Introduction. For the last several years, the concept of “equity” [i.e., the difference between the net proceeds received upon sale and the unpaid mortgage balance] that many people counted upon when they sold their home, was moot or close to moot – there was none. However, as we slowly climb out of the Great Recession, and read the housing stats, since 3Q 2012, most homes in the Portland-Metro area have been steadily appreciating. Accordingly, it seems timely to focus upon the issue of taxes. The Taxpayer Relief Act of 1997 (“the Act”), which was signed on August 12, 1997, effected several important changes in estate and gift taxes, individual retirement accounts, charitable giving and capital gains rates. Included in the new law was a major revision in how the sale of personal residences were to be treated for income tax purposes. The New Law and Tax Tips, discussed below, apply to residential sales transaction occurring on or after May 7, 1997. Continue reading “Querin Law: Tax Tips When Selling A Primary Residence”
The Fair Housing Act (“FHA”) was passed in 1968, and has been an important fixture in the law ever since. Essentially, its purpose was to prohibit discrimination in the sale and rental of housing. At the time, there were five major protected classes, i.e. groups of persons entitled to the protection of the Act. Those classifications were race, color, religion, sex, and national origin. In 1988, it was amended to include two additional protected classifications: disability and familial status.[1] Continue reading “Querin Law: Disparate Impact Explained”
This is a “back-of-the-napkin” summary of the Portland-Metro real estate stats for October 2014, according to the RMLS’s™ Market Action Report, here.
- Closed sales at 2,487, represent a 13.6% increase over the 2,189 closings for October 2013;
- According to Market Action, this was “…the strongest October for closings in the Portland metro area since 2006 when there were 2,503.”
- Pending sales at 2,480, were 16.7% higher than the 2,125 offers accepted in October, 2013;
- New listings, at 2,881, increased 13.6% over October 2013, which was 2,535;
- Currently there are 6,963 active residential listings;
- Total market time in October ticked up a bit to 65 days;
- Inventory decreased to 2.8 months[1];
- The average sale price January – October, 2014 was $333,200, i.e. up 7.4% from the same period in 2013, when it was $310,200.
- The median sale price January – October, 2014 was $265,000, i.e. up 7.5% from the same period in 2013, when it was $285,000.
Continue reading “Portland-Metro Residential Real Esate Stats For October, 2014”
When seller property disclosure laws were first enacted by the Oregon Legislature, circa 2003, the form came in two flavors: Disclosure or Disclaimer. Disclosure consisted of answering “Yes” or “No” to a series of questions about the seller’s property. With only a few changes, the form was not totally dissimilar to what we have today. Continue reading “Beware of the “Unknown” in Seller Property Disclosure Statements”
According to a recent article in housingwire.com, titled “Ocwen posts open letter and apology to borrowers,” the widely reviled Ocwen, apparently (sob) guilt-ridden because it, once again, was caught doing what it does best – taking advantage of the little guy. Continue reading “Ocwen’s Heartfelt Apology – Ummm, Right!”
This article is a continuation of Part One, below. It addresses many of the current – as yet unanswered – questions by real estate brokers, property managers, and landlords. Click on the following link here, for a real joint venture! [Note – if you get a request from Adobe for “permission to run,” just right click on your mouse for “permission to run this plug-in.”]
When I was young – yo that many years ago – marijuana was the forbidden fruit. It was illegal under state and federal law. Getting busted could mean a criminal charge. Slowly the legal landscape changed, first in the nature of the sanction, i.e. a ticket for small amounts, and eventually today, permissible as a recreational drug in some states, and with a “medical” marijuana card (wink, wink) in others. But even with society’s gradual acceptance, the weed is not without controversy and confusion. Part One of this article explains some of the issues, and Part Two (ab0ve) addresses some FAQs. Check out the following link here, and and find out why marijuana is the toke of the town. [Note: If Adobe says you need “permission to run,” right click on your mouse to select “run this plug-in.”]
This secret congressional testimony was surreptitiously transcribed and delivered anonymously to me by a high-level government employee who had recently been foreclosed by Cerberus Servicing Systems, a little known, but highly aggressive foreclosure company. Cerbrus’ namesake is the mythical three-headed dog, guarding the gates of Hell, preventing those who enter from ever leaving. Cerberus Servicing goes after those borrowers the Big Banks wants to teach a “lesson” to, since it requires a uniquely demonic set of skills. Cerberus’ trademark tactic is to pretend to be interested in assisting homeowners to modify their loans, using platitudes such as “We Care” and “We’re Here to Help,” while simultaneously commencing a foreclosure against them. Cerberus personnel are known for their perverse enjoyment of intentionally losing a homeowner’s modification paperwork and then ignoring their pleas to postpone the foreclosure sale so they can re-send their loan mod documents a 4th or 5th time. PCQ Continue reading “Breaking News: Big Bank Spills All To Secret Congressional Committee!”
In a recent Wall Street Journal article entitled “Mortgage Lenders Ease Rules for Home Buyers in Hunt for Business” by Nick Timiraos and Annamaria Andriotis, we continue to hear that banks are beating the bushes for borrowers; and they are relaxing some of the tough lending requirements that have stymied may would-be homebuyers in the last few years. The reason? The refi boom which was triggered by ever lower interest rates has about run its course. In the search for other profit centers, many banks are trying to fill the void with loan origination business. Continue reading “Are Mortgage Lending Rules Easing?”
Generally. There is a crucial difference between a representation and a warranty. Generally, in residential sales transactions, a seller representation is a statement about the present condition or legal status of the home. Most such representations are limited to the seller’s actual knowledge, such as the statement: “To the best of my knowledge, this home has no material structural defects.” Such a statement is only based upon the seller’s “best knowledge” or belief, and does not rise to the level of a “promise,” “warranty,” or “guarantee”1 that, in fact, there are no material structural defects in the home.
A warranty normally goes much farther than a representation, since it actually makes a statement of fact or law about the condition or status of the home. For example, a statement that “This property is free of all material structural defects” is the equivalent of a warranty that there are no such defects. The fact that certain magic words such as “promise,” “warranty,” or “guarantee” are not included in the statement is irrelevant to whether it rises to the level of a contractual warranty and may be relied upon by the buyer as such. Generally, saying something is so is the legal equivalent of guarantying it is so. [Click here to go to rest of article – You may need to then right click on “Run this plug-in” to open entire article.]