Question: There has been much discussion regarding gay marriages. If civil unions or something similar become legal how will they impact real estate brokerage?

Answer: Real estate brokerage can generally be seen as the practice of representing another party for a fee. Whether that "party" is a married couple, one individual, several individuals or a partnership, trust or corporation, state laws typically require that brokers serve all parties to a transaction fairly.

Civil unions have been legal in Vermont for several years and brokers have long sold property to and for one or more unmarried individuals. As broker defense attorney and risk reduction expert Robert Bass points out, "in more than 20 years of practice representing real estate professionals, I cannot recall any instance where one of my broker clients has ever called concerning transactional problems that have arisen simply from the fact that a client is gay."

Within the real estate transaction process a central question concerns the matter of title. Brokers must have the signature of all property owners on a listing agreement to sell a property and on a purchase offer to buy a property. As to how title is held, taxes, wills, living wills, estates, probate, insurance and such, these are matters individuals must review with attorneys, tax professionals and other specialists as appropriate.

Question: I am only eight days late on my mortgage payments because I had to put a stop payment on a check I sent. I have since overnighted a payment to the lender via certified check to make the payment.

But today I get a notice from the lender saying I am delinquent. Can they list this on my credit report?

Answer: A mortgage is a contract -- a lender gives you money in exchange for your obligation to repay the debt on certain terms and conditions. One of those conditions is timely payment. In the usual case, a mortgage will have a due date and then a grace period during which a late fee will not be assessed. However, the loan is not due during the grace period, it is due on or before the required payment date.

What consequences can emerge from being late? Can the lender charge an extra fee? Change the interest rate? Call the loan? Be aware that mortgage agreements differ -- and some loans are predatory.

In terms of credit reports, only payments at least 30-days late should appear.

It may be that the notice you received was sent automatically by the lender as a "friendly" reminder prior to delivery of your payment. To be sure, call the lender and ask if your account is now current and what the delinquency notice means.

Question: I am in my late 50s, and plan to retire in 4 years. My current loan balance is $82,600, with monthly payments of $1,170 for principal and interest (5 percent, 15 years fixed rate) and a scheduled payoff date 7 years away. We have no other debts and enough cash to pay off the loan, but that might not be our best bet since the tax benefit won't be there anymore. We are leaning toward paying off the loan in about three years instead of seven. Is this a reasonable idea?

Answer: The real problem here is a surplus of choice, where best to put your dollars.

On the matter of taxes, it is cheaper to pay taxes rather than interest. Example, 5 percent of $82,000 is $4,100. If your state and local tax rate is 30 percent, you can write off $1,230. If you pay off the loan and do not pay the $4,100 in interest your tax bill will increase by $1,230 -- but you would keep $2,870.

When looking at investments you always need to consider risk versus reward. You could, for example, place your money in the stock market -- it did well last year but no one knows how it will do this year and in the future.

Why not prepay monthly if allowed without penalty? That seems a reasonable middle choice given your options. To curtail your loan in three years you would need to pay roughly $2,458 per month for principal and interest. Speak with your lender for specifics.

Question: In January I received my real estate license and planned to work full-time. However, I have now received an offer to work outside real estate. I want to still practice real estate on the side but the fees I am paying at present are exorbitant. How can I keep an active license to do a few deals a year without having to pay a bunch of monthly fees?

Answer: The reason you have fees is because the broker has costs whether you close a deal or not. As well, you are not an employee, you are an independent contractor in business for yourself under the authority of a broker. Anyone who is self-employed has a variety of costs.

Depending on your state, it may be possible to "hang" your license with a firm on a part-time basis. Some companies actually offer such a service.

However, you have to ask if you can be competitive on a part-time basis. Brokerage has become far more complex in recent years and that makes it tough for part-timers who may not have the experience or time to work a transaction. Also, with any broker whether you work full- or part-time, you need to ask about costs and how commissions will be split should you do any business.

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: March 12, 2004

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