admin, Author at Palumbo Law

Real estate attorney sitting with client

What is Foreclosure Mediation?

Posted on November 21, 2022

With inflation and the current state of the economy, millions of Americans are facing financial hardship. While it’s likely only temporary and finances will again improve for many, until that happens it can be easy to start falling behind on various bills, including your mortgage payments. Although this can lead to foreclosure proceedings, you may have options for staving off the process.

Certain states, counties, and cities offer a special type of mediation program for homeowners who are in foreclosure. Luckily, Rhode Island does participate in the foreclosure mediation program.

Alternative Dispute Resolution

Mediation in general is a type of “ADR,” or alternative dispute resolution, which helps parties to come to a negotiation or agreement with the assistance of a mutually selected, impartial, and neutral person (the “mediator”).

When it comes to foreclosure mediation, the program brings homeowners and foreclosing banks or lenders together to work out their foreclosure matter. It’s important to note that participating in foreclosure mediation (or mediation of any kind) does not guarantee the results you desire. However, you may be able to avoid foreclosure with a modification, short sale, deed, repayment plan, or other option.

The Foreclosure Mediation Process

Before the mortgage is 120 days delinquent and before foreclosing upon a property, the lender must provide the following:

A notice about foreclosure;
A notice about the foreclosure mediation program;
Information about choosing the foreclosure mediation program; and
Contact Information for low-cost legal services and HUD-approved housing counselors.

Under Rhode Island law, you have the right to a free, in-person or telephone mediation conference with an independent mediation coordinator to help you avoid foreclosure. Your bank/lender may not foreclose upon you unless you have been given the opportunity to participate in this mediation conference. Your mediation conference must be schedule within 60 days of the notice being mailed to you.

If you don’t respond to the notice or if you don’t cooperate with the program, the foreclosure process will proceed.

Will Foreclosure Mediation Prevent Foreclosure?

As mentioned, participating in foreclosure mediation does not automatically mean that you will avoid foreclosure; you could still end up having your home foreclosed upon. However, participating in foreclosure mediation definitely increases your chances of avoiding foreclosure. Therefore, there is no reason why you wouldn’t at least engage in the conference. At the very least, the program will buy you some extra time in your home before you are foreclosed upon.

Palumbo Law Helps Those in Rhode Island with their Real Estate Needs

The threat of foreclosure on your home can be devastating, confusing, and complicated. This is why it’s so helpful to consult with a knowledgeable and experienced Rhode Island real estate attorney who knows the ins and outs of foreclosure and the foreclosure mediation process.

At Palumbo Law, our experienced Rhode Island Real Estate lawyers will walk our clients through the foreclosure mediation process. To learn more or to schedule a free consultation, call us today!

Why You Must Act Promptly When Filing a Property Insurance Claim

Posted on November 10, 2022

When you suffer property damage you may find yourself preoccupied with trying to locate the source of the damage (if not apparent), and to fix it. However, in order to have your insurance company cover your claim, you must give prompt notice of your loss. Almost every homeowner’s insurance policy requires this and can be found in the section explaining your duties after loss. The point of providing your insurance carrier with prompt notice is to allow the company to investigate the loss, see what caused it, and how much it would cost to repair.

What Constitutes “Prompt Notice?”

It’s important to understand what constitutes prompt notice so as to ensure that you act in time. Prompt notice essentially means that you report the loss within a reasonable amount of time after discovering it. What would be reasonable is the length of time that a reasonable person in the same or similar situation would take to report the loss. While there isn’t a specific amount of time, we know that waiting a month or a year would be unreasonable. It’s important to note that you are in no way obligated to know the extent of the damage or to obtain a quote for repairing it prior to reporting the loss.

Complying with Terms and Provisions

When you sign your insurance policy it likely contained a requirement that you comply with all of the terms within it. One such provision that is likely in your policy is that you must provide the company with prompt notice of your loss. If you fail to provide prompt notice of your loss or fail to comply with any of the terms of the policy, your insurance carrier has the right to deny your claim.

The Insurance Company Can’t Properly Investigate

When you fail to provide prompt notice of your loss to your insurance company, your company will probably argue that it was not able to properly investigate your loss as it would have been with such notice. By not providing prompt notice the company is unable to take a look at the damage, investigate its cause, and assess the necessary repairs soon after the damage has occurred. Without the ability to do the aforementioned, the insurance company can deny your claim.

You do not want to give your insurance carrier the opportunity to deny your claim outright based upon inaction.

Palumbo Law Helps Those in Rhode Island with their Water Damage Claims

Filing a property insurance claim can be extremely confusing – and extremely frustrating. The last thing you want is to have your claim denied or delayed because of something that you did incorrectly. That’s why it’s so important to know how to file your claim from the beginning. An attorney can help to ensure that you properly file your property insurance claim.

At Palumbo Law, our experienced Rhode Island property insurance lawyers work strategically to help our clients to get what they deserve. We have deep experience working with insurance companies and understand how to deal with them. If you are planning on filing a flood damage claim, or if have already filed your claim and have been denied, we can help. To learn more or to schedule a free consultation, call us today!

Dealing with Mold Exposure in your Home Due to Water Damage

Posted on October 21, 2022

It is devastating to learn that you have mold in your home due to water damage, but even scarier to know that it has been linked to a wide array of health issues. The best way to prevent these health conditions is by tending to the mold as soon as possible. Doing so can minimize the likelihood of health issues and the damage done to your property. Here are steps to take if you have mold in your home due to water damage.

Locate the cause of the water damage.

While it may be clear as to where the water damage originated from, sometimes it’s not so obvious. It’s important to look into and locate the source of the water in order to do anything about it.

Stop the leak or source of the water and clean up any excess.

Once you have figured out the cause of the water damage you will want to stop the leak or the source of it. For instance, if the water damage has been caused by a faulty pipe, it’s imperative that you fix or replace the pipe. It does no good to resolve the water damage if it could continue to occur. After the source has been fixed, you will want to clean up any excess water. This may require things such as drying out carpets with fans or shop vacs.

Throw out moldy and water-damaged property.

While upsetting, it’s important that you throw out all of the property that has been found to be moldy. This often includes carpet, drywall, and furniture. Even if property is wet but not moldy, it’s still best to throw it out since it can easily develop mold. While handling the moldy property, you should be sure to wear an N-95 mask and place everything into trash bags.

Use a mold-killing fungicide to clean moldy surfaces.

Although people tend to use bleach when cleaning up areas of mold, mold remediators recommends using specific products that are designed for the purpose of killing. Mold. Although bleach can kill the mold it generally results in other damage and can pose a health risk. Be sure that you wait until the surfaces are dried prior to replacing or fixing anything.

Repair property with prevention and mitigation in mind.

While extremely unfortunate, suffering water damage can be a positive opportunity to make changes that can help to prevent future mold growth and subsequent damage. Things such as mold-resistant paint can make for good options.

Mold remediation professionals can always help you to clean up any mold. Since hiring a professional can sometimes be costly, it’s best to look at your homeowner’s insurance policy to determine if you have any coverage.

Palumbo Law Helps Those in Rhode Island with their Water Damage Claims

Who is Considered a Declarant of a Condominium and What Are Their Rights?

Posted on October 12, 2022

When you are considering purchasing a condominium, it’s important that you understand as much about it as possible. One thing that you should be aware of is who is considered a Declarant of the condominium and what their rights are or who controls which rights. Here is what to know.

Who is a Declarant?

Generally, the “Declarant” is the person or entity that owns the property upon which the condominium will be built. When a developer declares through a declaration that land will be restricted to a condominium, the developer also reserves certain rights as the Declarant.

The Declarant has a lot of authority to set the restrictions and covenants of future unit owners. The Declarant can also establish the Home Owner’s Association (HOA). After most of the condominiums in a building have been sold, the developer will create the HOA board and will give the board the rights and responsibilities associated with taking care of the building and community.

Although developers don’t have to keep declarant rights for themselves, they usually do.

How Do You Know the Identity of Your Condo’s Declarant?

While you may not know that your condominium building has a Declarant, or who the Declarant is, you can find out. Declarants can always be located in public land records, which can be found in the county location of the condominium.

What Are the Rights of the Declarant?

You can locate the Declarant rights in the condominium’s Declaration, which can be located in the unit owners’ contract, through the Declarant, or through the HOA. After the formation of the condominium community, the Declarant is able to reserve just about any rights they desire.

Various types of rights that Declarants often reserve include:

Construction
Promotion
Architectural control
Easement
Dedication
Assignment
Assessment
Amendment

Can Declarant Rights Be Transferred?

A Declarant can transfer declarant rights in whole or in part to other individuals or entities, such as corporations. This can usually occur without the approval of the HOA. Developers will often transfer their declarant rights to home builders, lenders, and other subsequent developers. Therefore, it’s important to understand that the original Declarant as listed in the original Declaration for the condominium may not be the current Declarant or may be a co-Declarant with another party or parties.

So, How Do You Know the Identity of the Current Declarant?

When transferring declarant rights, the law requires that there is a public record of it. The date that the document is recorded or filed is the date that the transfer becomes effective. Declarant rights will be transferred using an Assignment of Declarant Rights, which will be filled out by the Declarant who is transferring the rights and the person or entity that they are being transferred to. Since declarant rights can be transferred in whole or in part, there may be more than one Declarant of condominium at any given time.

A Declarant no longer has authority when that Declarant’s rights are either terminated or expire. While some statutes require some declarant rights to expire, generally declarant rights continue until the end of their own set terms or are terminated by the Declarant.

Palumbo Law Helps Those in Rhode Island with their Real Estate Needs

At Palumbo Law, our experienced Rhode Island Condominium Law attorneys understand Rhode Island condo law and will work strategically to help our clients to get what they deserve. If you believe that a condo unit owner has committed a nuisance, we can help. To learn more or to schedule a free consultation, call us today!

The Importance of Disclosures in Real Estate Transactions

Posted on September 20, 2022

Buying real estate property is one of the single most expensive investments that you will make. Buyers need to know that they are getting what they are being promised when they purchase a property.

In Rhode Island, a seller must provide a buyer and each agent with whom the seller knows he/she or the buyer has dealt with concerning the property, with a written disclosure form prior to signing a purchase contract. This usually equates to the buyer and the buyer’s agent. The most important thing is that the buyer is made aware of any issues with the property.

Actual Knowledge of Issues with the Property

On this form, sellers must disclose of any information regarding issues with the property of which they have actual knowledge. Any disclosures that a seller makes should not be misleading and should not hide anything. Additionally, by disclosing of any issues with the property will help to prevent potential liability issues in the future.

It may be considered a material breach of a real estate contract if a seller fails to accurately disclose of anything that may impact the value of the property. When a material breach of the real estate contract occurs, the seller may end up facing a lawsuit and paying a hefty amount in damages.

What is on the Disclosure Form?

The disclosure form includes disclosures regarding property defects as well as basic information about the property:

Whether it’s located in a wetland/flood zone
Whether it’s located in a historic district
Whether construction has occurred without a permit
Real estate taxes
Whether any homeowners’ insurance claims have been filed
Whether there is a homeowner’s association

As far as major issues with the property, the form also asks about the presence of:

Mold
Lead paint
Asbestos
Radon
Any other hazardous materials

Checking the Boxes

Disclosure forms also include a list of every part of the property and whether the seller knows of any defects or issues with that part of the property. It’s important to note that the seller is not obligated to know everything, but if the seller does have knowledge of something, he or she must truthfully indicate such issue by checking the box next to “yes.” Likewise, if there is no issue, the seller should check the box next to “no.” But if a seller is unaware of an issue, he or she can put “UK,” which stands for unknown, or “NA,” which stands for not applicable if such a feature is not present in the property.

The form also includes space to include details of any defects or issues. If there is an issue with the property that the form does not inquire about but that the seller is aware of, he or she should include it on one of the “other” lines on the form.

Before the sale of the property, the buyer and the seller are required to sign the disclosure form and should always maintain a record of the form.

Palumbo Law Helps Those in Rhode Island with their Real Estate Needs

The process of closing on a real estate property can be really confusing and very detailed. This is why it’s so helpful to consult with a knowledgeable and experienced Rhode Island real estate attorney who knows the ins and outs of the closing process.

At Palumbo Law, our experienced Rhode Island Real Estate lawyers will walk our clients through the entire closing process. We have experience and proper contacts to ensure that you are paying an appropriate amount and are receiving a safe property as promised. To learn more or to schedule a free consultation, call us today!

How Can You Prevent a Sewer Backup?

Posted on September 18, 2022

Just as you would probably imagine, sewer backups can cause great damage to your property, including your business. They occur when heavy rainfall exceeds what your city’s system can handle. When that happens, the water then has no place to go, overflowing into your property. It will come out from your plumbing, generally on the lower floors, and tends to smell extremely bad. The worst sewer backups are those that occur from the main sewer line, which is the pipe that all of your drains connect to. It is also the pipe that takes wastewater to the main municipal sewer line as well as private septic tanks.

Causes of Sewer Backups

Sewer backups are commonly caused by:

Water in a basement
Tree roots
Damaged sewer lines

Although not as common, rinsing or flushing grease or large pieces of food down the sink or toilet can result in a backup. While backups caused by human activity can often be fixed with the use of small tools that help to snake the drain, sometimes even those don’t work. You should be aware that when a sewer backup occurs, one of the first things that you will notice is a gurgling toilet.

Are Sewer Backups Covered by Insurance?

While sewer backup coverage is generally available for purchase, most business insurance policies don’t cover them. The best thing that you can do is to review your insurance policy and to add coverage if you don’t have it. However, if a sewer backup has already occurred, you’re out of luck.

How Can You Prevent Sewer Backups?

Luckily, there are quite a few things that you can do to prevent sewer backups. These include:

Properly disposing of paper products such as diapers, paper towels, and feminine hygiene products (e.g., not flushing them down the toilet)
Properly disposing of grease by pouring it into a heat-resistant container and throwing it out after it has cooled and solidified
Properly connecting your plumbing system and avoiding connecting any sump pumps, French drains, and flood control systems to your sanitary sewer
Replacing your current pipe with a new plastic pipe, which can prevent tree roots from entering your line
Periodically cutting your tree roots
Hiring a plumber to install a backwater prevention valve, which, as its name suggests, can prevent backflows of sewer water

When a sewer backup occurs, it can cause great damage to your property (water damage, mold, etc.), valuables, and electricity, as well as serious illness due to its unsanitary nature. If you experience a sewer backup, be sure to minimize additional damage by having a professional company cleanup the property as soon as possible.

Palumbo Law Helps Those in Rhode Island with their Real Estate Needs

Property damage claims can be very overwhelming – especially when you’re not familiar with exactly how they work. That’s why consulting with a knowledgeable and experienced property insurance attorney can help.

At Palumbo Law, our experienced Rhode Island Property Insurance lawyers work strategically to help our clients to get what they deserve. We have deep experience working with insurance companies and understand how to deal with them. If you plan on filing a claim or have done so and been denied, we can help. To learn more or to schedule a free consultation, call us today!

About to Close on a Home? Consider These 5 Things

Posted on August 23, 2022

Finding a house that you love can be quite an undertaking. You may have been searching for a while, but when you finally find it, it’s extremely exciting. However, even after you find “the one,” you must go through things such as inspections, disclosures, and other reports. And even after these things, there is still more to do. When you’re about to close on a home here are 5 things to consider doing both before and after.

Set up your electric and other utilities.

It would be wonderful if you could walk into a property after closing and have electricity, gas, water, and the like. And while a lot of utility companies allow for grace periods (assuming your property was previously lived-in), this isn’t true for every single one. Therefore, it’s important that you establish when your utilities will be turned on. Be sure to set this up with each of your utility companies. The last thing you want to be after closing is without power. To be safe, you may want to set things up before closing on the house.

Change all of the locks.

This may seem strange – especially if your house is new construction – but it’s smart to assume that other people have a set of keys to your house. There were a lot of people in and out of the house during the sales process; everyone from stagers to painters, to agents. Therefore, it’s best to set up an appointment with a locksmith and have all of the locks changed – just to be safe.

Hire a professional cleaning company.

Just because you’ve closed on a house doesn’t mean that it will be clean when you move in. Therefore, hiring a professional cleaning company to come out right after closing. In the event that the seller also had it cleaned, it will only be even cleaner. Once you move in you won’t have the same access to all of the surfaces.

Plan for any renovations.

Before closing on your house you likely have a good idea of what needs to be renovated. That’s why it can be greatly beneficial to have contractors come to the home with you during the final walkthrough to provide bids on the work that you’re looking to have done. If you are looking for things with the floor, the walls, or other small work, it’s best to consider having it done before you move in. If you’re looking for a good contractor, your real estate agent may be a good place to get referrals.

Have a reliable contractor on call for small things.

Things such as hanging pictures high up or properly aligning your furniture can be a big headache when you have a lot to worry about. If you put a hole in the wall when trying to hang a picture or chip the paint in your bedroom, having someone available to help you for a couple of hundred bucks can make things much smoother.

Palumbo Law Helps Those in Rhode Island with their Real Estate Needs

Do You Have the Right to Set Aside Your Condominium Fees?

Posted on August 6, 2022

When you own a condominium, you are responsible for paying fees. These fees help to pay for the maintenance, safety issues, and improvement of all shared spaces. But what if you don’t agree with how this money is being spent? Do you have the right to withhold your fees from the condo association?

The simple answer is “no.” You never have the right to withhold your fees regardless of any grievances that you may have. Any issues that you have must be dealt with separately.

What Happens if You Fail to Pay Required Fees?

If you fail to pay the required association fees, your account will be turned over for collection. If you have not paid the association fee because you believe that you owed a different amount or the amount that you owed was already accounted for, this is different than a condo unit owner holding back fees because they disagree with how the money is being spent. If you believe that you have already paid what was owed or there is a discrepancy with the amount owed, your case should be referred to the association’s legal counsel for an investigation.

Consequences

Failure to pay your assessment can result in serious consequences. Under the Rhode Island Condominium Act, an association may charge interest on common expense assessments that are past due. However, they may not charge more than 21 percent annually. Additionally, the association can charge you late fees. What you would owe for failure to pay your fee should be laid out in the Declaration or an amendment to it. It’s important to note that unit owners must receive notice of penalties and when they go into effect.

Liens

Failure to pay association fees can result in a lien against the property of up to $7,500. It’s important to note that the payment of the lien would come before a first mortgage. This is in addition to the fees and interest due. If the condo owner fails to pay, it will ultimately result in a foreclosure of their unit.

For these reasons it’s imperative that condominium fees should take priority when it comes to paying your bills. Regardless of the amount that you owe in assessment fees, with late fees, interest, and attorney’s fees, you can end up paying so much more. This is not to mention a possible foreclosure of your property if you can’t pay everything back.

Palumbo Law Helps Those in Rhode Island with their Property Insurance Claims

At Palumbo Law, our experienced Rhode Island Condominium Law attorneys understand Rhode Island condo law and will work strategically to help our clients maintain their rights. If you believe that you have already paid your fees or if you have an issue with your association fees, we can help. To learn more or to schedule a free consultation, call us today!

Insurance attorney speaking with clients

What is an Elevation Certificate and When is it Required?

Posted on July 27, 2022

There are many things we often consider prior to purchasing property. One of the things that we need to be aware of is the location of the property, or more specifically, whether it is in an area that is prone to flooding. In fact, the Federal Emergency Management Agency (FEMA) requires that all new or improved buildings in flood-prone areas have proper elevation. They ensure this by using elevation certificates to determine whether the property in question is susceptible to flooding.

Flood Insurance

Since 2013, every condo or home sold in Rhode Island must have a flood insurance addendum to an offer to purchase. This addendum is important because it helps to inform potential buyers of the cost of flood insurance based on the corresponding elevation certificate. This helps buyers to understand the additional costs that they may incur should they purchase the home.

Elevation Certificates

Elevation certificates are important because they include information such as the location of the property, the building characteristics, the flood zone, and the lowest floor’s elevation. These certificates are issued by the National Flood Insurance Program (NFIP) and certified by a licensed architect, engineer, or surveyor. Using the base flood elevation required by flood plain management ordinances, this certificate helps to determine the rate of your flood insurance premium.

Flood insurance is separate coverage not included in a homeowner’s regular insurance policy. Individuals with mortgages must have flood insurance that matches at least the amount of your mortgage. Your property can be foreclosed upon if you do not have the minimum requirement. Since Rhode Island is a coastal state, near lakes and rivers, with area more prone to storm waves, tidal surges, having flood insurance is extremely important for Rhode Island homeowners.

Can You Remove Your Home from the Special Flood Hazard Area?

Should your home be located in a high-risk zone that is still above the Base Flood Elevation, you may be able to have it removed from the Special Flood Hazard Area (SFHA) by filing a Letter of Map Change (LOMC). This would then allow you to convert the flood insurance policy that you currently have to a Preferred Risk Policy (PRP), which is less expensive.

Palumbo Law Helps Those in Rhode Island with their Water Damage Claims

When you are already stressed and dealing with paying to fix damage in your home caused by water, the last thing that you want to have to worry about it damage claim denial. That’s where a qualified property damage attorney, specializing in water damage, can help.

At Palumbo Law, our experienced Rhode Island Property Insurance lawyers work strategically to help our clients to get what they deserve. We have deep experience working with insurance companies and understand how to deal with them. If you are planning on filing a water damage claim, or if have already filed your claim and been denied, we can help. To learn more or to schedule a free consultation, call us today!

Protect Against These 3 Common Causes of Summer Fires

Posted on July 25, 2022

Many people think that fires only occur during the wintertime when the fireplace is glowing hot. However, fires are also a concern during the warmer months as well. It’s important to understand that outdoor fires, when not properly maintained, can lead to loss of property, serious injury, or even death. Here are three common causes of summer fires and how to protect yourself while enjoying your time outside.

1. Outdoor Cooking

Many people use the summertime as a great opportunity to cook outdoors. Grilling is a mainstay for many people when the weather is nice. Barbecuing with friends and family, camping in the great outdoors, and tailgating at a Red Sox game are all favorite summer past times. But whenever you’re cooking outside, you’ll want to do so safely. This means:

Remain at least 10 feet from all structures
Always cook on a level surface
When starting your grill be sure to leave it open
For small fires use a spray bottle with water
For grease fires use a lid of other source to cut oxygen
For any flame use a fire extinguisher
If a fire occurs and gets out of control call 9-1-1- immediately
Always clean your grill after each use

2. Fireworks

The summertime is often filled with fireworks, turning the night sky into beautiful, bright pops of color. But while they can be a beautiful sight, fireworks can also pose a fire hazard. To remain safe be sure to:

Check your hose and make sure it’s working
Have a bucket of water nearby in case a firework goes amiss
Keep the fireworks out of reach of children and animals
Only allow children to hold sparklers when supervised by an adult
Only ignite fireworks away from all structures
Never stand over the top of a firework
Never relight a firework once it’s already been lit

3. Fire Pits and Patio Heaters

While summer days are usually hot, the nights can sometimes prove a little chilly. Fire pits and heaters for the patio often serve as a great solution to the cold. However, they also pose a fire risk. To remain both cozy and safe, be sure to:

Keep fire pits at least 10 feet away from structures
Follow the manufacturer recommendations for heaters (this is generally at least three to five feet away from all structures)
Avoid placing fire pits and heaters on flammable surfaces or near low-hanging branches
Never leave a fire pit or heater unattended
Avoid using a fire pit or heater if it is windy
Avoid using lighter fluid in the fire pit

Palumbo Law Helps Those in Rhode Island with their Fire Damage Claims

When you have suffered damage due to a fire, it can be both devastating and overwhelming. By working with an insurance attorney, he or she can help to walk you through each step of the process of filing a claim to recoup your losses. Even if your claim has already been denied, a knowledgeable and qualified attorney can help.

At Palumbo Law, our experienced Rhode Island Property Insurance lawyers work strategically to help our clients to get what they deserve. We have deep experience working with insurance companies and understand how to deal with them. If you are planning on filing a fire damage claim, or if have already filed your claim and been denied, we can help. To learn more or to schedule a free consultation, call us today!