October 1st, 2018 at 12:51 pm
Question: We have a high-end property listed for sale. A buyer proposes to represent himself in purchasing the property. He is not a real estate licensee, but of course, he wants the 3% commission we have offered to a buyer’s broker. How do we handle this situation? (more…)
September 24th, 2018 at 8:08 am
Question: I am the listing agent. The home has decorative curtain panels that frame the windows, but they do not cover the windows. The buyer’s agent says the seller must leave them behind. Yet, you can just lift these curtain panels off their rods, like a painting that rests on a nail. Can my seller remove these decorative curtain panels? (more…)
September 17th, 2018 at 1:08 pm
Question #1: We have a new sales listing. The sellers have an existing tenant. He apparently wants to stay in the sellers’ good graces because he might be submitting an offer to purchase. The tenant has agreed to cooperate with our showings. Should that agreement be in writing? (more…)
September 10th, 2018 at 10:04 pm
Fact Pattern: Henry and his wife, Wendy, purchased a home together about 40 years ago for $200,000. The home has always been their primary residence. It is now worth about $1.2 million. Unfortunately, Henry died. Because Henry and Wendy held title together as joint tenants, not community property, only the tax basis of Henry’s 50% share was stepped up to fair market value upon his death. Hence, if Wendy sells, she may be facing capital gains of roughly $500,000. That amount was simplistically calculated based on a $1,200,000 sales price minus a stepped-up $600,000 tax basis for Henry’s 50% share and a $100,000 tax basis for Wendy’s 50% share.
Multiple Choice Question: If Wendy now sells her home, how much can she exclude from capital gains tax? Pick the best answer:
A. $250,000.
B. $500,000 if Wendy sells within the same calendar year that Henry died.
C. $500,000 if Wendy sells within 2 years after Henry’s death.
D. $500,000, regardless of when Henry died. (more…)
September 4th, 2018 at 12:48 pm
Fact Pattern: In last week’s legal tip, you discussed a situation where, in response to the buyer’s Request for Repairs, the seller agreed to remediate mold in the property. The seller, however, failed to remediate the mold before the buyer’s final walk-through. Our client, the buyer, just wants to cancel. How does the buyer’s agent go about making sure that the seller agrees to cancel and return the deposit to the buyer? (more…)
