REAL ESTATE MAILBAG

DEAR FRAN: She should hire an experienced local real estate lawyer in the county where the property is to determine her best course of action. The lawyer may recommend bringing a quiet title lawsuit to remove the missing co-owner's name from the townhouse title.

Because the whereabouts of that person is unknown, the local court will probably approve "service by publication." That means a legal notice is printed in the local newspaper informing the missing owner that he is being sued and must appear in court or his legal rights could be determined without his presence.

The judge might not be willing to immediately terminate the missing co-owner's rights; he or she might order the townhouse sold (called a partition action) with half of the proceeds held in trust for the missing co-owner. That's why your friend should consult a lawyer.

DEAR BOB: While searching for a house to buy, we found a desirable new community that requires that we use the builder's mortgage lender for financing. But its rates seem high. Is this practice legal, or can we use another lender?

-- Lester G.

DEAR LESTER: Don't be intimidated by the home builder who will receive an extra profit if you use his mortgage company. In most states, a builder cannot require the buyer to use a builder-related lender or closing settlement firm.

However, don't be too hasty to reject the builder's mortgage finance terms. Shop around among other lenders, such as your bank and credit union, to be sure of their exact mortgage details. Then compare those terms with what the builder's finance department offers. Maybe there are some advantages to using the builder's lender.

DEAR BOB: Someone is buying my home on a rent with option to buy. She will forfeit $30,000 if she does not go through with the purchase at the end of the lease. I am asking her to pay the property tax and insurance while leasing. Can I also ask her to take care of any repairs while she leases? -- Maria F.

DEAR MARIA: Yes, you can ask whatever you want. Whether the tenant-buyer will agree to pay the repair costs during the lease-option period is up to her.

What if the roof starts leaking? Would it be fair to ask your lease-option tenant to pay for an entire new roof?

I have been a frequent user of lease options, both as a buyer and seller. Only once have I, as a buyer, agreed to pay for the seller's repairs. That was a 15-year lease option at a fixed purchase price, so I didn't mind paying all the expenses. As it turned out, I had to install a new roof. But the situation was such a bargain that I still had a good deal.

DEAR BOB: We own a vacation home, which has greatly appreciated in market value. This year, we used it only about six weeks total. As we are getting on in age, we are thinking of selling. But our profit will be around $350,000. How can we avoid paying tax on this profit? -- Edward R.