It is important to understand the probate procedure after a person dies and why probate should be avoided. Here is a brief summary of the steps that occur if a deceased person's assets must go through the probate procedure:  more...

DEAR BOB: My husband and I own several investment properties. We plan to transfer a piece of each property to our daughter (20 years old) within a short period of time. What is the best way to transfer the property without having to pay gift tax? Also, what is the gift tax rate on gifts exceeding $10,000? – Janice L.

DEAR JANICE: Please consult your tax adviser before you make any transfer. I think you are making a big mistake transferring investment property to a 20-year-old who has not earned it. Such a gift is not very smart and could cause major future problems.  more...

DEAR BOB: I read your recent article about homeowner's insurance and your advice to never file a small homeowner's claim. I had exactly the opposite experience. I have had my homeowner's and car insurance with State Farm for many years and have never had a problem with them. When we moved into our home, within the first two or three years, we had to file claims for a new roof because of hail damage, a new kitchen floor because of a leaking refrigerator, and fixing a leaking shower. All of these claims have been filed since 1991.  more...

Gary owns a condominium in Pennant Village. After attending homeowner association meetings, he became convinced the association was being mismanaged and large profits were retained by the association rather than being used to repair deteriorating condo balconies.

"In his view, members of the board refused to allow him to formally address the board, refused to allow him to vote at meetings, alleged that he did not actually purchase his property, called him a liar, harassed him in other ways, belittled him, derided him, and threatened him," the judge later reported.  more...

DEAR BOB: Are the homeowner association dues I pay every month tax deductible? – Robert R.

DEAR ROBERT: The answer depends on your situation. If you are an owner-occupant residing in your residence, such as a condominium or townhouse, your monthly homeowner association dues are non-deductible personal expenses.

Purchase Bob Bruss reports online.  more...

Dear Barry,  more...

The provocative new book "The Real Estate Agent's Field Guide" by Bridget McCrea seems to be aimed primarily at new real estate licensees. But it is also a "must read" for every realty sales agent who is serious about the business and who takes a long-term view toward thriving and avoiding costly realty sales pitfalls.

The book places heavy attention to the results of residential sales commission "compression" and how it affects the industry. Compression means reduction in the traditional 6 percent or 7 percent commission rate.  more...

DEAR BOB: We've been learning from your real estate articles for many years but haven't seen our issue discussed before. We own two homes. One is our main home. The other is our weekend townhome, which we have never rented to tenants. We have decided to sell the townhome and replace it with a home in Florida. Can we use that $500,000 home sale exclusion you often discuss? Or can we roll the proceeds of the sale into the Florida purchase to avoid tax liability? – Carl D.  more...

Home inspectors often recommend that the buyer obtain a permit history on a home they want to buy. However, most buyers don't heed this advice, which can lead to problems later.

One homeowner who didn't check the permit history before she bought found out after closing that a remodeling permit issued in the seller's name had never received final city approval. She discovered this when her contractor applied for a permit to do some more remodeling. The city wouldn't issue a new permit until the outstanding permit received a final clearance.  more...