Question: We made a bid on a short sale deal. Our bid was the only one on the table and suddenly another bid is submitted by the listing agent and accepted immediately. Now there's an agreement and closing date. Weren't we entitled to a response on our bid by the bank/seller? Did the seller/bank have a duty to accept, counter or reject our offer? Can they just ignore us and keep our good faith check (it was not cashed).

Answer: A seller has no obligation to accept, counter or reject an offer. To understand why, just consider what you did: You made an "offer."

What really happens with real estate is that sellers say, "My home may be available for sale, so bring in your offer." In effect, your offer is a bid.

Even a full-price bid need not be accepted -- although a seller may owe a real estate commission if a broker has fulfilled the requirements of a listing agreement.

As to your check, if it's not returned automatically, just ask the listing broker and it will be sent back immediately.

Question: Agents sometimes use other agents' photos from an expired listing instead of taking their own photos. Some even use the same text! What are your thoughts on this practice?

Answer: In the case of a property which has been re-listed, the use of an earlier lister's photos and text is a woeful idea. Why? The property didn't sell. It may well be that the photos and text used by broker #1 actually drove away prospects. It may also be that better photos and better text would represent a better shot at reeling in a buyer.

As well, if I were the owner I would want something different than what I got with the first broker. Simply as a way to be distinctive, to stand out, the new listing broker would be wise to take new photos and write a new property description.

Question: I would like to get started with rental properties. How and where can I look for good advice? I've read some books and think I've got a plan but I want more info. Also a co-worker and I are thinking about doing this together as a business. Any advice on that subject?

Answer: Given the localized nature of real estate, your best approach is to speak with nearby real estate brokers who handle and manage rental properties. When you find someone who is a comfortable fit, you can then go further.

As for going into business with a co-worker, that's fine -- as long as you have a written agreement that addresses such issues as organization (partnership, LLC, corporation, etc.), responsibilities, taxes, obligations, arbitration and so forth. This sounds terribly dull -- until you have a disagreement. See an attorney for details.

Question: I'm selling my house which is paid in full and the buyers have some credit trouble. They have tried VA financing, but our house has some remodeling going on and when the contract was written we were going to have to pay the $3,500 closing cost. They have now changed to conventional financing after the contract was signed and now my broker tells me we still have to pay the closing cost. Since they changed from VA to conventional after the contract was signed, why do we have to pay the closing cost now, shouldn't they or was this a ploy to get us to have to pay it?

Answer: You need to review the sale agreement. Typically it provides that the buyer is required to contact lenders within so many days and apply for financing. There is usually a cap on interest and points and because of certain requirements FHA and VA loans are usually identified.

However, buyers may also have a right to seek alternative financing. As a seller, you want buyers to search for whatever financing they can get to close the deal.

The closing costs are a separate matter. You would have been happy to pay those costs with VA financing, so why not with another loan format? The net result to you is the same.

For specifics, have an attorney review the actual agreement to see if it requires you to pay closing costs.

Question: My broker scheduled an open house for my property. It was handled poorly in every way. The ad came out in the newspaper the day after the open house was scheduled, they did not post an open house sign in the yard, and to top it off the person they sent to show the house was not even licensed nor did they work for the brokerage.

My question is: Can they send a non-licensed person out to show my home during the open house?

Answer: In most jurisdictions the tasks of assistants without a realty license are extremely limited. In some areas, for example, you might have an unlicensed assistant act as a host or hostess at an open house, give out brochures or install "open house" signs -- but all real estate questions must be addressed by a licensee.

In Michigan , for example, assistants may not "independently hold open houses for brokers." In Kentucky , the approach is somewhat different: "An unlicensed assistant may host an open house -- which includes distributing literature, greeting guests, procuring signatures on a sign-in sheet and serving refreshments -- so long as the seller or lessor agrees to this in writing and the supervising licensee directs the assistant to hold the open house in his or her stead. This regulation allows the personal assistant to do certain specific activities but does not in any way allow the assistant to show the property or to answer any questions about the property. Any and all questions should be directed to the licensee and only the licensee can actually show the property to prospective purchasers or lessees."

You need to see what real estate duties are permitted by assistants in your jurisdiction. Your real estate regulators can provide information, but first you may want to discuss the matter with the broker. He may want to hold another open house, one staffed by a licensee. After all, an unsold home is worthless to him.

Question: I entered into a contract to buy a home but the seller decided he could get a better price than we'd agreed to and unilaterally canceled. I do not want to withdraw from the agreement. He initialed both the mediation and arbitration clauses in the contract. How do I proceed if he is not cooperating?

Answer: Do you have a contract or not? If you have a contract then both parties have certain obligations. If you have a conditional agreement, one with various escape clauses for one side or both, then it may be possible for either party to end the agreement.

Your choices are that either you can give up the property or you can see if the agreement is enforceable. To find out what you have, you will need an attorney to read the actual agreement. Starting mediation or arbitration should be simple and quick.

Question: I recently had a fire in my apartment due to faulty wiring. After I moved to another apartment I did not receive my deposits back. What can I do?

Answer: Most states have strict rules regarding deposits. Typically such money must be held in an "escrow" or trust account that's separate from the owner's funds. Owners may be able to keep some or all of the deposit if the property has been damaged by a tenant.

State rules may require that you have an opportunity to dispute deposit claims and that your money is returned within a given period, say 30 days. The local housing office can provide information.

Question: If all the questions on the seller's disclosure pages have not been answered should we, the buyers, still sign the form?

Answer: I'm not sure all the questions on a seller's disclosure form can be answered. One state, for instance, has asked sellers if there were "any substances, materials, or environmental hazards (including but not limited to asbestos, radon gas, lead-based paint, underground storage tanks, or other contamination) on or affecting the property?"

How can a seller possibly answer this question? It requires a knowledge of other properties, knowledge which is typically inaccessible to sellers.

As well, the value of seller disclosures is grossly overblown. Simply put, in good faith, sellers may not know much about the mechanics of their property. How, for instance, can they know if the roof leaks when they have not been in the attic in years?

If you have concerns about the condition of the property, why not require a professional home inspection that must be "satisfactory" to you?

Question: I recently refinanced my FHA mortgage. We quickly reacted to all requests for information from us by the mortgage company. The application and all requirements submitted early enough to originally plan to close as early as on or about the 22nd of the month to avoid another full month's interest. Our loan was actually paid the next month and we were charged an extra full month of interest.

What can we do? How can we complain?

Answer: Usually interest is pro-rated over a month, but not under the FHA program.

When did the lender get investor funds? That may have delayed the pay-off, and it would be something beyond the control of the lender.

As to complaining about lenders, complain to whom? If lenders were well regulated no one would be paying 20+ percent on credit cards.

Question: Can somebody help me really understand "Consumer Price Index"? Give me a good analogy or something.

Answer: Imagine that you bought a basket full of groceries in 2001. The cost was $100. Imagine buying a basket of the same groceries in 2005. The cost in 2005 would be $113.41 according to the Bureau of Labor Statistics' online calculator .

In general terms, the consumer price index shows how prices have changed since a base year. In effect, it really is a measure of the changing buying power of money. With our groceries, for example, the items in our basket stayed the same but cash bought less -- thus it took more dollars to buy that basket.

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