Feb. 22, 2010
Dear George: How does the $8,000 credit from the government work? Does the money go toward the downpayment?
Answer: It's a tax credit for first-time homebuyers, not downpayment assistance. The credit is factored into your federal taxes at the end of the year. Consult with a tax professional to see how the credit affects your tax situation.
Dear George: A REALTOR® took me several times to see properties, but he didn't show me anything I liked. I did some looking on my own and decided to purchase new construction. I worked out a satisfactory deal with the builder, and the home is currently under construction. A few days ago, the REALTOR® shows up and presents me with an agreement that I have to sign so he can get paid. Am I obligated to sign it? He didn't show me the property, and he wasn't involved at all with the transaction.
Answer: What was the agreement the REALTOR® wanted you to sign? If it was a Residential Buyer/Tenant Representation Agreement, then no. If you hadn't already signed this form, you had no agreement with the REALTOR® and you are free to make your own deals. However, if you had already signed a Residential Buyer/Tenant Representation Agreement and it was in effect, you have a contractual obligation to the REALTOR® to sign his agreement so he can get paid.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
