Question: I own a triplex in California. I want to share this building with my sister. I originally owned the building with my father who passed away and left me his portion. Can I quit claim a portion of the property to my sister without triggering a gift tax or increase in property tax. I thought about just quit claiming the building over to an LLC first with me as 100% owner. This should not trigger a tax because I am the sole owner. Then I was going to make my sister an equal member/partner of the LLC.

What do you suggest?

Answer: The terms "quit claiming," "LLC" and "no tax" are red flags waving in the sun. What you propose may or may not be possible, but you will need proper paperwork and a full understanding of the consequences of your plan. For instance, what if you and your sister have a falling out? What if one of you goes bankrupt? What about the rights of any current or future spouses? Could you face a gift tax? Please do nothing until you have spoken with a qualified attorney and tax professional.

Question: I'm having trouble getting a copy of a seven-year old survey of my commercial property from the surveyor. He says the surveyor owns the file. I say because we paid several thousand dollars for the survey, we own it.

What's your opinion?

Answer: It used to be that consumers could not get a copy of their own credit report because credit reporting agencies claimed that they owned the data. Now you can go to AnnualCreditReport.com and get three free credit reports every 12 months, one from each of the major credit reporting agencies.

Why would anyone order a survey if they could not use the data as they wished? Please contact the state regulator that licenses surveyors and ask if they have any rules regarding your rights in this matter. Also, ask the closing agent and title company if they have copies of the document.

That said, the surveyor may well be on good grounds charging a modest clerical fee to dig up paperwork which is seven years old.

Question: I sure hope you can help me. I am a broker and business is slow! And honestly, I have lost my momentum. I don't feel like my work makes a difference anymore. So, one plus one equals how about if I give a portion of my commissions to the non-profit of my client's choice? Immediately I was concerned of the possibility this would be seen as paying a referral fee to a non licensed person. So, I saw a lawyer to figure out how to make this work. He told me to do some research and see if others were out there doing this.

Answer: Ask your state regulator if you're allowed to offer rebates to clients. If yes, then offer a rebate which clients may use as they elect. If they want to make a charitable contribution, then great. If not, that's their decision.

Question: My ex fiance and I bought a house together 18 months ago. He has now left. Due to his bad credit at the time we bought my name is the only name on the loan, however because we got engaged his name was put on the title. He is now refusing to sign over his portion of interest in the house to me unless I promise not to get child support from him. He will not accept that these are two different transactions. Is he responsible for the mortgage, taxes and insurance as long as his name is on the title? How can I enforce this, since we were not married?

Answer: You will likely have to go to court to get both child support and a judge's order of partition, a requirement to either sell the house or to sell his interest to you. Please see an attorney for details.

Question: Can a landlord get insurance coverage for the loss of income if a tenant moves out at midnight and is nowhere to be found?

Answer: Landlord insurance policies often have a clause regarding "rental loss insurance" which compensates the owner for lost rent caused by damage or destruction. There are limits and deductibles, of course, but such a clause would not simply cover lost income in the situation you describe.

In general terms, if the tenant damaged the property -- say by setting a fire -- then the owner would be entitled to coverage for damage to the property and possibly for lost rent because the property would not be habitable or productive. However, if a tenant just walks away there is no damage or destruction and the property is entirely habitable. For specifics, speak with your insurance broker.

Question: How long after signing a seller disclosure form can a suit be filed? I have now been out of my residence for two years and was previously threatened with a law suit over a statement I made on the form. After some advice from you that proved to be excellent, I have heard nothing more regarding a suit being file against me.

Answer: Thank you. In answer to your question, the period for filing a suit is determined by the state and state rules differ. For specifics, you'll need to ask a legal clinic or attorney.

Question: Do you believe the realty market will remain a buyers market well into next year?

Answer: The "real estate marketplace" is actually a collection of thousands of micro markets nationwide. While I do not have a crystal ball -- and for what it may be worth -- my sense is that we will see a buyers market in most areas through the rest of the year, but not in all areas. The reason is that we have a huge backlog of localized foreclosures and properties held by distressed homeowners that need to be absorbed before local markets can return to equilibrium. As well, we also need to consider such factors as interest rates, inflation, local unemployment levels, the federal deficit and our balance of payments with other countries.

Question: My father-in-law is 87-years-old and has become very ill. In order to receive Medicaid he would like to quitclaim his home to my husband and I. My concern is: What will be our responsibility for this transaction? My father-in-law has a living trust and in the trust he stipulates that when he passes he would like my brother-in-law, who is disabled, to remain in the home until his death or the sale of the property. Would we legally own the home and be able to do what we want with it or can he quick deed it to us and still keep his stipulations.

Answer: Your plan, if possible, could set off a host of expensive tax issues and other problems. Your father needs to immediately speak with an attorney who specializes in elder law. Under Medicaid rules states have a right to "look back" for major gifts made five years before someone uses the system. Those gifts, in turn, can impact the availability of benefits.

As to your brother, perhaps it's possible to have the father create a life estate for the brother -- and after the brother's passing the property will then go to you or your children.

Question: What's a savvy way to find a good agent in my area?

Answer: There are several well-tested approaches:

First, word of mouth. Consider the recent experience of other buyers and sellers in the immediate area.

Second, recommendations. Who do local professionals, such as attorneys, lenders and CPAs, use and recommend.

Third, listing presentations. Invite several brokers to your home. Let them discuss the local market, the fair market value of your home and how they would market your property if they got the listing.

Lastly, look at the local brokers who post market data on RealtyTimes. You can learn a lot from such postings and perhaps spot a broker with whom you would like to work.

Question: Does Washington's economic stimulus package affect me if I live in a moderately-priced state such as Nebraska?

Answer: Yes. First, you will be entitled to a check in May ranging from $300 to $1,200. Those checks will go further in areas with less expensive homes and other costs.

Second, like the rest of the country you will face higher future taxes because the entire $168 billion cost of the stimulus package is being borrowed.

Question: What's a "REO" property?

Answer: When a property goes to foreclosure there's an effort to sell it at auction for as much as possible. The lender will typically bid a given amount, usually the value of the loan balance but less in some markets. If no one makes a better bid, then the lender winds up with title to the property. Once the lender has title, the property is called a "REO" -- an expression which means "real estate owned" by the lender.

Question: I won't be able to buy for several months, but as I save up I've noticed the same house on the MLS for almost six months now, with the price just recently reduced. It looks to be in a great neighborhood and in good shape. Why isn't it selling?

Answer: There is no universal reason why a home does not sell. Some of the typical causes might include unrealistic pricing, poor condition, weak location, a stalled general market, an unwillingness to negotiate in a buyers market and difficult requirements such as a quick closing date or a massive down payment. As a buyer you want to look for such properties since they may suggest an owner willing to bargain as the home remains on the market month after month.

Question: What is curb appeal? I hear this term mentioned on TV all the time.

Answer: There's a huge visual component to buying a home. We don't simply want a given number of bedrooms and baths, we want a house that looks attractive from the outside. That look from the outside, what you can see as you drive by, is curb appeal.

Have a real estate question? Send your inquiry to Ask Realty Times. 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. For past columns, please press Ask Realty Times.

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 21, 2008

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Have a real estate question for Realty Times? Wondering about buying, selling, financing, refinancing or renting? Here's where you can send your question to Peter G. Miller, OurBroker®, a nationally-known columnist, author and reporter. Peter G. Miller has written six books -- including The Common-Sense Mortgage -- a guide with hundreds of thousands of copies in print. Miller was the original creator and host of America Online's Real Estate Center and joined Realty Times in 1998. Send your questions to . Because of the volume of mail received, individual questions cannot be answered privately and not all questions can be used. Published letters may be edited for space and style and all letters become the property of Realty Times upon receipt.