Before placing lien on relative’s home, make sure you’re not last in line

Q: I'm lending a family member money with the understanding that I'll place a lien on his home. How do I go about doing that? -- S.W.

A: Your lawyer draws up mortgage documents, your relative signs them and they're entered in the public records.

One caution: Your loan may not really be protected if other mortgages, unpaid taxes or liens already on record total more than the value of the property. Your claim would go to the end of the line, and there might not be anything left if it came to a foreclosure or other sale of the property. Your lawyer can investigate that.

Property owner don't

need 'official' deed copy

Q: I just received a letter from (Name Deleted) Record Retrieval Inc. I closed on my new home May 7, 2007. The company's letter said, "A deed was prepared that shows that title was transferred to you. This deed was recorded by the County Clerk." They went on to say that property owners should have an official copy of their deed. They offered to get this for me for $59.50. Is this legitimate? -- via e-mail

A: Well, it all depends on what you call legitimate. They're not exactly lying, but: What's important is having your deed entered in the public records, which was done. You don't really need a copy. If you'd feel better having one or if you ever do need it for some reason, you can get a copy from your county clerk's office for a small fee. In some areas, it's free. In some counties, you don't even have to go in person but can order it on the Internet.

Home buyer backs

out, faces headache

Q: If I am buying a house and settlement is five days away and I changed my mind, how do I get out of the contract? -- via e-mail

A: With difficulty and probably with some expense. Get to a real estate lawyer immediately.

Agent buying property

considered ethical

Q: Is it legal for a Realtor to purchase directly from an FSBO ("for sale by owner") without any agency involvement, i.e., no commission? The seller has been informed that the potential buyer is a sales agent. -- W.

A: Many real estate agents also buy or sell their own property. When the other party is informed they are dealing with a licensee and when no commission is involved, the transaction sounds to me both ethical and legal. A licensed associate, though, should keep his supervising broker informed about the transaction.

Fiancé balks at

financial responsibility

Q: I recently purchased a home. A few months later, I added my fiancé's name to the title by signing a quitclaim deed. He now wants money out of the property, but he does not want to be financially responsible for a new mortgage and does not want to quitclaim his part of the property back to me. How can I refinance the property? -- J.Q.

A: You can't borrow more money on the house, which is probably just as well. It can be done only if all owners sign the mortgage and note, each promising to be personally responsible for the whole debt.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.