Family members free to make any arrangements

Q. My husband and I own an acre of land with a small house on it. The house was built in 1934. My mother used it for rental, and at her death we decided to keep the little house for vacation use. My niece bought the adjoining 22 acres.

Now my niece's husband suggested they buy the property and we could have a lifetime interest and be able to use the house until our death. My husband is 90 and I'm 86, both in good health. We planned our retirement on a life span of 82 and we are beginning to run low on funds.

I would like to get a couple of appraisals and then discount it 10 percent because it's family. What would be fair to both parties? How should it be paid, money down and monthly, or they get financing and pay us a lump sum? Who pays taxes and upkeep? We have water, lights and lawn care even if we aren't there. Any advice would be helpful.

A. Selling the little house to your niece and her husband at a discount from market value is only fair, because they'll be paying for something for which they can't take immediate possession. Once you agree on a price, it's up to them to propose how they'd like to finance the purchase. If you do end up holding a mortgage, that debt would eventually become part of your estates, with payments going to your heirs.

You're free to make any arrangements that suit both parties. Often, though, in a situation like that the life tenants (you and your husband) continue to act as owners, meeting expenses as they always have.

I'd suggest going together to a lawyer who specializes in real estate, for help in drawing up the necessary documents. You may want to discuss what could happen if you and your husband no longer wanted to use the house in the future, and include some agreement about that.

Q. I am a commercial tenant. The building I lease space in was sold and the new landlord has told us he won't honor the existing leases. He has already sent out notices that he is going to charge us to clean the restrooms and charge us for electric usage, both of which are included in my current lease.

Do commercial leases have the same protection as residential leases regarding the sale of the property? I tried to find that kind of information online with no luck. Any help would be appreciated.

A. As with residential property, a commercial lease "survives the sale." It is just as binding on the new owner as it was on the old one. The only exception might be if the sale was due to a foreclosure, which usually wipes out existing leases.

But maybe your new landlord knows something I don't know. It's always possible that some exception was written into your lease - have you checked?

As a business owner, you should have your own attorney. That's the person to read the document, tell you where you stand and, if necessary, write to your landlord.

Q. Do you have any suggestions for trying to speed along a decision on a short-sale offer? I have an offer in on a house that is a short sale. The offer was made about 6 weeks ago, but we have not heard back. How can we get the attention of the bank that holds the note?

A. A short sale is one that won't yield enough to pay off the property's existing mortgage. It's a way for the owner to avoid foreclosure, but it requires the mortgage lender's agreement.

I guess the economy really has picked up, because it's a while since this column has received a short-sale question. A few years ago, lots were coming in, all with pretty much the same complaint. Some had been trying to get bank approval on a proposed sale not for weeks, but for months.

When you say "I have an offer" it sounds as if you might be a real estate broker. But whether you're an agent, the homeowner or a would-be buyer, you need to understand that dealing with a lender is entirely different from submitting an offer to a homeowner. Where the seller often has a sense of urgency, the bank may not be in any particular hurry about agreeing to lose money. Your offer may be sitting on the desk of someone who's gone on vacation, or it could be waiting for a committee that doesn't meet very often. And when and if you do get a response, it'll probably be a flat yes or no. Don't expect the kind of negotiating you might have with an individual.

Perhaps the lender would respond to inquiries from a lawyer, if the buyer or seller wants to try that route. I kind of doubt it would help, though. Mostly, I suspect you'll just have to be patient.

• 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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