The Ask the Real Estate Lawyer column by Samuel Tamkin answers your questions about real estate and the law. These helpful articles by Ilyce Glink and real estate attorney Samuel Tamkin cover all sorts of topics, everything from buying a vacation home to selling investment property.
Unclear Property Line Leads To Driveway Mistake
When you build a new home it's critical to understand the property lines. What happens if the builder creates your driveway on property that's not yours? You have to figure out who made the mistake and that party may be liable to fix it. You need to look at surveys, easements and the contract you used to buy the property. Then you can contact a real estate attorney to resolve this property mistake.
Are Prepayment Penalties Illegal?
Prepayment penalties are illegal in some states, but they are still legal under Federal law. Also, they are only illegal for certain types of loans. As far as owner financing goes, some states permit owners to charge a prepayment penalty, and others do not.If you payoff the loan early, the lender loses the money it would have made in the future. With that in mind, many lenders protect themselves from early prepayments on loans by forcing the homeowner to pay a penalty if he or she decides to pay off the loan before the end of the loan term. These penalties are known as "prepayment penalties."
Is Buying Condo For Son An Investment Property?
A parent helps out a son with the down payment on a condominium. Learn why one should avoid making this an investment property and how to plan for the condominium in the estate.
Does Paying Property Tax Give Ownership?
Does paying property tax on a family member's property give the tax payer ownership? Generally, the payment of real estate taxes alone is not sufficient to give the tax payer ownership rights to a property. In addition to paying property taxes, you likely should have lived in the home and paid for its upkeep.
Determining The Selling Price Of A Home
How can you find the selling price for a home? In most cases, when a property is listed for sale through a real estate broker or salesperson, the sales information is entered into the multiple listing service (MLS) for future use. The sales price may also be found on the Internet or the county recorder of deeds.
1031 Exchange: IRS Rules For Investment Property Purchase
A father wonders if he can do a 1031 exchange and rent back the newly purchased investment property to his struggling son. Sam discusses the details of the 1031 exchange commonly known as Starker trusts, the IRS rules behind them and how they apply to investment property. One key point: a good real estate attorney will help you navigate the IRS tax rules about a 1031 exchange and how it applies to investment property.
Protecting Yourself from Liabilities at Rental Property
There are various ways to protect yourself when owning rental property. But first you have to determine which types of liability you're vulnerable to at those properties. You may want to look at an umbrella policy for your rental property investments, or have a separate company own each property.
Water Damage Caused By Condo Neighbor
A new neighbor above these condominium owners is causing water damage to the unit below them and refuses to file and insurance claim. The only solution may be to sue the neighbor for expenses reimbursed. Generally, the responsibility for repairs caused by a neighbor to another unit should be borne by the neighbor.
Capital Gains On Rental Property
Upon the sale of a home, a homeowner will have to pay capital gains taxes and, in addition, may have to pay taxes on any depreciation taken on the property over the years. A 1031 exchange may be used to avoid taxes on investment property. Buying a like-kind property could allow the homeowner to use a 1031 exchange on the investment property.
Easement May Solve Title Problem
When a property line is incorrectly recorded it results in title problems, which can delay or prevent a home sale. To resolve this kind of title problem, you have to correct the documents filed with the homeowners association and possibly create an easement so that the property line becomes acceptable. It may also be worthwhile to ask the developer to modify the documents that describe the property line.