"Ask A Broker!"

<i>"zip sent buyers a check after the close of escrow and it is not reflected in escrow (so the basis was not reduced)"</i><p>


My $0.02 worth; basis for tax purposes is not determined by an amount on the escrow papers. Basis is the cost of the property adjusted by appropriate amounts, whether they are incured or received at time of escrow or later. Determination of basis for tax purposes is the responsibility of the taxpayer.<p>


NIR - I don't think I would issue a 1099 to the receiver of the rebate, because by doing so you are telling the IRS that you are paying some type of compensation and the rebate receiver is receiving income. I think I would ask the escrow company to issue the rebate check directly to the buyer and ask that the amount be recorded in the escrow. I am unsure, but it seems to me that the escrow companies must have familiarity with this sort of transaction.
 
<p>INR</p>

<p>Thanks for good words. Please feel free to jump in anytime to add or clarify information. I think a good agent would follow in a week to see if there are any things that came up post coe as well as hopefully contacting closed clients on at least a monthly basis to answer questions.</p>

<p>UrbanVerve</p>

<em>"You can ask, but its not a "material fact" and does not have to be disclosed."</em>

<p>What state laws are you referring too? In California it is a question asked on a required disclosure as qwerty stated.</p>

<p>Jbatzmaru</p>

<em>"How do you find out if someone has died in a house?" </em>

<em></em>

That information does need to be disclosed to you by the seller in California. In representing a buyer in an estate sale my buyers wanted solid proof that the seller did not pass away in the property and I requested a copy of the death certificate from the attorney doing the estate. They were comfortable with that as proof.



Regards

<p> </p>
 
<p><em>In California, for example, the law says you don't have to disclose a death that occurred <strong>more than three years before the sale. </strong></em></p>

<p><em>Real estate attorneys interpret that to mean agents should disclose any deaths that occur within three years of the sale, and the California Association of Realtors advises agents to do so. The association also advises agents to disclose any death, no matter how long ago it occurred, if the seller asks. </em></p>

<p><a href="http://realtytimes.com/rtpages/20031023_deadpeople.htm">Realty Times - Real Estate News and Advice</a></p>

<p>OK, so who is right ? I thought you had to disclose.</p>
 
what if you wanted to dig deeper... what if the owner only had the house for say 2 years and is losing it due to buying at high point. how do you dig way deeper?
 
Perhaps IPD has an online crime/police activity mapping system you could utilize.... ? Something you could plug the address in to and see what has happened there.
 
I read an article some years ago (can't find the link) that said properties where a homicide had taken place were less appealing to most, and so were discounted and tended to be bought by cops looking for a bargain who saw things like that often and tended to think of them as mostly normal. And after being sold twice, the stigma was mostly gone and the market value came back up.
 
<p>agwee,</p>

<p>Very good note for rebating buyers/sellers.</p>

<p><em>NIR - I don't think I would issue a 1099 to the receiver of the rebate</em></p>

<p>I totally agree with you. It best to handle the rebates through escrow. Buyers has no immediate tax liability and they get their money right a way. A good brokerage firm demands complete paperwork prior to pay the commission splits to agent which could take days or weeks.</p>

<p> </p>
 
"You can ask, but its not a "material fact" and does not have to be disclosed."

What state laws are you referring too? In California it is a question asked on a required disclosure as qwerty stated



* * *

My mistake -- didn't know that was specific to California. Back east its not required, even if you have specific knowledge and are asked directly. In some markets, Savannah, GA in particular, you can charge a premium for having a ghost. Seriously.
 
UV



I thought you might not be familiar with California info. The form that asks the question is CAR form SSD, Paragraph 3, question A which asks directly if anyone had died in the property within the past 3 years.



Laws vary widly state by state. I recently passed the exam for a Brokers License in Arizona and the laws are very different. My comments will be based on California requirements unlesss I specificaly note otherwise since most of the posters here are in CA.



Regards
 
<p><em>tended to be bought by cops looking for a bargain who saw things like that often and tended to think of them as mostly normal</em>.</p>

<p>Uh, no way ! Gross !</p>
 
Exhibit A as to why the deep respect and reverence I once held for Asian cultures is <strong><a target="_blank" href="http://en.wikipedia.org/wiki/Superstition">dead</a></strong>.
 
<p>Actually, I read a Feng Shui book and in the old days (ex. ancestral China) a lot of it makes sense. Living partway up a hill makes sense if 1. those on the flat land below get flodded by rivers and 2. the winds up on the top make it cold and nasty. And so on. Not sure how much it really holds today though. On the other hand</p>

<p>Earthquake liquifaction map and landslides map for Irvine... </p>

<p><a href="http://gmw.consrv.ca.gov/shmp/download/pdf/ozn_tus.pdf">http://gmw.consrv.ca.gov/shmp/download/pdf/ozn_tus.pdf</a></p>
 
You must log in or register to reply here.
Back
Top