Capital gains and taxes on condo or single family home

Additional Information: 

I am selling a multi-family property and buying a condo or single family. How does capital gains work in this situation? I will be using most of the proceeds for the other property except $50,000.

ATTORNEY ANSWER:

As attorneys, we encourage our clients to obtain tax information from a certified public accountant. Taxes are obviously a very important issue. No one wants to pay more than they have to. Even though there are many occasions when clients will ask us a “tax question” and we know the answer–or at least think we do, we still encourage them to speak with a CPA. One of the reasons being that tax laws can change; the IRS can interpret rules/regulations differently after there has been a Court proceeding, and Attorneys have enough to do to stay on top of their own profession. So, when we are asked a tax related question, we tell our clients that they should get the answers and advice from a CPA.

 

Who’s responsible for additional fees from FHA loan?

Additional Information:

The closing attorney for the sale of my home in Sudbury was aware of the necessity to payoff my FHA loan by a certain time to avoid additional fees. The payoff was rejected by my lender because is wasn’t a “certified check, cashier’s check, or bank wire”, as required by the lender’s Payoff Statement. After being contacted by lender, he then sent a certified check which was received after the deadline and I was charged additional interest and fees. He admitted to ignoring the lender’s requirements, but refuses to reimburse me because he was not responsible for the payoff of my loan. What can I do?

ATTORNEY ANSWER:

Unfortunately, paying off an FHA loan always presents the problem of making sure that the payoff money is received before the next due date. We suggest that if your lender chose the closing attorney, that you go back to your lender and tell them that it is their responsibility to either pay the additional interest and fees or get the closing attorney to do so. Otherwise call us so that we can assist you. [Read more…]

Are they legally obligated to cover the closing costs on our Ashland home?

Additional Information:

We’re buying a home in Ashland and the seller signed an agreement to pay for our closing cost but apparently he didn’t know that what he signed was actually to do this. The sellers now understand that what they signed is a concession towards our closing cost but they never intended to pay it. They don’t even have a real estate agent as they are trying to save some money.  Are they legally obligated to cover our closing costs and what can we do?

ATTORNEY ANSWER:
If the Agreement states that the Seller pays the Buyer’s closing costs, then the Seller is obligated to comply with the terms of the Agreement, or they will have breached the Agreement.  We’d be happy to review the agreement and your rights with you and determine next steps.  [Read more…]

Can I record a declaration of homestead for my home in Sherborn, MA?

Additional Information:

I own a three family home in Sherborn, Massachusetts and I want to record a declaration of homestead. I live in one of the units and rent out the other two. Can I do that? Will the declaration of homestead be effective? Does it matter that I live in the home?

ATTORNEY ANSWER:

In order to declare a Homestead, you must live in the house. We prepare Declaration of Homestead at no charge, as a courtesy to our clients. Call us now for an appointment to create a Declaration of Homestead.

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The buyer wants out of the contract to buy my home in Natick, MA.

Additional Information:

I’m not sure what to do.  The buyer now wants out of the contract to buy my home in Natick, MA. The contract has been signed by both parties. What are my rights, and do I have to keep my home?

ATTORNEY ANSWER:

You need to have a Lawyer review the contract as soon as possible to see what your rights are. If there is a deposit being held by the real estate broker, they will need you to sign a release in order to return the deposit to the buyer.

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Do I need to have a title search done on my family’s property in Marlborough MA?

Additional Information:

I am buying property in Marlborough, MA that has been in my family forever.  My lender is requiring that I pay for a title search, even though I know there are no issues.  Do I really need to have a title search done?

ATTORNEY ANSWER:

You will not be able to obtain a mortgage unless a title search is conducted.  A title examiner will research the records at the Registry of Deeds, and Registry of Probate.  The purpose of the title search is to determine the “owner of record” of the real estate.  The examiner will make sure that there were no breaks in the “chain of title.”  If an owner of the property died while owning the real estate, the examiner will check to be sure all of the heirs were notified, and signed off on the deed of the estate.

The examiner will also check for any encumbrances on the property.  There may be old mortgages which may not have been properly discharged of record.  Any other encumbrances which need to be resolved prior to closing would be found with a title search.

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My mortgage is in the process of being foreclosed. Is there anything you can do?

ATTORNEY ANSWER:
Although it is very difficult to stop a foreclosure proceeding from going through, we at the Oriel Law Offices urge you to have someone take a look at the paperwork that was given to you when you got your mortgage. Sometimes the original paperwork was not done properly and it is worth the few minutes of putting your paperwork together and letting us take a look at it. So, give the lawyers at the Oriel Law Offices a call, to see how we can help you.

 

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Do I need a lawyer to help with the Purchase and Sale agreement?

Additional Information:

If I have an experienced real estate broker helping me find a house, why do I need a lawyer to help me with the Purchase and Sale Agreement?

ATTORNEY ANSWER:

A real estate broker is trained to help individuals find the right home, but they are not lawyers, and a Purchase and Sale Agreement is a legal document that sets forth the rights and obligations of the Buyer and the Seller. If you are either the Buyer or the Seller, then you want to make sure that your rights are protected. The so-called Standard Purchase and Sale Agreement usually is modified to reflect certain matters that the parties have agreed to, not only with respect to inspection issues, but also with respect to what would happen if the deal falls apart, and what if any contingencies there are, such as a mortgage contingency. Whether you are the Buyer or the Seller, you should always have a lawyer represent you.

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My wife and I are about to make an offer to buy our first house in Framingham.

Additional Information:

What should we do to prepare for this real big step in our lives?

ATTORNEY ANSWER:

You are doing the right thing by seeking the guidance of a lawyer. First time buyers really do need the assistance and help of a lawyer who they trust, especially in buying their first house. Although there are many real estate agents who provide excellent assistance, sometimes you just need to have a totally neutral party, such as your own lawyer to make sure that the offer you make, includes all of the issues you not only want to cover, but need to cover. [Read more…]

What are allowable damages for real estate misrepresentation in Massachusetts?

Additional Information:

What are allowable damages for real estate misrepresentation under Massachusetts law? We signed a P & S with the sellers which had multiple items that were supposed to be completed by the seller prior to closing. They did not complete the work and now refuse to return our deposit money.  What are my legal rights?

ATTORNEY ANSWER:

Damages for any kind of a claim are always difficult to determine without knowing all the facts. If a claim is filed under Massachusetts General Laws, Chapter 93A, it is possible that you could recover double or triple damages in addition to attorney’s fees. It is important to keep in mind that you will need an expert to testify on your behalf in order to prove your claim.

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