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CONTENTS
Let ter from the Editor Letter from the Editor
Departments 4
Market Report The Exterior 'Packaging' Of A Home
8
10
Feature Update the Look of Your Home
12
Real Estate Spotlight CFPB Notice Requirements
14
Profile John Arroyo Crossing Over to Real Estate
July 2015 • Vol. 8 • No. 7 P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
[ Editor ] Arlene Taitague Taitingfong
[ Display Advertising ] 16
From the Experts Parental Subdivisions Can Be a Lender’s Dilemma
Evelyn Trinidad
[ Traffic/Circulation Manager ] Carol Aperocho
[ Production Manager ] Mark S. Burke
18
How to D.I.Y. Reviving Your Plants
[ Graphics & Layout ] Mark S. Burke Edwin E. Valencia
[ Website Development ] 22
Curb Appeal The Effects of Radon Exposure
25
Who Ya Gonna Call?
26
Classifieds
28
Closing
Mark S. Burke Edwin E. Valencia
[ Editorial Contributors ] John Arroyo Sandy Gould-Yow Arlene Taitague Taitingfong Masoud Teimoury Kim Anderson Young
Arlene Taitague Taitingfong
Bueñas Guam! This month we touch on important issues that will get you thinking about what’s going on around us in respect to own homes. One such topic is Radon exposure. Masoud Teimoury gives a report about this toxic chemical in CURB APPEAL. Do you know what levels are present in your home? Our FEATURE presents ideas on how to improve the outside of your home, which will not only give the property curb appeal, but increase the value of your home. Also in this issue is our PROFILE on John Arroyo, General Manager of Title Guaranty of Guam. He also submitted an article in FROM THE EXPERTS, about how parental subdivision works. This is a subject all parents should be aware of. We also have our monthly reports inside the magazine to keep you abreast on real estate statistics, landscaping, and changes in the mortgage loan process. It’s summer time, so enjoy your vacations, beach outings and barbecues with safety in mind. Until next month,
Cover Photo: Mark S. Burke CasaGuam is Published by:
Arlene Taitague Taitingfong
CasaGuam Advertising Disclaimer All Advertisers agree to hold the publisher harmless and indemnify it against any and all claims, losses, liabilities, damages, costs and expenses (including attorney’s fees) made against or incurred by the publisher, officers or employees with respect to, or arising out of, the content, text, graphics or representations of any ad published herein, including but not limited to the sole negligence and/or fault of the publisher. The publisher is not liable for any claims, losses or damages of any kind, arising from the wording, text, graphics or representations of any ad published herein, or the condition of the articles sold through the publication, or performance of services advertised in this publication. All advertising and/or performance of services advertising and/or submissions become wholly the property of CasaGuam Magazine. CasaGuam Magazine is a registered trademark of PTI Pacifica Inc. Copyright © 2008. All rights reserved. Reproduction in whole or in part in any form without the express written consent of the publisher is prohibited. We reserve the right to edit or refuse any ad and to reprint any photo for promotional use.
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2 CasaGuam July 2015
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Market Repor t
Sandy Gould-Yow - Associate Broker
The Exterior 'Packaging' Of A Home buyer's look at your home's exterior is comparable to how an employer may look at the dress of a person coming into apply for a job. Are their shoes clean? Are they overdressed, or underdressed for the job interview? Is their hair brushed, and do they appear well-kept and clean? Is there dirt under their finger nails, or a bad odor? Employers know that their employees are extensions of themselves; representatives of their business. So goes the exterior 'packaging' of a home. How it looks, is a reflection of the seller. When a buyer pulls up to a home for sale, and notes that the house needs painting, she will likely wonder what other items have been neglected. She may become concerned that plumbing and electrical matters haven't been addressed, or that there may be other deferred maintenance issues. If the lawn is showing neglect, or a swing set is old and rusty, or a car appears to have been on blocks for awhile, a buyer may assume this is how everything is kept. Whether this perception is true or not, this is the impression you are giving, and any offer to purchase your house will likely reflect the condition of your home. The truth is that an offer to purchase your home IS going to reflect it's appearance. Painting the outside (and, doing this well!) is one home-improvement project that will pay you more than it costs you. The same goes for water-blasting. Don't be afraid to ask for objective opinions. You've probably looked over the flaws of your home for sometime. Get some input from your real estate agent on how best to dress up the exterior of your home. © 2008 William Cho, Flickr | CC-BY-SA | via Wylio
A
4 CasaGuam July 2015
Here are some tips: If there is any peeling paint, repair this. Mud stains or dirt? Clean it. Make sure the front door looks newly painted. Make the house look welcoming. Organize outdoor items and store lawn and yard equipment like mowers, bush cutters, hedge trimmers, etc. Repair any broken windows and replace or repair torn screens. If you have a door bell, make sure it works. If you have exterior lighting, make sure they work. If you have a garage door, make sure it works. If your roof is long neglected, water blast it, and if you can, coat it with a white elastomeric paint. On Guam, the roofs are important. White roofs mean lower power bills.. If you have accordion typhoon shutters, make sure these open and close and that they each lock. If you have the accordion shutters, make sure they are all accounted for, stacked and organized. Make your gutters and downspouts clean so that a heavy rain won't be a problem. Mow the grass regularly and keep hedges and bushes trimmed and neat. Don't let grass grow through the cracks of concrete. Clean up fallen tree limbs, palm fronds, clippings and other debris. Go the extra mile and plant new flowers, and other attractive shrubbery. If your fence is damaged, repair it. In extreme cases, if it is beyond repair, or too expensive to repair, the house might look better without it. Again, check with your real estate agent. Water blast the driveway, walkway around the house, and porches and sidewalks. Organize your garage, and if you have a tent serving as a car covering, take it down. This just calls attention to what you don't have. It's hard, but look at your house through new eyes. Get rid of everything that is not necessary. Lighten your load, since, if all goes as planned, you're going to be moving soon.
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Market Repor t
Market Snapshot January 1, 2015 through June 23, 2015 By Anthony R. Godwin
Condominium/TownhomesFor Sale Average Sold Price: $173,212.00
Condominium/Townhome/Apartments For Rent Average Rented Price: $1,586.00
Average Days on Market: Number of units Sold Number of units currently for sale:
Average Days on Market Number of units Rented: Number of units currently for rent:
126 82 94
Single Family Homes For Sale Average Sold Price: $289,281.00
Single Family Homes For Rent Average Rented Price:
Average Days on Market: Number of homes Sold Number of homes currently for sale:
Average Days on Market: Number of homes Rented Number of homes currently for rent:
173 136 199
59 496 239
$2,288.00 70 301 154
Disclaimer: All information provided is from the Guam Multiple Listing Service (MLS) for the period January 1, 2015 through June 23, 2015.
Municipality Statistics
Municipality Statistics
For 1/1/2015 To 6/23/2015
For 1/1/2015 To 6/23/2015
Condo/Town House For Sale As Of 06/23/2015
City Active
Average Active List in Volume Price Range $ 39,000 $ 39,000
3
Average Average Average List Sold Sold WithVolume Price New Pend Sold Price DOM Expr drawn BOM
1
Agat
0
$
$
0
$0
Asan
0
$
$
0
$0
2
$ 755,000 $ 377,500
8
Dededo
9 $ 1,510,000 $ 167,778
34
Hagatna
0
Inarajan
0
Mangilao
4
Merizo
0
MongMong-TotoMaite Ordot-Chalan Pago
2
$
$
$
$
$ 554,000 $ 138,500 $
$
0 0 29 0
$ 407,999 $ 204,000
7
13 $ 1,493,000 $ 114,846
27
Piti
0
Santa Rita
0
Sinajana
3
Talofofo
0
$
$
0
$
$
0
$ 980,000 $ 326,667 $
As Of 06/23/2015
For 1/1/2015 To 6/23/2015
Agana Heights
Barrigada
Single Family For Sale
$
7 0
$ 139,000 $ 46,333
2
1
1 $ 60,000
$0
0
0
0
$0
0
0
0
$ 2,794,000 $ 349,250
3
2
$ 5,766,850 $ 169,613 17
52
1
0
0
$0
0
0
0
0
$0
0
0
0
0
1 $ 555,000
188
3
0
0
16 12 $ 146,125
117
2
1
9
0
0
0
0
$0
$0
0
0
0
$0
$0
$0
0
0
0
$0
0
0
0
0
$ 2,455,000 $ 84,655
9
8
8 $ 70,938
208
4
0
3
0
0
0
0
0
0
0
$0
$0
$0
City Active
For 1/1/2015 To 6/23/2015
Active Average in Volume List Price Range
Average Average Average List Sold Sold WithVolume Price New Pend Sold Price DOM Expr drawn BOM
Agana Heights
5 $ 2,105,000 $ 421,000
9
$ 3,754,000 $ 417,111
5
2
1 $ 180,000
72
2
1
2
Agat
9 $ 2,071,685 $ 230,187
19
$ 3,729,385 $ 196,283
6
4
4 $ 166,750
95
7
0
2
$ 1,669,999 $ 278,333
2
$ 345,000 $ 345,000
6
2
3
2 $ 237,500
385
1
0
Barrigada
Asan
18 $ 7,763,200 $ 431,289
1
44
$ 18,756,000 $ 426,273 24
14
8 $ 360,938
270
5
0 12
Dededo
36 $ 10,082,500 $ 280,069
92
$ 25,679,800 $ 279,128 62
36 36 $ 254,794
158 13
3 14
Hagatna
0
$
$
0
Inarajan
2
$ 446,000 $ 223,000
4
Mangilao
7 $ 2,389,000 $ 341,286
37
$0
$0
0
0
0
$0
0
0
0
0
$ 840,900 $ 210,225
2
1
2 $ 229,950
131
0
0
1
$ 12,841,295 $ 347,062 18
18 14 $ 334,079
145 10
Merizo
4 $ 1,024,000 $ 256,000
7
$ 1,809,000 $ 258,429
6
1
1 $ 250,000
30
1
0
0
8 $ 2,850,000 $ 356,250
16
$ 5,430,000 $ 339,375
7
2
3 $ 674,033
122
2
2
1 2
2
3
2 $ 140,000
138
2
1
0
MongMongToto-Maite
$ 3,428,400 $ 126,978 18
8
6 $ 130,750
167
1
0
2
Ordot-Chalan Pago
5 $ 1,898,000 $ 379,600
15
$ 4,721,900 $ 314,793
8
4
4 $ 354,500
427
5
1
0
Piti
10 $ 5,000,000 $ 500,000
18
$ 9,284,500 $ 515,806 11
3
3 $ 501,667
282
2
2
2
Santa Rita
8 $ 1,805,900 $ 225,738
23
$ 5,843,300 $ 254,057 12
8
4 $ 135,000
123
2
1
3
3
3 $ 216,333
242
2
0
2
14 12 $ 299,292
144
2
0
7
3 $ 577,333
213
8
4
3
121
0
0
0
0
1
0
1
$ 1,573,999 $ 224,857
$0
$0
0
0
0
$0
$0
$0
0
0
0
$0
0
0
0
0
$ 2,722,000 $ 388,857
1
1
1 $ 245,000
158
2
0
0
Sinajana
4 $ 2,659,000 $ 664,750
10
$ 5,327,000 $ 532,700
0
0
0
0
0
0
0
Talofofo
25 $ 8,568,450 $ 342,738
40
$ 13,411,850 $ 335,296 15
Tamuning
16 $ 13,415,000 $ 838,438
30
$ 22,551,500 $ 751,717 20
$0
$0
$0
0
0
0
8
5
Tamuning
33 $ 7,378,000 $ 223,576
94 $ 21,255,500 $ 226,122 58
33 24 $ 212,521
114 17
4
5
Tumon
20 $ 6,316,439 $ 315,822
63 $ 20,536,339 $ 325,974 33
27 23 $ 181,322
102
1
7
Tumon
0
1
$ 650,000 $ 650,000
1
1
1 $ 650,000
1 $ 1,600,000 $ 1,600,000
3
$ 1,869,000 $ 623,000
1
1
0
24 $ 7,267,100 $ 302,796
95
$ 28,694,350 $ 302,046 48
50 23 $ 261,179
167 17
40
$ 12,605,800 $ 315,145 22
16 12 $ 204,867
138
9
$
$
Umatac
0
$
$
0
$0
1
0
0
$0
0
0
0
0
Umatac
Yigo
0
$
$
3
$ 680,000 $ 226,667
1
3
3 $ 198,333
166
0
0
0
Yigo
7
$ 1,106,000 $ 158,000
3
1
1 $ 92,000
28
2
1
2
Yona
13 $ 5,699,900 $ 438,454
126 43
8
28
Subtotal
196 $ 76,989,735 $ 392,805
Yona Subtotal
2
$ 252,500 $ 126,250
89 $ 19,685,938 $ 221,190
0 10
$0
282 $ 62,457,088 $ 221,479 148 103 82 $ 173,212
Information is deemed to be reliable, but is not guaranteed. Š 2015 MLS and FBS. Prepared by Anthony R. Godwin, EPRO,ABR,CRS,MRP on Tuesday, June 23, 2015 5:37 PM.
$0
509 $179,469,579 $ 352,592 278 186 136 $ 289,281
6
173 86
2 17 2
8
18 89
Information is deemed to be reliable, but is not guaranteed. Š 2015 MLS and FBS. Prepared by Anthony R. Godwin, EPRO,ABR,CRS,MRP on Tuesday, June 23, 2015 5:37 PM.
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Feature
Update The Look Of Your Home By Arlene Taitague Taitingfong
In my search for inspiration of home ideas, I drove around the island and I noticed a few things that are happening on Guam. One is how the styles of houses are changing. The other is residents are more active in creating and keeping a nice yard. This trend of change is refreshing! I’m referring to the “outside” look of the home from the front yard, to the doors and windows, and even the ornamental facade in the front. Giving your home and yard a facelift will improve its curb appeal and give it added value in the long run.
8 CasaGuam July 2015
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Feature
g
During my trek, I saw that there were many newly constructed homes with very modern accents. Attention to the materials used for doors and windows made the homes very appealing. Many had different accents added to the front of their houses, giving it a nice dimension of texture. This trend was also seen in existing homes which were recently renovated. In both cases, adding the extra touches to the home will no doubt make it appealing to buyers, while at the same time, increase the value of the homes. In turn, the homes contribute to the aesthetics of their respective neighborhoods. Property values will definitely go up if everyone on the block follows suit. Whether you are constructing your home or updating the look of an existing one, it will be a large task to undertake. It can be tackled, however, if you approach it in sections. Here are a few suggestions you might consider. 1. Doors and windows The type of doors and windows you select are important. They are the first line of defense from the invasion of intruders, the wrath of the elements, and everything in-between. Since we live on an island, get products made from materials that can withstand our salt water environment and our occasional storms. It is advised to get doublepaned or storm proof windows. Check to see if the product has an adequate seal that can block out the water when we have a storm. This should be checked not only for windows, but for doors, and equally important, sliding doors. Shop around to see what works with your budget. A selection of high quality products are available on the island if you take the time to shop for them. Enyon Jin, president of JP International Materials, Inc., advises, “It is best to use aluminum materials. You don’t have to worry about rust, especially with our climate.” Jin has an assortment of quality aluminum products. If you visit his showroom, he will show you the mechanics of his products. I have to admit, I was impressed with what he has to offer. His materials are from Germany and are of the highest quality, and he is able to supply standard and custom sized doors and windows.
2. Landscape Your Yard Landscaping is not a word that usually pops up when talking about upgrading homes. It is too often overlooked, yet, it is the least expensive way to update the look of your home. Putting in one or two trees will not suffice. Think of landscaping as artwork for your property with the subject being your home. It can be as easy as creating a few garden beds or planting more trees and flowering shrubs. Your curb appeal is greatly affected by the design of the landscape. Don’t know how to start? Visiting local nurseries can give you ideas. Most of the staff are helpful and are knowledgeable about local plant life. They are usually full of advice and they know what plants can help you achieve the look you want. Start slowly by adding a few flowering shrubs to your front yard. Place flower beds on your porch or near the door. Add a small raised bed around a walkway, When creating depth, remember to layer the heights of plants with the tallest in back. When planting, make sure you accommodate for spacing and projected heights. Adding a fence will increase the value of your home too. Not only does it set the perimeters of your property, it also provide a certain degree of security. This is a feature that will last for a very long time. Jin advises to make sure you use materials that will not only look nice, but will also stand up against the elements. If you see a fence style you like while driving around the neighborhood, ask the owners where they purchased theirs and if they are satisfied with the results. It is always good to use a company that has a good standing and deliver satisfactory results. 3. Frontal facelift The front area of your home is the first thing someone sees upon approach. A few changes can make it stand out in a big way. Adding texture to your walls bring dramatic change with very positive results. You can start small and install 12”x12” (or larger) deck tiles on the floor of the entryway. It looks nice and is easy to clean. It you are bold enough, advance to the next step of adding stone veneer to the walls of your house front. You can you use one style and color, or get creative and combine two or three different tiles to make a pattern across the length and height of the wall you choose to work on. A frontal facelift works especially well for existing homes and can be a great DIY project! If the above projects leave you feeling slightly overwhelmed, maybe you can start by simply cleaning up your main living space. A deep clean and a new coat of paint can go a long way when it comes to revamping without major renovations. CasaGuam.com 9
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On The Cover
Rent this Yona Jewel ove in ready! Don’t you want to wake up to an outstanding view? This newly built 2 story house overlooks Country Club of the Pacific Golf Course. It has 3 bedrooms and 3 bathrooms. It has a carport big enough for two cars plus an automatic gate. You’ll be astonished once you set foot into the house. The ceiling detail is amazing. You can make your everyday meals in a kitchen that overlooks the ocean. All brand new, stainless steel appliances. What are you waiting? Call your favorite Realtor and schedule a showing NOW!
M
Why wait? Call now to arrange the showings!
988-1883 karen1282001@yahoo.com
Karen Pan Principal Broker
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Real Estate Spotlight
CFPB Notice Requirements O
By Kim Anderson Young
n August 1, 2015, when the Consumer Financial Protection Bureau’s (CFPB) integrated mortgage disclosure rule goes into effect, the notice requirements that banks must give to borrowers will also change. For example, the new three day rule now specifies that the Loan Estimates (LE) and Closing Disclosure (CD) statements must be delivered to the buyer three BUSINESS days prior to closing. If the statement is mailed to the borrower, that period extends to a full six business days in advance of closing. Let’s explore the timing needed for the PERFECTLY timed closing, assuming Day One is Monday (Saturdays count as a business day, but Sunday’s do not): Day 1 Day 2 Day 3
Buyer and Seller sign the purchase agreement and open escrow Buyer submits loan application Lender mails Loan Estimate
3 day notice period – Not including Sundays and US public holidays
Day 37 Day 38
Day 7 Day 8 Day 9 Day 10 Day 11
As you can see, 30 day closings are a thing of the past. A 45 day closing is close to miraculous and even a 60 day closing will be extremely difficult to accomplish. The scenario above assumes that appraisals are ordered and delivered, that all supporting documentation the bank needs in order to make a credit decision is supplied in advance, and that home inspections, retracement surveys and pest inspections are scheduled and completed within a two week period.
Sunday Buyers received Loan Estimate Buyer mails back “Intent to Proceed” notice Lender receives “Intent to Proceed” notice Lender starts loan processing
Two week processing period Day 25
Loan Approval – Lender mails Closing Disclosure
3 day notice period – Not including Sundays and US public holidays Day 30
Buyer receives Closing Disclosure and has 3 business days to review
Lender funds the loan Recording can occur in order to close escrow.
Changes to the settlement statement may trigger the requirement to reissue the Loan Estimate and/or Closing Disclosure. Failure to comply with the notice requirements can result in very heavy penalties for lenders and settlement agents.
CFPB requires a three day review period
As you can see, with these Government mandated changes, communication among the realtor, lender and settlement agent is crucial to a timely and successful closing of any real estate transaction.
Day 34 Day 36
About the Author Kim Anderson Young, president of Security Title, has over 30 years of experience in the real estate industry. Contact her at kim®securitytitle.net or 647.8100.
Buyer can sign loan documents Loan documents are returned to Lender for review.
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Profile
Crossing Over To Real Estate By Arlene Taitague Taitingfong
I
“
JOHN ARROYO GENERAL MANAGER TITLE GUARANTY OF GUAM
Arroyo is also an avid reader of CasaGuam magazine. “I look forward to articles from industry experts. These help me gauge market trends.” When he is not working with title management duties, he enjoys fishing, playing gold and reading. “Mostly, I enjoy spending time with my wife JoAnn and my son Christian.”
“I look forward to articles from industry experts. These help me gauge market trends.”
14 CasaGuam July 2015
“
In the work environment, many of us have, at one point in time, considered going from one industry to another, For those who have, it can be an uneasy transition, especially if you have been in your field for a very long time. After being in the finance industry for over 27 years, John Arroyo did just that — made the cross over. He went from the finance industry to real estate, specifically, to a title company. Arroyo joined Title Guaranty of Guam about three years ago and is the current General Manager. Previous to this, he held management positions in a few financial institutions, with his last one being the CEO of Coast360 Federal Credit Union. Title Guaranty offered him a place in their company. Arroyo explains, “I considered the offer carefully and decided that this would be an excellent way to learn something completely different.” According to him, he is learning from the most experienced title expert on Guam, Bertha Evangelista. “She is a wealth of knowledge and I am very lucky to be working closely with her.” He continued to share how he is enjoying his new line of work, “The work is exciting and still new for me, and it gives me the opportunity to see real estate from a different perspective.” Fortunately enough, as a banker, Arroyo dealt with real estate transactions and worked with title companies. There are similarities in some degree. He noted that being in the business of insuring title of properties, however, is quite different. “Knowledge is more intense when you are in the business of insuring title of property.” He elaborated on the processes and how research of properties is very in-depth. Basically, a title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. He advises new real estate agents or anyone interested in getting into the title business to learn as much as you can and do not expect to stop learning.
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From the Experts
Parental Subdivisions Can Be a Lender’s Dilemma
By John Arroyo
The Parental Subdivision law was created as a way to allow parents to split up and pass land they own on to their children, without having to meet the stringent and costly requirements of a typical subdivision. The law allows parents to subdivide parcels of land into separate lots of no less than 7,200 square feet, and exempts them from having to design and pay for infrastructure improvements as a condition of approval. A typical subdivision requires streets, alleys, sidewalks, storm water drainage, sewers, survey monuments, road extensions, fire hydrants, and water and power service to be detailed in a tentative subdivision plan submitted for approval. Once approved, the subdivider has one year to complete the improvements. Parental Subdivisions require streets and alleys, but they do not have to be completed as provided for in the typical subdivision. The government recognized that many families who own large tracts of land, do not have the financial resources to afford the costs to design and pay for these improvements. Imposing this requirement on them was a hardship. Instead, for purposes of approving a Parental Subdivision map, the law gives the subdivider two options. One is the subdivider posts a bond to secure completion of the improvements. The other option is the subdivider sign an affidavit stating that the improvements will be accomplished within a reasonable amount of time. Neither option indicates when the improvements need to be completed. The second option only states within “a reasonable amount of time” but that was not defined in the law. To safeguard against unscrupulous landowners using the law to subdivide land for sale to developers and investors, an alienation clause prohibits recipients from giving, selling or conveying the land in fee simple for five years. An additional intent of the law is to give grantee children the ability to build a home on the land. A provision of the law states that the deed that conveys the property may include a clause allowing the property be mortgaged for the purpose of constructing a residence. While the intention is good, one problem some face when trying to get financing for a home construction, is that not all lenders on Guam are willing to make loans secured by these properties. Others will lend only if the mortgage clause is included in the deed. Another problem is the uncertainty among lenders with the type of loan they can make. Anyone who has built a home with borrowed funds will tell you that there are two separate loans that make up the whole transac-
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tion. Each loan has a different purpose, term, and structure. The first loan consummated in this two loan transaction is a construction loan. Its purpose is to pay the costs to build the home. It is a short term loan, typically 12 months or less, depending on the complexity of the home being built. The loan principal is disbursed incrementally in amounts, and the timing is dependent on the contractor’s construction schedule. Loan payments cover interest payments only and are usually not uniform, being small at the beginning of the loan and gradually increasing as more principal is disbursed. When construction is completed and the home is ready to be occupied, the second loan (sometimes referred to as a permanent loan) is executed. Its purpose is to pay off the construction loan. This loan has a single disbursement of principal. The monthly payments cover the interest payments and retire a portion of the outstanding principal. Its term is longer – up to 30 years. Lenders will not approve a construction loan without some reassurance that it will be paid off when construction is completed. That reassurance usually comes in the form of a simultaneous conditionally approved longer term permanent loan. Financial institutions are faced with lending issues during the five year moratorium period because of the way the law is written. The law provides for the ability to mortgage the land for the purpose of constructing a home if such language is included in the deed. For lenders, this means a construction loan. The law does not mention permanent loan financing and since these loans pay off construction loans, where will the funds come from to retire the construction debt? One might assume that since you typically do not have one loan without the other, both loans would be allowed. A very valid assumption, but for some lenders, this is an assumption they are not willing to make, especially when considering the amount of money involved in these transactions. When faced with foreclosure, most borrowers will go through great lengths to protect their home. Some may challenge the lender’s taking of a mortgage for a purpose not specified in the law. For some lenders, the time and expense to test that assumption in court is too much of an expense and too great a risk. It is simpler for them not to lend until after the five year moratorium expires. What do you do if you are a parent and want to use the Parental About the Author: John Arroyo is the General Manager of Title Guaranty of Guam. He is a member of the Guam Land Use Commission and has been a financial institution executive and lender for over 25 years. For more information about this topic, you can contact him at 477-7147.
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H o w To D . I . Y.
Reviving Your Plants truggling with post-typhoon yard recovery? Anyone else still have piles of fallen branches in the yard, waiting for time to turn them to mulch or for someone to cart them away? The storm has passed, and it is time to once again enjoy your yard. Take a look around your property. There’s nothing like the aftermath of a typhoon to open our eyes to what we have, or rather, had. My big old soursop tree in the back corner? Down. My potted plants? Gone with the wind! It was a close call, but, with tender, loving care and good expert advice, my poor, sad, potted guava tree (okay, it was a leafless stick) survived, I am happy to say. My plants have history, as I’m sure yours does too. They were either holiday gifts from family, results from shopping therapy, clippings from my regular visits to the ranch and Mom’s garden! If you drive around the island today, you will see that many of the plants which survived the storm are showing signs of recovery. What a welcome change from last month. If you still have plants that need a boost and you are not sure where to start, begin by speaking with the professionals. I recently dropped by the plant sale at the old Ben Franklin parking lot on Marine Corps Drive in Tamuning. In my quest for knowledge, I found Joe Naputi (owner of Joshua’s Nursery), Lou Stein (owner of Jungle Queen Nursery), and other nurserymen who set up their tents on GovGuam payday weekends. If you need
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to know anything about plants, ask these experts. They welcome questions and are always glad to share their knowledge. They offer a large selection of plants, some of which I remember from my grandparents’ yards (fond memories). In my case, Naputi’s quick and to-the-point advice has proven better than my own endless internet searches. He gives the following advice to novice “green thumbs” or anyone trying to revive their plants. First, it is important for you to know the characteristics and care instructions of your plants. Second, conditions on our island can be quite different from planting elsewhere. The recommended fertilizer and water requirements may be different for plants on Guam compared to those in drier areas. If you are trying to revive your plants, especially after a storm, Stein recommends rinsing the leaves. This washes off the salt spray from the typhoon and will help nurse plants back to health. Naputi added, “If a plant is still pliable, even if it has no leaves, it still has a chance.” Now I wonder, in hindsight, if I could’ve salvaged branches and twigs from my fallen soursop tree. Plants don’t have to be a one-time flowering gift only. They can continue to flourish and provide enjoyment for many months, even years, with proper care. Caring for anything can be complicated enough, but just knowing and following the right care for a particular plant can bring enjoyment and a sense of truly being a “gardener.” Additionally, the University of Guam and Guam Community College offer free workshops on gardening and plants. Start reviving your lawn, backyard patio, or balcony today, and pretty soon, you too can sit back, relax, and enjoy your plants once again.
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Curb Appeal
The Effects of Radon Exposure By Masoud Teimoury ince the discovery of the element Radon by Ernest Rutherford in the 1900s, radon has posed a health risk to those exposed to it; however, minimal attention has been paid to what it actually does as the second leading cause of lung cancer for non-smokers (Environmental Protection Agency). In fact, according to the World Health Organization survey in 2009, radon caused up to 15% of lung cancer worldwide. This would make radon the public’s main exposure to ionizing radiation and it can account for 50% of the public’s exposure to naturally occurring sources of radiation in many countries (WHO, 2009). There are many things to learn about this silent carcinogen, but first, one needs to know what radon is and how to prevent exposure from it. Radon is a naturally occurring noble gas that is fostered from the breakdown of uranium. Prolonged exposure to radon causes lung cancer for those exposed to it. The risk of getting lung cancer increases greatly with those who smoke. The table below provided by EPA demonstrates the risk of lung cancer per one thousand people coinciding with the amount of radon they are exposed to. The risk of being exposed to radon can be minimized. The first step to determining whether or not you are at risk of radon exposure is to test your home or place of work. Testing for radon takes 48 hours to complete. If the radon level comes out to be more than 4.0 pCi/L, remediation measures need to be implemented to prevent further risks. The level of remediation required depends on the level of radon detected following the test result. Radon levels on Guam have been known to be relatively high depending on the geologic condition and location. To provide a healthier environment for you and your family, please contact a professional who can handle this issue. For proposed new homes and commercial buildings, get someone that is prepared to provide specific design for the slab-on grade or basement areas for optimal prevention.
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If 1,000 people who smoked were exposed to this level over a lifetime*...
The risk of cancer from radon exposure compares to**...
20 pCi/L
About 260 people could get lung cancer
250 times the risk of drowning
10 pCi/L
About 150 people could get lung cancer
200 times the risk of dying in a home fire
8 pCi/L
About 120 people could get lung cancer
30 times the risk of dying in a fall
4 pCi/L
About 62 people could get lung cancer
5 times the risk of dying in a car crash
2 pCi/L
About 32 people could get lung cancer
6 times the risk of dying from poison
1.3 pCi/L
About 20 people could get lung cancer
(Average indoor radon level)
0.4 pCi/L
About 3 people could get lung cancer
(Average outdoor radon level)
If 1,000 people who never smoked were exposed to this level over a lifetime*...
The risk of cancer from radon exposure compares to**...
20 pCi/L
About 36 people could get lung cancer
35 times the risk of drowning
10 pCi/L
About 18 people could get lung cancer
20 times the risk of dying in a home fire
8 pCi/L
About 15 people could get lung cancer
4 times the risk of dying in a fall
4 pCi/L
About 7 people could get lung cancer
The risk of dying in a car crash
2 pCi/L
About 4 person could get lung cancer
The risk of dying from poison
1.3 pCi/L
About 2 people could get lung cancer
(Average indoor radon level)
Radon Level
Radon Level
0.4 pCi/L
(Average outdoor radon level)
About the Author Masoud Teimoury is the owner of Masoud and Company and has over 30 years in the engineering, consulting and construction industry. You can contact him at (671) 632-3646 or (671) 888-8081 or email him at mkt1@guam.net.
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W h o Ya G o n n a C a l l ?
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Classifieds Commercial Rentals
MongMong-Toto-Maite
Yigo
Ordot-Chalan Pago
Dededo
Economical studio unit. Completely
Single Home. Excellent Condition. 3BD/2BA. Large yard. Good location. $1,400/month or for sale $200K. Call 637-7165/688-0887/689-7700.
Chalan Pago 2bed 1bath SFD for sale. 1169sq.m lot Asking $119K. Call Karen 988-1883
renovated. All ceramic tiles, new cabinets, 106 East Sta. Barbara, Dededo 4bed/1 ba
new split A/C, typhoon shutters & double
corner house, fenced, and gated. Centrally
paned windows. Call Deanna @ 688-2855.
located close to church, school & malls. $1,200/mnth. Call MYRNA @ 488-0144
Piti
Ordot-Chalan Pago
MILITARY APPROVED! 1 & 3 BR Close to Port, Naval Station, Polaris, Park and Beach. Ocean Breeze Apts. Max two tenants. $650 unfurnished. (Price does not include utilities) (Right across the beach!) Call 649-8265 or 727-8265
Commercial space for rent. Approx 850 sq ft., video store or retail business. Asking $850/mo. Please call ANGIE @ 727-2228
Talofofo Executive 2-story house with a great view, fully fenced and a quiet area. 5bd/3ba w/ 2 huge balconies. SS appliances, wash/dry, 2-car garage. Huge storage shed, a must see, Military OK! $3500/mo. Call Joe @ 483-3333!
Residential Sales Barrigada
Two homes for sale! House 1: Full concrete, 2 bed, 1 bath House 2: Semi-concrete, 2 bed, 1 bath Asking $94K for both. Call owner at 727-4985 Two 2BD hse. 1 Full Concrete & 1 semi concrete in one lot. $96K. Negotiable. Call 727-4985.
Residential Rentals Talofofo Agat
Large 4BR/2Ba 1800sqft. House Only 248,000 637-7165 / 688-0887 / 689-3333
Ipan home less than one mile away from 1 & 3 BR in Agat. Ocean View! Renovated. Near Base, Stores, and Schools. Call 649-8265 or 727-8265
Asan
the beach and golf courses. 2 story, for more information.
Tamuning
Nimitz Hill, 2BD apartment including Sunrise D Condo. Large 2BD/2BA. Pool. ocean view. $950/mo. Modern upgraded, all ceramic tiled, typhoon shutters. Call 687-6900
Multi-Family House/Good Investment located front of Dededo Mayor’s Office/Park & Library Greath Neighborhood / Gated/ Corner Lot/Serious Buyers Only! FOR SALE BY OWNER. Call/LvMsg 727-6456
Very nice. 1,000 SqFt. $1,000/month. Call 637-7165/688-0887/689-7700. NEWLY BUILT TAMUNING VILLA HOME
Barrigada 3BD/2BA, 2 carport, fully fenced, basic 2b/1b, near Subway with water $830/mo. Please call 637-7165 / 688-0887 / 689-3333
Dededo
4BD/3BA plus studio. Call 707-6923/4
appliances included (split AC, ref, stove, washer, dryer, heater, drain disposal) $2,500/mo. Call 727-7670 or 988-7671
Harmon
Villa Rosario Condo: 3bd 2ba Excellent Condition, Pool, Tennis Court, Play Ground. Good Location $160,000.00 Call 637-7165/688-0887 Las Palmas Ph3. 3rd Floor. Large 3BD/2.5BA/2Den. Pool. Excellent Condition. $255,000. Call 637-7165 689-3333/688-0887
San Vitores Terrace Condo-2bd/1ba, 3BD/2.5BA Townhouse. Pool. Security. Tennis Court. $1,900/month. Call 637-7165/688-0887/689-7700 Large 4BD/2.5BA. Single home. Pool. Security. Tennis Court. $2,450/month. Call 637-7165/688-0887/689.7700. Harmon Ct. Townhouse. 3BD/2BA. Sec. 8 OK. $1,200/month. Call 637-7165 689-3333/688-0887
3bd/2ba - walking distance to beach, rest/bars, church. Asking $950 -
Pacific Gardens. 1st Floor. Pool. Security. 1BD/1BA. $47,000. Call 637-7165 689-7700/688-0887/689-3333.
$1800/mo. CSR- PB 649-6088
Tumon Blue Pacific Lattice Condo. 2bd/1ba. Backup generator, securted entry, pool, mailbox, room A/C units, stove/oven, refrigerator. Call Deanna @ 688-2855.
Tamuning Exec. 2 Story/Very Spacious For Sale by Owner. Growing in a great location beside Cost-U-Less Tamuning and Guam Premium Outlet. Great lifestyle and community environment with 5bd/3ba corner lot; nice sized bd on 1st and 2nd flr; master suite w/ jacuzzi spa tub; quality granite staircases; red hardwood railings; crown molding all over the house with open spacious kitchen. Dream home and a good investment! Call/LvMsg 727-6456 For Sale $195K Fee Simple. 3BD/2BA Tamuning Condominium Low Common Area Fee @ $50/month. Call Jo 488-4563.
Tumon Lily Village Tumon Condo. Nice. 3BDM 2BA Fully Renovated. $2,000/mo.
Land for Sale Yigo
For Sale By Owner Summer Palace Estates Located close to Cost-U-Less in Harmon 4Bd/2.5Ba 2100 Sq. Ft. Secured gated community/swimming pool, tennis court, & playground. New granite countertop and tile floor throughout / typhoon shutters. $440,000.00 Please call 777-0951
5,545 SQ/MTR Off Rt 1, past Hillside Markiet. Water/power on site, paved access. $300K-negotiable Call 988-7671 or 727-7670 (2) Yigo 1/2 Acre Lots. Clean, Ready to Build $55K each Contact 797-1986
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Closing
Message from the President Ryan DeGuzman 2015 President
Message from the Executive Officer and Government Affairs Director Peggy Araullo Llagas Guam Association of REALTORS®
Guam Association of REALTORS®
Changes on Closings Coming Soon Effective very soon, the process for purchasing a home through the bank will change due to the implementation of new regulations introduced by the Consumer Financial Protection Bureau. The CFPB is an independent agency of the U.S. government responsible for consumer protection. Its jurisdiction includes and is not limited to banks, credit unions, securities firms, mortgage servicing operations, foreclosure relief services, debt collectors and other finance related companies operating in the United States. What do the changes mean? Real estate transaction will take longer to close. Some industry experts are saying that 60 days will be the new norm for completing the sale/purchase of your typical home instead of the usual 45 days. That’s a huge difference. Here are a few simple and reasonable tips on how we can prepare for the changes moving forward: 1. Stay current on the latest news and updates so we are familiar with the changes 2. Set realistic expectations before and during the transaction 3. Communicate clearly and constantly so that everyone is in the loop and constantly aware of what is happening and will need to happen to make it work. 4. Deliver on promises and do what you say to keep things going smoothly and to avoid any unnecessary delays. Rest assured our Guam Association of Realtors can help provide the professional service you need to adapt and succeed in any market so please feel free to contact one of our over 400 qualified members who are always, ready, able and willing to assist. We have your best interest in mind! Have a sensational summer and sincerely,
Ryan J. De Guzman GAR President "Love, care and serve!"
GUAM ASSOCIATION OF REALTORS®
TRID Enforcement…Closing process changes In November 2013, the Consumer Financial Protection Bureau (CFPB) integrated the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations. Any transaction involving a mortgage will use new CFPB disclosure forms, effective August 1, 2015.
Highlights of New Rule New Loan Estimate Document Created Replaces the Good Faith Estimate (GFE) and initial Truth-inLending (initial TIL) disclosure. The new form provides clearer information so that consumers understand the loan terms and estimates of loan and closing costs and to facilitate comparison shopping. The Loan Estimate must be provided to consumers within three business days after submission of loan application.
New Closing Disclosure Document Created Replaces and combines the HUD-1 and final Truth-in-Lending disclosures (final TIL and, together with the initial TIL, the Truth-in-Lending forms). The new form provides clear details about various loan charges and features so that consumers can better understand the costs of the transaction. The Closing Disclosure must be received by consumers three business days before consummation of loan.
Timing of Disclosures The Loan Estimate must be given to consumers within three business days of applying for the loan. The Closing Disclosure must be received by the consumer three business days before consummation.
Types of Loans Covered Applies to most closed-end consumer mortgage loans. The rule does not apply to: Home equity lines of credit (HELOCs) Reverse mortgages Mortgages secured by mobile homes or by dwellings not attached to a property Creditors that make five or fewer mortgage loans in one year. - National Association of REALTORS® -
The Voice for Real Estate on Guam
Suite 236A Julale Center 424 West O'Brien Drive, Hagatna, Guam 96910 Office: (671) 477-4271 • Fax: (671) 477-4275 28 CasaGuam July 2015
Ask if your agent is a REALTOR®, someone who would know best to guide you through these changes.
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