On homes and real estate: It’s legal to list a contract exclusion

Q. We wanted to make a deal directly with a seller without agents, but we cannot commit for two or three months. In the meantime, the sellers want to put the house on the market to not miss the selling season.

If no other offers materialize, can a clause be written into their agreement with the broker that they can sell to us without their broker?

A. Certainly. Contracts are not written in stone and can be altered to suit the needs of the parties.

The seller should not have trouble finding a broker who would be comfortable with an exclusion in the listing contract. That would be a written agreement that no commission would be due if the property were sold to Mr. and Mrs. K.B. “within the next three months” or whatever.

Q. How do I find out if there is a lien on my mother’s house? I am her power of attorney.

A. Even without a power of attorney, you could find out about a lien on your mother’s house. So could anyone. The information is not private. Quite the contrary: the county’s public records office is called “public” for a reason. Documents affecting real estate — deeds, mortgages, leases, wills and liens — are filed there to inform the world about the legal status of all real property in the county.

You can go to the records office to search in person, view public records on the Internet or ask a lawyer to find out.

Q. I need to know pros and cons of adding my minor grandchildren’s names to my home title.

A. No one legal move is right for everyone, and I’d have to know more about your situation before I could be of much help. Then again, I’m not a lawyer. But at any rate, here are a few potential problems that occur to me:

If you ever wanted to draw out money on a reverse mortgage, all owners must live in the property and be at least 62 years old.

If you ever wanted to sell, you might end up dealing with a court for permission and supervision. And the grandchildren would be entitled to part of the proceeds.

It would be almost impossible to place a regular mortgage on the property when some of the owners are minors. Even when they become adults, you’d need everyone’s agreement, and each would be personally responsible for the whole debt. It would show up on all their credit reports.

When your grandchildren are grown, one of them might have a judgment placed against all their real estate, including a share of your home. Or part ownership of your property might end up in someone’s divorce court. Or one of them could force a public sale of the property.

When you sell, you could use the home sellers tax exclusion on your share of the profit. Owners who didn’t live there, though, could owe capital gains taxes.

If you’re trying to solve some family problem, there’s probably a better way. An attorney who specializes in elder law can advise on how to accomplish what you want.

Q. I am relocating out of state and selling my townhouse. The best offer I have is about $50,000 less than I paid in the peak of the housing bubble. The house shows great and there’s a lot of interest. I am inclined to convert it into a rental and try to sell it a few years down the line.

My Realtor is nudging me to sell and move on — saying the prices may go down more and I can buy a house on the cheap in the new location, etc. Any advice? By the way, I have significant equity in the house.

A. I don’t know the rental market in your area, so I can’t judge whether you could count on enough income to carry your expenses, which include lost earnings on your equity (not much these days, I admit), taxes, landlord insurance, maintenance and an allowance for lost income (late payments, vacancy, etc.)

I can tell you that being an absentee landlord, especially an inexperienced one, is asking for trouble. Ask yourself: would you buy this townhouse today as an investment? Because every day you don’t sell it, you’re buying it.

I don’t know the market in your new location, either. But if it’s comparable to the place you’re leaving, remember that what you lose on one end, you make up on the other end by taking advantage of someone else’s losses.

It would appear that I agree with your agent. Bite the bullet and move on.

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

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