Today's Top Real Estate News Provided by Inman News 11/20/2008  11:37:10 PM

Affordability rises in California Real estate brief Inman News Inman News A growing number of households were able to afford an entry-level home in California in the third quarter, as recent declines in home prices and mortgage rates have brought housing into better alignment with incomes. According to the California Association of Realtors, 53 percent of households statewide earned the minimum household income needed ($56,100) to purchase an entry-level California home at $287,760 in the third quarter, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment. The monthly payment including taxes and insurance was $1,870 for the third quarter. A year ago, only 24 percent of households could afford such a purchase, when households needed $100,500 to qualify for a loan on an entry-level home. The High Desert region was the most affordable area in the state, with 73 percent of households able to buy an entry-level home, followed by Sacramento County at 71 percent. The San Francisco Bay Area region was the least affordable in the state at 35 percent, followed by the San Luis Obispo County region at 38 percent. Housing Affordability Index Entry-Level Price Monthly Payment Including Taxes & Insurance Minimum Qualifying Income California 53 $287,760 $1,870 $56,100 California - Condos 57 $260,070 $1,690 $50,700 United States 68 $170,430 $1,110 $33,300 C.A.R. REGION Central Valley n.a. n.a. n.a. n.a. High Desert 73 $143,900 $930 $27,900 Los Angeles County 42 $332,680 $2,160 $64,800 Monterey Region 51 $313,510 $2,040 $61,200 Northern California 51 $278,430 $1,810 $54,300 Northern Wine Country 49 $327,850 $2,130 $63,900 Orange County 43 $439,660 $2,860 $85,800 Palm Sprgs/Lwr Desert 59 $187,270 $1,220 $36,600 Riverside/SBernardino 66 $193,130 $1,250 $37,500 Sacramento County 71 $180,170 $1,170 $35,100 San Diego County 51 $320,710 $2,080 $62,400 San Francisco Bay 35 $523,310 $3,400 $102,000 San Luis Obispo County 38 $356,120 $2,310 $69,300 Santa Barbara Area 45 $335,000 $2,180 $65,400 Santa Clara County 39 $552,500 $3,590 $107,700 Southern California 52 $289,650 $1,880 $56,400 Ventura County 50 $392,310 $2,550 $76,500 COUNTY Alameda 39 $445,860 $2,900 $86,860 Contra Costa 30 $598,640 $3,890 $116,630 Fresno 65 $161,240 $1,050 $31,410 Marin 24 $805,050 $5,230 $156,840 Merced 75 $120,200 $780 $23,420 Riverside 66 $195,150 $1,270 $38,020 San Bernardino 68 $178,470 $1,160 $34,770 San Francisco 26 $645,050 $4,190 $125,670 San Joaquin n.a. n.a. n.a. n.a. San Mateo 29 $661,210 $4,290 $128,820 Santa Cruz 33 $489,180 $3,180 $95,300 Sonoma 52 $323,280 $2,100 $62,980 Stanislaus n.a. n.a. n.a. n.a. *** What's your opinion? Leave your comments below or send a letter to the editor. Copyright 2008 Inman News

Cheated out of security deposit? Tenant says landlord wrongfully withheld cleaning fee Robert Griswold Inman News Q: After a two-year tenancy I gave my apartment manager written notice that I would be moving out, and I moved out four days prior to the end of my lease. I even stayed with a friend before moving out of state so that my apartment manager would have enough time to do a walkthrough and suggest any additional cleaning and or repairs that needed to be done to receive my full security deposit back. She walked through and told me that everything looked perfect and that I would be refunded my entire deposit within the legally required time limit. But after moving out of state as planned, I received a check with a $75 carpet cleaning fee and a $32 apartment cleaning fee deducted from my deposit. I immediately contacted her because not only had she agreed that she would return the full amount of my deposit, I feel that the charges were unfair and illegal. If I knew that the carpet needed to be professionally cleaned I could have hired a carpet cleaning company for $50 instead of $75. My lease does say that I must professionally clean the carpet, but I did vacuum it thoroughly and there were no soiled areas. To my understanding, a landlord cannot legally charge the tenant for normal wear and tear. I think the apartment manager is simply taking advantage of me because she knows I moved out of state. I am very angry and want to pursue my legal rights. I feel that this company is most likely cheating many renters out of their security deposit. What can I do? A: The situation you describe where there are disputes even after both parties have done a walkthrough at the end of the tenancy is unfortunately all too common. While the majority of landlords are honest and keep their word you may have found one that is not. But you should give her the benefit of the doubt. I suggest you start with your most practical and efficient option and send a written demand letter and explain the situation calmly just as you did to me but ask if maybe there was a mistake. Maybe the manager got your unit confused with another tenant or there was a mix up in the rental office or accounting department and you were charged improperly. No matter how angry you are it doesn't make much sense to pursue this in small claims court unless you are willing to spend much more than the $107 that is in dispute based on the principle. Don't do that because the small claims action must be filed in the city where you lived, as there is not reciprocity or ability to file small claims cases in other jurisdictions or other states. While you may be able to find someone to file the suit for you or handle it by mail, you would still have to fly there for the hearing. Be aware that the small claims court will not award you for travel and lost wages to have your day in court so I will recommend some other less expensive options. Contact the local Better Business Bureau and make a complaint. They usually have some success in getting a response and because the dollar amount is so low the owner or management company may prefer just to send you back your money. You can also contact media consumer reporters or even a governmental consumer agency in your former city and see if they will make a call on your behalf. Many television stations have this service. My final reminder would be that there is no allowance for normal wear and tear when it comes to cleaning or carpet cleaning. If you brought the dirt in you need to remove it, and it would be your word versus the manager. A charge of $32 is very nominal to clean an apartment and tends to support that you left the unit almost completely clean, and it would be your burden of proof that the cleaning of your rental unit was not necessary. If you didn't clean the oven or the shower door tracks in the bathroom or even a few other small areas, that would justify the charge. You seem to acknowledge that you should have had the carpet professionally cleaned so the "overcharge" is only $25, and it is questionable in my mind that you can prevail. The landlord does not have to prove that she got the lowest price in town, only that the charge was fair and reasonable. While the walkthrough and verbal statement regarding a full refund is compelling, such a walkthrough is not legally binding and the landlord is very likely going to testify that these items came to light after you moved out. This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of "Property Management for Dummies" and co-author of "Real Estate Investing for Dummies." E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Inman News

Portable AC units get bad rap Rent it Right Janet Portman Inman News Q: My daughter rented an apartment where the landlord pays the utilities. It has no air conditioning and she's not allowed to get a portable air conditioner. Is it legal to stipulate this? It can get quite warm in her apartment. --Cathy C. A: As odd as it may seem, it's not illegal for a landlord to prohibit the installation of a portable air conditioner, as long as this policy is announced in the lease or rental agreement. Landlords typically don't like portable units for two reasons: They are unsightly, ruin "curb appeal," and they substantially add to the cost of utilities, which naturally concerns landlords who pays the bills. The only limit on a rule of this type is a reality check: In areas where temperatures are high in the summer, few tenants will agree to rent an apartment knowing that they cannot escape the heat by buying a portable unit. In other words, the market for such an apartment should be rather small, and when the landlord discovers that it's hard to find a tenant willing to agree to such a lease clause, he might change his mind. In your daughter's case, if she knew about the rule but signed a lease incorporating it anyway, she's bound by that clause. Your daughter might try approaching the landlord to see if they can work out a compromise. If they can agree that the conditioner is likely to increase the utility bill by a certain amount during specified months, your daughter could offer to pay that sum. This will address any financial concerns the landlord might have, though it won't help if the objection is based on aesthetics. Q: I've lived in my apartment for five years now. I've seen mold here and there throughout the years, but just bleached the area and forgot about it. This past week I found a huge spot behind a bedroom door, which just happens to be directly on the other side of the wall of where I've found mold on the living room wall. A few days later, I found some on another living room wall. I asked my landlord to have someone test it since it was a dark brown/black in color, and I'm afraid it might be coming from within the walls. Yesterday, he told me that he plans to paint both rooms with paint that's supposed to prevent mold from growing on it. Is this a reasonable solution? None of my neighbors have a mold problem. There doesn't seem to be a lot of moisture in the air. Besides, if it's not coming from within the walls, wouldn't it grow on furniture too? Would it be reasonable for me to call the health department or just wait it out? --Lana D. A: Your landlord is taking a very shortsighted approach to this problem. From your description, it's likely that water from a leaky pipe, window, or roof is finding its way down the inside of the wall, seeping out and coincidentally encountering mold spores (which are prevalent in the air around us). When mold spores find a renewing source of moisture, and particularly a little warmth, they set up house and you see the results. As you can see, applying paint to the exterior of the wall won't address the real problem: the plumbing, roof or window leak that is seeping out of both sides of the wall. Given the appearance of another spot, you may be dealing with multiple leaks. These will continue to cause problems (more mold, maybe somewhere else). The sensible response is to get a good contractor in there to evaluate the situation and look for the leak. You can certainly call the local health department and explain your situation. There's no telling whether they will come out and test for you, or even contact your landlord -- it depends entirely on whether they are tasked to respond to mold problems by statute (some ordinances classify mold as a nuisance) or by practice. It won't hurt to try. Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of "Every Landlord's Legal Guide" and "Every Tenant's Legal Guide." She can be reached at janet@inman.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Janet Portman

Couple divided on real cost of fixer-upper REThink Real Estate Tara-Nicholle Nelson Inman News Q: My husband is dead set on buying a fixer-upper for our first house -- he thinks he's going to somehow become handy once we buy a house, even though he's never actually done a home improvement project. I want a place that just needs paint and carpet, because I don't think he'll finish the projects he starts and I don't want to live in chaos in our new home. Do you have any advice for us? A: You have no idea how frequently home-buying couples clash over differing wants and needs -- situations just like yours have inspired me to develop something I call "the restroom conversation." When I first meet with a couple, we sit down and they both explain what they're looking for. Then, when one goes to the restroom, I press the other one to tell me what they really want, or to give me their deep-down reaction to the other's desire for a fixer, a houseboat, a geodesic dome or other unusual request. Mindset Management Buying a house impacts relationships similarly to having a baby -- the process can bring you closer together or push you further apart. Whether you experience the process as bonding or bondage depends in large part on what you learn about each other and your various visions of the future, and how well you are able to close the gaps -- the differences -- between your visions. You probably started the home-buying process knowing that you would have to negotiate, but assuming that the sellers would be the folks on the other side of the table. The real negotiation, in your situation, may in fact be across the table from your own husband! If you approach the resolution of your differences as an opportunity for a win-win negotiation, you can remove some of the negative emotions surrounding the issue, and approach the matter systematically -- that way, you are both more likely to get more of what you want and to avoid falling in hate in the process. Your Realtor may be able to coach you, as a couple, on the need for you both to compromise on some things -- even buyers of multimillion-dollar homes often do not get every single thing they want. However, you and your husband can both have your biggest want -- a home! -- if you are both willing to give a little. By the way, there's nothing that says you can't have fun in this process of compromising. Rent films that show comedic marital discord over home improvements gone wild, like "The Money Pit" and Cary Grant's "Mr. Blanding Builds His Dream House." And, to be fair, also sit together and watch, well, uh, I don't actually know of any films that show quick, cheap and fabulous home improvement projects, but you could certainly watch some HGTV together! Need-to-Knows Remember when you and your husband decided to buy in the first place? You both wanted the same thing -- a home of your own. The great news is that you still do both want essentially the same thing. Your first order of business is to keep that in mind. You don't mention whether you have already started viewing prospective homes. If you haven't, get out there! In my experience, the issue of whether or not they want a fixer is the second most frequent item about which home buyers change their mind (their maximum price being number one). Ask your Realtor to show you a set of homes in your desired neighborhoods and price range that lie in a fairly wide range on the continuum of repair. Ideally, work with a Realtor who has some experience with remodeling homes and/or connections in the construction trades, so they can help manage your expectations about costs and the renovation process in real time while you are in the various properties. (Remember, though, that it is ultimately your responsibility to get contractors' bids on any projects you decide to take on -- and I would advise you to do that during inspections, while you can still back out and get your deposit money back if the bids are horrifyingly high.) Taking such a tour will help you both move from your abstract concepts of what a fixer is and isn't, and get very concrete about (a) how much (or little) you stand to save -- or how much more "house" you can afford if you purchase a fixer, (b) how many years of weekends devoted to fixing it will it take to shape the place up, (c) what the experience of living in a fixer-in-progress might truly be like, and (d) by contrast, what a move-in-ready home looks like, feels like and costs. The average couple I take on such an exploratory tour leaves with the recognition that in our area, the price differential between fixers and move-in-ready homes is not usually enough to pay for the repairs the fixer will need, and is very rarely enough to make up for the trials and travails of living in a fixer for years on end. Your area might be different, but usually, when the party who is a fixer fan walks into an affordable property in move-in condition that really suits their tastes, those visions of power tools dance right on out of their heads. The occasional exceptions tend to be people who work in the construction trades and are confident they can finish the job, and those who have ample cash to pay a professional to handle the repairs before they move in. Taking a tour like this will flesh out whether your husband is committed to fixing for the sake of fixing or is just looking for a good value on a great home. Another valid reason he may invoke is the desire to have a highly customized home -- one tailored just for his unique wants and needs. If he goes there, point out that the better condition the property is up front, the more cash you'll have on hand to add that home theater or greenhouse. In all fairness, it is possible that you might see some moderate or cosmetic fixers that have compensating factors, like your ideal lot size or neighborhood, which you might not otherwise be able to afford. Yep -- I said it, you might just change your mind, too! If you and your husband still cannot resolve this issue after a tour or two of properties in various levels of (dis)repair, you might need to sit down and just haggle. Each make a list of wants and needs, and prioritize the list. Then sit down together and negotiate which of your "must-haves" can be downgraded to a "like" so that one of your "dislikes" can become a "deal-breaker," and vice versa, working your way through both of your lists until you get a single, cohesive list of prioritized features and amenities that you both can live with. This will equip your Realtor to show you homes likely to make you both truly happy. Action Plan 1. Decide to have fun with the problem resolution process. Be respectful of each other's wishes and approach it as a bonding experience. 2. Take an exploratory tour of both true fixers, cosmetic fixers and move-in-ready homes with a Realtor who understands the renovation process and local construction costs. See if one of you moves to the other side of the issue. 3. If your fixer-friendliness levels still clash, make individual, prioritized wants-and-needs lists, then sit down and negotiate a compromise list. Make sure you each get to keep some of your must-haves, so no one feels like the loser. Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook," and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Ask her a real estate question online or visit her Web site, www.rethinkrealestate.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Tara-Nicholle Nelson

Builder to buyer: You no longer qualify If buyer can't increase down payment, deposit could be lost Ilyce Glink Inman News Q: My husband and I are building a house with a big, new construction company. We put down $10,000 in earnest money when we signed the contract back in June. The contingency clause in the contract said the earnest money was refundable if we failed to qualify for a mortgage within 30 days of signing the contract. We went with the builder's in-house lender (to get all the incentives) and were approved. At the same time, we were in the process of selling our house. But our buyer is having trouble getting his mortgage in order. When we qualified in June, it was for a low-down-payment mortgage. We hadn't yet sold our house, so we couldn't show that we had enough proceeds for a larger down payment. We're supposed to close on our house in the next couple of weeks. The builder's lender called a few weeks ago to say the mortgage we qualified for originally is no longer available. Apparently, we won't qualify for a mortgage unless we put a lot more money down. We won't have any additional cash available until our house closes, which may not happen in time for our new construction closing. I'm wondering if we can get our earnest money back if we can't sell our house. The builder's lender qualified us; nothing has changed in our circumstances; and now they are unqualifying us through no fault of ours. Any advice you can give would be very much appreciated. A: When you say nothing has changed, you probably mean nothing has changed in your life. Unfortunately, a lot has changed in the national and international credit markets. One result of the credit crisis is that a lot of mortgage lenders have stopped financing loans. Another result is that today mortgage lenders are requiring higher credit scores and bigger down payments for loans. What can you do now? You should immediately contact your attorney who can read through your contract and see if these events would entitle you to back out of the deal. If not, you should have a frank discussion with the builder so that he understands you will not be able to close on the deal without having a loan in place. In some parts of the country, bigger builders are stepping up to provide financing to buyers so that they can close on their new home. The builder may also be able to work with the lender to arrange alternative financing. If your builder isn't willing to help you out, and your contract permits the builder to keep your down payment, then it's entirely possible you'll lose your cash. On the other hand, it's also possible that the home is worth less than what you originally agreed to pay. If that's the case, it might be a wash down the line when you finally sell your home and buy another one. One last item to note: In some parts of the country, home builders have gotten into trouble by assisting buyers with the names of specific lenders to use in the purchase of their new construction homes. Some of the builders may have a financial incentive to use these particular lenders, and in some cases, attorneys for these buyers have claimed that the buyer should not be held responsible for the changes in the marketplace when the buyer used the lender recommended by the builder and that financing falls through, as in your case. You might want to do a little searching in your area to see if there are any attorneys that are arguing that issue and work with them to get your money back. Q: In a recent column regarding a female homeowner who died without a valid will, you stated that if she had a spouse the house would be divided between her spouse and any children. Why wouldn't it go completely to the spouse? Does this differ by state law? A: State laws differ on the distribution of an estate when there isn't a will. In some states, the entire estate may go to the spouse, but more commonly it is divided between the spouse and children. For information on what will happen to your estate if you die without a will, please see www.mystatewill.com. But the easy way to get around this is to write and execute a valid will, or do some serious estate planning. I recommend you do both. To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Ilyce R. Glink

Fixes for a noisy water heater Regular flushing, de-liming recommended Bill and Kevin Burnett Inman News Q: I read with interest your articles on water hammer, and have a question. I have an older gas water heater. It works fine, heats well and has no leaks, but as of late, makes the most horrible grinding and gurgling noises as it fills and heats after hot water use. It sounds something like the boilers of a ship sinking at sea. Any clues? A: Oh yeah. We've got more than a clue -- we're confident we know the problem. Better yet, we may have a fix. The horrible noise you hear when the water heater fires up is probably caused by mineral buildup in the bottom of the tank. Hot water rises and flows by convection to the top of the tank. When you take a shower or turn on the dishwasher, the hot water you use is replaced by cold water that migrates to the bottom of the tank to be heated. The thermostat sends a signal to turn on the burner. After the flame goes on at the bottom of the tank, the water heats up. Normally there is no noise. But, when there is too much sediment on the bottom of the tank the heated water makes its escape with anything from a "wheeze" to a "gurgle" to a resounding "pop." It may sound like the sinking of the Titanic, but not to worry, it can be fixed. So, you have an "older" heater. How old is old? If it's real old and you haven't done regular maintenance on it, you may just want to bite the bullet and replace it. After all, it could die any day. Water heaters are warranted for various life spans. Six-, nine- or 12-year warranties are most common. Usually the longer the warranty, the heftier the construction inside the heater. If your heater is significantly older than the warranty, you're living on borrowed time. But that doesn't mean replacement must be done tomorrow. Kevin's water heater came with a five-year warranty and is going strong after 13 years. He's been lucky. He's borrowed a lot of time. As far as the fix, regular maintenance is the key. The best thing a homeowner can do is to flush the water heater on a monthly basis. This simple process involves hooking up a garden hose to the drain valve at the base of the heater, opening the valve and with the water inlet valve open to maintain the pressure in the tank, allowing the water to flow until the water runs clean. Try this first. It may help. If not, de-liming is the other option. A.O. Smith Water Products Co., a national manufacturer of gas and electric water heaters, publishes a series of technical bulletins. Bulletin No. 13, titled "Mineral Build-Up," gives a detailed discussion about the symptoms, cause and cure for a "rumbling," "crackling" or "popping" water heater. The cause of the bubbling is lime buildup. Lime is the most common element in "hard" water. It is present to some degree in virtually every water system in the United States. Lime is inversely soluble. That is, the more heat applied to the water, the more lime leaches out. High usage, hard water and time can lead to a "limed-up" water heater tank. Treatment of a limed-up tank is relatively simple. Whether it's a do-it-yourself project depends on the skill of the homeowner. Lime is a base, and the easiest way to neutralize it and dissolve it so that it may be flushed from the water heater is with an acid. The most commonly used de-liming agent is food-grade-level phosphoric acid. A well-stocked plumbing supply house should have a de-liming solution. If you're going to tackle the job yourself, make sure you have the appropriate skill level to work safely with gas and water pipes and follow manufacturers' instructions to the "T" when using these products. If a search at the plumbing wholesaler proves fruitless, a product called Un-lime is available from A.O. Smith. If you're thinking about doing your own de-liming, we suggest you download the technical manual from A.O. Smith, which provides a detailed description of the de-liming process and appropriate cautions. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Bill and Kevin Burnett

Modify my home in THIS market? What to consider before undertaking remodel Tom Kelly Inman News With many areas of the country now in a down sales cycle, it makes a lot of sense to consider some changes that will make your home more comfortable -- for you but not necessarily the next potential owner. In fact, aging-in-place renovation work is expected to provide one of the bright spots for residential construction as the industry eventually begins gaining ground, according to panelists at the recent National Association of Home Builders' remodeling show. If you don't have to move, brighten and lighten and enjoy your place until the market recovers. Don't spend all your energy on creating a new room that a potential new buyer might enjoy. Ninety percent of all remodeling projects take more than one year of appreciation in order to recover the costs of the improvement. And, some projects never even get close to becoming a financial wash. But don't get carried away with a pet project that you think may draw the eye of a potential home buyer. Make changes that you and your family can enjoy. In fact, it may be a good time to revisit your long-term housing needs and consider staying right where you are. Some older homeowners are just now beginning to think about ways to tastefully modify their homes to enable them to remain living independently -- and more safely and comfortably. Solutions to problems often exist, but people are not always aware of the products. Home modifications refer to adaptations to homes that can make it easier for someone to carry out daily activities, such as preparing meals, climbing stairs and bathing, as well as changes to the physical structure of a home to improve its overall safety and condition. These project designs have come a long way. They are custom, attractive amenities that no longer sing out "an old person lives here" that can also enhance the resale value of the home. These improvements and alternations can serve all ages, hence the term "universal design." For example, universal design features, or UD, include installing lever-style doorknobs and faucet handles, providing kitchen counters with different heights, placing electric outlets higher and light switches lower on walls and creating at least one no-step entry into the home. Minnesota-based Lifease Inc. charges a modest fee for its online questionnaire, LivAbility, which allows homeowners to assess their needs and abilities and then obtain personalized suggestions to improve their living environment. After the questionnaire is completed, the Lifease engine selects solutions based on the input. The resulting report includes ideas and products for safety, convenience, comfort and independence in the home. Low- and no-cost solutions are listed. If the solution is a product, Web sites are given for the supplier with a range of prices. If appropriate, the rationale for listing the product is included. Another company, Florida-based SAFE Aging Inc., has developed a questionnaire for older adults, which identifies potential risks or hazards that can threaten health, safety or function in the home. The Safety Appraisal For Elders (SAFE) can be completed privately at home, with or without assistance, and is also modestly priced. Homeowners of all ages have roots in their communities and strong emotional ties to their homes. Few people want to move solely because their house no longer fits their needs. The problems faced by older individuals are compounded by the fact that they live in the oldest housing stock. These homes may have deferred maintenance, with roof or plumbing leaks, heating deficiencies, or dangerous electrical problems in addition to a lack of adequate lighting, railings, storage and other accessibility concerns. Modification needs often get lost among many other pressing maintenance items, prolonging dangerous arrangements that may lead to falls and subsequent isolation. The way we live and work has changed dramatically in the past decade and our expectations of our homes have changed, too. If you are dead set about selling your home at some point down the road, don't gamble that your taste in a new kitchen, den or master suite will match the desires of the potential home buyers that come through your door. Don't waste your time -- or jeopardize your money -- by undertaking remodeling projects in an attempt to draw potential home buyers to an open house. It takes too long and you could easily guess wrong. To get even more valuable advice from Tom, visit his Second Home Center. *** What's your opinion? Leave your comments below or send a letter to the editor. Copyright 2008 Tom Kelly

Key proposals to revive real estate What needs to change with jobs, refis, tax credits Ilyce Glink Inman News My mailbox has been filled with letters from readers who wonder if the real estate market will reset itself now that the presidential election is over. "Can we expect the next four years to bring us a better real estate market? Will my house go back up in value," one reader wrote. Eventually, the real estate market will hit bottom and turn around. Perhaps it has already hit bottom (one can only hope), and now we are waiting for the "bumpy bottom," as Alex Perriello, president and CEO of the Realogy Franchise Group, put it at the launch of its newest franchise, Better Homes & Garden Real Estate. But as president-elect Barack Obama said in his acceptance speech earlier this month, there is a lot of work to be done, and not just by policy bureaucrats in Washington, D.C. Fixing the U.S. economy will require a shared responsibility between corporate America, federal and state governments, and U.S. residents. While there's no magic bullet, there are some suggestions floating around that might help the real estate market get moving again. The dialogue is just beginning and I encourage you to e-mail me with your own comments and suggestions, which I'll include in a future column. For what it's worth, here are some suggestions worthy of consideration: Keep people employed. If you don't have a job, you can't pay your bills. If you want to hold down the level of mortgage defaults, you have to keep people employed. One way to do that is for the federal government to provide the funding for some major infrastructure programs all over the country, but particularly in places where the economy is suffering and foreclosures are the highest. The country has plenty of infrastructure needs. Many infrastructure projects have completed planning and are just waiting for funding to be approved. Providing a big check for infrastructure construction will help fund necessary jobs and hold down unemployment. It should pay longer-term benefits than another one-time stimulus check. Allow people with poorer credit to refinance their mortgages. FHA loans are available to fund loans for those with credit scores in the upper 500s. That's low enough to give most borrowers the chance to refinance out of their adjustable-rate mortgages (ARMs). Still, there are those who have missed a payment or two, and whose credit scores are now in the low 500s, who would like to get out from under their now-unaffordable pay-option adjustable-rate mortgages resetting at 10 percent or higher. While I do believe there are some folks who used pay-option ARMs and other exotic loans to purchase homes they could never afford, a separate fund could be set up to refinance these mortgages, provided that the homeowners now have enough income to afford a regular 30-year fixed-rate mortgage at some low interest rate. In return, the government could institute an equity-sharing arrangement should the houses be sold within the first five years of granting the loan. This should help promote affordability and stability in neighborhoods that need it most. Change the rules regarding refinancing of newly converted investment properties. When people are out of work or can't sell their homes, they will try to rent them out, thus turning their primary residences into investment properties. But make no mistake: Most of these folks would sell these properties if they could. As the owners of newly converted investment properties, they're no longer able to take advantage of low rates and refinancing programs. In fact, the market for investment properties remains rather frozen: If you can get a loan, you'd better have plenty of equity (north of 30 percent in many cases) and a wad of cash to pay fees and a much higher interest rate. By changing the residential mortgage lending rules to include properties that were primary residences within the past 60 to 180 days would provide some financial relief to homeowners who have moved to take new jobs -- and hopefully hold down the number of foreclosures. And as part of the shared responsibility: Don't walk away from your mortgage. I've received many letters from homeowners who are wondering whether they should just walk away from their properties now that they are worth so much less than the mortgage. What local real estate markets don't need is to add to the number of homes going into foreclosure. If you can refinance your mortgage to make it more affordable, you should do that. If you have to temporarily take a second job to keep enough cash coming in, then you should do that. There are long-term repercussions of going into foreclosure that should make this a final-resort option. If you can't sell your property, but you can afford your payments, consider staying in it for the next couple of years until the market stabilizes. Let other homes for sale in your neighborhood get absorbed by bottom-feeders and real estate investors while you shore up your financial house. Again, these aren't the only solutions worth considering. There is an interesting proposal floating around to have the federal government renegotiate mortgages on a grand scale using the model that the FDIC has used with the IndyMac Bank loans. Another proposal making the rounds would turn the $7,500 first-time buyer tax credit (which must be paid back at a rate of $500 per year or in full when the house sells) into a much larger tax credit that would not need to be repaid. If you have an idea to help fix the real estate market, please e-mail me at Ilyce@thinkglink.com. To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Ilyce R. Glink

Experts disagree on roof life Should buyer negotiate cash credit or cancel deal? Barry Stone Inman News DEAR BARRY: I am presently buying my first home and am bothered by a difference of opinion between my home inspector and the seller's roofing contractor. My home inspector has 20 years of experience. He found the shingles to be worn and brittle, with two years of remaining life. But the seller's roofing contractor says the roof has five years of life. My agent says we should get a third opinion, but I'm thinking of canceling the deal. Why can't the experts agree on the condition of the roof? --Mikel DEAR MIKEL: No one can assign an exact amount of remaining life for roof shingles. It is a subjective assessment, not an exact prediction. Whether two years or five years, the point is this: The shingles show significant signs of aging and wear and have limited remaining life. They will soon need replacement. Home inspectors with 20 years of experience typically know their stuff, so you can probably rely on your inspector's findings. If you really want the house, try to negotiate a cash credit for roof replacement as part of the deal. That would certainly seem reasonable. You should base this on an estimate from a licensed roofing contractor. For that purpose, it would be wise to take your agent's advice regarding a third opinion from another contractor. DEAR BARRY: I recently had a flood problem in one of the apartments that I manage. The unit was vacant, and several weeks passed before the moisture condition was addressed. Now there is mold on much of the drywall. Everyone I ask seems to have a different opinion about what to do. Some say I should hire a contractor who specializes in flood damage. Others say I should get a professional mold inspection first. And one person says I should simply clean the mold with bleach and repaint the walls. What do you say? --Don DEAR DON: The problem with mold issues today is that they can no longer be viewed as purely pragmatic problems. The overriding consideration is liability. The days when mold could be washed with bleach and covered with paint are over. Mold is now a legal issue, as well as a health consideration. Some people, in fact, have been severely harmed by mold exposure. On the other hand, there are cases where moldy walls could be washed and painted with no adverse health consequences to anyone. But much more is at stake than the likelihood of health problems. For example, what happens when a future occupant of the building finds out that there once was mold in the building and demands documentation to verify that the mold was tested and that removal was done in accordance with environmental standards, with follow-up air-testing? In that case, you would wish that you had done more than apply bleach and paint. This is the situation that now exists because of past lawsuits and widely publicized hysteria about the dangers of mold. It is from this standpoint that one must consider matters of mold, especially with rental property. On this basis, a thorough mold evaluation by a qualified expert is recommended, prior to repairing and refinishing the interior of the apartment. To write to Barry Stone, please visit him on the Web at www.housedetective.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Barry Stone

Neglecting second mortgage incites 'F' word Homeowner distraught when ex-hubby stops payments Ilyce Glink Inman News Q: During the course of our marriage, my husband and I purchased a home and later took out a second mortgage on the house. In the divorce agreement, I was awarded the house and have subsequently been making the regular monthly payments on the primary mortgage. As the second mortgage was used to pay off items that were mostly in his name, he agreed to pay the second mortgage upon separation. You should know that neither the second mortgage account nor responsible party was specifically named in the divorce agreement. For almost four years, he has been making the monthly payments. However, a few months ago, he decided to stop making payments and defaulted on the loan. I have been informed by reliable sources that I do not have adequate legal recourse to force him into continuing to paying this loan. Yet, I do not feel that after all this time I should be forced into a position of making these payments (nor do I feel that I can afford them as a single mother). After speaking with some co-workers, I was informed that should he or I neglect to pay this loan, the company would place a lien against the house that would have to be paid at the time of sale. Is there any other recourse that I have in this situation? Due to other issues with my ex-husband, my credit is already very poor, thus the damage of default could not possibly make it any worse. Also, I intend to sell the house in the next two years. By that time, there should be enough value in the home to cover both the primary and secondary mortgages. How hard is it to settle a lien on a home? What happens if I go to sell the house and the company has not yet placed a lien on the home? Can I still sell the house without paying off the loan? Can I still be sued for the amount of the loan at a later time? A: I don't know where you live, but your co-workers are misinformed about at least one thing: The second lender could force you into foreclosure if it wanted. More likely, the second lender already has a lien against your home. When you took out the second mortgage, it became a lien on the home. When this house sells, you will not get any proceeds until both of your lenders have been paid off. You and your divorce lawyer appear to have made a serious mistake by not having the loans specifically named in your divorce agreement. But beyond that, if you are a co-signer of the second mortgage, you are responsible for that loan even if the proceeds were used by your husband to settle his own debts. Had you named the loan and responsible party in your divorce agreement, you might still be in the same place, but you might have additional legal standing to go back to court to force the issue. Is your ex-husband still listed on the property as an owner? Is he listed on both mortgages as an owner? If so, then he has killed your credit as he has killed his own -- probably a small comfort. Hopefully, your ex-husband has given up any legal interest he had in the house. If you feel you can't afford to pay the second mortgage bill, you have a few choices: You can ask the lender to renegotiate the terms of the payment; you can engage in free budgeting services from a reputable credit counseling agency, such as CCCS of Greater Atlanta, to figure out how to make your income go farther; or you can get a second job. For more information on any legal options you might have, as well as what liabilities and responsibilities you have based on the documents you've signed, please talk to a qualified real estate attorney. You can also go back to the divorce attorney who assisted you and determine whether you can reopen the divorce proceeding to add a provision to the divorce decree that would make your former husband responsible for the second mortgage. While reopening the divorce judgment might not prevent the lender from foreclosing on the home, it might buy you some time until you decide to sell the home or to entice the second lender into making the loan payments manageable for you. Q: My siblings and I received property from our mother through a quitclaim deed. She has since died. The property is in West Virginia, but we live in Ohio. We didn't sign the deed nor was it ever recorded through the local clerk of courts. Is this quitclaim deed valid? If it is, which state law has precedence: West Virginia, where the property is and where my mother lived, or Ohio? Our brother passed away two years ago; his wife claims that she inherited his one-seventh ownership of the property. She does not want to relinquish rights and we are looking for a loophole. A: From your question, you seem to imply that your sister-in-law has a claim to the property if the quitclaim deed is valid, but if the quitclaim deed is not valid, she might be out of luck. It's unfortunate that you feel the need to find a "loophole" to deprive your sister-in-law of her share of the property. I guess you need to see what your mother's intent was when she gave all of you the property and signed the quitclaim deed. If her intent was to have each of her kids receive a piece of her property and now due to terrible circumstances once of your brothers has died, his wife would probably be entitled to his share of the home. You might be right that there may be a loophole for you to use. But you'll need to consult with a real estate attorney in West Virginia to determine if the quitclaim deed that was unrecorded during the lifetime of the grantor is still valid. In some states, if a deed is not recorded promptly after delivery to the recipient, that deed could be presumed to be invalid or other people that might claim an interest in the home might have a claim against the home, which could trump the ownership interest of the people named on the deed. What some people don't realize is that a properly prepared and delivered quitclaim deed will transfer the ownership of a home even if the deed isn't recorded. The key, however, is that some jurisdictions penalize the party that fails to record the deed. Furthermore, if the deed was prepared and signed but never delivered to the intended recipients, you might be able to claim that the deed was invalid, particularly if the proper documentation that might have been necessary for the quitclaim deed was never signed by your mother. Some states have laws in place that will protect other purchasers of the property if they record a deed for the property prior to a deed that floats around without ever being recorded. Some states also want to collect taxes and other fees on the recording of the deed. And in some other jurisdictions, when the deed is recorded, property taxes can increase substantially for the new owner. Due to all of these issues and state laws, you need to determine if anything happened to the title to the home from the time your mother executed the quitclaim deed to the time of her death. You'll also need to determine if the executor of her will in West Virginia has taken any action in court to dispose of the property. When your mom died, her will, if she had one, would have dictated who received what share of her assets. If she left all of her assets in her will to her children equally, then your late brother would have received a share and it's likely that his wife, or, at the very least, their children, would have inherited his share of the property after his death. If your mom died "intestate," or without a will, the laws of the state in which she died would determine who received what assets. I'm sorry, but there is no simple answer to your question. You'll need to do some additional research on the title to your mom's home to see if anything changed on the status of the probate of your mom's will, and on the status of the quitclaim deed. To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Ilyce R. Glink

Should I work with more than one agent? Factors that determine when setup is warranted Dian Hymer Inman News Finding a good agent or agents to help you buy or sell a home can vastly improve the quality of your experience. Ideally, you want someone who is professional, trustworthy and diligent. It's impossible to predict at the outset exactly how a purchase or sale transaction will play out. But, invariably there are bumps along the road. Good rapport and mutual respect make it easier to work through problems should they arise. Even if you don't run into difficulties, there are a lot of decisions to make along the way. So, select an agent or agents who have good communication skills. When you find an agent you like, it's tempting to envision using that agent for all your residential transactions. In many cases, that makes good sense. You have an established relationship that works for you. Repeat home buyers who are selling one home and buying another one in the same location often find it easier to use the same agent for both transactions, particularly if it's someone they had good experience with in the past. Coordinating the two transactions can be easier if you're working with one agent. However, if you're buying in a new housing development that doesn't cooperate with outside agents, you may have no other option than to use the developer's sales staff. Also, there are agents who work only with buyers. In this case, you'd need to use a different agent to sell your home. HOUSE HUNTING TIP: Sellers who sell a home in one location and want to buy elsewhere should find an agent who specializes in that area. Some sellers are so attached to their listing agent that they want that agent to represent them in a purchase even though the agent has no expertise in the area. This should be avoided. Be aware that there are some agents, particularly in the current sluggish market, that will offer to represent you in an out-of-area purchase. If the agent has no past experience selling homes in that area, he or she could be doing you a disservice. Instead, ask your agent to find you a superb agent to work with in the new location. Usually, it's best to commit to working exclusively with the agent(s) you select. You're likely to get better service from an agent who is 100 percent committed to you, and who knows that you won't use the agent's time and then buy through someone else. Sometimes, however, the inventory of the kind of home you're looking for is so scarce that you may need to let more than one agent know what you're looking for. Also, you may look in several areas at once and be best served by using more than one agent. Some agents require buyers to sign a buyer representation contract. Before signing such an agreement, make sure you understand it. If it's an exclusive agreement, you could end up owing the agent a fee even if you were to buy a home through a different agent. Also make sure that you can cancel the agreement without penalty if it turns out that you made the wrong choice and the agent is not doing a good job for you. Even if you don't enter into a contractual agreement with a buyer's agent, you could find that what you thought would be a good working relationship turns out not to be. In this case, it's best to have a candid discussion with your agent about what's not working for you. At that point, you can either end the relationship or you can give the agent a chance to improve the quality of service. THE CLOSING: Never forget that you are in the driver's seat. Dian Hymer is a nationally syndicated real estate columnist and author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Dian Hymer

No guarantee when housing meltdown will end How can sellers avoid $40K loss, tarnished credit? Benny Kass Inman News DEAR BENNY: My son and his wife own a house. Just before the housing market downturn, they moved 1,000 miles away to pursue a much more lucrative-paying career for him. Since then they haven't been able to rent the house, and if they sold it they would lose $30,000 to $40,000. Even though he makes great pay, they are barely squeaking by having to make that house payment and an apartment payment. Because they have kept up with the payment their credit rating is still excellent. Is there anything they can do to unload the house without taking a big hit on their credit rating or losing a lot of money? --Janice DEAR JANICE: What is the loan to value (LTV) of your son's house? Is there any equity left or is it "upside down"? That means that the mortgage is higher than the current value of the house. If there is some equity remaining, I would arrange a sale at any cost, just enough to pay off the mortgage and a real estate commission. In fact, your son and daughter-in-law should try to negotiate a lower commission with any real estate agent that lists their house. If this is an "upside down" situation, then they should talk with a lender and see if a "short sale" can be accepted by the bank. This means that the house is placed on the market for sale at a price below its appraised value, and everyone (seller, broker and lender) take a hit. But if all goes well, someone will buy at the reduced price. There comes a time in everyone's life that you have to "bite the bullet." Your son has been paying the PITI (principal, interest, taxes and insurance) for several years. Had they significantly reduced the price two years ago, they would have taken a loss on the sale, but would not have to carry that house as well as their present location. My suggestion: There is no guarantee when this "meltdown" will end. Do whatever it takes to get rid of the house as soon as possible. DEAR BENNY: About 10 years ago my wife and I purchased a home in the state of Maryland. At the time I was unemployed and my credit was not so good, so the house was purchased in my wife's name only. Now my wife is not doing well healthwise. I need to know what to do to add my name to the loan papers and to the deed. Is there any recourse to putting my name on these documents? It's never been an issue till now. --Franklin DEAR FRANKLIN: Sorry to hear about your wife's health, but you should have put your name on title a long time ago. However, it's never too late. The local recorder of deeds may be able to help, although some recorders believe that they are not permitted to provide legal assistance and will not be helpful. Otherwise, contact a local attorney. It is not a big deal nor is it expensive. Since you are married, at least in the state of Maryland there is no transfer or recordation tax between husband and wife. You will have to pay the nominal filing fee. You do not have to worry about the mortgage loan, although obviously you have to keep current with the monthly payments. Just send your lender a letter, and enclose a copy of the deed in which your name will be added. The lender cannot take any action against you just because you are going to be a co-owner with your wife. How will you take title? Oversimplified, although not applicable in all states, there are three ways: Tenants by the Entirety (T/E): This is reserved for husband and wife. Unless the parties agree to change this form of title, only death or divorce can impact on this title arrangement. On the death of one spouse, the surviving spouse automatically becomes the full owner of the property. Joint tenants with rights of survivorship: In some states, T/E does not exist. This is similar to a T/E as it pertains to death or divorce. However, a joint tenancy can be unilaterally severed. Furthermore, creditors of one of the joint tenants can attach the joint asset so as to get paid out of the judgment debtor's portion of the property. Tenants in Common: Under this approach, each party owns a divisible interest in the property. While it often is 50-50, there is no legal requirement that each party own half of the property. On the death of one of the tenants in common, his/her estate has to be probated, and the property interests of the deceased party will be distributed pursuant to any last will and testament. If there is no will, the intestacy laws of the state will guide the probate judge on how to distribute that property. You must discuss these various approaches with your lawyer to make sure that you are doing the right thing. DEAR BENNY: My daughter owns a condo unit in Michigan where she has lived for 23 years. She has recently moved to Florida and would like to sell this unit but is unable to do so in the present market even after offering it at a very low price. She would like to put it up for rent to help pay the continuing expenses. She says that a few years ago she and all other owners signed papers for the presiding board of their association that they would not rent out their units. My daughter is a 100 percent fully paid and deeded owner of this property. Can this association legally keep her from renting her condo unit? --Richard DEAR RICHARD: The general law for community associations (condominiums, homeowner associations or cooperative apartments) is that all owners are bound by their legal documents, as they existed at the time they first moved in and as they may be properly amended in the future. The question your daughter has to ask is whether these "papers" that everyone signed were a valid amendment to the condominium legal documents or were merely a pledge on the part of all owners. If the former, then your daughter cannot rent out her unit. However, she is facing a problem that many owners now have. They have to leave the association for whatever reason, but either cannot sell or have to sell at a "fire-sale" price. This will seriously impact the financial well-being of your daughter's association. She should discuss the situation with the board. While they do not have the authority to contradict the legal requirements of the bylaws, they can take steps to resolve this situation. The best way would be to amend the bylaws again, but this is time consuming. Alternatively, the board could poll the membership and ask if they would be willing to waive the "no-rental" provision, at least for the next year or so. If the board receives a super-majority response supporting this waiver, it could agree to "close its eyes" and allow rentals. While this is technically not legal -- as it would be a clear violation of the bylaws -- that's the best suggestion I can make. However, the board would have to determine, on a case-by-case basis, whether to approve rentals. I suggest that you determine if the "no-rent" provision was, in fact, properly adopted as an amendment to your bylaws, and determine if it was recorded among the land records in the county where the condo is located. DEAR BENNY: How can I, as a landlord, protect myself when a tenant does not give up the house at the agreed-to date and I have signed with a new tenant? Am I totally liable for expenses and discomfort the new tenant will suffer if the property is not available and in move-in condition? This concerns me because my current tenant wants to have a new lease with a floating 90-day notice period, as she is possibly purchasing a home within this next year. As you know, many factors may surface that could jeopardize her departure date. --Dudley DEAR DUDLEY: Your new lease with the existing tenant should have a provision that requires her to give you a minimum of 60 days' advance notice of intention to leave the property. If she does not vacate pursuant to her notice, she will have to pay you a higher rent -- say 50 percent higher. And if you find a new tenant, make sure that your lease states that you will not be responsible for any damages should the house not be vacant when the new tenant is supposed to move in. This may turn off potential tenants, but you need to protect yourself. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Benny L. Kass

As home ages, some defects unavoidable How to fix out-of-square corners, saggy doors Paul Bianchina Inman News Over time, many homes develop little nonstructural problem areas that need to be dealt with, and it seems like the older the house, the more of those little problems that occur. Here's some advice on fixing a few of the more common door and trim situations you might typically encounter. Out-of-square corners If you've tried installing trim in a corner and can't get the miter joint to come out right, it's probably because the corner is out of square -- meaning that it's not an exact 90 degrees. To rectify the problem, you need to get an exact measurement on the angle of the corner, then adjust your miter joints to compensate. The easiest way to do this is with an adjustable bevel gauge, which can be purchased inexpensively at any hardware store or home center. The bevel gauge has a wood or plastic handle with a metal blade that's held in place with a wing nut. To use the tool, simply loosen the wing nut and place the handle in the corner against one of the walls. Move the blade until it's flat against the other wall and tighten the wing nut, accurately duplicating the angle of the corner. Using a protractor, measure the angle between the handle and the blade then divide that number by two, giving you the angle of the miter cut you need to make. For example, if the angle of your wall corner measures 94 degrees, your miter cuts would each be 47 degrees instead of the standard 45 degrees (94 divided by 2 = 47). Doors that sag and won't latch Over time, a door's own weight will have a tendency to make the door want to sag down away from the frame at the top hinge. This can result in a door that rubs against the frame at the top corner, or that doesn't latch properly. To correct the sag, remove one or two of the screws that hold the upper hinge to the frame and replace them with 2- to 3-inch-long screws that will go all the way through the door frame and into the wall framing behind. Drill a pilot hole first to make it easier to install the screw. As the screw is tightened, you should see the entire door frame pull up tight against the wall framing, eliminating the sag. Removing the sag is usually enough to correct any problems with the door latching, since it pulls the latch on the door back into alignment with the metal strike plate on the door frame. If the door still won't latch, you'll need to make an adjustment in the strike plate. Coat the face of the latch where it protrudes from the door with lipstick or crayon, and slowly close the door. When you open it again, you'll see where the lipstick has transferred marks onto the strike plate, giving you a good indication of how much the plate needs to move in order to have the latch fully engage it again. Unscrew the strike plate, and use a sharp chisel to mortise the door frame enough to allow the strike plate to move. Drill out each of the old screw holes and insert a piece of hardwood dowel coated with glue into the holes -- this seals off the old holes so the screws won't wander back into them. Finally, place the strike plate in the adjusted position, drill two new screw holes, and reinstall the screws. Camouflaging defects Exposed ducts, surface-mounted pipes, and miscellaneous bumps and bulges are all items you might encounter that you'd like to put under cover. The easiest and cleanest solution in most instances is to simply box over them, and blend them into the surrounding area as well as possible. Start by measuring the protrusion at the widest point, and then figure how best to construct a cover. For example, if you have a piece of pipe sticking out of the wall an inch or two in one corner, the best solution is to build a small box that's open on one or two sides as necessary -- 1/2-inch or 3/4-inch plywood works well for this -- and slip it over the pipe, securing it with nails, screws or even adhesive, depending on the situation. If, on the other hand, you have a duct running along the ceiling for three quarters of the length of the room, you'll probably need to construct a framework from 2-by-2s or 2-by-4s to box in the entire duct. Oddly enough, it sometimes looks best to make the box larger than it needs to be -- in this example, the box will probably be less obtrusive if you make it the entire length of the room, rather than stopping it three quarters of the way across where the duct stops. After the plywood or 2-by frame is constructed, think about how best to cover it. There is often a temptation to cover things with inexpensive paneling, or to just leave the plywood as "good enough," but if the surrounding wall is drywall that's been painted or wallpapered, the new cover will look much better if you do whatever you can to match it to what's around it. Remodeling and repair questions? E-mail Paul at paulbianchina@inman.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Inman News

Adding wife to title a wise move Using warranty deed may be best option Ilyce Glink Co-written by Samuel J. Tamkin Inman News Q: When my husband and I purchased our Georgia home in 2002, I wasn't working. The loan and title are in his name only. Is there any way to put my name on the title in case anything should ever happen to him? Is this something that could cause a problem for me if he should die? A: In most states, you shouldn't have a problem having your husband transfer the title of the home from his name alone to him and to you as husband and wife with rights of survivorship. If you and your husband have an agreement as to how the two of you should own the home, you should make sure to hold title in the manner you desire. This is particularly true if you decide to work with an estate planner or an estate attorney and create a living trust to hold the property. Then, you can put the title into the name of that trust. If you decide to transfer title to both of you, you will need to have a document prepared to transfer title from your husband to the two of you or to an estate-planning trust. In some cases, most people will transfer title using a quitclaim deed, but in some cases a warranty deed may be a better option. Both a quitclaim deed and a warranty deed can achieve the same result, but a warranty deed may carry forward the protections the owner of the property had under his or her title insurance policy that he or she obtained when purchasing the property and carry forward that protection, subject to the terms of the title insurance policy, to the new owners. In some states, a quitclaim deed is not the right document to use. In some of those states where quitclaim deeds are not generally used, there are other documents under different names that can do the same job for you. Your real estate attorney or estate attorney can advise you further. Q: I have a quitclaim deed naming my mom, my two older brothers and me as the new owners of the house. The deed states that each of us owns the home with rights of survivorship. My mother and two older brothers have passed away. Am I the sole owner now? A: If the person that signed the quitclaim deed was the rightful owner of the property, your mom, your brothers and you owned the property at the time the deed was transferred. If you held the property with rights of survivorship, as the sole survivor of all of the people named on the quitclaim deed, you should now be the sole owner of the property. However, while it certainly seems as if you should be the sole owner of the property, there may be other circumstances out there that could change your situation. Some of these issues could include the loss of the property due to unpaid real estate taxes; the loss of the property due to a mortgage foreclosure action; or, if the property was abandoned for years, someone else might now have a claim on the property. If your family has occupied and used the home continuously, you should be the owner. For clarity on this issue, you can go to a title insurance company in your area and request that they prepare a title insurance commitment for the property. That title insurance commitment should identify the owner of the property. If you are applying for a loan on the property, your lender may order a title insurance commitment and that title insurance commitment should identify you as the sole owner of the property. Q: I own two homes and share ownership with my brother of a third family house and property that is unoccupied. We inherited the third property from our mother this year. Can I deduct 50 percent of the property taxes on the inherited property from my federal income taxes? A: In short, you probably can't deduct the real estate taxes on the inherited property. That property is not an investment property so you can't deduct the taxes on that basis. You also won't be able to deduct the real estate taxes because the property is neither your primary home nor your second home. For now, you seem to be out of luck. For more information, you might want to talk to an accountant or your tax preparer to see if there are other circumstances specific to your situation that might allow you to deduct those real estate taxes on your federal income tax form. To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Ilyce R. Glink and Samuel J. Tamkin

Sex offenders have rental rights too Rent it Right Janet Portman Inman News Q: One of my neighbors informed me that one of my newest tenants is a registered sex offender (I'm not sure how she found this out). He stated on his rental application that he had a three-year-old felony conviction, but he did not report details. Figuring that everyone deserves a chance, I did not ask further and rented to him and his wife and two young children, giving them a yearlong lease. They've caused no problems. Our local sheriff's department plans to notify the neighbors of his address and criminal history. I'm concerned about the safety of this man and his family, as well as how I should handle this situation with the neighbors. Can you please provide me with some guidance on how I should proceed? --Jan A: You've encountered one of the most difficult situations a landlord can find herself in. Unfortunately, there are no easy answers. You were not legally required to ask about your tenant's criminal history, and you've broken no laws by learning that the applicant had a criminal past but not going further to find out what the conviction entailed. And even had you learned the details, a decision to rent nevertheless would not have been illegal. But legalities are one thing, and practicalities are another. Your fear that neighbors will react negatively to your new tenant is well-founded. Neighbors who learn that a registered offender lives in their midst have often reacted strongly, demanding that the offender move away. Many offenders have been rendered homeless by the refusal of landlords to rent to them (when they provide their history) or the constant harassment of neighbors who want them gone. When the offender is homeless and no longer registering at his home address, the whole point of the registration system (tracking the whereabouts of a registrant) is frustrated. To effectively deal with the situation, start with the police department themselves. With luck, you'll find that they have developed educational materials aimed at answering questions that neighbors commonly ask, and they may be willing to come out to your property and speak to a gathering of the neighbors. Meet immediately with your tenant and his family, and assure them that you will protect their right to live peacefully in their home as long as they have a legal right to live there. Understand that until these tenants give you a legal reason to terminate their tenancy, your (or your neighbors') fear alone that the father will commit a crime on the premises will not support a decision to terminate their lease or evict them. Q: I am a tenant and sublet two of the bedrooms in my rental. My subtenants signed a one-year lease but announced two months later that they are breaking the lease and moving out because they prefer to live in another area of the city. There has been no death, change of job, miscommunication about the property, or any extreme circumstance that would have caused this change. They are trying to find replacement subtenants, but I am not interested in letting them out of the lease or signing any contract that allows them to exit the lease. Are their leases null and void once I sign a new sublease with new tenants? I'm worried that anyone they find to take their bedrooms may skip out on me too, and then I will not be able to make my full rent payments and be forced to fall behind on my original lease. --Candace H. A: The situation you find yourself in is no different than that of a landlord who is faced with a lease-breaking tenant. Here's the scoop: Your subtenants are legally responsible for the rent for the balance of the lease, until you re-rent. At that point, their responsibility ends. In most states, you have the obligation to make reasonable efforts to find an acceptable replacement, however -- you can't just sit back and sue for the entire remaining months. Your subtenants are smart to begin this search, for the quicker they deliver an acceptable sub, the quicker their liability ends. Once you or they have found an acceptable sub, you have a choice. You can accept the newcomers as your subtenants' subtenants -- that's right, you now have two, nesting sets of subtenants. The advantage of this arrangement is that you will keep your original subtenants in the picture, which means that if the new residents fail to pay the rent, you can look to the original subtenants to fulfill it (after all, their subtenancy agreement is still alive). Or, you can terminate the original subtenants' sublease, and sign a separate sublease with the new folks. If you do that, you'll be cutting the originals out of the picture, and depriving yourself of a source of payment should you need it. In theory, the better course is to keep the originals as guarantors of their replacements. But on a practical level, you may have a hard time enforcing the obligation of the original occupants. If the new residents don't pay the rent, you can't give the originals a notice to "pay or quit" (they live elsewhere now). You'll have to go after them in small claims court, and you might find that your time and energy will be better spent looking for yet a new subtenant. The only clear answer in all of this is that you should be absolutely sure your chosen subtenants are sold on the place before you accept them. Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of "Every Landlord's Legal Guide" and "Every Tenant's Legal Guide." She can be reached at janet@inman.com. *** What's your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story. Copyright 2008 Janet Portman