Question: I'm selling my lake property. It's listed with a real estate agent until the end of this month. Recently my neighbors approached me with a real estate agent. They voiced interest but pulled me aside suggesting a private sale.

I don't know why they want to have a private sale except that they think I will sell for less because I wouldn't have to pay the agent's fee. Do they have me over a barrel or not?

Answer: When you listed your property for sale you engaged a broker on the basis that each of you sought a mutual benefit: You wanted to sell the property and the broker wanted to earn a commission for his services.

Does the term "private sale" mean a sale without paying your broker or the broker who accompanied your neighbors. If correct, does this seem fair to anyone? Would it be okay if you did work and then were not paid?

This is a good time to take a look at your listing agreement. It has a termination date and it likely has something else: a protection period.

A "protection period" is a clause which says that if a property is shown to a prospect during the listing period but the purchase is made after the listing ends then the broker is still entitled to a commission.

There is no dilemma in this matter. Your broker introduced people to the property, is prepared to act on your behalf to close a sale and should be paid as you agreed. For additional information, show the listing agreement to an attorney.

Question: I'm a licensed agent with a commission conundrum. I executed a new home sales contract with Broker A then switched to Broker B before the home was completed. If Broker A said he would honor a referral fee and I agreed, do I get paid by Broker A or Broker B? What happens if Broker B doesn't want to get involved with a commission dispute with Broker A? What is an agent to do?

Answer: First, you can only be paid by the broker under whom you are engaged. Thus Broker A cannot pay you because you no longer work under his authority. You must be paid by Broker B. Under no condition can you be directly paid by the builder.

Second, there's no dispute. Broker A has said he will pay a referral fee. He collects a check from the builder at closing and sends a check to Broker B. You divide the money with Broker B according to whatever agreement you have. You also thank Broker A for his courtesy. End of story.

Question: I'm a licensed agent. I made no commissions but I had a lot of expenses that I want to deduct. Being that I will not be getting a 1099 for tax purposes, how do I file?

Answer: Schedule C is used to report business activities for someone who has self-employment income and expenses. Because you have expenses and no income you will show a Schedule C loss. See IRS Form 1040 Schedule C for details.

Question: I've been doing a little bit of research about refinancing my home. I want to refinance to a lower rate from 7.375 percent. I contacted my mortgage lender and they gave me a quote with a 30-year fixed interest-only loan. I'm kind of partial to the interest-only product but I wanted to know if you could shed some more light on this type of loan for me. I've actually heard this type of loan (I/O) was not the most favorable. Any info would be appreciated.

Answer: You have a current rate of 7.375 percent, a rate which is substantially higher than typical interest levels going back to 2000. Did you have impaired credit when you got this loan? Do you now have credit difficulties?

If you now have good credit you should be able to find fixed-rate financing around 6.25 percent as this is written.

As to interest-only loans, most of them allow for interest-only payments for the first five to 10 years, however the interest rate is usually adjustable. If you can get a fixed rate of interest for the life of the loan -- and there are such interest-only loans -- then that can be attractive providing you understand there will be higher payments when the interest-only period ends.

How much higher? A $200,000 loan at 6.25 percent would have a monthly cost for interest only of $1,042 during the start period. If the start period lasts for five years and the rate is fixed, the monthly payments for principal and interest would then rise to $1,332 for the remaining loan term.

Speak with lenders for details -- and ask if the loan is a fixed-rate product and if it can be prepaid in whole or in part at anytime without penalty.

Question: I was approached with a real estate deal to assist an investor buying a single-family rental property in another state. I live out of state, have a decent credit score and am needed as a "straw purchaser" if you will. I spoke to the investor's mortgage lender, who of course requires my personal information. I was told by the lender that the investor is currently "capped out" with a full portfolio and is in need of my services. All this in return of a payout from the investor to the bank account of my choice. What I am still in the process of ascertaining from the above parties, is the liability and security matters.

Answer: When you finance real estate lenders will ask if you intend to occupy the property within 30 days of closing. If you say "yes" you are a residential buyer and if you say "no" you are an investor. You, of course, would say "no" otherwise you might face claims of mortgage fraud.

By any chance, will the investor buy back the property from you with a land contract or in some other way as to leave the lender's loan in place? If the lender calls the loan who is responsible for repayment?

If the "investor" is "tapped out" how can he make a payment to the bank account of your choice?

If in any way the proposed arrangement seems tempting, please speak with a real estate attorney in the state where the property will be bought before you sign anything -- an attorney you chose and not someone recommended by either the investor or the lender.

Question: In December 2005 I put down 3 percent on a preconstruction home that was supposed to be completed by June (which was not until December). Anyway, I went to a broker who give me a letter to give to the sellers, stating he can get me a 100 percent loan at closing time. I was supposed to close December 2006 and it never happened.

My broker, every time I call, does not respond to my call and when I leave my number he does not call back. He does not call back the title company or the sellers when asked, but they know that he is working on the case. Anyway, he has had my file for over a year and knew my lease was up at the end of December. I was offered a $2,000 incentive and I have now lost that and I am now in the penalty phase and still no closing and no idea of a closing. I am staying with someone and I am now being ask to pay rent. I am between a rock and a hard place.

Shouldn't my broker be responsible for paying my rent and paying the penalties and giving me back the incentive monies that was offered? He knew my credit before hand and said he can do it. I am now with my kids and family and no where to live and have to now pay another set of rent and nothing yet from the broker. We would also like to know if we can get out of the contract with the sellers without be charge and being able to get back our monies. Please advise ASAP.

Answer: Please contact your state real estate regulator and speak with one of their investigators. If nothing else, your broker should return your phone calls. A list of regulators can be found at ARELLO.com.

It's unlikely that you can get out of your purchase contract without a penalty, especially if condos are not selling well in your area. However, please show your purchase agreement and other papers to a real estate attorney to determine your liability to the developer and such possible claims, if any, you may have against the broker. Ask if your state real estate regulators have a "guarantee" fund to compensate consumers.

Question: My brother inherited the family business, a liquor store in New York City, when our dad died several years ago. He is ready to lease or sell the business and does not know the best, most-cost efficient way to do it.

I'm currently seeking advise from a business lawyer as well as an entrepreneur in Colorado who owns several liquor stores. The store is on the main floor and my mom owns the entire building. My brother is looking to me to assist him and I am now looking for an honest, reliable, reputable business broker. My fear is that my family's business will be lost or ruined if we don't take our time and do our homework. Do you have any advice?

Answer: I would suggest a different approach.

First, the business is in New York. You need to work with people who know the New York market.

Second, you want as many buyers as possible to get the best price.

Third, start looking at listings for like businesses in the same area that are now for sale. This will give you some ideas regarding pricing, values, issues and concerns. If you find a business broker who does a particularly good job representing a client store, then perhaps he or she can help you.

Have a real estate question? Send your inquiry to Ask Realty Times. Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here. For past columns, please press Ask Realty Times.

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Published: February 2, 2007

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Have a real estate question for Realty Times? Wondering about buying, selling, financing, refinancing or renting? Here's where you can send your question to Peter G. Miller, OurBroker®, a nationally-known columnist, author and reporter. Peter G. Miller has written six books -- including The Common-Sense Mortgage -- a guide with hundreds of thousands of copies in print. Miller was the original creator and host of America Online's Real Estate Center and joined Realty Times in 1998. Send your questions to . Because of the volume of mail received, individual questions cannot be answered privately and not all questions can be used. Published letters may be edited for space and style and all letters become the property of Realty Times upon receipt.