"Should I sign the mediation and arbitration clauses in this home sales contract?" That question is frequently asked by home buyers and sellers of their real estate agents.

Frankly, there is no right or wrong answer, but all the parties should be fully informed before making their decision to possibly give up legal rights.  more...

DEAR BOB: Who pays the taxes on a once-in-a-lifetime, $1 million property gift? --John L.

DEAR JOHN: Nobody! When an individual donor gives away up to $1 million in cash or other assets, he or she must file a federal gift tax return with the IRS. But no federal gift tax will be due if the donor has not previously given away more than $1 million tax-free under the $1 million federal gift tax exemption.

Purchase Bob Bruss reports online.  more...

Ann Burns held a life estate in a house that was destroyed by fire. Mitchell Weiss was the trustee of the Kent Burns Trust, which held the remainder interest in the house.

Burns insured her interest in the house with Fair Plan. The trust insured its interest in the same house with Clarendon National Insurance Co.

Purchase Bob Bruss reports online.  more...

DEAR BOB: My parents died in 1993 and left their home to me in excellent condition. In 2007, the state took the home by condemnation for a new road. Over the 14 years, the condition of the house has declined due to neglect, but property values in the vicinity have generally increased. Can I claim no increase in my basis because of the decline in condition and the need for repairs? --Harold B.  more...

Dear Barry,  more...

DEAR BOB: I am buying a new condominium in Waikiki, Hawaii, that will cost more than $1 million. It is being built by a reputable company. Should I pay all cash or should I finance a portion of the purchase price? I'm thinking why pay interest if I don't have to. --Ronald H.

DEAR RONALD: Paying 100 percent cash for any residence is very risky, especially when you are buying in a vacation area where market values tend to fluctuate wildly.

Purchase Bob Bruss reports online.  more...

Whether you are a first-time home buyer or a longtime homeowner, you will profit from reading "The First-Time Homeowner's Survival Guide" by Sid Davis. He is both an experienced real estate broker and a home renovator so he knows which home repairs and renovations will reflect well in home enjoyment and increased resale value.

The book begins with the basics of repairing and upgrading home electrical systems and plumbing. Davis shares his construction knowledge without becoming super-technical. Photos illustrate his topics.  more...