Hiring a professional home inspector and conducting a final walk-through before closing on a house will protect you from surprises in case the seller fails to disclose problems with the house. Most states have seller disclosure laws, but hiring a home inspector will further protect the home buyer from any surprises. The home inspector will walk-through the entire home and make sure the seller has disclosed every bit of damage and give an estimate on repairs, so the buyer knows what to expect before closing the sale.
If you inherit a home, you would pay tax on the difference between the value of the home at the time the owner died and the sales price of the home when you sold it. You know the sales price for the home, but you may or may not know the value of the home at the time the owner died. Generally, if the property is sold within a year of the time of death, that sales price is a good indication of the value of the home.
Homes used as rental property are considered investment property by the IRS. As an investment property, you can either pay the taxes owed upon sale of the property, or defer the payment of real estate taxes due upon the sale. If you choose to defer the taxes you owe, you'd utilize Section 1031 of the Internal Revenue Code.
In simple terms, a quitclaim deed transfers any interest a person may have in the property without making any representations as to whether that person owns the home or not. A warranty deed performs the same task but gives the buyer (or person receiving the title) a representation that the person signing the deed and conveying a property has an interest in that property to convey. Most people use quitclaim deeds to transfer title between themselves. Sometimes, and for obscure title insurance purposes, it may be better to use a warranty deed.
A home buyer finds a water leak in his new home that began before the purchased closed. If the contract provides that the seller must make repairs to the property for issues that are evident prior to the closing, then the sellers might be obligated to make the repair. Because the sellers didn't know about the issue, it couldn't have been disclosed and they likely have no obligation to make the repair under seller disclosure laws.
Some companies claim that if a homeowner is facing trouble with their mortgage loan, the homeowner can transfer title to the home to the company and when they get back on their feet, the company will, for a small fee, transfer the title back to them. There's a common name for this scam: It's called "mortgage rescue fraud."
State residency requirements require you to physically live in that state. You can't claim state residency unless you live there. Residency is made up of many elements, including where you spend most of your time, where your home is located, where you vote, where you have mail sent, where your children go to school, where you file your tax returns, where your car is registered.
When you get a home via a quit claim deed and then have to move out of state for work you're faced with a decision. Should you sell the home you received through a quit claim deed or should you try to keep it as a rental property? The decision to be come a landlord or to sell a home depends on whether you have enough money to maintain the home or feel that you can find a good tenant. You should also take tax considerations into account.