Just how hard is it to count square feet?

Q: I'm shopping around for a home, but one thing puzzles me: I see some homes that list the square footage as way higher than is possible. Some undoubtedly count the basement, which I didn't think you could do legally. And I heard you can't count third floors (attics). Is there a rule of thumb?

– K.I., Garfield Heights

A: Yes, there are guidelines, but there's a lot of gray. Sellers are not supposed to include basements or third floors under most circumstances.

“This is a truly thorny question,” said Myra White, branch manager of Howard Hanna Smythe Cramer in Shaker Heights. Real estate agents have guidelines to not count basements and third floors. “However, occasionally we have sellers who demand that we do so,” she said.

The big exception for basements: It can be counted as part of the square footage if it's a walkout basement, meaning it's level with the ground it's walking out to.

Real estate agents normally try to take square footage information from the tax card provided by the Northern Ohio Multiple Listing Service, White said, which is based on public records.

Carl DeMusz, president and chief executive of the NOMLS, said counting basements as livable square footage is “one of the most common problems we see.”

Whether finished basements or third levels can be counted also depends in part on ceiling height (minimum of 7 feet) and whether they're climate controlled, DeMusz said.

Also, rooms shouldn't really be counted as bedrooms if they're in the basement or if they're on the second floor but can be accessed only by going through another room, he said. Each true bedroom should have its own separate entrance from a hall or common area.

It's not mandatory for real estate agents to provide square footage on listings, DeMusz said, because, unlike with other information, agents often must rely on the seller for it because county records aren't always up to date. And some may not be comfortable with that, he said.

Barbara Reynolds, president of Real Living Realty One, said the best guide is what the county auditor uses to appraise the home for tax purposes. But she added that square footage is not a regulated or agreed-upon issue.

Q: I bought a new home and have just put my old home up for sale. I'm moving next month. How long before I must notify my insurance company that the house will be empty? And I know I get a discount on my property taxes because the home is owner-occupied. How long before I must notify the county?

– J.R., Solon

A: The short answer to both questions: You're supposed to tell your insurer and the county auditor's office immediately.

Regarding the insurance, a homeowner's existing level of coverage will generally last up to 60 days after he moves out, said Mary Bonelli, spokeswoman for the Ohio Insurance Institute, an industry group.

But some carriers are extending coverage until policy renewal or for up to six or 12 months, depending on policyholder circumstances, she said. “Companies typically look at coverage extensions on a case-by-case basis, especially in today's home-selling climate.”

Make sure that you understand there's a difference between “unoccupied” and “vacant” in the eyes of insurers, she said. Perhaps no one is living in the home on a seasonal basis or for an extended time. But there's still stuff inside, and the utilities are still on. This is considered “unoccupied.”

A home is considered “vacant” and at more risk if it's empty. Coverage is usually limited to fire, lightning and similar losses. Perils that may be excluded or optional (available via endorsement) include vandalism, theft, freezing, accidental discharge of water, electrical surges and hail.

You may be thinking that there are areas of gray in between, and you're right. Bonelli advised that it's important to work with your insurer and do what you need to do to keep the property fully insurable after you've moved and the home is up for sale.

A homeowner like the one we're discussing could find that her premium goes down, Bonelli said, if personal contents are excluded because they're gone. Or the premium could go up, if the insurer decides full coverage is more risky.

I have heard of people's homeowner's premiums doubling to keep the same coverage after they move out.

As for your property taxes, again, you're supposed to notify the county immediately, especially if you've moved to a new home that you bought.

A person is supposed to get only one owner-occupied tax credit – which is 2.5 percent – at a time, said Sam Mohammad of the Cuyahoga County auditor's office. But the county has no way of knowing if the Joe Smith who just bought this house over here and filed for the owner-occupied credit is the same Joe Smith who's already getting the credit for his old house.

The county doesn't have people's Social Security numbers, Mohammad said. “It's basically on an honor system.”

Q I went to see a home for sale but am concerned because it was a foreclosure and there's no disclosure on the home. Why isn't there a form disclosing any problems that existed in the home?

– B.L., Broadview Heights

A Banks that own foreclosed-on property are exempt by state law, according to the Ohio Department of Commerce.

You don't expect that too many people who are kicked out of their homes are going to want to be nice by filling out a form, do you?

Also exempt are parties selling a home after the owner dies. There are a ton of exemptions, including transfers between spouses or former spouses. For the full list, refer to Ohio Revised Code 5302.30 Murray is The Plain Dealer's personal-finance writer.

She cannot assist everyone who contacts her. To reach her: moneymatters@plaind.com, 216-999-5263