6 p.m. Saturday. The hands on subject will be "Torn Paper Portraits."

4. The San Bernardino County Museum will host the San Bernardino Valley Amateur Astronomers for a Moon Party from 7:30 to 9 p.m. Saturday evening.

The members of the organization bring their telescopes and attendees can explore views of Jupiter, the moon and the nigh sky through telescopes.

5. The 2nd Annual Redlands Showtacular will be held at the Tri-City Center on Industrial Parkway in Redlands on Saturday.

6. The Historical Glass Museum on Orange Street in Redlands will be featuring exhibits of Steuben glass both Saturday and Sunday.

These are just a few of the many activities that allow local residents to enjoy their weekends.

The FHA Modernization Act of 2007

September 20, 2007

As part of Washington's efforts to ease the subprime mortgage crisis, both the House and the Senate are speedily approving compromise legislation to make it easier for consumers to get Federal Housing Administration backed loans.

FHA currently makes fixed rate loans, adjustable rate loans, renovation loans and reverse mortgage loans.

Some of the changes being considered include:

Higher loan limits;

Be available to low and moderate income borrowers;

Reduction of the down payment from the present 3% to 1.5%

Increased mortgage limits for reverse mortgages;

Lower loan origination fees for elderly homeowners: from current 2% to 1.5%;

A new loan product called FHA SECURE for refinancing an adjustable loan.

To qualify for FHA SECURE, eligible homeowners must meet the following criteria:

1. A history of on-time mortgage payments before the borrower's teaser rate expired and the loan reset;

2.Interest rates must have or will reset between June 2005 and December 2009;

3. Three percent cash or equity in the home;

4. A sustained history of employment;

5. Sufficient income to make the mortgage payment.

The FHA loan program began in 1934 with the primary purpose to reach borrowers who were under served and to help them achieve the American Dream of home ownership.

The Answer to Your Fall Clean Up!

September 19, 2007

I have been wanting to get rid of that old characoal bar-b-que ever since we indulged in a shiny new stainless steel propane grill. What does one do with all the junk that doesn't fit in the van or SUV? The solution has arrived and I want to share it.

You may have seen their trucks on the streets with the big 1-800-GOT-JUNK logo on the side. Several of the real estate agents in the office had used them to haul stuff from houses that were being "staged" for sale or that had sold and the owner had to get rid of stuff. I was told they were great, so I made the call.

When they arrived, they were clean and neat, looked at the stuff I had piled up and gave me a range for the charges. They charge, not by time, but by how much of the truck your stuff fills: one quarter, one third, one half, etc. I had put the stuff I wanted them to take in one location, but part of their service is to help you pull out stuff and choose what you want to have them take. There were 3 young men and they loaded up the truck in approximately 15 to 20 minutes. swept the driveway, collected the money and were on their way.

I was impressed with their efficiency and recommend 1-800-GOT-JUNK to you.

Why We Live in the Inland Empire

September 18, 2007

Inland Southern California, Riverside and San Bernardino counties, is a great place to live! I remember when we moved here in 1967 and I knew nothing about the area, my first view of the great vistas of valleys and mountains was really quite breathtaking. I remember writing to my former neighbors in Rocky River, Ohio that this must be the most beautiful place in the world.

Situated approximately one hour from the highest mountains of southern california, one hour from the desert and one hour from the beach, you can choose your recreational activities.

Each community offers different amenities and their present residents have found niches that suit their personal lifestyle. They often develop a true love for the area and that love translates into an involved citizenry.

Yes, our real estate markets have their ups and downs, but for those who do not need to sell and can stay in their homes, the values return and over time do increase. Fear often prevents folks from buying, but those who have and were able to weather the down times have reaped the benefits - both in the enjoyment of their own home and in the build up of equity.

Why the Inland Empire is such a Great Place to Live

September 17, 2007
If the only regions of California that you have visited are the coast, San Francisco and the Redwood Forests, San Bernardino/Riverside Counties offer some great landmarks and amenities. Some of California's highest mountains ring the region. Some of the United States' biggest deserts are situated in the boundaries of these two counties. One of the older communities in Southern California, Redlands, is also a great destination for architectural aficionados.

From a job market standpoint, there is the world renowned Loma Linda Medical Center and School. There is the University of California, Riverside, California State University, San Bernardino, the Claremont Colleges, and the University of Redlands. There are also a number of entrepreneurial enterprises.

I noticed an item in this mornings Sun Newspaper about ESRI (Environmental Systems Research Institute). What was begun by a native son of Redlands has grown to be a world leader in the field of geographical information systems. It has also become on of the largest employers in Redlands. The item in the news today related to an honor that ESRI received from IBM. IBM has named ESRI the recipient of its 2007 Public Sector Top Star Award for consistently demonstrating the "Best of the Best" business partner qualities.

Big Weekend for San Bernardino

September 14, 2007

Registration began yesterday for the annual Stater Bros. Route 66 Rendezvous.

Each year the event improves and the participants and fans are in for a great car show and some great cruisin' in downtown San Bernardino.

Here are some of the Highlights:

Vehicle Check-In/New Registration: 8:00A.M.-8:P.M. today and Saturday; 8:00A.M. - noon Sunday, Carousal Mall, G Street north of 2nd Street.

Cruisin'/Show & Shine: 6-9P.M. Friday; 9A.M.-9-P.M. Saturday; 9A.M. - 4P.M. Sunday, downtown streets.

Lucas Oil Burnout: 7-9P.M. Saturday, Orange Show Speedway.

Parade of Champions Cruise: Noon Sunday, downtown streets.

For more information you can go to the web site: http://www.route-66.org/

Tips on Real Estate Investing

Septemeber 13, 2007

I am always looking for resources to use to enhance my real estate knowledge.
One of the writers that I have always respected is Robert J. Bruss. He has had a Q&A real estate column in the Los Angeles Times for as long as I can remember. He is also a contributor to Inman News, a newsletter which I subscribe to over the internet.

In previous posts, I have shared some of his recommendations for reading material. Here are two more books that are well worth reading by anyone interested in purchasing a home whether as a principal residence or as an investment.

To quote Mr. Bruss: "If you only read one book this year, "The Automatic Millionaire Homeowner" by David Bach, should be that book. Whether you are a renter considering purchase of you first home or condo, a current homeowner, or a seasoned investor, this common-sense book will reinforce what you probably already know even if you resist facing the facts.

The book has 2 themes:1) ordinary renters can become millionaires by investing in their first home, and 2)that home can become the foundation of buying a better home and/or investment property in future years."



The second book deals more specifically with how to acquire property in today's changing real estate market. This book is "Building Real Estate Wealth in a Changing Market" by John W. Schaub. Mr Schaub has been investing in and teaching classes on how to thrive in any real estate market by buying houses. With 35 years of experience in this field, Mr. Schaub writes with credibility. He is not an advocate of "get rich quick schemes" but prefers to profit from both rental cash flows and long term appreciation in market values.


These books both give a positive spin to the benefits of real estate ownership. They are a great antidote to all the doom and gloom that is constantly being presented by the popular media.

Let FHA Loans Help You

September 12, 2007

In 1934, under the Roosevelt administration's programs to pull the U.S. out of the Great Depression, the Federal Housing Administration was established. The FHA loan program provided mortgage insurance which helped the banks to reenter the home lending arena. The program aided the buyer by requiring only a 3% down payment versus the 20%+ required in the 1920's and 30's. It was a popular financing program until the late 1990's when lender's developed a variety of programs that allowed buyers to purchase with 100% financing. In our southern California real estate market, the FHA loan also disappeared as home prices exceeded the maximum loan limit of $362,790.

If you check my median price charts of yesterday's blog, you can note that only 3 communities had median prices in excess of the FHA loan limit. With the disappearance of 100% financing, the 3% down payment becomes attractive to home buyers. The borrower is also able to to finance tthe upfront mortgage insurance premium into the mortgage.

Another advantage of obtaining FHA financing is the assurance that you are dealing with a reputable lender. Many mortgage brokers do not offer FHA loans because of the stringent review requirements that the government imposes on the broker. With all the media discussion of fraudulent lending practices, as a borrower, you will know that your FHA loan terms will be fully disclosed. A discussion with an FHA lender will also let you know the amount of loan for which you qualify.

If you would like to explore FHA financing more completely, call a mortgage rep at Financial 2000(909-748-7110)

Inland California Communities - Median Prices

September 11, 2007

The following data is taken from the sales reported through the IMRMLS for the month of August. It does not include new construction or properties for sale by owner.

Banning/Beaumont.....2007:$293,000.....2006:$315,000....Percentage:-7%

Bloomington.................2007:$324,000.....2006:$399,000...Percentage:-19%

Colton............................2007:$335,000.....2006:$370,000....Percentage:-9.5%

Fontana.........................2007:$399,000.....2006:$415,000....Percentage:-4%

Grand Terrace..............2007:$350,000.....2006:$375,000....Percentage:-7%

Highland.......................2007:$335,000.....2006:$380,000....Percentage:-12%

Loma Linda..................2007:$450,000.....2006:$365,000....Percentage:+24%

Moreno Valley..............2007:$355,000.....2006:$382,000....Percentage:-7%

Redlands.......................2007:$399,000.....2006:$420,000....Percentage:-5%

Rialto............................2007:$325,000.....2006:$370,000....Percentage:-13%

Riverside......................2007:$390,000.....2006:$425,000....Percentage:-8%

San Bernardino...........2007:$270,000.....2006:$320,000....Percentage:-16%

Yucaipa........................2007:$355,000.....2006:$410,000....Percentage:-13.5%



These are median prices. One half of the properties sold in each area sold for less than the median and one half sold for more than the median. As you can note, the median will depend on the mix of houses sold which is reflected in the Loma Linda statistic. With only 9 houses reported, the mix can alter a median price. This data is interesting to track, but not the best indicator of what might be the value of a specific property. A complete market analysis by a professional agent will give a more reliable indication of current market value.

August Closed Transactions

September 10, 2007

Here is the statistical data as reported through the IMRMLS. I am listing the number of closed sales in August 2007 compared to the reported closed sales in August 2006. The data reflects the slowdown in the real estate market place and seemingly the effect of the tightening of mortgage money.

Alphabetically:

Banning/Beaumont - 2007:57.....2006:87..........Percentage change - 34%

Bloomington........... - 2007:03.....2006:18...........Percentage change - 83%

Colton..................... - 2007 22.....2006:53...........Percentage change - 73%

Fontana.................. - 2007:71.....2006:71............Percentage change - 74%

Grand Terrace....... - 2007:10.....2006:10...........Percentage change - None

Highland................ - 2007:28.....2006:58..........Percentage change - 52%

Loma Linda........... - 2007:9........2006:21..........Percentage change - 57%

Moreno Valley....... - 2007:73......2006:219........Percentage change - 67%

Redlands................ - 2007:46.....2006:68..........Percentage change - 32%

Rialto..................... - 2007:24.....2006:94..........Percentage change - 74%

Riverside............... - 2007:144....2006:340.......Percentage change - 58%

San Bernardino.... - 2007:79......2006:200.......Percentage change - 60%

Yucaipa................. - 2007:37......2006:74..........Percentage change - 50%

I have not yet researched how the median price has changed, but am gathering the pertinent data and will post the results. For me, the numbers are interesting, but for a potential buyer or seller, one's individual needs are usually more of a determining factor for the timing of a purchase or a sale.

Some Facts About the Redlands Unified School District

September 7, 2007

I attended the Redlands Chamber of Copmmerce Rise and Shine monthly Breakfast this morning. Neal Waner, a member of the Redlands Unified School District Board of Education was the Emcee. He shared the following statistical data.

BACKGROUND:

1)RUSD encompases 147 sq. miles and serves 5 communities.

2)Redlands High School was established in 1891 giving it the distinction of being the oldest high school in California on its original campus.

3)There are 43 languages identified and spoken at RUSD.

4)The total general fund (budget) for RUSD is just over $161 million, 83% of which is spent on employees and benefits.

POPULATION:

5) The total enrollment for RUSD is 21,150.

6)Each of our 4 middle schools has in excess of 1050 students.

7)The enrollment at RHS is 3,420; at REV it is 3,658.

RHS (Redlands High School) REV (Redlands East Valley High School)

8) 5 years ago a comprehensive high school cost approximately $60 million to build. That same high school now costs just ove $110 million.

ACHIEVEMENT:

9) The "going to college" rate for graduating seniors is approximately 50% nationwide, 44% in San Bernardino county and 80% for graduates of RHS, REV and Orangewood.

10) RHS will be recognized, once again, by Newsweek Magazine as a national outstanding school.

RHS boasts an API score of 742. The API score for REV is 748.



The RUSD enjoys a reputation for well run schools with great faculty, supportive parents and an engaged student body. The RUSD is one of the reasons that homes in the City of Redlands are as sought after as they are.

After "Short Sale" Tax

September 6, 2007

In my post of September 2005, I suggested that a change in the tax code regarding the "short sale" tax might benefit the economy. This benefit is pure speculation on my part as I am not an economist. I am just a real estate broker who is experiencing her fourth radically changing marketplace.

"Short sales" really came into play during the real estate downturn of the 1990s. It took lenders some time before they would agree to a "short sale". However, once they examined the concept and once they became significant holders of foreclosed property, they seemed to recognize that agreeing to discount a mortgage to enable a sale and not have to take a property back into their own inventory as a non-producing asset account was a beneficial strategy.



Consider. A property has greater debt against it than the current market value. The home owner, for whatever reasons, ceases to make the mortgage payments.

The lender has the trustee file a Notice of Default. After approximately 121 days, if no one bids on the property at the foreclosure sale, the bank gets the property. In all probability, there are no bidders for the very reason the owner could not sell the property. It is no longer worth the amount owed. For the lender to now sell the property, the lender will have to find a market value that will reflect the current state of value not the value at the time the mortgage was obtained. Hence a probable loss on top of significant carrying costs until a buyer is found.



A "short sale" can eliminate a lender's carrying costs. It allows the property to transfer ownership in less time than the standard 121 days of a foreclosure sale.
It relieves the lender of a non-paying asset which is a benefit to the lender's balance sheet. I believe that the use of "short sales" can aid the financial institutions that are faced with a plethora of foreclosures.



"Short sales" carry a ticking bomb for the homeowner in the form of the tax liability. Eliminating this liability, in my opinion would increase the number of homeowners willing to participate in a "short sale" and could aid in decreasing the number of actual foreclosures. The real estate market has changed and the change may be with us for some time.

Government and the Default Mess

September 5, 2007

Last Friday, President Bush outlined a plan allegedly designed to help potentially hundreds of thousands of sub prime borrowers avoid foreclosure and to modify existing tax code that taxes "relief from debt".



What is "relief from debt"? A homeowner offers his property for sale, but finds that prices have dropped and the homeowner will be unable to sell at a price that would pay off all the loans and the additional costs of sale. The homeowner is able to negotiate with the lender for a "short sale". A "short sale" is one in which the lender agrees to a lesser amount than is owed and will agree to issue a reconveyance deed thereby allowing the homeowner "relief from debt".



The homeowner who participates in a "short sale" will no longer be a homeowner as the property will be sold. "Short sales" are not a means of allowing homeowners to retain ownership and continue to live in the property. They are a method of permitting mortgaged properties to be sold in a declining value market. They are also a method of selling properties that are under notices of default where the amount of the loan is greater than present market value.



The U.S. tax code, however, has a regulation which requires the lender in a short sale situation to issue a 1099 statement to the former homeowner in the amount of the debt that was not collected. That negotiated "short sale" leaves the former homeowner with an income that will be taxed as ordinary income.

For the homeowner who has fallen behind on loan payments, this tax often comes as a shock. It complicates the decision to participate in a "short sale".

It is unclear whether an actual foreclosure would have avoided this taxable income. In both a "short sale" and a foreclosure, the homeowner's credit is affected and the homeowner becomes homeless. In my opinion, modifying the tax code to eliminate this "after loss" burden would have some positive effects for the economy, if not for the homeowner who loses his home.



Tomorrow, I will address some benefits to the economy that this tax code change could create.

ADR (Alternate Dispute Resolution)

September 4, 2007


I had a question from a real estate agent this weekend regarding the mediation process. Interestingly, on August 31, Robert J. Bruss, an attorney who writes for Inman Real Estate News, responded to a question regarding the arbitration clause in the C.A.R. Real Estate Purchase Agreement. This must be a timely subject.



What is mediation and how does it differ from arbitration?



Mediation: This is a process in which the parties to a dispute select a third party to listen to them as they present the issue being disputed. This third party can be someone both parties respect or it can be a professional mediator. There is a cost, usually hourly, but it could be a flat fee.



The mediator, selected by both parties and usually paid on a 50/50 basis, listen to the story of each party and then attempts to negotiate a settlement. Most frequently, a mediator looks for a compromise solution. If the parties are willing to settle and move on, the dispute can be resolved in a timely manner and at minimal cost.



On the other hand, if the parties are unwilling to negotiate or to look for a compromise, then arbitration may be a necessary next step. In mediation, solutions are suggested but the mediator has no power to force either party to a settlement. The arbitrator, once he/she has heard the issues of the dispute, will render a decision that will be binding on both parties. This decision is final and binding and may be taken to the local court for confirmation and may be recorded as a court judgment.



Buyers and Sellers who enter into a Purchase Agreement using the C.A.R. contract are required to make a choice about arbitration. If they initial the arbitration clause, they give up the right to settle any dispute that might arise by using a superior court lawsuit. If they do not initial the arbitration clause, should a dispute arise, the parties can then choose whether they wish to use arbitration or file a lawsuit. The buyers and sellers need to understand this clause, but agents cannot advise them as to whether they should initial or not initial.



From my perspective, a competant mediator can resolve most disputes and is always the alternate dispute resolution of choice.



(As a reminder: the C.A.R. arbitration clause does permit the parties to a dispute to file a smalls claims court action. If the amount under dispute is $7,500 or less small claims court is the fastest and least costly way to arrive at a resolution.)

Labor Day - 1882-2007

September 3, 2007

Labor Day is a workers holiday held on the first Monday in Spetmeber. In 1882, the Knights of Labor, an American workers organization, decided to call the first Monday in September Labor Day. Workers throughout th U.S. asked for state laws to make Labor Day a legal holiday. In 1887, Colorado was the first state to declare Labor Day a legal holiday. It is now a legal holiday thoughout the U.S. and Canada.

Initially, workers held parades, labor leaders adressed meetings to stress the improtance of labor. Until the 20th century, unions did not play an important role in the labor day activities. However, by the 1940s, workers' unions became a force in regognizing the worker's contributions to the country's econoomic health.

Today, Labor Day seems to have become the last hurrah of summer and the beginning of the fall activities. Family get-togethers and friendly picnics mark the holiday. Of course, retailers make use of the non-work day of many to offer shoppers some special sales. Historically, Labor Day was a first in giving workers a long weekend. Perhaps the popularity of 3 day weekends among workers began with the early Labor Day celebrations. Those of us who enjoy 3 day holidays should thank the Knights of Labor for such a great tradition.