June 1, 2010
Dear George: We just discovered that the owner of a home we're under contract to buy filed a water claim last year, which turned out to be a zero claim. The owner did not disclose the claim; our prospective insurance company found it and reported it to us. The owner said he forgot to tell us. We say that knowing about this claim would've affected our price. This strikes me as unethical. What recourse do we have?
Answer: You need to justify an amount of money as damages to make any recourse against the seller stick. People forget things. Your inspection report should detail any items that need to be repaired, including any items that might be connected to the water claim. Find out from the seller what the zero claim was for, and why it was a zero claim.
Dear George: I want to deed my house to my sisters. There are no liens on the property. What do I need to do?
Answer: You need to deed it to them, they need to accept the deed, and the change must be recorded in the real property records of the county where the land is. If the property has a market value higher than gift tax limits, you need to contact an estate planning attorney. You can determine gift-tax limits and exemptions at the IRS's Web site.
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.
