Question: Does a seller of residential real estate have the right to reject an offer based solely on the fact of the prospective buyer's documented criminal record? If I need to be more specific; then let's say the prospective buyer has been convicted of a significant crime like drug trafficking, or felonious assault, etc.

Answer: Under a blanket "no sales to convicts" theory you would not be selling to Martha Stewart, comedian Tim Allen or former White House aide Chuck Colson. You would not be selling to someone convicted of a crime 30 years ago who has since been a good citizen. You would not be selling to someone who could not afford a decent lawyer or someone who was wrongly convicted -- just consider that more than 200 people once on death row have now been freed because DNA evidence conclusively proved they were innocent.

You already acknowledge that not all criminal acts are alike because you only want to deny those who have committed "significant" crimes the opportunity to buy your property. But what is "significant" and who should make such judgments? Is it not better to consider people on the basis of their individual merits and not their group identity?

In essence what you propose is a form of permanent punishment for individuals once convicted of a crime, that a debt to society can never be repaid. This seems uncomfortably at odds with many religious, philosophical and political writings which discuss forgiveness and redemption.

Roger Clegg, writing about the bad law of "disparate impact" -- discrimination points out that "a landlord who decided that he would not rent to drug addicts could be sued if it turned out that, in his community, this had a disparate impact on racial minorities. He would be liable unless he could prove to HUD's or a federal judge's satisfaction that this practice was a 'necessity.'"

You need to determine if you can lawfully reject someone in your jurisdiction "solely" because they have a criminal record. A local attorney can provide specific advice.

Question: Recently I've been hearing more and more about how the real estate market is in a slump, and how the mortgage market is "in crisis." However, this doesn't seem to agree with reality. The reality I see is that there's an almost-completed condo development right next to the office building where I work in California. Each of the five stories will be cut into six units with 3,300 square feet, but there's only floor space: no lawns, swimming pools, tennis courts, or other "homey" niceties. I was told that the planned asking price for an average unit will START at $2 million! Does this sound crazy to you?!

If we're in such a "down market" and "crisis," why isn't this real estate MUCH cheaper? As a hard-working, taxpaying, middle-class professional (I'm a tax accountant), it seems like I can't even afford most of the stuff out here! I need someone to sell me a decent-sized house in a great location for around $200,000 before I'll even begin to believe what you are trying to tell me about sellers being "desperate" and having a hard time.

The bottom line is this: I want a big house for cheap! And until I can find it, I'm not going to believe any of this "worst housing market" nonsense.

Answer: I want what you want. I also want a pet unicorn and an underwater tour of the Pacific with Captain Nemo. I suspect we are both likely to be disappointed.

Real estate is a localized commodity. The test of the marketplace is not what the developer asks for his units, or what you or I might think. Instead the test is whether anyone buys them for the asking price or something close. If the units sell, then the developer has priced his property correctly.

The evidence of a national real estate slowdown -- one which has impacted many metro areas -- could not be more plain: There have been huge numbers of foreclosures documented by Realtytrac.com, massive losses on Wall Street related to mortgage-backed securities and numerous markets where home prices have stalled or fallen.

If big homes in major metro areas in California start selling for $200,000, it won't happen in a vacuum. No doubt at the same time skilled tax accountants will be available for $8 an hour. With April soon approaching, this hardly seems unfair ... .

Question: I'm looking for a way to calculate the value of my condominium as of the summer of 1999. This is for taxation purposes, as I sold my condo earlier in the year and capital gains apply this next tax year.

Answer: The value of the property in 1999 will not help you calculate your profit and taxes.

To determine the profit from your sale, go back to the HUD-1 you received at settlement when you purchased the unit. In basic terms, your profit is based on the sale price less your acquisition cost, capital improvements and sale expenses. For specifics, please speak with a tax professional.

If you do not have your HUD-1, contact the party that conducted the closing, the title insurance company or the broker. All are likely to have copies of the sale documents.

Question: Can bankruptcy stop foreclosure? Or is it just delay? If it is delay, for how long?

Answer: Bankruptcy has traditionally been one way to stall a foreclosure action. But stall is not the same as stopping or ending a foreclosure action. If a loan has not been paid, and if all standards have been met, then a lender has a right to foreclose.

Since 2005, when the federal bankruptcy law was changed, it has become more difficult to fight foreclosure with a bankruptcy claim. For specifics, speak with an attorney in your jurisdiction.

Question: Several years ago my sister and her husband assisted in cashing in my grandmother's stocks and bonds, and purchasing a house for her with cash. My sister put the house in her own name and not my grandmother's. My father instructed me to have the deed/title transferred back into my grandmother's name, and in the process my sister has told him to back off because it would cause tremendous estate taxes. My sister has since the borrowed money against the house. My sister has power of attorney, yet did not tell my grandmother what she was doing, and we have discovered she is using the monies for her personal gains. My sister is not my grandmother's guardian. What can we do?

Answer: Since the property is in your sister's name, she has the right to finance and refinance as she wishes and to use the money as she elects.

As to estate taxes, it's likely that there will be none unless your grandmother's estate is worth in excess of $2 million.

You need to ask: Did your grandmother freely give the stocks and bonds to your sister? Is your grandmother okay with your sister's ownership of the property which she occupies? Does your grandmother have the mental capacity to make such decisions?

The stocks, bonds and house belonged to your grandmother. She has no obligation to give any of it to your father or to you. She may well be happy that your sister is providing a home for her and other forms of care. For specifics, please speak with an attorney who specializes in elder law.

Question: My husband and I signed a contract on new construction in March 2007. The original completion date was scheduled for January 2008. Needless to say, the builder just received the building permit on December 27, 2007. The county told us that the builder failed numerous times to submit the proper documents in the proper format. The permit was first submitted in August 2007.

We're now living in an apartment with 80 percent of our household items in storage. We are tired of living out of boxes and in such a small cramped space. The builder has stated that they will offer some sort of compensation for our "inconvenience." We want assistance with our closing costs, in the form of a price reduction on the selling price of the house. Do you think this is reasonable?

Answer: Take a look at your sale agreement. It likely allows the builder substantial leeway to both start and complete the home. With such language, what is reasonable -- if anything -- is largely up to the builder. The builder in this case at least recognizes that some sort of compensation is due. The best approach is to hear what the builder has to say before making demands which may well be ignored.

Question: A friend on mine -- honest, I'm not talking about my house -- asked me to put her house up for sale on the Internet, twice, and I got a few interested people but nothing serious.

She has asked me again to do the same. She lives in a gated resort community and wants $350,000.

I just thought you might have some creative ideals for selling this house. She's going to give me $10,000 if I can sell it and I need the money. I'm also thinking of advertising in a magazine. What do you think?

Answer: I think you're doing a terrible disservice to your friend, and I think you should also look at the real estate laws in your jurisdiction. They will no doubt say that without a real estate broker's license you have no ability to sue for a real estate commission -- thus if you sell the property your friend is not obligated to pay you a dime.

Your friend may well be trying to help you, or may honestly think that you have a skill which would allow you to sell the property. But what do you know about real estate contracts? Seller disclosures? Fair housing requirements? Financing? Pricing? "Seller contributions?"

The list goes on, but the point is this: There's a lot more to selling real estate than advertising. Without a broker's license you do not have the right to collect a fee from another for the sale of a property. Worse, you might sell the property for less than it's worth or you may create unintended liabilities that cost your friend huge amounts of money. Go no further with this until you have spoken with a local -- and licensed -- attorney.

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