Dear Ask George: We recently had our house on the market, but could not sell it due to a water remediation claim from the previous owner two years ago. How can we make the house more marketable?

Also, can you suggest a way to find cheaper insurance? Are there any companies that give you a clean bill of health? -- Water Victim in Texas

Dear Water Victim: Making your house more marketable begins with obtaining a detailed Comprehensive Loss Underwriting Exchange ("CLUE") report. You can obtain that report on your house for a modest price from Choicepoint.com in Alpharetta, Georgia. Knowing exactly what is in that report will help you decide what needs to be done to make your house more marketable.

As to cheaper insurance, the Texas Dept. of Insurance's (TDI's) link to www.HelpInsure.com website is an excellent source. Helpinsure.com is a free and secure service to help Texans shop for homeowners insurance.

TDI's listing of Voluntary Inspection Program ("V.I.P.") inspectors can issue your house its clean bill of health once you complete any remediation indicated in your CLUE report.

Dear Ask George: I read an article recently in a business magazine that claimed that one fifth of the states prohibit a real estate broker from rebating a portion of the real estate commission to a buyer or seller, like Lending Tree and ZipRealty do.

Is this true? If it is, then why is it? If a real estate broker wants to rebate a portion of his commission to a buyer or seller, he ought to be allowed to. -- Annoyed

Dear Annoyed: A "rebate" is usually offered by a real estate broker in connection with a buyer's involvement in a real estate transaction. If a listing broker wants to discount the amount of a commission or fee charged to a seller for listing a property, he or she usually just lists it at the negotiated fee.

As for the article you read that states that one fifth (or 20 percent) of the states prohibit real estate brokers from paying a rebate to a buyer, I think it is closer to 26 percent. The last time I reviewed state laws dealing with "rebates," those states in which rebates were illegal are Alaska, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, New Hampshire, New Jersey, New York, Oklahoma, Oregon, and Tennessee (13 states).

However, special caution should be exercised when offering any consumer a rebate, gift, or other incentive. Check with your attorney first.

Dear Ask George: I am selling my home and upon reviewing the contract I received from the Buyer, I noticed it states that I have to pay for a Title Policy. My real estate agent told me that it is Texas State Law that I have to provide the Buyer with a Title Policy and that I have to pay for it. Is that so? -- Distressed

Dear Distressed: Your agent is partly correct. Paragraph 6 of the contract form promulgated by the Texas Real Estate Commission states that the "Seller shall furnish to Buyer at (checkbox) Seller's (checkbox) Buyer's expense an owner policy of title insurance..."

So, while the seller is required to furnish a policy of title insurance to the buyer, it is negotiable between the two parties as to which one is going to pay for it.

There are certainly areas of the state (Texas) where it is so ingrained into sellers that the seller has to furnish and pay for the Owner's Title Policy, that some real estate agents "assume" it is required by law. Bottom line, it is negotiable between the parties in Texas.

Dear Ask George: Hi George & Chuck. I would like to know how many different MLS's there are in Texas and how many -- if any -- have a category telling whether a home is Energy Star Rated.

Also, I would like to know the organizations that make up the different MLS's (ex: Texas Board of Realtors?). Any information concerning these matters would be greatly appreciated. -- ESR Fan

Dear ESR Fan: There are, as of September 08, 2004, approximately 45 MLSs in Texas. This includes the "regional" MLSs as well as the Texas Association of REALTORS'® (T.A.R.'s) statewide MLS for members who don't have local MLS access. It is an "approximate" number because T.A.R. does not currently keep track of this number.

I've forwarded your email message to T.A.R. for the list of local REALTOR® organizations that operate or control the operations of the MLSs.

I've performed a custom search on my own MLS -- the Houston Area MLS -- and found that one can search by a field labeled "Energy features." Energy features include the following items: Attic Fan, Attic Ventilator, Good Cents Home, Heatilator, Insulated Window, Solar Power, Storm Doors, Storm Windows, Sunscreens, and Tinted Windows. However, "Energy Star Rated" is not included. If it were to be included, it would need to be sub-categorized for each appliance, lighting, heating and cooling, etc. that was Energy Star Rated.

Each local MLS usually has an MLS Committee or MLS Advisory Group comprised of volunteer members. I think it would be a good thing to encourage each local MLS to determine:

1. If it has adequate field-availability to accommodate the "Energy Star Rated" classification for appliances, systems and other items that meet the Energy Star Rated specifications on resale homes;

2. If it has the same adequate field-availability for new construction, as well as whether the entire home meets the Energy Star Rated requirements; and,

3. If it will, provided it does have those capabilities, actually implement them as search capabilities.

Published: September 14, 2004

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

George Stephens, CRB is the Broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas, and a real estate broker in Texas, Georgia, and Massachusetts. Charles J. Jacobus, JD is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law, and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate, Houston Community College, and is an adjunct professor at the University of Houston Law Center. To send us a question visit AskGeorge.net and click the "Ask A Question" button. The answers to questions in this column do not contain legal advice. George and Chuck are co-authors of Texas Real Estate Brokerage and Law of Agency, published by Thomson Publishing. If you wish to obtain legal advice, you should consult your own attorney.