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2

It is not unheard of to have a delayed move out with rent being paid the occupancy time frame. A standard rental agreement would be put in place for the rental period. The rental fee should be sufficient to cover homeowners' insurance, mortgage payment, taxes, any HOA fees, and some amount of profit. An escrow account should be funded to be released pending ...


32

Is there any shady reason why the seller would use this strategy? The seller has a reason for staying for many months and they want to get out of ownership now. If I was presented with a counter-offer like this I would worry that the seller has inside knowledge of something. They know that the city is going to seize the property for a big project, or that ...


9

It's not unheard of to charge rent during a closing period, but 12 months is a LONG time. It's a year of potential missed rent payments, and 12 months of "wear and tear" that the seller is no longer concerned about. I would back out just because of that, not because of the rent arrangement. Lots of houses will come on the market in the next 12 ...


10

This is not risky, or dishonest. It is known as a contingency. Your relative is free to back out of this deal if it does not work for him. Although not common, basically your relation is buying a home and becoming a landlord for a period of time. A similar situation would occur if they were buying a home that was rented to a tenant with a lease in place. ...


1

I think I get your question, and in short would say that yes, you'll likely capture additional "savings" by having a lower property tax basis if you represent yourself or negotiate lower fees. Quick context: I just purchased my first property and used one agent as dual-representation. Hypothetical "normal" residential real estate ...


0

I will hook onto this consideration: "in a worse neighbourhood". This is a legitimate concern. In the United States, for a variety of historical path-dependent reasons, there are known residential zipcodes (with lower per-square-foot costs) close to polluting industries with lower average life expectancy and/or higher incidences of conditions ...


0

You are misunderstanding how it works. The listing or sale price doesn't include any of the fees. Those will all be figured out later based on how the contract is worked out and which escrow company is used. Property tax will be based on the sale price only. If you reside in the house, you can apply for a homestead exemption which will slightly reduce the ...


0

Always make sure that you are there for a walk through. That is their opportunity to point out problems, and if they are an easy fix then they generally will give you 5 minutes to make the fix. New jersey law There are steps you can take to prevent a landlord from charging you for ordinary wear and tear, cleaning, or painting. Before you move out, ask the ...


2

New Jersey law seems pretty clear that landlords can only charge for things in excess of "ordinary wear and tear". The landlord can only charge you for property damage that is more than ordinary wear and tear. Ordinary wear and tear means damage that takes place from the normal, careful use of the property. Examples of normal wear and tear are ...


1

My suggestion is this:Ask the current seller to produce the document that vests with the owner the right to receive 'payment for gas mineral rights'. The seller can not say she does not have. A careful study of the document that has granted the right of payment to the owner, will help you understand the right to receive payment for mineral rights. If such a ...


4

I have no mineral rights experience but after skimming the Wikipedia article, it appears that you're describing a severed/split estate. Without knowing the local laws of where you're looking to buy, it seems reasonable that the mineral rights would be part of the owners estate and will be passed on to their heirs. To get more clarity in this specific ...


2

I once saw a similar question and tried to find it but can't; the short answer given there was that unless you enjoy being a landlord, stocks would be the better way to go. A few years back I went the real estate route and after all the expenses, the headache of finding renters when the apartment was vacated, repairs etc, an index find would probably have ...


2

Real estate is a legitimate business but you should go into it with deliberate intention. There will be taxes to manage, proper insurance put in place, renters to deal with, and the property to manage. You may want to outsource some of those but they will cut into your profitability. And that is if you pay for the property with cash. Once you add leverage ...


0

Well, the long-term personal capital gains tax rate is only 20% but is expected in the future to be returned by legislation to the income tax rate. The real estate would likely be sold, or transferred to an LLC, before higher capital gains taxes are put in place. Then the LLC would have the option of being taxed as a corporation with corporate tax rates not ...


3

Regarding being overseas and not being able to count it as your principal residence. I know there are special rules for active duty military who are stationed overseas. I think there might be a program for some other US government employees stationed overseas such as the US State Department. Other than that I don't believe that your choice of deciding to ...


5

The amount you are putting as a down-payment is between you and your lender. The seller would only be concerned if the decision to lower the amount of the down-payment would impact your ability to get the loan, and closing could be delayed or canceled. At the beginning of the negotiation for the house you did offer to pay a deposit, which was to show you ...


54

I cannot afford a lawyer unless I recover some of the money. That is why many lawyers work on contingency. If you bring them the makings of a strong case, they might represent you in exchange for a share of the payment, only if you win. So doing an initial consultation with a lawyer and showing whatever documentation you have, what you remember, what you ...


0

The arguments quoted in the question have always seemed to me silly beyond belief. Fundamentally - there is no way to make money by throwing away money and using the tax system to get more money than you threw away. To give a numerical example: if the taxpayer buys something for $1,000 - the absolutely best case scenario is that the tax system in which he ...


1

When a company buys property, can it reduce tax to the point of achieving a net gain? That makes no sense. It would indicate reducing the tax MORE than you have to pay (hence net gain). This is not the goal. The goal is that INSTEAD of paying taxes, you get property. Even without net gain - this will possibly appreciate (investment) or generate revenue ...


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