Question: Is there an industry standard for a finder's fee? That is, how much is it if I bring a buyer that closes on a property to an agent. Is it a percent of sale or a flat rate?

Answer: In general terms, state laws prohibit the payment of a finder's fees to anyone other than a broker.

For instance, the Smith house is listed by Broker Green and Agent Jensen -- who works under the authority of Broker Phelps -- acts as a buyer broker for the purchaser. It could be that the listing fee is divided by brokers Green and Phelps or that the brokers are compensated individually by the parties for whom they work.

Notice that no fees are paid from Broker Green to Agent Jensen. Fees are paid only to brokers, not salespeople or non-licensees. Brokers can then pay fees to the licensees who work under their authority -- but not to non-brokers who work for others or who are not licensed at all.

Question: I have 10 years left on my 7 percent fixed-rate loan. With lower interest rates, I want to refinance so I have smaller monthly costs.

However, I also have a home equity loan which has been used to pay medical expenses. In order for me to refinance, do I have to close out my equity account?

Answer: It is possible that the home-equity lender could agree to "subordinate" their loan to another mortgage -- meaning that if there is a foreclosure the first lender must be paid off entirely before any money would go to the second mortgage holder.

This is not likely, so what you might want to look at is a loan which replaces both your current financing and the home equity loan balance. Your total monthly payments might be lower with a single, fixed-rate loan and a better rate stretched over 30 years.

Speak with lenders and see what programs may be open to you given your financial circumstances. Ask about loans which require few dollars, or no dollars, at closing. You will not get the best possible rates with such loans, but you may get a rate which results in lower monthly payments then you are now making.

Question: Do you have information on writing a "win/win" contract for real estate investing? I am in the processing of buying/selling real estate for little or no money down.

Answer: Real estate transactions are held together by written agreements accepted by both buyers and sellers. The act of acceptance suggests that each side is getting something from the deal, so all agreements can be seen as "win/win" arrangements.

When I hear that someone wants a "win/win" agreement for real estate investing and no money down I instantly wonder why the agreements used generally by local real estate brokers are somehow insufficient for this purpose -- and why some investment gurus suggest avoiding real estate brokers altogether.

Perhaps it's the definition of "win/win" that's confusing -- some people see "win/win" as a code expression which really means one of the parties is accepting terms which are hugely unfavorable.

As to "no money down" transactions, the VA loan program has offered such financing for five decades and now such loans are also available from private lenders. No "win/win" contracts are needed by qualified buyers to obtain such financing.

Given that real estate agreements routinely have localized requirements, the best approach is to speak with a local broker or attorney to obtain a proper form.

Question: We have been searching the market to purchase our first home and have a choice between three surrounding cities. Why do housing prices change so much from one city to another even though the homes are basically the same?

Answer: In real estate all property is "nonhomogeneic" -- a fancy word meaning that all properties are unique. Not only are duplicate homes in different cities priced differently, duplicate homes on the same street can have differing values as well.

All homes represent a package of values -- location, size, condition and other factors -- which can create differing prices. For instance, imagine that a builder erects the "Foxworth" model on one site and sells it for $300,000 and the same model five miles away sells for $400,000. Same house, different price. Why? Maybe land costs are higher for the second property. Maybe the second lot is level while the first is not. Maybe the second home offers better commuting or views.

As a buyer it's your job to find the property that represents the best package of values given your needs and preferences. Brokers can help you locate candidate homes that may meet your requirements, homes which may be within a range of values.

Question: My mortgage company decided on their own to withdraw my house payment from my checking account without my permission. The bank denied the request after I protested. What right did the lender have to seek funds directly from my account?

Answer: Some loans -- such as many biweekly payment programs -- automatically send money from bank accounts to lenders on a specific schedule. It may be that your lender had an accounting mix-up and thought it had permission to withdraw directly from your account.

Does your loan agreement allow the lender to make direct withdrawals? Apparently the bank did not think so, otherwise they would have honored the lender's request.

Speak with your bank manager and have your account flagged so that future withdrawal requests are stopped unless the lender can provide appropriate written authorization.

Question: A bid was made on a property. In response, the seller's attorney put an "as-is" clause in the contract. The property appears to be in great condition, and our buyer's broker says the as-is clause only concerns minor issues, such as painting or light repair and that the seller is still responsible for major repairs.

As first-time buyers, should we re-consider this property?

Answer: You made an offer on a property. Your offer was rejected and a counter-offer was made with the "as-is" clause. You may now accept, reject or counter the offer you received.

The importance of an "as-is" clause will depend on its precise wording and also the disclosure rules in your jurisdiction. An "as-is" clause generally says that property is being sold without certain warranties as to condition and possibly other matters. It should be seen as a "red flag" suggesting at least that the property must be examined with great care. If we assume that the seller's attorney is protecting the interests of his or her clients, then there must be a reason why such a clause was added to the counter-offer.

You can surely -- with proper protections -- buy a home in "as-is" condition. One basic protection is to make the transaction dependent on a home inspection "satisfactory" to you. Another protection is to have your attorney review the agreement before signing to see if there are any "gotcha" clauses buried in the fine print.

Have a real estate question? Send your inquiry to . Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here.

This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal services or other expert assistance is required, the services of a competent professional person should be sought.

Published: November 28, 2003

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