Dear Michael: My son purchased a property with his wife two years ago as his sole property because his wife had bad credit. What would happen to the house if something should happen to him?
Answer: If you are concerned about the surviving spouse who is not on the title, your son will need to quit-claim the property back to both names as “community property with right of survivorship.”
Under community property, property acquired during the marriage (except for gifts or inheritances) is owned jointly by both spouses and is equally divided upon divorce, annulment or death. Joint ownership is automatically presumed by law in the absence of specific evidence that would point to a contrary conclusion for a particular piece of property.
The community property system is usually justified by the idea that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the family unit. Property that is owned by one spouse before the marriage is separate property of that spouse, unless the property is converted into a community property. The rules for this vary from jurisdiction to jurisdiction.
Dear Michael: My home has been for sale for six weeks and I am not getting much activity. I have been spending money to spruce it up. I don’t want to keep spending if I can’t sell it. At what point have I’ve done enough?
Answer: Sprucing up your home is a good idea. You want your home to look its best when prospective buyers are previewing it. You can do all the fixing and sprucing up, and spend money making your home appealing, but the bottom line is price. If your home is overpriced for the area, it will not sell. Listen to your Realtor; he/she probably knows the market better than you do. If your Realtor suggests a price reduction and it is something you can afford, I suggest you consider reducing the price.
Our current real estate market has no room for error. Pricing is crucial and if selling is your only option, I suggest you take all necessary means to get your home sold.
Dear Michael: My agent wants me to sign an Exclusive Buyer Representation Agreement. Do I have to sign it in order to work with him?
Answer: This document states that the buyer is contractually obligated to only work with the agent mentioned in the agreement. The contract can run for any number of days but usually 90 to 180. If your agent brings great value and you feel he is indispensible, you may consider signing the agreement.
I suggest you interview three agents before doing so. The fact that other agents may not request a buyer representation agreement should not influence the outcome of your decision. A good agent who represents you well deserves to get paid.
The one peace-of-mind guarantee he/she will get from showing you properties and negotiating in your best interest is that he/she will get paid. At one time or another, all agents have had buyers do the unthinkable: after months of showing properties, the buyer walks into an open house and buys through a different agent. If your agent has proven his value, it’s only fair that a buyer representation agreement be signed.
Michael Kayem is a Realtor with Re/max/Execs, serving Culver City and the Westside since 2001. Contact Michael at (310)390-3337 or homes@agentmichael.com.