What was market value back then?
Q. I own a house that my mom lived in until she recently passed away. I am in the process of selling it and need to find what the fair market value was in 1993 for capital gains tax purposes. Can you tell me who to contact for this information? I have already contacted the town clerk's office. Their records only go back to 1996, so they referred me to the county clerk's office, which also did not have this information. Any suggestions?
A. If you didn't inherit the house until now, your cost basis would be its current value. But it sounds like you received the property as a gift in 1993. Just contact a real estate appraiser and ask for a simple one-page estimate of the house's fair market value back then.
Q. We have a home that was appraised at $250,000 last January. We would like to sell it to our daughter for $200,000 without her making a down payment. Do you think the bank will approve this kind of transaction? If not, how do we go about doing this?
A. You'll be gifting your daughter $10,000 in equity, which is more than enough for a down payment on a Federal Housing Administration mortgage. You are also allowed to pay her closing costs.
Assuming the house is currently free and clear, and assuming your daughter can qualify to carry a $200,000 loan, the financing should go through just fine. I double-checked with my favorite mortgage broker, who said "I just handled one like that - father to son, no problem."
She will need a sales contract for the mortgage application. A real estate broker can help with that, or you can consult your attorney.
Q. I'm hearing different opinions on whether it's best to work with a listing agent when buying a property, or to use your own real estate broker. I hear that a listing agent would not have to split the commission, so you are more likely to get a better deal. I'm anxious to hear your response. We are in the process of buying property.
A. I've never heard anything like that. In fact, I had to read your note more than once to figure out what you're asking.
You'll be negotiating the purchase price with the property owner, not the real estate agent. I doubt that any seller takes into account - or cares - whether or not the commission will be shared between firms.
There are reasons why you should work with your own broker - one who legally owes you specific fiduciary duties. The matter of shared commissions, though, does not play into it.
Q. I would like to sell my house or be able to leave it to someone in my will, but I can't.
Years ago when I bought my house, I put a good friend on the deed. She was in her early 20s. She went to visit friends in another state and, as fate would have it, she died of an asthma attack while she was there.
If I ever want to sell my house, everyone listed on the deed has to sign off. But since this isn't possible, I need your help. The only way to get around this is to present her original death certificate. I have tried to contact her family members every way possible. I have also talked to real estate agents, attorneys and a judge.
I am willing to drive hundreds of miles to obtain this certificate. Thank you in advance for any help you can offer.
A. Perhaps you misunderstood what those attorneys and the judge said. Don't worry about getting the original certificate. Anyone is entitled to a get a copy of a death certificate - or any other document - from a county public records office. There's no need to make the trip yourself. Just hire someone in that town to get a copy.
• Edith Lank will respond personally to any question sent to www.askedith.com or edithlank@aol.com or to 240 Hemingway Drive, Rochester NY, 14620.
© 2016, Creators Syndicate