Information is from sources deemed reliable. It is NOT to be considered as legal/tax/professional advice.

QUESTIONS AND ANSWERS ARE ADDED ON AN IRREGULAR BASIS


QUESTION
Is there a letter from FannieMae about commissions and honoring the Commission Agreement initially established between the Seller and the Listing Brokerage?

ANSWER. YES.effective March 1, 2009, closing of pre-foreclosure sales MAY NOT be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with pre-foreclosure sales. For a Printable copy - CLICK HERE (3/2011)

QUESTION
What is the Mortgage Debt Forgiveness Act and when does it expire?

ANSWER This provision applies to debt forgiven in calendar years 2007 through 2012. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. For Additional information - CLICK HERE (3/2011)

QUESTION
MAY A LICENSEE OF ONE COMPANY HOLD AN OPEN HOUSE ON A LISTING OF ANOTHER COMPANY?

ANSWER.The Department sees pitfalls with the arrangement, specifically confusion on the part of the public. ADRE requires that both involved brokers agree to allow the non-listing agent to conduct an open house in the listed property. In addition, the non-listing agent may not receive compensation from the listing agent for conducting the open house and the non-listing agent must make it very clear that he/she is not representing the seller and is present in the home for the purpose of finding interested buyers to work with. The licensee holding the Open House must clearly identify their company through signage, business cards distributed and all advertising. ADRE Bulletin CLICK HERE (4/2011)

QUESTION
Who is entitled to a Homestead Exemption and what is the amount of the exemption?

ANSWER. A.R.S. 33-1101 

A. Any person the age of eighteen or over, married or single, who resides within the state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding one hundred fifty thousand dollars in value, any one of the following:
1. The person's interest in real property in one compact body upon which exists a dwelling house in which the person resides.
2. The person's interest in one condominium or cooperative in which the person resides.
3. A mobile home in which the person resides.
4. A mobile home in which the person resides plus the land upon which that mobile home is located.

B. Only one homestead exemption may be held by a married couple or a single person under this section. The value as specified in this section refers to the equity of a single person or married couple. If a married couple lived together in a dwelling house, a condominium or cooperative, a mobile home or a mobile home plus land on which the mobile home is located and are then divorced, the total exemption allowed for that residence to either or both persons shall not exceed one hundred fifty thousand dollars in value.

C. The homestead exemption, not exceeding the value provided for in subsection A, automatically attaches to the person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property. The homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter. Only one homestead exemption at a time may be held by a person under this section.  CLICK HERE  (4/2011)