ANSWER: YES. The contractor claiming the lien may sue to foreclose at any time within one year after the lien is recorded. Provided it is a valid lien, a circuit court may order the sale or partial sale of the property.
QUESTION: I represented a Buyer that qualified for the Federal Housing Tax Credit in a sale that oc- curred in 2010. Do they have to repay this credit?
ANSWER: NO, with one exception. If the home the Buyer purchased with the credit ceases to be the Buyer’s primary residence within 36 months from the day of purchase then the Buyer must repay it in full. The full amount of the credit received becomes due on the tax return for the year the home ceased be- ing the Buyer’s principal residence. This answer does not apply to homes purchased in 2008 and some homes purchased in 2009. If any of your past clients has any questions pertaining to the repayment of this credit, have them consult with their tax preparer.
QUESTION: My Sellers are having a dif- ficult time selling their home. They have asked whether they can sell their prop- erty by having a raffle. Is this legal?
ANSWER: NO. According to the Michigan lottery statute, only certain nonprofit organizations are eli- gible for a license to conduct bingos, millionaire par- ties, and raffles, and to sell charity game tickets.
QUESTION: I submitted an offer to an agent list- ing a home. The listing agent told me state law requires that a pre-approval letter was necessary in order for an offer to be valid. Is this true?
ANSWER: NO, while sellers may require a pre-approval with any offers they consider, there is no state law that requires a pre-approval in order for an offer to be valid.
QUESTION: I represent a Buyer in a short sale. The Seller has a tenant on a month to month lease. Will the Buyer be able to evict the tenant after the closing or does the Protecting Tenants at Foreclosure Act of 2009 prevent an eviction?
ANSWER: NO, the Protecting Tenants at Foreclo- sure Act of 2009 does not apply unless the new owner takes title through the foreclosure process.
QUESTION: I am representing a married man in the purchase of a property. Do I also need his wife’s signature in order to have a valid purchase agreement?
ANSWER: NO, the wife’s signature is not required in order for a married man to pur- chase property; however, when he decides to sell this property, he will need his wife’s signature since she will acquire a dower inter- est in the property by virtue of marriage.
QUESTION: For estate planning pur- poses, my neighbor would like to add her 14 year old daughter to the deed to her home. Is this legal?
ANSWER: Yes. There is nothing prohibit- ing a minor from holding title to real prop- erty. The difficulty will arise if the neighbor and her daughter later want to sell the home while the child is still a minor. Your neighbor should consult an estate planning attorney prior to adding her daughter to the deed.
QUESTION: I often keep track of the ex- piration of other companies’ listings so that I can call the seller immediately and hopefully persuade the seller to list with me. Is this permissible?
ANSWER: Yes, however, before calling such a seller, you need to make certain that the seller is not listed on the federal do- not-call registry. Also, firms with agents who use this practice need to maintain a company specific do-not-call registry.
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