Brokers can keep bidders in the dark

Q: A friend of mine was telling how he put an offer on a house and a few days later, the homeowner's broker told him they had a better offer from someone else, but would not disclose the amount. This broker told my friend to make another offer blindly. Is this fair to overbid, not knowing what the other people have offered? -- M.

A: The seller's agent is legally bound to obey the seller's instructions, keep the seller's information confidential and put the seller's interests first. The seller's agent owes your friend only honesty -- and an honest answer might be, "I'm sorry, but the owner prefers not to reveal the amount of the other offer."

There's nothing unfair here, unless a buyer is being lied to or treated differently because of race, religion or some other class protected by fair housing laws.

Sale of townhouse still

leads to capital gains tax

Q: We've owned our primary residence up north for 30 years. We also have a townhouse in Florida that we've had for 1 1/2 years. Our son contributed to the purchase and expenses and is on the deed along with us. He lived in the townhouse, but recently transferred out of state because of a promotion. We all decided to sell the townhouse and made a profit from our original purchase price.

How will this be treated as far as capital gains both for our son and us? -- via e-mail

A: Your son can use part of the home seller's exclusion on his share of the profit, even though he was not there the required two years. That's because his sale was mandated by a job transfer out of town.

No special treatment is available for your share, except that it qualifies for favorable long-term capital gains tax rates.

Paying off mortgage

needn't require two names

Q: My husband and I own two homes. Since we married recently, we have not yet put my name on the titles. One is paid for and the other has a mortgage.

We want to pay off the existing mortgage and wonder if we should put my name on the titles prior to or after paying them off. -- C.H.

A: I don't see that it makes any difference when you do it.

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