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What It Means to Be 'In Escrow'
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You went to the wrong sources for real estate sales information. The state real estate commission and the Realtor association are not there to tell people how to sell property.
I suggest that you interview at least three successful real estate agents who specialize in the sale of properties like yours. Stay away from agents who sell only houses because you need a specialist in apartment-building sales. Each agent will evaluate your apartment complex, tell you what financial information is needed and then suggest a sales price.
DEAR BOB: My husband died last year. Now I find that there is a judgment recorded against my home. Is this legal? -- Miriam S.
DEAR MIRIAM: It depends. If you and your late husband held title as joint tenants with right of survivorship, the law in most states is that an uncollected judgment against one joint tenant terminates when that tenant dies.
However, if title to your home was held by another method, such as tenants in common, then the recorded judgment lien remains on the house even if it was against just one co-owner. For details, consult a real estate lawyer.
DEAR BOB: My 92-year-old mother-in-law owns a house valued at about $650,000. It was built in 1947, and she has been the only owner. Suddenly, she wishes to give this property to her three adult children, none of whom has any interest in it. From reading your columns, this sounds like a bad idea. Where would the stepped-up basis come into play? Only she can claim the $250,000 principal-residence-sale tax exemption. What should we advise her? -- Ann W.
DEAR ANN: Don't do it. That would be my advice to your mother-in-law. If she gifts the property during her lifetime, the three children will take over her very low basis for the house. I presume that she wants to retain a life estate so she can remain in the house.
If she gifts the house to the children now and they sell it after she dies or moves out, they would have a huge capital gains tax to pay. They would be much better off inheriting the house and claiming the stepped-up basis to market value on the date of her death. They should consult a tax adviser to discuss the situation.
Readers with questions should write Robert J. Bruss at 251 Park Road, Burlingame, Calif. 94010, or contact him via his Web page, http:/
Copyright 2007 Inman News Service
