What It Means to Be 'In Escrow'

DEAR BOB: In recent columns, you said it was necessary to transfer real estate titles into the property owner's living trust. Is this necessary if the owner has a "pour-over will" with a provision that all other assets are poured over into the trust? -- Joseph P.

DEAR JOSEPH: Depending on state law where you reside, your pour-over will may be subject to probate proceedings. The purpose of a pour-over will is to bequeath assets that you forgot to include in your revocable living trust. Its purpose is not to avoid probate proceedings.

DEAR BOB: When I was 17, my father included my name on the deed to a small plot of land in a campground community. I never signed the deed. But after seeing a copy of the deed, my name is clearly on it. I learned about this when I received a collection notice for about $10,000 of past-due maintenance fees, electricity bills, property taxes and interest.

I have contacted the community association and the collection agency to explain the situation, as I do not feel I should be obligated to pay. The president of the community association told me the main reason he is going after me is because my dad is nowhere to be found. My credit is completely ruined. I cannot get approved for a mortgage, a car loan or even a credit card. Can I sue them? If so, how would I determine my damages? -- David F.

DEAR DAVID: As the grantee on a deed, your signature is not required. However, because you were 17 when your dad foolishly added your name to the title, you could have renounced the title after turning 18. I presume that you are now well over 18 and it is too late to renounce title, especially if you have benefited from using the campground.

Depending on state law where the campground is, you might be able to deed the property to the campground association to get rid of it. This is commonly done by homeowners who want to deed property to their lenders to get out of a mortgage obligation.

For example, where I live, the grantee on such an unexpected deed has 30 days after receiving knowledge of a recorded deed to renounce it. Contact a real estate lawyer in the county where the campground is to learn whether he or she is aware of any technique that has been used to get out of ownership.

An alternative, of course, is to sell the land.

DEAR BOB: We are trying to sell our $3 million, 48-unit apartment complex and have tried to get unbiased information from the state real estate commission, the state board of Realtors and the Association of Realtors. We want to know what the typical financial disclosures are for this type of sale. None of the agencies would tell us anything.

Every prospective buyer seems to want a rent roll, income and expenses for the past three years, property taxes, and more. But we aren't comfortable complying with these requests. What are the customary disclosures expected of the seller before a purchase offer has even been produced? -- Elaina C.

DEAR ELAINA: I'm sure that when you acquired the property, you asked for the information you specified above. You would have been a fool to make a purchase offer without knowing the basic income and expense information, rent roll, etc.

After you accept a written purchase offer from a buyer, he or she usually includes a "due diligence" inspection contingency for a complete inspection of the property, including your tax returns for that property.