October 8, 2004 Cape Gazette | ![]() |
©
Cape Gazette. All rights reserved. Upgrade to access Premium Tools
PAGE 34 (34 of 148 available) PREVIOUS NEXT Jumbo Image Save To Scrapbook Set Notifiers PDF JPG
October 8, 2004 |
|
Website Β© 2025. All content copyrighted. Copyright Information Terms Of Use | Privacy Policy | Request Content Removal | About / FAQ | Get Acrobat Reader ![]() |
34 - CAPE GAZETYE, Friday, Oct. 8 - OcL 11, 2004
Agent's offer to list condo confusing
HOUSE CALLS
Edith Lank
rough indication of price in ads. I
wrote "Low $20s," which was a
typical price back there in the
Dark Ages. Perhaps some agents
will write in and tell us why they
find it more effective to omit
prices in their ads. "Always leave
them something to call up about"
maybe?
Mortgage programs
Dear Edith: In regard to that
reader whose husband applied for
a mortgage and couldn't claim his
tips as income because he doesn't
declare them. We have programs
to accommodate situations like
this. We do not use income tax re-
turns. This is considered a stated-
income loan wherein the income
is not verified. If he qualifies with
the income he states, then we're
OK. There are other programs al-
so that this individual may qualify
under. Most programs are credit-
score driven, and today the con-
Dear Edith: A real estate person
wrote to me asking if I wanted to
sell my condo, and I replied that I
would. She told me I had to sign a
contract and pay a commission. Is
this correct? The property is in
Florida. - D. Y
Dear D.Y.: It's possible you and
that agent were talking about two
different things.
Did you assume she was offer-
ing to buy the place for herself?. If
so, she shouldn't list it or charge a
commission. That would put her
in the impossible position of try-
ing to be your broker - legally
bound to get the best possible deal
for you - while she was also acting
in her own best interest.
It's more likely, though, that she
was simply asking whether she
could act as your agent, put the
condo on the market and look for
a buyer. In that case, she would
expect you to sign a listing and
promise to pay commission in the
normal way.
Why no prices?
Dear Edith: I find it so mad-
dening that some brokers will not
print prices in the newspaper.
How are we supposed to know if
we can afford the house? I have
heard a lot of people comment on
this, all negatively.
Please print this so brokers will
stop this annoying practice, and
tell them it actually has the re-
verse effect: People deliberately
refuse to respond. - R.S.
Dear R.S.: Years ago when I
had a broker's license, I did put a
Workshop focuses on business.start-ups
The Delaware chapter of SCORE, the Service Corps of Retired Exec-
utives, will conduct a workshop, Thinking of Starting Your Own Busi-
ness, from 6:30 to 9:30 p.m., Wednesday, Oct. 27, at the Small Business
Development Center, 103 Pine St. in Georgetown.
The workshop will be a hands-on training session including skills
needed and reasons for starting a business and is designed to cover the
basics of organization, finance and marketing and the importance of a
business plan.
The workshop is $30 and must be paid at the Small Business Devel-
opment Center prior to the workshop.
For more information or to reserve a place, call 856-1555 or 645-
8006.
sumer has many choices.
If you have any other questions,
feel free to contact me. - R.K.,
loan officer
Dear R.K.: Thanks for your
pleasant note. Another email I re-
ceived was from an individual
who also makes no-documenta-
tion loans, and it was so nasty I
can't even quote it. He tore me
apart for misleading my readers
by failing to mention loans avail-
able to those who don't qualify in
the normal way.
I hadn't gone into that because I
don't like to recommend mort-
gages aimed at subprime borrow-
ers. Such loans often involve
large closing costs and high inter-
est rates. They're the last thing
people need when they're short on
cash or shaky on credit.
Paying the loan off
Dear'Edith: My father-in-law
has made a very generous offer to
pay off the mortgage on our
home. The combined principal of
our two mortgages is about
$40,000. He has no interest in be-
ing on the deed and only wants to
help us get out of debt.
How Can we handle the payoff
to avoid gift taxes or other un-
pleasantries? - J.A.
Dear J.A.: Your father-in-law
can give each of you up to
$11,000 a year with no tax conse-
quences. If he is married, he and
his wife could give each of you
$22,000, which would more than
cover your $40,000 debt.
If he is not married, he could
give the two of you $22,000 this
December. Then in January, he
could start all over for 2005 and
give the rest to you then: No gift
tax would be due, and no gift tax
return.
Rental property exclusions
Dear Ms. Lank: I recently read
that in some cases regarding the
sale of a primary residence where
the party did not live there for the
required period of two years and
had to pay a capital gain tax, there
may be a partial tax exclusion if
the sale was due to health reasons.
I had to sell a rental property I
owned this past year for health
reasons, and it was not my pri-
mary residence.
Does this partial exclusion ap-
ply in my case? - via email
Answer: Sorry, there's no such
exclusion for rental property. You
are to be congratulated, though, if
you have enough profit to worry
about, considering the costs of
buying and selling after owning
the place only a short time. If you
did hold it for more than 12
months, your gain will qualify for
favorable long-term tax treatment.
Editor's note: Edith Lank is a
past director of the National Asso-
ciation of Real Estate Editors and
the Real Estate Educators Associ-
ation. She will personally re-
spond to any questions sent to her
at 240 Hemingway Dr., Rochester,
N. Y 14620. Include a stamped re-
turn envelope. She also accepts
emall at ehlank@aol.com.
ROBERT V. WITSIL, JR.
Accidents & Personal Injury
Misdeneam & Felony O#erees "Zoning & Variances
DUI & Traff’ Offenses Wills & Estates
Home Owners Associations
Corporate & Business Law
Commercial Utigation
120 South Bedford Street 420 Rehoboth Ave.
Georgetown, DE 19947 Rehoboth Beach, DE 19971
855-0120 By Appointment
Listing of areas of practice does not represent specialization iri those areas.
!
We know resort
financing...
We know the
YOUR LOCAL LOAN
PROFESSIONALS
programs
We know the prices
We know the places
We know the people
Let us get to know
your needs today.
105% Construction Loans
As Low as 5.00% - No Money Down -
No Money At Closing
Interest Only Fixed 4.875%
Second Homes 95% LTV
, Option Arm at 1;25%
FoUr Payment Options Available
Including Interest Only
Lot Loan
10% Down - Interest Only
ill
Richard Miller
Cell: 302-381-0111
Mike Meshes Rick Steele
Cell: 302-236-7905 Cell: 302-249-3054
Stated. No Income, No-Dec Loans
No InCome or Asset Documentation
Necessary
Investment Properties
90% LTV
Office:302-226-Sg91 ' A A F
Fax: 302-226-5990 _.1
Toll Free: 1- 877-40-BEACH
MOR CORP.
"We're Making the American Dream Easy"
4343 Coastal Highway
Suite 202
Rehoboth Beach, DE
34 - CAPE GAZETYE, Friday, Oct. 8 - OcL 11, 2004
Agent's offer to list condo confusing
HOUSE CALLS
Edith Lank
rough indication of price in ads. I
wrote "Low $20s," which was a
typical price back there in the
Dark Ages. Perhaps some agents
will write in and tell us why they
find it more effective to omit
prices in their ads. "Always leave
them something to call up about"
maybe?
Mortgage programs
Dear Edith: In regard to that
reader whose husband applied for
a mortgage and couldn't claim his
tips as income because he doesn't
declare them. We have programs
to accommodate situations like
this. We do not use income tax re-
turns. This is considered a stated-
income loan wherein the income
is not verified. If he qualifies with
the income he states, then we're
OK. There are other programs al-
so that this individual may qualify
under. Most programs are credit-
score driven, and today the con-
Dear Edith: A real estate person
wrote to me asking if I wanted to
sell my condo, and I replied that I
would. She told me I had to sign a
contract and pay a commission. Is
this correct? The property is in
Florida. - D. Y
Dear D.Y.: It's possible you and
that agent were talking about two
different things.
Did you assume she was offer-
ing to buy the place for herself?. If
so, she shouldn't list it or charge a
commission. That would put her
in the impossible position of try-
ing to be your broker - legally
bound to get the best possible deal
for you - while she was also acting
in her own best interest.
It's more likely, though, that she
was simply asking whether she
could act as your agent, put the
condo on the market and look for
a buyer. In that case, she would
expect you to sign a listing and
promise to pay commission in the
normal way.
Why no prices?
Dear Edith: I find it so mad-
dening that some brokers will not
print prices in the newspaper.
How are we supposed to know if
we can afford the house? I have
heard a lot of people comment on
this, all negatively.
Please print this so brokers will
stop this annoying practice, and
tell them it actually has the re-
verse effect: People deliberately
refuse to respond. - R.S.
Dear R.S.: Years ago when I
had a broker's license, I did put a
Workshop focuses on business.start-ups
The Delaware chapter of SCORE, the Service Corps of Retired Exec-
utives, will conduct a workshop, Thinking of Starting Your Own Busi-
ness, from 6:30 to 9:30 p.m., Wednesday, Oct. 27, at the Small Business
Development Center, 103 Pine St. in Georgetown.
The workshop will be a hands-on training session including skills
needed and reasons for starting a business and is designed to cover the
basics of organization, finance and marketing and the importance of a
business plan.
The workshop is $30 and must be paid at the Small Business Devel-
opment Center prior to the workshop.
For more information or to reserve a place, call 856-1555 or 645-
8006.
sumer has many choices.
If you have any other questions,
feel free to contact me. - R.K.,
loan officer
Dear R.K.: Thanks for your
pleasant note. Another email I re-
ceived was from an individual
who also makes no-documenta-
tion loans, and it was so nasty I
can't even quote it. He tore me
apart for misleading my readers
by failing to mention loans avail-
able to those who don't qualify in
the normal way.
I hadn't gone into that because I
don't like to recommend mort-
gages aimed at subprime borrow-
ers. Such loans often involve
large closing costs and high inter-
est rates. They're the last thing
people need when they're short on
cash or shaky on credit.
Paying the loan off
Dear'Edith: My father-in-law
has made a very generous offer to
pay off the mortgage on our
home. The combined principal of
our two mortgages is about
$40,000. He has no interest in be-
ing on the deed and only wants to
help us get out of debt.
How Can we handle the payoff
to avoid gift taxes or other un-
pleasantries? - J.A.
Dear J.A.: Your father-in-law
can give each of you up to
$11,000 a year with no tax conse-
quences. If he is married, he and
his wife could give each of you
$22,000, which would more than
cover your $40,000 debt.
If he is not married, he could
give the two of you $22,000 this
December. Then in January, he
could start all over for 2005 and
give the rest to you then: No gift
tax would be due, and no gift tax
return.
Rental property exclusions
Dear Ms. Lank: I recently read
that in some cases regarding the
sale of a primary residence where
the party did not live there for the
required period of two years and
had to pay a capital gain tax, there
may be a partial tax exclusion if
the sale was due to health reasons.
I had to sell a rental property I
owned this past year for health
reasons, and it was not my pri-
mary residence.
Does this partial exclusion ap-
ply in my case? - via email
Answer: Sorry, there's no such
exclusion for rental property. You
are to be congratulated, though, if
you have enough profit to worry
about, considering the costs of
buying and selling after owning
the place only a short time. If you
did hold it for more than 12
months, your gain will qualify for
favorable long-term tax treatment.
Editor's note: Edith Lank is a
past director of the National Asso-
ciation of Real Estate Editors and
the Real Estate Educators Associ-
ation. She will personally re-
spond to any questions sent to her
at 240 Hemingway Dr., Rochester,
N. Y 14620. Include a stamped re-
turn envelope. She also accepts
emall at ehlank@aol.com.
ROBERT V. WITSIL, JR.
Accidents & Personal Injury
Misdeneam & Felony O#erees "Zoning & Variances
DUI & Traff’ Offenses Wills & Estates
Home Owners Associations
Corporate & Business Law
Commercial Utigation
120 South Bedford Street 420 Rehoboth Ave.
Georgetown, DE 19947 Rehoboth Beach, DE 19971
855-0120 By Appointment
Listing of areas of practice does not represent specialization iri those areas.
!
We know resort
financing...
We know the
YOUR LOCAL LOAN
PROFESSIONALS
programs
We know the prices
We know the places
We know the people
Let us get to know
your needs today.
105% Construction Loans
As Low as 5.00% - No Money Down -
No Money At Closing
Interest Only Fixed 4.875%
Second Homes 95% LTV
, Option Arm at 1;25%
FoUr Payment Options Available
Including Interest Only
Lot Loan
10% Down - Interest Only
ill
Richard Miller
Cell: 302-381-0111
Mike Meshes Rick Steele
Cell: 302-236-7905 Cell: 302-249-3054
Stated. No Income, No-Dec Loans
No InCome or Asset Documentation
Necessary
Investment Properties
90% LTV
Office:302-226-Sg91 ' A A F
Fax: 302-226-5990 _.1
Toll Free: 1- 877-40-BEACH
MOR CORP.
"We're Making the American Dream Easy"
4343 Coastal Highway
Suite 202
Rehoboth Beach, DE