Dear George: "We rented an off-base house from a rental agency. They sent us a notice that our rent was going to be raised. Our lease agreement is not yet up. We've signed no new lease agreement. My husband thinks I should report this to JAG. Do you have any advice? -- Concerned Tenant

Dear Concerned: I agree with your husband. The SJA (Staff Judge Advocate) provides legal support to the members of the command and community. Included in that rather lengthy list for the 1st Cavalry Division is "Domestic Law." That includes state and local laws among others. Communicate with the SJA's office regarding your problem.

Dear George: "My wife pays taxes on two parcels of property. Her mother paid the taxes for a number of years until her death in July 1996. One parcel is deeded to my wife's mother. The other is deeded to the uncle of my wife's mother. Both deeded parties are deceased. We searched the property records at City Hall. We could not find any documents that transferred ownership to my wife's mother or any other family member. My wife's mother willed all of her property to my wife. My wife wants to determine what steps she can take to have the properties deeded her since she is paying the taxes. -- Need Help

Dear Need Help: You should contact a reputable attorney experienced in probating wills. The party handling the estate must follow the instructions provided in the will. As well, consider that there is a will and so your step-mother's wishes are clear and can be honored.

Dear George: "We're buying a new construction home. The builder made repairs to a sewer line blockage beneath our garage. He made a 2' X 4' hole in the garage slab. He told us 'not to worry.' He was going to paint the floor. He assured us we would not be able to see any difference in the color of the concrete. If we sell the home later, do we need to inform a potential buyer about the repair even if it's covered by paint? -- Asking

Dear Asking: If your state laws do not require that disclosure, then don't. If they do require it then disclose it.

Dear George: "I was in contract within two days after listing my rent property with a broker. The buyer's broker assured us it was 'a done deal.' The mortgage company also said the same thing. The closing date was extended several times before the buyer backed out. My broker says the fault lies with the buyer's broker. Can I contact the broker representing the buyer? What can I do to protect myself in the future? -- Big Loser

Dear Big Loser: Is your listing agreement still active? If it is, contact your listing broker about direct communication with the buyer's broker. As for protecting yourself in the future, be more careful in selecting a listing broker. Your listing broker has specific fiduciary obligations to you. To my knowledge, those obligations exist regardless of the adequacy of a buyer's broker.

Dear George: "My husband and I have our home for sale. Our listing agreement expired on 06/25/01. Our agent sent the renewal paper work in a timely manner. However, my hospitalized mother required our complete attention. We told the agent we would fax the signed agreement to him. We also told him we would extend for a longer time than he had in the renewal form. However, due to my mother's circumstances we did not get the form to him. He let our listing expire. Today I have been inundated with phone calls from other agents wanting to take over the listing. Our agent knew the stress we were under. He had our verbal agreement to extend. Why couldn't he extend our listing just for a few days? -- Stressed

Dear Stressed: Your state's license laws require a written listing agreement before a real estate broker can place (or leave) a "for sale" sign on your property. The Multiple Listing Service in which your property was listed also requires a written listing agreement. It is unfortunate that your listing expired. However, your agent appears to have acted in a completely appropriate manner.

Dear George: "We are buying a new home. At the same time, we are considering keeping our current home as a rental property. We have lived there for the entire 8 years we have owned it. Its value has appreciated 50%. My understanding is that we'd owe no capital gains tax if we sell it. Does the capital gains tax get rolled into the cost-basis of the new home? Is there a once-per-lifetime exemption to paying capital gains tax on a home sale? If we convert our current home to a rental property now, is the cost basis still the original purchase price? Can we use an appraisal of fair market value now as the cost basis for future capital gains tax on the appreciation of the rental home when we sell it?" -- Taxed

Dear Taxed: For a home sale in 2000, read IRS Publication 523, "Selling Your Home." It's a very informative booklet. It will provide answers to most of your questions. Armed with that information, I suggest you contact a CPA or other qualified tax advisor for comprehensive answers.

Dear George: "I hope you can help me. My father is a licensed real estate agent in the state of Florida. He is thinking about moving to Austin, Texas. We are not sure what he needs in order to work in the real estate business in Texas. Can you tell me what he needs to do? -- Loyal Son

Dear Loyal Son: Your father should call the Texas Real Estate Commission at 1-800-250-8732. Once at the TREC site click on the tab "Education & Exams." He should also click on the tab labeled "Licenses: Apply, Renew."

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George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: August 31, 2001

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.