The Importance of using a local Realtor

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Dear Michael: We purchased

our home two

years ago in a Culver City zip

code. At the time we were

told by our real estate agent

that our kids would automatically

qualify for Culver

City schools. We later found

out that we must apply for

a special permit in order to

send our kids to Culver City

elementary school. Can we

hold our agent responsible

for this misinformation?

Answer: I am very sorry to

hear that you where misinformed

and I hope your kids

get into the school of your

choice. It is very possible

that your agent did not even

have knowledge that the

home would not qualify for

the Culver City School District.

This is why I emphasize

on the importance of using

a local realtor that is knowledgeable

of the area. You

could file a complaint with

the California Department of

Real Estate (http://www.dre.

ca.gov), but for now, I suggest

you concentrate on getting

your kids in the proper

school of your choice. Some

parents have their kids in

Culver City schools on permits,

so don’t get discouraged

and be persistent.

When you are ready to buy

or sell you home, always

get references on your real

estate agent and make sure

he/she is knowledgeable of

the area.

Dear Michael: My longtime

life partner is very ill,

she is ready to ad me to the

deed in case she dies. What

is the best way for us to hold

title so the property can be

transferred to me when she

dies?

Answer: Let me first start

by saying that I am sorry for

your pain. In California there

are three primary ways to

hold title: Community Property,

Tenants in Common

and Joint Tenants. Joint tenants

would be the type of

title I suggest would best fit

your needs. Joint Tenants

can be defined as follows:

Equal share of ownership

of the property and have

undivided right to keep or

dispose of the property.

Joint tenancy creates a Right

of Survivorship. This right

provides that if any one of

the joint tenants dies, the

remainder of the property is

transferred to the survivors.

Because of this right of survivorship,

no will is required

to transfer the property: it

goes directly to the surviving

joint tenants without the

delay and costs of probate.

For more information I suggest

you contact a real estate

attorney.

Dear Michael: We just

purchased a house for future

retirement use and declared

it not a primary residence

during the transaction. We

would like to know how we

can change it to the primary

residence while still keeping

our current residence.

Thanks.

Answer: You can only have

one primary residence at a

time. Simply declaring to the

world that your new home

is actually your primary residence

isn’t quite enough.

You actually have to live there

for a majority of each year.

If you’re ever audited, the

IRS will look up your phone

records, bills paid, whether

you voted in that district,

and other things that would

indicate how much time you

spent in the new home. You

would also have to file your

income taxes listing the new

home as your primary residence.

When you’re ready to

retire to this property, that’s

the time when you should

make it your primary residence.

That way, you protect

your ability to take the IRS

capital gains exclusion for

your current property, which

amounts to taking the first

$250,000 (if single) in profits

tax-free or $500,000 (if you’re

married). But you only get

this as long as you’ve lived in

the house for two of the last

five years, and haven’t used

the exclusion in the past 24

months. For more details

please consult with your tax

accountant.

Michael Kayem is a Realtor

with Re/max Estate Properties

serving Culver City

and the Westside since 2001.

You can contact him with

your questions at (310) 390-

3337 or email them to him at:

homes@agentmichael.com