Elderly mother should seek legal advice when gifting home

Q: I still have a mortgage but would like to give my house to my daughter. How do I do it? She cannot buy it as her credit is bad. I’m 86 and have to do something before I pass away. — H. H.

A: Have you considered just making a will? That’s the simplest thing. Giving the house away is easy. You just have a lawyer draw up a new deed, sign it and have it entered in the public records. Lenders do not usually call in a loan when the transfer is to a family member. You might want to double-check that with your mortgage company ahead of time.

Before you do anything, talk it over with a lawyer who specializes in estate planning or elder law. You may need to consider possible unintended consequences or make provisions now to avoid future capital gains taxes.

By the way, I’m also 86 years old. That’s even the name of my blog: 86and
holding.blogspot.com.

Home Loan is Not Really Discharged

Q: I was browsing county records and found a record stating that my mortgage was discharged more than a year ago. I am still paying on it so how can that be? Is it something to do with when we were able to drop the PMI (private mortgage insurance)? — V.

A: Wow, that’s one I never heard before. I take it you were browsing those records on the Internet?

Dropping private mortgage insurance shouldn’t trigger any change in the public records. Perhaps someone at your lender’s office made a mistake. Was that when your PMI payments stopped — more than a year ago?

This hardly seems like a problem, though I suppose there’s an off chance extra paperwork could be required to clear up the error some day when you sell. You could always contact your lender about it, though I can see that just leading to more confusion.

You could have an accountant double-check your figures. Perhaps you’ve been paying more than you should, and you really have paid off the debt?

Do sellers Owe Realtor for work?

Q: We called a Realtor to give us a CMA (comparative market analysis) on a new home we wanted to buy to make sure the asking price was fair. She also came to look at our home, which we wanted to sell, and did a CMA for that property.

We told her she could list our property. We did not sign any papers. My husband put a for sale by owner sign up while the agent was out of town and the first person that looked put in a purchase offer with our lawyer; we accepted.

The Realtor sent me a bill for the two market analyses. Am I obligated to pay her? There was never a mention of a fee for the CMA when she did the job. — B.

A: The CMA on your present home is the sort of unpaid service agents perform all the time, in hopes of listing the property. If they don’t get the listing they’re just out of luck. Your oral promise doesn’t matter. In the sale of real estate, nothing counts unless it’s in writing.

The work she did gathering data for the house you’re buying is a different matter. I don’t know if you owe anything legally, but ethically you probably do.

Unless she is an independent broker, she is not allowed to charge the public for real estate services. If any fees are due, they should be paid through her supervising broker.

Edith Lank will respond personally to any question sent to www.askedith.com.