Question: (FL) What is the meaning of a 72 hour kickout clause?

Answer: A 72-hour kickout clause means that a qualified buyer with no contingencies, a "second buyer," can cause the first buyer to legally withdraw his contract (i.e. with the seller's agreement) if the first buyer cannot remove the Sale of Other Real Property contingency in the existing Contract for Purchase.

Question: (MA) My aunt, who is 82 years old, is moving to Assisted Living. She is selling her condominium. She would like me to advertise it and show it to potential buyers. If someone was interested in buying it, they would call her nephew, who is an Attorney and also has a Broker's License.

My question is: Can I show the condo to potential buyers, if technically I am not the owner and do not have a Real Estate License? I would not be involved with negotiations or paperwork, just literally showing the condo. I live in the same complex so I am very familiar with the building. I live in Massachusetts and was not sure if this was ok to do.

Answer: The definition of "real estate broker" in Massachusetts is:

"Chapter 112, Section 87PP. Definitions. "Real estate broker," hereinafter referred to as broker, any person who for another person and for a fee, commission or other valuable consideration, or with the intention or in the expectation or upon the promise of receiving or collecting a fee, commission or other valuable consideration, does any of the following: sells, exchanges, purchases, rents or leases, or negotiates, or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of any real estate, or lists or offers, attempts or agrees to list any real estate, or buys or offers to buy, sells or offers to sell or otherwise deals in options on real estate, or advertises or holds himself out as engaged in the business of selling, exchanging, purchasing, renting or leasing real estate, or assists or directs in the procuring of prospects or the negotiation or completion of any agreement or transaction which results or is intended to result in the sale, exchange, purchase, leasing or renting of any real estate."

So, provided you are not holding yourself out to be a real estate licensee and are not advertising or showing your aunt's property ("for another person") "for a fee, commission, or other valuable consideration" (valuable consideration includes anything that has value including, but not limited to, money, rebates, discounts, etc. etc.), then it is ok. You should probably disclose, although you are not required to, the fact that you are her nephew and because you live in the same complex and have access to her condo you are showing her property. You can answer any questions regarding her condo since you are not holding yourself out to be a real estate licensee, but you and her other nephew who is an attorney and who holds a broker's license should probably work out the procedure for handling the paperwork and required disclosures.

Question: I have recently received about 180,000 dollars in cash. I am looking to buy my first home in Detroit. I am completely clueless to the whole real estate process. What I would like to know is will I get a better deal on the house because I am paying with cash and will my closing cost be less than it would if I were obtaining a mortgage. Any other advice that you can give me will be much appreciated!

Answer: Yes. When you pay all-cash for a real estate purchase, instead of financing the purchase with a mortgage loan, you do not pay the costs normally associated with obtaining the loan. Costs such as Points, lender and mortgage broker/banker fees, lien filing fees, credit application and other processing fees, plus required escrow deposits may total approximately $4,000 on an $180,000 home located in Texas. That compares to approximately $500 (in Texas) for an all-cash purchase. We are assuming those rough numbers will also approximate Michigan closing costs.

Real estate commissions are usually paid by the Seller, so you probably will not have to deal with commissions. However, we do recommend that you hire a competent, experienced real estate agent to represent your interests in the transaction. Interview at least three agents with three different firms and ask as many questions of them as necessary to establish your comfort level with how you get along with each other, to satisfy your desire to have an experienced agent who will deliver the level of service to you that you want, and who can and will provide a list of references that include at least three good references and at least two "less than perfect" references.

It is important to remember, however, that to the seller every real estate transaction is an "all-cash" deal because the seller receives the same proceeds regardless as to whether the buyer pays all-cash or finances the purchase with a mortgage loan. A cash purchase in which the buyer "proves" the availability of funds to the seller, however, may be viewed as a more reliable transaction by the seller since it is not contingent upon the lender making the loan, and that might have some limited value.

We strongly recommend that you consult with a competent, professional financial expert that is capable of making recommendations that take into consideration your complete financial picture. It might be that the additional costs associated with financing the majority or a portion of your home purchase makes sense when viewed relative to your complete financial picture.

Question: I am interested in the investment of the duplex property in New Jersey. With the interest rate going backing up, will it be a safe investment?

Answer: Usually, if one must ask if a particular real estate investment is "safe" it should not be made. There is always the risk of loss regardless of the type of an investment. The safest, most risk-free investment is a U.S. Treasury Bill, an FDIC insured savings account, or a federally insured account in a federally insured institution. However, as with any investment that offers a lesser degree of risk, it also offers a lower rate of return.

That said, should you still wish to make an investment in a duplex, we suggest you retain a realtor to provide you with a rental market analysis of your area. The fact is that regardless of what the interest rate is if the rental market in an area is flat or declining, you will have greater difficulty in renting and will have to offer more move-in incentives to tenants. The cost of money (that is the function that interest rates bring to bear) in combination with other operating expenses, determines how much profit a landlord can make. You should be able to make a better rate of return than you could make on a Treasury Bill else why bother with the duplex? If the duplex appreciates in value, then the appreciation is added gravy. However, if it stays the same or even loses value, then you still have a rate of return that is better than a Treasury Bill.