advertisement

Best to keep up your utilities on, and record clear

Q. My tenant is living in my rental house, has not paid rent or utilities and the lease states that the tenant is responsible for utilities. The utilities are in my name. If the tenant does not pay the bill and is facing disconnection, am I required to pay the utility bill? The light and water bill are in my name because this was supposed to only be temporary as I had planned to move back in the house and did not want to set up the utilities again. I have served a 30-day notice for termination of a month-to-month lease and she is in beyond the 30 days.

A. If the utility bill has always been in your name, I would pay the bill to avoid disconnection. By allowing disconnection, the tenant could file a lawsuit or counterclaim against you and argue you employed "self help," which is a term the legal profession uses to describe landlords who take action outside of the courtroom to evict their tenants. This would not be a strong argument for the tenant, given the fact that the lease provides that the tenant pay the utilities. However, for the small amount it will take to satisfy the utility bills, it would not be worth exposing yourself to a "self-help" claim.

Q. My husband and I hit a very rough patch about five years ago and had to file bankruptcy and our home was foreclosed. My mother and brother together bought a house on a personal note. We've made the monthly payments to the bank as well as the property taxes and insurance. Now we would like to have the home moved into our names.

Do we go through the regular real estate channels or what? How do we keep the capital gains taxes to a minimum?

My husband and I put a lot of work into this house. It was actually a foreclosure that couldn't even qualify for a mortgage because it had no flooring or kitchen counters, sink or any appliances.

A. There are a few things to consider before you proceed. Is the mortgage (or note) going to remain in your mother and brother's name? If so, they may not be comfortable with having the loan in their names and the title to the property in you and your husband's name. Are mother and brother looking to participate in any of the appreciation? Are you planning on obtaining financing to pay off their remaining obligation?

You could prepare a contract for them to sell the property to you and your husband. However, this may be a violation of the terms of their loan, another matter to consider.

Once you determine the answers to the above questions, sit down with a real estate attorney and a tax professional to obtain advice as to how to best structure this transaction.

Q. My husband and I closed on our first house last week. At the closing, there were a number of charges from our mortgage company of which we were not aware. We tried calling our loan officer at the closing but he said there was nothing he could do other than not close. That wasn't an option as we had already moved out of our apartment and had nowhere else to go.

These extra charges totaled over $1,500. Is there anything we can do now? We feel our mortgage company was not straight with us and put us in a position where we had no choice but to pay their extra fees.

A. At the time you applied for your loan, or shortly thereafter, you should have received a document entitled "Good Faith Estimate." This document is designed to inform you of your lender's best estimate of the charges you will incur in the transaction. If you have retained this document, review it to determine if there were any fees charged to you at closing that were not disclosed on the Good Faith Estimate. If so, contact your loan officer and start complaining … loudly.

If you don't get anywhere with him/her, move up the chain of command. In the event you don't have a copy, request it from your loan officer. The mortgage company certainly has a copy.

I am guessing once you obtain the Good Faith Estimate, you will discover these charges were disclosed to you. However, if they were not and the mortgage company won't refund the fees, your next step would be to file a complaint with the Illinois Department of Financial and Professional Regulation.

• Send your questions to attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tdr100@hotmail.com or call (847) 359-8983.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.