It is rare to hear from a reader after initial letter

A few weeks ago I heard from a woman who was concerned about the ownership of her husband's house after his earlier divorce. I told her that deeds were filed in her county's public records, and although I didn't know where she was located, she shouldn't have any trouble finding them. Any member of the public was entitled to search the records in person or - usually these days - online.

I just heard from her again:

Q. Thank you for your response. I was able to search the county website with no problems. I found a quitclaim deed between my husband as the granter, and both of us as grantees. I don't understand much real estate law, but I believe this answers my question, and that I am on the deed to the house. I appreciate your assistance. It really eases my mind!

A. And I appreciate your writing back. It really eases my mind. Most times I'm just left hanging, wondering how it all came out.

Q. Back in late 2008, my wife was selling her dad's home, as he was placed in a care facility. The purchaser placed a down payment, contingent on us making repairs. We made the improvements, then the buyer backed out. The Realtor kept the deposit, did not repay us for the repairs, and did not answer our lawyer's letter. Our lawyer didn't want to be bothered. He said to go to small claims court.

Do we have any recourse at this late date? Hate to see the broker keep the money, as we just read he's receiving an award for "great work."

A. Start by asking that lawyer when your state's statue of limitations runs out on contracts. All of this may depend on how late in 2008 you signed that listing - or maybe on the date of the sales contract.

The general rule is that commission is earned when buyer and seller reach a "meeting of the minds," signing that sales contract. On the other hand, your listing may have said commission would be paid at the time of closing - and the deal didn't close.

Too bad you didn't try to find out what a judge would say back when your lawyer suggested doing so. Perhaps you can still go to small claims court and find out - but you'd better hurry.

Q. We own a rental house and our tenant wants to buy it via a seller-financed land contract. He has asked if we would consider nothing down with a higher interest rate and a five-year cash out. I don't see any benefits to nothing down and it seems risky.

Wouldn't I lose all the deductions associated with a rental going this route? Would it be better to ask him to save money for the next four or five years so he can buy then with money down? We're not sure how to proceed.

A. A land contract is a tenants' layaway method for buying. It usually involves a nonreturnable deposit, and then something extra with each monthly rent check, to be set aside and held with the deposit toward an eventual down payment. That way if the tenants don't go through with the purchase, they have something to lose. In return, they have your binding promise to sell on the terms set out. All of this assumes, by the way, that you do want to sell.

I would usually recommend you start by investigating their credit record. In this case, of course, you already know whether they pay their rent on time. But there's a lot more involved before you tie the house up in a contract. Is it likely they'll be able to buy in five years? Will you be holding the mortgage? Interest rates will probably be higher by then - what if property values are also?

Until they actually buy, your income tax situation remains the same - you're still landlords. The deposit, and the extra each month, don't belong to you yet and must be held separately in escrow.

Meanwhile you should agree in writing: Who pays property taxes? What if you fall behind on them or the insurance? Could you place a mortgage on the property? Who pays for repairs? If the tenants had to move, could they transfer the contract to another prospective buyer? Would you have right of approval? Would they get their deposit back?

You ask how to proceed - the first step is to decide if you really want to sell, and the next is to consult a lawyer who specializes in real estate.

• 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.

© 2014, Creators Syndicate Inc.