DEAR BOB:I recently bought a house. The seller and/or hisreal estate agent took all the three sets of washers and dryers in this largehouse before I got the keys. I think the washers and dryers are fixtures, notto be removed by the seller or the agent. What can I do about this? –Lea W.
DEAR LEA: Any moveable appliance that is not permanentlyattached to the structure, such as by bolts or built-in like a dishwasher, isnot a fixture and remains personal property.
Purchase Bob Bruss reports online.
Unless the sales contract clearly said the washers anddryers were to remain in the house, the seller was entitled to remove thatpersonal property along with the furniture.
The law of fixtures can sometimes be difficult to apply(although not in your situation). For example, I’ve seen large built-inrefrigerators with panel doors that match the kitchen cabinets. As a lawyer, Icould argue such a refrigerator is a built-in appliance fixture automaticallyincluded in the sales price. However, if the refrigerator easily slides outwithout damage to the structure, then it is arguably personal propertybelonging to the seller.
Experienced real estate agents make certain the salescontract specifies any personal property or questionable fixtures the buyerwants included in the sales price. Unless listed, and usually conveyed by abill of sale, such items remain personal property, which the seller can remove.For more details, please consult a local real estate attorney.
CAN MEMBERS ATTEND HOMEOWNER ASSOCIATION MEETINGS?
DEAR BOB: About six months ago, I bought a very upscalecondominium. My neighbors are the nicest people and I love associating withthem. However, the condo homeowner association is considering a specialassessment to re-carpet the hallways and refurbish the main entrance. Althoughthe replacement reserves appear to be very adequate to take care of thisexpense, which I agree is needed on our 15-year-old building, the board ofdirectors proposes assessing each owner $1,500 to $2,500, depending on the sizeof his/her condo. What irritates my neighbors and me is we are not allowed toattend the monthly board meetings. We are allowed only to write letters to thedirectors and attend the annual meeting. Is this legal? –Corla S.
DEAR CORLA: The best-managed homeowner associations allowany member to attend the monthly meetings of the board of directors. However,occasionally the meeting must be closed, such as to discuss personnel matterslike hiring or firing an employee. Of course, if your association has a largemembership, rules must be adopted to provide orderly meetings.
For many years I have owned a condo where the monthlymeetings are open to the members. Few members show up, but I always read themeeting minutes sent to every member a few days later to see who was there andwhat happened at the meeting.
If a controversial issue arises, the board invites membercomments by letter and holds the matter over for a decision at the nextmeeting.
At the conclusion of each monthly board meeting, after thewritten agenda has been completed, the board asks for any comments orsuggestions from the member attendees. This prevents the meeting from gettingoff to a bad start or getting bogged down during the business meeting.
NO DEPRECIATION RECAPTURE UNLESS INVESTOR SELLS
DEAR BOB: I am preparing for my annual visit with myaccountant to discuss my tax situation on my investment properties, which Ihave owned for many years. I was trying to verify at what tax rate I will betaxed for the depreciation I’ve deducted over the years. What is yourperspective on this matter? Is the tax rate 15 percent or 25 percent? –AllynP.
DEAR ALLYN: Unless you sell your investment property onwhich you have been deducting depreciation, there is no need to be concernedabout depreciation “recapture tax.”
However, if you are selling a depreciable property you haveowned since before 1997, then the situation gets a bit complicated. In 1997,Congress enacted the special 25 percent depreciation recapture tax rate ondepreciation deducted after May of that year. But different rules apply todepreciation deducted before that date. However, ordinary federal capital gainsare currently taxed at a maximum 15 percent tax rate.
The new Robert Bruss special report, “2007 Realty TaxTips: Eight Chapters of Tax Savings for Homeowners and Realty Investors,”is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010,or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this columnare welcome at either address.
(For more information on Bob Bruss publications, visit his Real Estate Center).
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Copyright 2007 Inman News