Question (CA): Which appreciates fastest single family residences or condominiums/townhomes?
Answer: Appreciation of real estate -- whether single-family homes, condominiums/townhomes, commercial shopping centers or any other type of real estate category, is a local market condition that is based upon supply and demand. With residential real estate, the supply and demand metrics are so local that in larger cities one must ask your question comparing the rates of appreciation of single-family to condominiums/townhomes by selecting the variables of time and specific locale. In other words, we can assume you are speaking of current market conditions for supply and demand of the two categories in the General Los Angeles-Riverside-Orange County California area, and the specific locale within that Metro Area of West Covina, CA.
If the supply of single-family homes is greater than the demand for them, the current appreciation figures will tend to be a flat line or even declining. The same is true for condos/townhomes. However, if -- in either one of the subject categories, the demand outpaces the supply then the appreciation applicable to that category will show a marked incline if you chart it.
These market metrics are a moving target and are affected by existing residential sales as to number of units sold in each category, days on the market, percent of Asking Price vs. Sales Price, available competing new construction, and other elements that - when combined, provide a snap shot of relative supply vs. demand in current market metrics for that specific locale.
We recommend that you employ a local Realtor who is trained professionally to obtain and track such metrics as they are reported to the appropriate MLSs.
Question (CT): In 1994, my mother and father quit claimed their home to me and my two sisters, with both of them retaining a life interest in the home. My dad has since passed away. In 2004, my Mom became disabled, and we sold her house in 2005 so that she could move to elderly housing. She lived in the home all of her life, paid the taxes, insurance, utilities, etc. My sisters and I paid nothing. In 2005, we sold the house for $100,000 and split the net profits three ways. I'm assuming all three of us owe capital gains on our share of the profits.
If I buy property in 2006, can I avoid capital gains? I will also be selling my primary residence (a condo) in 2006. I believe these gains are exempt. Can you help please?
Answer: Since the home you sold was not your "main home" it would appear that you do owe a capital gains tax. However, you should obtain the advice of a tax professional that will look at your entire financial picture.
As to your other questions, we recommend you obtain and read Publication 523, "Selling Your Home." Provided you have occupied your condo as your main home for two of the last five years ending on the date of the sale, and have met the ownership and use tests, you can exclude up to $250,000 of the Capital Gains if filing singly, or $500,000 if married and filing jointly. When you purchase another property, you can exclude the same amounts from its sale subject to the same exclusion provisions in place at the time of its sale, assuming the tax laws have not changed.
Question (GA): We have an unusual situation and we don’t know whom to turn to for advice. Our home is situated in a rapidly growing suburb of Atlanta, GA. While our home is part of the subdivision, it faces a busy two-lane road that has developed into a major thoroughfare, which, we understand, will be widened in ten years.
Our home sits between five residential homes that fall within the subdivision, followed by approximately seven other homes, not a part of the subdivision. Except for the few homes facing the major thoroughfare, the majority of homes in our subdivision are situated off the thoroughfare, and behind our house. Commercial development (allowed through county rezoning) is all around us. We realize that eventually our land will be rezoned, even though it falls within the subdivision. Our home and the surrounding homes (both on our street and in the subdivision) fall within the $250,000 to $500,000 range.
We are nearing retirement age, although we have a substantial mortgage on this house. When we bought this home, we realized we would relocate upon retirement. Given current developments, we are concerned about protecting our investment. It is our understanding that when residential property is rezoned for commercial development, the value of the land increases. Should we have our home appraised now, so that we have documented evidence of the fair market value before rezoning occurs? If so, who should do these appraisals? What steps should we take now, and to whom should we look to for guidance?
Answer: Why do you think you would need documented evidence as to the Fair Market Value of your home before rezoning from residential to commercial, assuming it actually will be rezoned?
Should you want an appraisal after you receive notice from the county regarding the rezoning, you should have adequate time from the date you receive notice from your zoning commission to obtain an Appraisal.
We believe you should consult a real estate professional licensed by the Georgia Real Estate Commission when you decide to market your home. You can access the Georgia Real Estate Commission and Georgia Real Estate Appraisers Board by clicking here .
Question (IL): I own a 6 flat building that is in a development with a condominium association. I have served as a board member of the association and have been active for over ten years in aiding the board to improve the area. I also worked closely with the Sheriff's department for improvements. I also served on the neighborhood improvement committee.
While I was serving on the board of the association, I did not agree nor support the views of one of the board members who controlled the majority of the owners who voted. Consequently, I was not re-elected to the board.
Then the problems started. They would not change my mailing address and I was not receiving any notices. When I called this board member (the only one I could reach by phone) and asked him when the annual owners meeting would be, I was informed that it had already been held. I asked why I did not receive a notice and the reply was that notices were sent out. This comment was followed up with a question as to why I was not paying my association dues. I replied that I had faithfully sent in the payments at the beginning of every month and to check with the association manager as to what happened to those payments. He told me that he would.
Three months later I received a call from the association manager inquiring about my payments. I told him that I was sending them in and that I could not help the fact that he is not cashing them. I followed the conversation up with a letter to the president of the association requesting a detailed accounting of my account.
I never received a reply nor were my telephone calls to him answered. Two months later I received a letter from my trust that the association was going to institute legal proceedings against me (30 day demand notice). I contacted their attorney and tried to resolve the issue. I specified that I had attempted on several occasions to resolve the issue but that the association chose not to respond to my correspondence. I also stated that I had been sending in my checks every month but that they had not been cashed even when I sent them to the president by registered mail. In my final letter to their attorney I stated that since they are not communicating with me and not accepting payment from me, I did not feel obligated to make any more payments to them and I rescind my association with them (withdraw from the association). I heard nothing from them for over 18 months and then they finally filed a forcible entry against me for non payment.
I noticed that you have cited in several of your responses the legal doctrine called "laches." Would this apply here also? Would the 18 month time serve as proof that they accepted my withdrawal from the association by neglecting to take timely action?
Answer: First and foremost, you should hire an attorney to represent you. To assert your rights, to whatever extent they can be asserted, will almost certainly require a court hearing with competent counsel representing you.
As for our use of the term "laches" in a previous column, that was specific to the contents of the email message which that reader sent to us, and may or may not have any application to your situation. Thus, we made our recommendation that you hire an attorney capable of dealing with your rights and responsibilities as an Illinois HOA member.
As a matter of information only, and not to be mistakenly construed as offering any legal advice or opinion, "Laches" is defined by the Lectric Law Library as:
"LACHES, DOCTRINE OF -- Based on the maxim that equity aids the vigilant and not those who procrastinate regarding their rights; Neglect to assert a right or claim that, together with lapse of time and other circumstances, prejudices an adverse party. Neglecting to do what should or could, have been done to assert a claim or right for an unreasonable and unjustified time causing disadvantage to another.
Laches is similar to 'statute of limitations' except is equitable rather than statutory and is a common affirmative defense raised in civil actions.
Laches is derived from the French 'lecher' and is nearly synonymous with negligence.
In general, when a party has been guilty of laches in enforcing his right by great delay and lapse of time, this circumstance will at common law prejudice and sometimes operate in bar of a remedy which is discretionary for the court to afford. In courts of equity delay will also generally be prejudicial.
But laches may be excused from ignorance of the party's rights; from the obscurity of the transaction; by the pendency of a suit, and; where the party labors under a legal disability, as insanity, infancy and the like."
