Home Buying in 85028>Question Details

Mary, Home Buyer in Phoenix, AZ

what does no Clue report mean?

Asked by Mary, Phoenix, AZ Fri Mar 27, 2009

I am looking at an REO property that says it has no Clue Report. Does this mean that it is uninsurable? I am not sure that it was ever inspected by the city after the prior owner made improvements.

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Carrie, I LOVE your response to Scott Clayton!!!
1 vote Thank Flag Link Mon Mar 30, 2009
Hi Mary,

C.L.U.E. stands for Comprehensive Loss Underwriting Exchange and refers to a report regarding the subject property and any insurance claims that may have been filed against it. The reason why the bank is noting NO CLUE report is becuase the Arizona Association of REALTORS (AAR) purchase contract states that the seller is to provide to the buyer within 5 days of contract acceptance a 5 year insurance claim history report or for as long as they have owned the property if less than 5 years.

A good idea would be for you to consult with your insurance agency during the inspection period to check the insurability of the premises. Also, using an ASHI certified home inspector will help you better understand any issue with the home's condition. During your inspection period, you may also want to clarify if there have been any improvements to the home by prior owners that would have required a permit by the city.

It would be a good idea to reference the AAR buyer advisory prior to purchasing a property. It will answer a lot of questions and concerns you may have. You can view it via the link below:


Feel free to contact me with any other questions.
Web Reference: http://www.jameswehner.com
1 vote Thank Flag Link Sat Mar 28, 2009

Usually the seller will provide the buyer with an Insurance Claim History report (CLUE), per the contract. On this case the seller will not provide one. Most probably they will not provide a SPDS (Seller Property Disclosure Statement) either.

No CLUE report does not mean that it is uninsurable, although it might still be uninsurable.

On a separate note, if there were improvements made you also need to do due dilegence to ensure everything is ok. If not after buying it they city might (or might not) ask you to take the improvements down.

Since the seller will not provide a CLUE report there are some steps you can take to protect yourself - especially if your property is not being financed. Your buyer's agent will be able to guide you thru the necessary steps and will help you obtain the necessary information to have you protected. He will also help you investigate all the necessary information regarding the improvements since the seller will not give you any disclosures.

Please let me know if there is anything I can do to assist.

ABR - Accredited Buyer Representative
1 vote Thank Flag Link Fri Mar 27, 2009
If you paid 5% too much for a house, that's your fault, not your agent's. Your agent furnished you with comparable sales and shared as much information about the property as they knew. You made a decision on what to offer the seller and they took your offer.

All sellers must net a certain amount in order for it to be feasible to sell.....even on short sales. If there's not enough cash in the transaction, the seller won't sell. It's very, very simple. And no agent can squeeze blood out of a turnip. So get over the discount realtor kick you're on.

Why do I offer a 50% commission rebate. Because realtors are paid too much and I want your business. Realtors typically receive a 3% commission when representing the buyer. Today's buyers usually find the home themselves via the internet. They do a drive-by inspection of the home and neighborhood, and then call an agent to help them with the paperwork, financing, inspections, and other legalities. The realtor usually comes into the game late, so do they deserve 3% of the purchase price? That's a LOT of money - $9,000.00 on a $300K home!

Most buyers don't want to ride around with a realtor looking at a bunch of homes the realtor selected, and listening to sales pitches all the while. Buyers want to be a part of the buying process, and I reward them for doing so. The buyer and I work together in finding the home and going through the purchase process. Buyers absolutely love sharing 50% of the commission - they did half the work, why shouldn't they share in the commission?

I offer my buyer clients FULL service representaion and the benifit of my 29-years in the residential real estate business. I have a spotless record with the AZ Department of Real Estate.

Commission rebates are a new business model that threatens traditional agents terribly. Traditional agents' only defense is the "you get what you pay for" line. Well, let me turn that around. Can a traditional agent tell me with a straight face what they did to earn $9,000.00 on a $300K transaction? And please don't tell me how they "negotiated" a better price.........that's up to the buyer, remember?

Realtors only get paid if the sale closes, so the more they "negotiate" and make things difficult for the other realtor and the seller, the less likely the sale closes. When a "negotiating" agent stirs the pot, his buyer client's best interests are not often served. The buyer agent will benefit their client much more by providing information and recommendations and let the buyer make the decisions - let the buyer be the negotiator.

Today's real estate agent should be all about empowering their client - buyer or seller - and letting them decide what's in their best interest.
Web Reference: http://www.cr-az.com
0 votes Thank Flag Link Mon Mar 30, 2009
Your insurance agent will be able to tell you if the home is insurable and probably be able to find out if there were any recent claims against the property......water, fire, or storm damge or thefts. It's also an excellent idea to have the home inspected. Of course, the utilities must be on to do so.

I'm a full-service buyer's agent but I also rebate 50% of the sales commission to you when you buy a home through me. Typically realtors receive a 3% commission when representing the buyer - so i'll refund 1.5% of the purchase price to you. You can use the money for your closing costs, new appliances, furniture, landscaping, or spend the money anyway you choose.
Web Reference: http://www.cr-az.com
0 votes Thank Flag Link Sat Mar 28, 2009
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