Smart home technology is the new upsell in real estate. Thousands of properties sell every day that have smart devices. Smart features allow a person to control devices remotely or allow its built-in intelligence to work for them through a preset program, IFTTT, or context-awareness.

These smart controls are available on devices throughout your house such as a doorbell, security cameras, sprinkler system, door locks, appliances, garage door, electric plugs, alarm system, speakers, and even lights. The problem we have run into in the past is that our Texas residential sales contract didn’t really address how to deal with all of the logins, passwords, and overall access to those devices. You would assume that when asked a seller would log out of the devices and never look back…but did they really? What if they don’t? Can you imagine the havoc a seller could wreak on a buyer by not terminate access to those devices?  This issue has now been added to paragraph 10c of the residential contract. Here’s how it reads:

10C. Smart Devices: “Smart Device” means a device that connects to the internet to enable remote use, monitoring, and management of: (i) the Property; (ii) items identified in any Non-Realty Items Addendum; or (iii) items in a Fixture Lease assigned to Buyer. At the time Seller delivers possession of the Property to Buyer, Seller shall:

(1) deliver to Buyer written information containing all access codes, usernames, passwords, and applications Buyer will need to access, operate, manage, and control the Smart Devices; and

(2) terminate and remove all access and connections to the improvements and accessories from any of Seller’s personal devices including but not limited to phones and computers.

Basically, at closing the seller has to pass on all access codes, login information, passwords, and apps that the buyer will need to manage and control any/all smart devices in the house. The seller also has to remove all access and connections to the home from their devices. How can you be sure that the seller terminates all access and connections? We like to assume the best in people, but first, make sure the logins given to you cover all the smart devices that are in the house.  After closing the buyer should change all access information for the smart devices (email, logins, passwords, etc.) to ensure that no one else has the ability to see or control any devices in the home. It’s a similar idea to changing the locks when you move in, you want to make sure that you have control over who has access to your new home. Then if you want to pull some risky business in the house, you can! (Get your mind out of the gutter, I’m referring to the Tom Cruise 1983 movie!)

If you’ve been around real estate much in your life I’m sure you’ve heard the comment that if a room doesn’t have a closet it can’t be considered a bedroom. Well, that’s actually not true, at least in San Angelo! There is no single definition for a bedroom in Texas. In 2001 Texas adopted the International Residential Code. The IRC includes minimum requirements for what can be considered a bedroom.

There are 3 things that the IRC requires:

• A floor area of no less than 70 square feet and no less than 7 feet in any horizontal dimension
• A minimum ceiling height of 7 feet, and if there is a sloped ceiling, then a minimum of 50% of the ceiling must be a minimum of 7 feet high
• At least one operable emergency escape and rescue opening with a clear opening of not less than 5.7 square feet, and a required egress window that must have a minimum width of 20 inches, a minimum height of 24 inches, and a maximum window sill height of 44 inches.

There can be exceptions to the requirements if the house was built prior to the adoption of the IRC by Texas, but for the most part, this is the minimum rule.

Local residential codes in an area could require other things a bedroom must-have, like a closet, but for San Angelo, we do not have that requirement. Certain lenders could also have further definitions of a bedroom for their appraisal guidelines.

This does not mean that your second living area, which meets the above criteria, can now be considered a 4^th bedroom when you list your house. Realtors follow a strict code of ethics and must avoid exaggerating or misinterpreting facts related to the property that could mislead or deceive the public. So, if it looks like a bedroom, walks like a bedroom, talks like a bedroom, and follows the IRC minimum requirements, it probably is a bedroom. But, if it looks like a living room … then it’s not a bedroom.

There are a few ways to buy a house before or while selling your current home. The most common way is by using a contingency contract.

A contingency contract is basically a normal purchase contract, but it is contingent or dependent on the buyer selling another property, usually, it’s their current home.

These contracts aren’t always a seller’s favorite offer to accept. There’s a chance that the buyer’s current property won’t sell in the allotted time, so it’s a risk. Naturally, a contingency contract is more appealing to a seller if the buyers’ house is already under contract. If the buyer/seller gets to the end of the purchase contract and the buyer’s contingent property hasn’t sold, the parties can choose to extend the contingency contract or let it run out. A normal contract to close time is 30-45 days. In a contingency contract, if the buyers’ house is not currently under contract, it’s nice to be able to have 60-90 days to allow time to get the existing home sold, but that’s not always an option in a hot market.

Here’s the hiccup to buyers, while a seller has a signed contingency contract in the process, they can still try to get another offer. If the seller does get a new offer (usually noncontingent) that they would like to accept, they have to go back to the original contingency offer and let them know. At that point, the contingent buyer has 3 days (or whatever number was specified in the contract) to make one of two choices. They can either remove the contingency part of the contract and proceed with the purchase or withdraw the contract altogether. If this happens the buyer does receive their earnest money back but is still out option money and payments for any inspections that were completed. If the buyer’s current home is under contract and everything looks like it’s smooth sailing and headed towards closing, most sellers won’t rock the boat by taking a different offer. That could mean additional inspections, an option period, and a longer closing time for them.

There are lots of moving parts to a contingency contract! It takes a lot of strategic planning on your Realtor’s part to help everything fall into place but it is definitely possible and accomplished all the time!