Question: (MI) I own a home in Michigan but was recently relocated to New Jersey for a new job. I am finding it impossible to sell my home in MI and am considering renting it out for a year hoping that the market will be better next year. What should I take into consideration? Do I have to refinance into an investment property since it will not be my primary residence anymore? I intend to rent in NJ for the first year and not buy so is it still considered my primary residence since I will not own another home? Also, do I need new insurance or can I add on to my current homeowners insurance? Thanks in advance.

Answer: You've asked several questions, so I will address each question in order, as follows:

1. What should I take into consideration?: There are too many variables that would affect the decision you, as an individual, would make as to deciding upon whether you would be better off renting your Michigan property or selling it. I suggest you pick your favorite search engine and enter the words "rent+vs+sell" in the search bar. I used Google.com and that search returned Results 1 - 10 of about 1,470,000 for rent+vs+sell. (0.22 seconds). The first two search results are Forbes: Capitalization Rate -- Sell vs. Rent Out Your House and Realty Times: Rent Vs. Sell: Weigh All The Facts Before You Make A .... Both of these are excellent sources of information to point you in the right direction for making your decision.

2. Do I have to refinance into an investment property since it will not be my primary residence anymore?: Access the Michigan Department of Treasury website and then follow the "Contact Treasury."

   After reviewing the FAQs and other data sources, you may simply wish to ask the question of a customer service representative. Normally you would not be required to refinance your property as lenders realize that owners get transferred and other changes occur. However, you will most likely lose the ownership benefits of living in your Michigan property since it will no longer be your primary dwelling.

3. I intend to rent in NJ for the first year and not buy so is it still considered my primary residence since I will not own another home?: Add this question to your list to ask the customer service representative in the Michigan Treasury Department. However, it is not very likely that you can claim it as your primary residence although you will probably be able to keep the exemption in place until December 31, 2005, provided you have rescinded the existing exemption within 90 days of moving to your New Jersey home. Again, you should speak with a customer service representative about this.

4. Also, do I need new insurance or can I add on to my current homeowners insurance?: Contact your insurance agent for the answer to this question. More than likely, once you rent the property you will have only have hazard insurance on it, while in your lease or rental agreement you should require that the renter carry contents insurance and name you as an additional insured.

Question: (CA) We are going to buy the house we are currently renting. Someone told us about something called "time value" that is used to lower the purchase price. What is "time value"?

Answer: We've never heard of the term "time value" except as a reference to the time value in the utilization of money. The person with whom you spoke might have been referring to "sweat equity."

The term "sweat equity" is normally used in association with new construction -- as opposed to existing rental housing, and is offered by groups such as Habitat for Humanity. It is possible that a local housing program in your area or your landlord may offer credit for the time you spend as a renter fixing up or rehabbing your rental property. Your best bet would be to ask the person who told you about "time value" exactly what he or she meant.

Question: (KY relocating to TX) Do the facts that a transfer of real estate and its selling price have to be disclosed in local newspaper? It does in Kentucky. If so, where would one find a transfer of real estate and the selling price for a property in Harris County Texas?

Answer: Texas, unlike Kentucky, is what is often referred to as a "nondisclosure state." That means that only the public, non-private, non-confidential information regarding the conveyance of real estate may be disclosed but is not required to be. Real estate licensees, especially new ones, are sometimes confused about exactly what "nondisclosure" means. In general terms, the reasoning is:

1. Public information is not confidential.

2. The fact that a property sold is public information (deed records).

3. The loan amount, if any, is public information as well.

4. The only issue then is whether the consideration paid above the loan amount for the sale is confidential.

5. Section 1101.804 of the Real Estate License Act permits a broker, without fear of any liability, to provide that information to others for the purposes of facilitating a listing, selling or leasing a property, or financing or appraising a property.

6. Therefore, it is the policy of the State of Texas that this information may be provided because it is necessary for the aforementioned purposes.

However, notice that it "may be provided" by a real estate licensee for the purposes in bolded print in number 5 above. It is not required that the confidential, non-public, private information be provided in any venue by anyone. This information, however, may be required for a real estate licensee to maintain membership in a trade association such as the Multiple Listing Service, but such membership often carries its own rules and regulations concerning the disclosure of such data.

Question: (NY) My grandparents died in the 70's. They left their house to my uncle who still lives there. We are trying to get his paperwork in order. He wants to update his will to leave the house to his nieces. What does it take to transfer the deed from my grandparents name to my uncle's name?

Answer: Was there a will? Was it probated? Similar to a deed, the will operates to transfer title, provided that you comply with New York State law in probating the will. Another will providing for the transfer to the children in the event of death will transfer the title to them. A well drafted, probated will is the best bargain in the world to safeguard one's assets and wishes.

Question: (TX) My parents are giving me an acre of land off of their farm to build a house. According to the recent survey, the common fence between our farm and our neighbor's farm is 9 feet on our property.

The survey company told us that we cannot move the fence line because of some Texas Law that prohibits the moving of a fence line with out a court order. We built and maintain the fence. Our neighbor is an absentee owner. Have you ever heard of this law?

Answer: We know of no law that says that. There are concerns that you not breach the neighbor's security by letting the cows out, for example. However, we could find no statute defining this purported theory you received from the survey company.

Published: September 13, 2005

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.