A homeowner owns her home with a friend who wants to move on and take the equity in the home, but the other isn't ready to leave. If the friend wants to buy her interest in the home, she could take out a home equity loan. A real estate attorney can help the two friends work out a deal that could work for them both.
How can you avoid capital gains tax? If you have a second home that you have been renting, you might face a large capital gains tax, especially if you have been taking depreciation on the investment property. The IRS has very specific requirements for how to handle primary and secondary property. You may be able to use a 1031 exchange if you move back into the rental property for two years.
Make sure your new home still passes important inspections before closing. When purchasing a not-yet-built home, you should include a home inspection contingency as part of the contract. This way, if the home doesn't pass the home inspection, you as a buyer can delay closing until the problems are fixed.
When your parent wants to put your name on the title to his or her home, what's the best option? Is a trust or a quit claim deed the better way to go? A living trust is better than a quit claim deed because of the cost basis of the home. Cost basis is the property value that's used to calculate capital gains taxes later on when you go to sell the home.
Home inspection can save you a big headache in the long run. In a new construction condo, the new owners have discovered that the floors are not level. They want to go back to the builder and have him fix the floors. Make sure a home inspector checks everything, like the floors. Some difference in the floor may be normal. The owners need to talk to a home inspector, the builder and a real estate attorney to find out what they can do to get their floors fixed.
