Question: I own three duplexes. I have three vacant units and three in need of repairs. The present income is $17,500, of which I net $10,000. There are no mortgages. I have been offered $300,000 -- which is $40,000 less than the tax value. Single renovated homes in area bring in $178,000. Based on the present income, and if I repair other units -- future income, what would be considered a fair price for these properties?

Answer: Your properties are not renovated and thus do not compare with properties that have been fixed up. You have duplexes and not single-family homes and each type of housing may have entirely different market demand. You have a 50-percent vacancy rate, which is not good. You have interested buyers, which may or may not be good, depending on what they're willing to pay -- and what the properties are really worth.

You're best served by speaking with local brokers who specialize in small investment properties. You need to get a conservative estimate of value for the properties as they currently exist, after renovation and if fully leased. You also need to consider the local rental market and what returns you might reasonably expect with renovation. Armed with local and current information you should be able to make a good choice.

Question: My wife and I are purchasing a condo. We were scheduled to close a day after the sellers, but were unable to because the lender did not complete the loan docs. However, the sellers turned the gas and electricity off the day we were scheduled to close. This was before a weekend, with cold, snowy nights, and the utilities were off for several days. The broker told us the sellers did not have to leave the utilities on after we did our final "walk-through?" Do you agree?

Answer: When you buy a property it must be delivered to you at closing in substantially the same condition as it was on the day the offer was accepted, perhaps 30 to 60 days earlier.

It's common for closing dates to change. For sellers, the best approach is to keep utilities on until title actually changes hands because the cost of utilities for a few additional days is minimal and the potential for damage in some climates can be large.

If there's damage to the property as a result of discontinued utilities then you should ask an attorney to review the matter. Also, be sure to test all appliances and systems at the pre-settlement walk-though. If the utilities are not on you have no way to know if appliances and systems work or if something is leaking. In this situation it may be prudent to require the establishment of an escrow fund at closing, money that will not be released to the seller until all systems and appliances can be tested and shown to be in working order.

Question: My sister suffers from epilepsy. She cannot obtain a driver's license, and severity of her seizures has brought on a learning disability that has made it almost impossible to find even a median income paying job. She has been receiving assistance through SSI but it not enough to pay a mortgage.

Her husband is also disabled. He was born legally blind, and has severe arthritis in his ankle from a previous injury that prevents him from being on his feet for very long. He too, has not been able to find a job that pays enough to cover a mortgage. He is also collecting SSI but it's not enough to cover the expense of even a small home.

Although the both of them, by combining their efforts, are able to maintain a home, they fear that because of their disabilities they will never be able to afford a home. Are you aware of any active programs available for my sister and brother-in-law?

Answer: You're trying to do a decent and generous act and that should be commended.

What's really needed here is a some form of subsidized housing or mortgage financing. Happily, there are such programs.

On the public side contact the state housing office or the nearest HUD office. HUD provides grants to public housing authorities and may be able to suggest an appropriate program.

On the private side, contact the nearest chapter of Habitat for Humanity . Look into the Home Choice mortgage program. Also, see if there's help available from the Technical Assistance Collaborative.

Lastly, contact the local chapter of the National Association of Home Builders. There may well be members who either construct new homes for those with disabilities or who can direct you to programs that may be helpful.

Question: I own a house that I've rented out for 11 years. I have been living in it for more than two years. I'm married, but I am the only one on the title. My sister is married now. She needs a house. Can I just give the house to my sister by transferring the title to her. Is there a way to pay less tax or no tax at all when I let my sister have the house.

Answer: Is the house now financed? If yes, any title change would require you to get a release from the lender or to refinance the property.

In terms of avoiding a property transfer tax, that's sometimes possible when title is provided in exchange for "good" consideration -- love and affection.

If you have lived in the property for two of the past five years and sold you would benefit from the residential resale capital gains rule which would allow you to shelter up to $500,000 if married and $250,000 if single.

If you give the property to your sister as a gift you would want to file an IRS Form 709 to properly record the transaction. The gift would count toward your lifetime gift allowance.

Or ...

Sell the property to your sister for its fair market value. Take back the financing. Instead of one loan, have a series of loans valued at $24,000. You and your wife could then forgive one loan each year as a non-taxable gift ($12,000 from you and $12,000 from your wife). If your sister is married try loans valued at $48,000 ($12,000 from you to your sister, $12,000 from you to your sister's husband, etc.).

As always, do nothing until you have first spoken with a real estate attorney and a tax professional.

Question: I became a realty agent last spring. Unfortunately, I didn't close any transactions (too bad, meaning no income) although I tried so hard and spent a lot. This was just my part-time job. Can I claim any tax deduction for my spending, such as advertising, lock box and key, mileage, computer etc?

Answer: The IRS explains that "business expenses are the costs of carrying on a trade or business and they are usually deductible if the business is operated to make a profit."

You spent time and money in an effort to profit from the provision of real estate services. This is plainly a business activity and your associated costs can be shown on Schedule C. In addition to the costs mentioned in your question, ask if you can deduct the expense of a license, the exclusive use of a home office, etc.

For details, see IRS Publication 535 , Business Expenses and speak with a tax professional.

Question: We purchased several acres about a month ago and some of the acreage is fenced. We are now finding that some property isn't ours but is fenced into our yard. The original owners did not take care of the property. The property in question also has a small building that appeared to be someone's workshop at one time. We don't have access to it because it is padlocked. Can we claim title to this land through eminent domain?

Answer: Eminent domain typically means that a property has been used openly, notorious and continuously for a given period, say 10 or 20 years. Had the original owners taken care of the property, used the building or done something to suggest continuous use you probably would have a better claim.

For specifics in your jurisdiction, speak with a local real estate attorney.

Question: My husband and I contracted with a broker to list a property. The term of the listing was six months. The broker has relisted our property for sale on an online website after the six-month period has expired. If we were to sell this property on our own, what would happen? We did not agree for the broker to try and sell it after six months.

Answer: It may be that an online site has yet to clean up old listings, but that does not mean the home is currently listed.

A broker must have authority to market a property and to act as your agent. That authority is typically in the form of a written listing agreement. If the agreement is for six months and has not been extended, then that's it, it's over.

However, if you now want to sell the property on your own be aware that the listing may entitle the broker to a "protection period;" that is, a period of time during which the broker would be entitled to a fee if someone who saw the property during the listing term ultimately buys.

Why not speak with the broker to find out what's really happening here. There appears to be a misunderstanding.

Question: I want to sell my home myself but also want to list on MLS. How do I do this?

Answer: MLS systems are typically owned by members, thus to appear on the system you would have to list with a broker member.

Think of it this way: Suppose you want to sell hubcaps at a shopping mall. You can't just set up shop, you have to pay to use the mall owner's facilities and services. The same concept is true with an MLS.

Many MLS systems today will accept an "exclusive agency" listing agreement which would allow you to list with a broker and to sell directly. For details, speak with local brokers .

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