All Forum Posts by: Jack W.

This post relates closely to what I just went through while buying a small vacation home. For sale by owner, so we used a lawyer friend to make sure we were covered in our purchase agreement, etc. since the seller was the type that basically wanted to sell the house on little more than a handshake. I did all the legwork on paperwork to be used for closing. And what I contracted out to my lawyer I later realized I could've found or did find on my own. I also fixed spelling errors and typos in his legal drafts. So you can imagine my surprise when it was nearly all said and done to receive his bill in the mail showcasing all our email correspondence. Honestly, it never occurred to me that I would receive such an itemized bill or I wouldn't have been so loose and free in my emails to him. 

THEN, I got a 2nd bill because he had emailed after some time had passed since our last exchange regarding the Purchase Agreement offering to look at anything else I had before closing...to which he and I went back and forth on because, again, I'm loose and free with my email chatter. If I had known up front how our exchanges would be billed I might have drafted the PA myself and done some of the title groundwork myself (he was just a middle man on that - he and title company found same info I found and had access to). 

So far I've paid the first bill because he did perform the service that I had requested. And it was a lesson learned. But I can't bring myself to pay the smaller 2nd bill on the notion that I was led into the conversation that created the charges. I will probably end up paying it, or a portion of it, after speaking with him and his office about the nature of the bill and my reaction to it...and how this might affect our future business transactions.

I learned valuable lessons during the closing process of the cheap little house we bought. So my lessons weren't outrageously expensive but it was still cash that could've stayed in my pocket.

Next time I reach for a property I will approach some of the research, legal documents and legal services as a more seasoned pro. 

My in-laws are retired, they have owned a "winter" home in AZ for a couple years, and a within the last year or so purchased a "summer" condo in MI after selling another home in MI to be closer to us and their grandchildren. Now we have an opportunity for them to buy a lake property next to ours. Question is: what is their best option from a tax standpoint as senior citizens? They reside in each current home for about half the year (summer/winter). The AZ home will not be sold. But the condo in MI could be. I don't think they want to hold onto 3 properties. They could rent the condo as an option. Both current homes are owned outright. They will probably take a loan/mortgage out on the 3rd (lake) home just to keep their investments ticking along. Does selling the condo now come with a big tax hit - as it has been held and lived in for less than 2 years? Does it make sense to hold the condo and rent it for a period of time to capture any tax benefits? I think their primary residence is considered the AZ house. Are there capital gains tax problems/options here based on their selling of the condo - profit or not? They didn't buy it as an investment but I'm fairly certain they can break even on it if not capture a return based on their upgrades after ownership.

Sidenote: this is my first forum post...I skipped the introduction post...sorry. I also haven't gotten around to choosing a profile pic...sorry again. I read blog posts and scan the forums daily if not weekly. So far I've enjoyed all the reading material.