by Judith I. Johannsen

Have you ever seen Jay Leno on the Tonight Show doing his “Jaywalking” segment where he’s outside asking people questions? Have you heard their answers? Either those Californians are truly living in LaLa Land where knowing nothing is a requirement, or there are a lot of people wandering around under the Giant Misperception Cloud. As with most California trends, life’s amusing misperceptions have made their way to the enlightened East Coast and can be seen in the following misperceptions and myths regarding residential real estate.

Assessor’s Card. Misperceptions: 1) It says so on the assessor’s card, so it’s true. 2) I pay taxes on it, so it’s mine. Reality: The assessor’s card is not always right. Often, renovations and additions to property are made but not yet reflected on the assessor’s card.

Balloon payment. Misperception: Giving a massive bouquet of brightly colored balloons to thank your neighbor for mowing your lawn. Reality: The final lump sum payment paid at the maturity date of a mortgage amortized over 30 years but due at the end of five years.

Cheap foreclosure. Misperception: Property bought at a foreclosure sale is cheap. Reality: Foreclosures are not cheap because the bank usually has a fair market value appraisal done on the property, and the court is aware of this. While some discount is possible, there is no guarantee of any discount on the property. Also, while the price of a property in foreclosure can be lower than a competitively listed property, it’s never cheap, as purchasing can still include bank fees, appraisal costs, and mortgage application fees. Keep in mind that an owner who couldn’t pay monthly mortgage payments probably couldn’t pay for upkeep and maintenance either; therefore, finding and paying for deferred maintenance can be costly.

Ducts. Mispronounced misperceptions: 1) The quacking water fowl that arrive each spring and leave each fall. 2) Things all in a row. Reality: The passageways through which heated and/or cooled air travel through a structure.

Footprint. Misperceptions: 1) The telltale mark you leave on the freshly vacuumed carpet when you’ve just mowed the lawn and forgot to take off your shoes. 2) What those guys from CSI dust for at a crime scene. Reality: The outline of the dwelling’s boundaries as it sits on the land.

Freddie Mac and Fannie Mae. Misperception: Neighbors with funny names. Reality: Freddie Mac is the nickname for the Federal Home Loan Mortgage Corporation, which is a federal agency that buys conventional residential mortgages from insured depositories and HUD-approved mortgage bankers. Fannie Mae is the nickname for the Federal National Mortgage Association, which is a secondary mortgage institution that buys conventional residential mortgages from primary lenders as well as those insured by FHA or guaranteed by VA.

Leaching field. Misperception: Where you put your unwanted mooching guests. Reality: The area of a yard used for separating the septic tank’s soluble components through percolation.

Monument. Misperception: A plaque or structure honoring some famous person or event. Reality: A permanent object serving to mark a property’s boundary.

Setback. Misperceptions: 1) Something went wrong. 2) A card game. Reality: A zoning ordinance provision regulating the distance between a property’s boundary line and the building.

Squatter’s rights. Misperception: If you sit on a property long enough, it’s yours. Reality: While judges don’t particularly like squatter’s rights because they attempt to take away another’s property rights, adverse possession is a legal method of acquiring title by proving actual, open, continuous, exclusive, and hostile possession for 15 years.

Steering. Misperception: Getting your car into the garage without hitting any walls, bikes, or lawnmowers. Reality: The illegal and discriminatory practice of attempting to restrict the choices of a buyer or tenant to specific areas.

Surveyor’s stake. Misperception: The dinner you give to thank the guy who surveyed your property. Reality: The iron pin or wooden stick placed in the ground by a surveyor to mark a point on the property’s boundary.

Surveys. Misperception: Surveys are always mathematically precise. Reality: Surveys are not always perfect because surveying is an art. Some property descriptions do not close because the old fixed boundaries such as stone walls and trees referred to in previous deeds can cease to exist, so unanticipated adjustments to the legal description may be necessary.

When it comes to residential real estate matters, it is okay to admit you’re not sure about how to buy or sell a house or what the words mean in a buyer representation agreement, listing agreement, or licensed home inspector’s report. No one is expected to know everything about everything, so ask your Realtor® and your lawyer lots of questions. And then when Jay Leno stops you on the street and asks you if you know what you’re doing, you can say that you’re an enlightened East Coast steady-habit dweller and you know exactly what you are doing.

Judith I. Johannsen is Assistant Counsel for the Connecticut Association of REALTORS®, Inc.

Connecticut Association of REALTORS®, Inc. is Connecticut’s largest professional trade association, representing over 18,000 real estate professionals engaged in all aspects of the real estate business. Founded in 1920, the Connecticut Association of REALTORS®, Inc. is dedicated to enhancing the ability of its members to conduct their business successfully while maintaining the preservation of private property rights. Use of the term “REALTOR®” is exclusive to the members of the REALTOR® Association and signifies allegiance to a strict Code of Ethics.