Deed should be recorded for tax purposes

Q. In your response … about deeds, you didn't mention the importance of recording the deed, once it is executed. Not only will this protect the buyer's interest, but also if the deed is not recorded, the seller will still receive tax bills.

A. With space at a premium, I pretty much have to limit myself to the question being asked. You make an important point, though. If a deed isn't entered in the public records, the world at large has no legal way of knowing the property has changed hands. A wicked seller could market the place all over again. Another innocent buyer carefully searches the records, and then hands over a second purchase price. And the seller promptly flies off to Brazil with all the loot, leaving a big mess behind.

I suspect, though, that you're assuming too much efficiency on the part of some tax offices. I've known sellers to receive tax bills for properties they no longer owned, even though deeds showing that ownership had changed were properly filed in the public records for all to see.

Q. My wife and I are within two years of retirement. We see ourselves moving within the next five to eight years. Our home is on 16 acres. We heat with fuel oil and it costs more than $2,000 to get through our Northern winters.

We have been considering the installation of a ground-mounted solar panel array, and the solar company says their $51,000 system will generate 110 percent of our typical electrical usage and combined with our state rebate and tax credits, the system will be paid for in 13 years from the savings on electric bills. If we sell before the system is paid for, the new owner would assume the remaining unpaid balance or we would pay it off.

Some of the figures have to be based on the past two years' electrical usage, so the rebate and tax credit will not apply to a larger system, sized for a conversion to electric heat. That would almost double the energy load and the total cost. The startup cost seems excessive for a single-family home of 1,700 square feet. Can we reasonably expect a significantly higher sale price for having the solar system in place, even if there is a minor unpaid balance on it?

We are not sure it is a wise investment. What have you seen across the real estate markets for homeowners who have converted to solar power, even if the home is not "total electric?"

A. I took your question to my favorite real estate appraiser. He points out that you haven't included conversion or maintenance expenses. Especially when you can't count on all that much year-round sunshine, he figures you might increase the value of your property, at a future sale, by less than half what it would cost to install the system. You'd more likely recoup only 20 or 25 percent of your outlay, he estimates. His answer might well be different for another part of the country.

Q. My daughter and her husband purchased a 10-year-old house five years ago. They were a little short of 20 percent down, so they had to pay for private mortgage insurance until they built up more equity.

They've replaced the roof, updated air conditioning and added a 400-square-foot addition. All were done professionally. I urged her to request from her lender (now a different one) a new appraisal to be able to eliminate the insurance. We were shocked that the new appraisal came in a few thousand under what they paid in the first place.

The new appraisal doesn't take into account the prices of homes sold in the area. Their tax assessment is much higher than the new appraisal and the town has no plan to lower it. The manner this appraisal was done sounds suspect to me. I am aware that those with the money make the rules but do you think she has any recourse? Do you think it would be worth contacting a lawyer?

A. Not all mortgage plans allow for dropping mortgage insurance after a higher new appraisal, but I assume that's the type your kids have.

There's no use starting with a lawyer. (How refreshing to say that for once!) They can approach the lender and request a second evaluation by a different appraiser. That would cost them another appraisal fee. It'd be worth it, though, if the estimate came in high enough that they could drop the private mortgage insurance premiums.

• Edith Lank will respond to questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (include a stamped return envelope), or readers may email her through askedith.com.

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