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Ask Realty Times
Question: I found a house through the newspaper. Since no broker has shown me the home or done anything for me related to the property, can I go directly to the listing broker and ask for the half of the commission that a broker would have earned had he done his job? Answer: This question includes any number of misconceptions, but let"s try to untangle the major ones. First, you were "introduced" to the property by the newspaper ad, an ad presumably paid for by the broker. In effect, the broker"s ad set in motion a series of events which led to your interest in the property. This "introduction" is one element which may entitle a broker to a commission. The same logic applies to TV ads, Internet marketing, radio commercials, etc. Second, the job of a listing broker is to further the interests of a property owner. You"re not the owner. You are best served by either working with a buyer broker or an attorney. Third, as a buyer you have no right to discuss the listing broker"s fee. That fee is a matter between the broker and the seller. By seeking to change a contractual arrangement of which you are not a part you could open yourself claims of "tortuous interference." As a buyer what you can do is this: Make an offer on the property which reflects your view of its value. The seller can then accept, make a counter-offer or not respond. Question: I purchased a building lot in another state in January of this year. However, I recently got a letter from the HOA saying my sidewalk wasn"t installed and I needed to get it in by August. My husband and I thought the sidewalk was there. At the time there was snow and ice on the lot and we couldn"t dig down to it but assumed it was there. The MLS listing said the "sidewalk was in." The broker who sold the property said it was an error in his office. But he"s still not offering to put a sidewalk in at his expense. The owner of the property was notified last November that he was overdue in getting it in. And he still did not install it. The broker also said at the bottom of the page on the MLS listing there"s a disclaimer saying he is not responsible for the listing"s accuracy. If the sidewalk isn"t installed by August, the HOA will put a lien on our property and charge us for that as well. I don"t feel that we should be paying for the sidewalk. Should we? Answer: By any chance, did the HOA file a lien against the past owner? If yes, you should speak with the title insurance company. If your account is correct then I disagree with the broker. The language at the bottom of the MLS sheet does not replace the broker"s obligation as a licensed professional to make an accurate presentation. The issue with the MLS listing is not a typo or a misplaced comma. To affirmatively say that something is installed when that"s not the case is factually wrong. If a broker can put anything in an MLS posting without any standard for accuracy then why would consumers have any faith that the system was credible? Why not say a home has five bedrooms when it has three, or 14 acres when it has a lot with just 6,000 square feet? If there"s no penalty, then why not? Typically real estate regulations say something similar to the rules found in Maryland: "The licensee shall make a reasonable effort to ascertain all material facts concerning every property for the licensee accepts the agency, in order to fulfill the obligation to avoid error, exaggeration, misrepresentation, or concealment of material facts." If it was me, I would explain to the broker that I relied on him for a factual and accurate representation of the property and that I expect him to compensate me for the expense of the sidewalk or I will have the matter reviewed by state real estate regulators. A list of regulators can be found at ARELLO.com. Question: My husband and I bought a house. The home inspector gave us a report stating that the house was in fine condition. Two months later we need to have the floors completely redone ($15,000) and this is coming from the mouths of two different leveling companies (who took an estimated 50 pictures). Both men from these two companies said that if the inspector would have even just got on his knees and flashed a flashlight underneath the house he would have seen that it was in horrible condition (broken beams, rotted wood, the floors are just about on the ground. What can we do? Answer: Given all the problems you state, why was it that floor was not sagging? Hire a structural engineer, someone who does not do repair work, to look at the floor and get a recommendation detailing what repairs are required, if any. Then take a look at the seller"s disclosure statement and the inspector"s report. Question: I am married and we are buying a new home. Only my husband"s name is on the mortgage, but both our names are on the deed. I will be making monthly payments with him to pay the mortgage. If we divorce, do I own half of the house? Answer: The house is an asset and the mortgage is a debt, thus you have an interest in an asset and no direct responsibility for the loan. However, if the mortgage is unpaid and the property is foreclosed, then your credit may be impacted. In the event of a divorce, state rules and a settlement -- amicable or not -- will determine who gets what. If divorce is a concern, save your checks to prove you made payments specifically to cover the mortgage. Question: If you sell your home at a loss, then purchase another one at a higher price, then sell the second home at a substantial gain (more than the $500,000 allowance), can you add the loss of the first home to your basis of the second home? Answer: No. Each sale is a separate and distinct event for tax purposes. The loss on the first residential sale is not deductible. Up to $500,000 in profits if married, and $250,000 if single, is not taxable on the second residence if you have lived there for two of the past five years and met all other tests. For details, see IRS Publication 523, Selling Your Home. Question: I"m studying civil engineering and I want to be in the real estate industry. How can I start? Answer: Finish your degree. Then, once you graduate, take the basic pre-licensure class for your jurisdiction. Once you pass the class and the license exam go to work as a licensed assistant to the best broker or agent you can find. Question: I owe about $14,000 to the IRS and I may have to do a short sale. What will happen with the taxes? I can"t afford to pay them and I don"t know what would happen. What can I do? Answer: If you have a short sale you may create imputed -- and taxable -- income in addition to any tax liability you now have. Your current obligation to the IRS is a separate matter from the short sale. However, you may be able to work out a settlement with the IRS. For specifics, speak with a local tax professional and also a bankruptcy attorney -- a bankruptcy may be necessary given your current circumstances. Question: My husband and I own two houses, the one we live in and a rental. Both are paid for, so we don"t have any mortgage debt. The house we live in is worth about $200,000, the rental is worth about $60,000. We plan to sell the rental next year, the residence in two years and then build a third house. Should we be concerned about the $250,000 tax exemption? Answer: You have two individual transactions. If you sell the residence, and if you have lived in the property for two of the past five years, then you can shelter up to $500,000 in profits if married, $250,000 if single. If you sell the rental unit and have owned the property for more than one year then your profit will be taxed at the rate for long-term capital gains. For specifics, speak with a CPA or other tax professional. Question: My husband and I made an offer for real property. The seller verbally agreed and we wrote up a contract and emailed it to the seller. The seller emailed us back a purchase agreement identical to ours but had added his wife to the signature section, and put in correct information such as addresses. We emailed back stating that we accepted the terms of the purchase agreement. The seller then sent us another email setting up a day to come and sign the agreement and pick up downpayment. The day came and went and no seller. After calling and emailing, the sellers sent word that they had changed their mind and would not be selling. We then sent them our signed copy of the purchase agreement that they had written up and we had all agreed to via emails and a check for the deposit and explained that we believed we had a binding contract. They returned the check after "voiding" it and the purchase agreement with a letter that they would not be selling the property. Do we have a binding contract and a case for specific performance? Answer: If the email "agreement" was binding then why did you need to physically sign any documents? Did the "purchase agreement" contain all terms and conditions, or was it a more limited document, something which just discussed price and a few other items? If certain items were not included, it may not be binding in given jurisdictions. For details, contact a local real estate attorney. Be sure to ask how many years -- and how much money -- it might potentially take to resolve claims of "specific performance." Have a real estate question? Send your inquiry to Ask Realty Times. Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here. For past columns, please press Ask Realty Times. This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services.Pages: [1] 2