Q: My mother died in 1988, and Dad passed away in 2006. The house was, and still is, in my late mother’s name alone. All dad did after mom’s passing was continue to pay the property taxes on the house. A couple of children are my dad’s from a prior marriage. What needs to be done to clear title to the house?

 

A.M.

San Antonio

A: What a mess. If your mother’s estate was never probated or distributed to her heirs, her will needs to be probated in the probate court where she was a resident at the time of her death. That proceeding will determine whether your father received title to the house or her will left it to somebody else.

If your mother didn’t leave a written will, then her estate will pass according to the state law of intestate succession where she was a resident. Presuming your father received the house from your mother, then another probate needs to be opened to distribute his assets according to his will or by the law of intestate succession. You should consult a probate attorney in the county where your mom lived.

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Q: My neighbors have anywhere from seven to 13 cars parked in front of their house. They run a gardening business, a day-care business and a rooming house from the home. The neighborhood has single-family houses of four to six bedrooms in the $750,000 range. The constant traffic and noise, as well as strangers on our block, drives us crazy. Can anything be done to return peace and tranquility to the neighborhood?Edwin T.

Los Angeles

A: Presumably you already had a polite conversation with the neighbor but it didn’t produce satisfactory results. Next, I suggest you contact the city code enforcement officer to have the situation investigated to determine what zoning and other laws are being violated.

If that doesn’t produce satisfactory results, then you and your neighbors should consider bringing a lawsuit against the neighbor to abate this private nuisance that is disturbing the neighborhood.

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Q: My wife and I own property that contains two rental houses on one lot. To sell the property and avoid capital gains tax, can we occupy one of the houses and still rent out the other one? Or must we occupy and/or not rent both for two years?Jon H.

San Diego

A: You and your wife could occupy one of the rental units as your principal residence at least 24 of the 60 months before selling the property. Then you will avoid capital gains tax apportioned to that unit, up to $500,000 for a married couple filing a joint tax return.

However, your capital gains tax apportioned to the other rental house will remain taxable. Keeping the other unit vacant won’t reduce your capital gains tax on its sale.

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Q: I will soon be buying out my investor co-owner in an apartment building for about $260,000. We are not relatives. We obtained title insurance when we bought the property about six years ago. Do I need title insurance again?Herb W.

Merced

A: Yes. Always get an owner’s title insurance policy when acquiring any property or, especially, when buying out a co-owner. That’s the only way you can be certain you are obtaining marketable title.

Although remote, there is a possibility your co-owner has unpaid judgment liens, income tax liens, child support liens or other liens which may have attached to the property. Go back to the title company that originally insured your title and ask if they have a discounted or reissue rate.

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Q: The buyer of our home made a quick Internet mortgage application and was declined. I offered to carry the mortgage for the buyer on exactly the terms stated in the sales contract financing contingency clause. But the buyer refuses and wants to cancel the sale. Am I obligated to refund the buyer’s good-faith deposit?Mary Ann P.

Sarasota, Fla.

A: The buyer is obligated to use good faith to remove the contingency clauses in the purchase contract. Applying with just one mortgage lender is clearly insufficient and does not show good faith.

Your offer to carry the mortgage for the buyer shows financing is available.

However, if the buyer wants to get out of the sale, you might not want to do business with that person. Buyers like that are disgusting.

If I were in your situation, I would have my attorney write a letter to the buyer giving him the opportunity to clear his breach of contract by either accepting your finance offer or obtaining a mortgage elsewhere.

If he refuses to complete the purchase as agreed in the sales contract, I would keep his deposit (presuming it is several thousand dollars). Let him sue you for it if he thinks the judge might rule in his favor. The buyer will look silly suing for a deposit refund when he is in breach of the contract.

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Q: Last weekend I was looking at condominiums. Several of the sales agents said the condo complex has a no-pet rule. Are such rules legal?Victoria G.

San Mateo

A: Many upscale condominium complexes have covenants, conditions and restrictions that prohibit pets. Such restrictions have repeatedly been upheld by the courts, so don’t even think about having a pet in a no-pet complex. But perhaps you might get away with having a goldfish.

The special report, “When It’s Smart to Prepay or Refinance Your Mortgage,” is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at (800) 736-1736 or at www.bobbruss.com. Questions for this column are welcome at either address

Source:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/12/24/REGUVN1QFF1.DTL