Receiving a life estate in a home means the home belongs to you and you can do as you wish with the property, except for sell or transfer upon death of the holder. Giving someone a life estate could result in a gift tax. Talking with a real estate attorney should help determine a way to use a life estate without incurring a gift tax.
A homeowners has transferred the right to buy a property to a second party who in turn transferred it to a third party. There are certain legalities that must take place to insure that the paperwork is just right to make sure that title runs from the bank to the third buyer. The homeowner should try to get the bank to authorize the closing agent to transfer title to the third buyer
Home buyers purchased a new construction home that had extensive mold problems. They've decided to sell the home "as is" and want to know if they can take a capital loss on the home because of the mold problems. Unless the home was a real estate investment, the loss due to the mold is not deductible.
A homeowner shares a driveway with the neighbor as described in the easement agreement. The neighbor has never contributed to the maintenance costs of the driveway. Now a new owner is insisting upon use of the driveway. Unfortunately, termination of an easement agreement is not easy.
A 1031 exchange is used by a real estate investor who wants to sell an investment property he or she owns but does not want to pay any taxes. To avoid the payment of taxes, he or she sets up a 1031 exchange with one of the many companies that provides this service. In essence, the 1031 exchange company parks the money until you can find and close on a replacement property.
When you sell your home an appraiser will conduct an appraisal to help the lender determine how much of a mortgage loan to grant to the home buyer. It's illegal for a home buyer to get a mortgage in excess of the home's sale price, especially if the mortgage loan is based on an inaccurate appraisal. When the home buyer wants the home seller to return some of the mortgage loan money it may become fraud. In a situation such as this it's critical for the home seller to contact an attorney.
What happens when a newly built home costs more than originally agreed upon in a contract? Often, new construction homes are upgraded as they are built and these costs end up in the final price. Having a clear building contract can avoid such problems after the home is built.
A home seller had a sale fall through and weren't told until after the closing date, resulting in many problems. If the buyer didn't notify the seller under the terms of the contract, the buyer may be in default under the contract. The contract may allow the seller to sue for damages caused by the sale following through.
A real estate investor wants to know if an unusual deal where he is willing to pay more than the asking price is considered illegal lending activity. The buyer is wondering if paying the seller outside of the stated deal with the mortgage company and not informing the lender is illegal. A buyer and a seller can agree to one price in a contract and agree that the seller will credit or pay the buyer money back at settlement. However, some people might suggest this transaction is illegal because you have a lender involved.
To divide multiple properties acquired through inheritance, the owners will have to have new deeds drafter. Each partywill have to sign each new deed, but the "grantee" on the deed will become the official new owner. Don't forget to hire an attorney to help you in drafting the deeds and in making sure that they get recorded with any additional documentation that is required of you.
