Question: After taking the last walk-through tour I closed on my house. Everything seemed fine. All the upgraded appliances (Stove/oven, Microwave and Dishwasher) were installed. I was handed the keys to the house the next day at about 4 PM. I did not go to inspect the house on the day of settlement but the next day when I went to the house at about 6.30 PM all the appliances (stove/oven, microwave and dishwasher) were gone from the house. I filed a police report. The officer inspected the house and found out that there was no sign of a break-in, no windows were broken or unlocked and all the locks were intact. He made a report but also suggested that I talk to the builder.

So the next day I went and talked to the builder at the office. He simply told me he did not have any key to the house and its bad luck that all the appliances are stolen.

What can I do?

Answer: The problem here is that buyers are best served with a pre-closing inspection right before settlement -- minutes before if possible. Had such an inspection taken place it would have been the builder's responsibility to deliver any missing appliances.

In this situation it is likely that you have homeowner's insurance to cover such events so speak with your insurance provider. You should have serial numbers from the builder that can be provided to the insurance company.

You are plainly the victim of a crime. Before going further ask the police to check the property for fingerprints and other evidence. Also, ask if there have there been similar incidents in the new home community where you bought or at other new home properties.

Question: I was working on refinance with company that for two months told me I was approved and no problems. They then canceled on closing due to some reason and reset for this week. The loan officer wouldn't return my calls. Finally reached his boss who reached him and said they couldn't do the loan after telling me all is okay and receiving all my paperwork. I am frustrated, out some money and mad.

Is there any recourse for me?

Answer: Rather than discuss who said what, we need to consider who wrote what: Did you receive an unconditional loan commitment in writing?

Who said what doesn't help us because the distance from your ears to a lender's mouth depends greatly on interpretation and memory. "Oh, gee, did you think I said that? Golly, how surprising. I don't recall ever saying such a thing and I can't imagine making such a statement."

When we look at the paperwork, however, we have physical evidence of what was actually communicated. In turn, what lenders communicate in writing is likely to be a nuanced, lawyered document with lots and lots of outs.

For instance, was the loan dependent upon a final credit check? The value of the property? Was the rate locked in? What about points?

You can show your documents to an attorney or legal clinic. Alternatively, you may want to speak with your state attorney general. If enough borrowers had the same conversation then perhaps it will be possible to find a pattern that may be actionable.

Question: My elderly father owns vacant farmland and his will states that my brother and I will inherit the farm on his death. The farm is worth three or four times what he paid for it 15 years ago. He is willing to sell it now and give us the proceeds. In order to minimize capital gains and taxes, should our father sell it now or should we wait to inherit the farm? Neither of us needs the proceeds today.

Would there be an advantage of him selling the farm, taking 50 percent of the proceeds and jointly buying a farm with me in my state and having the title held with right of survivorship (and do the same with my brother)?

Answer: Your father should not sell the farm for two reasons: First, you and your brother currently do not need the money. Second, it's possible to avoid all capital gains taxes through an inheritance.

In a inheritance situation real estate is valued at its "stepped up" basis at the time of death. In other words, if your father bought a property for $200,000 and at the time of his passing it was worth $600,000, then your basis would be $600,000. You could sell it the next day for $600,000 and pay no capital gains tax.

As to buying jointly with you and your brother, would it make any sense to refinance the farm to extract cash and then use that money to buy farms for you and your brother?

Your father is best served by getting a will and living will from an attorney who practices elder law. If the farm is to be refinanced, first speak with a tax professional to see how interest can be treated for tax purposes.

Question: My wife and I purchased a lot back in 2003 and have since built a house on it. In reviewing the closing documents from that transaction I noticed that the original title insurance policy was for $16,500, the price of the lot back then. Earlier this year, the county's assessor valued the lot at over $48,000. Should this be a concern for us if something should happen between now and the time we sell this place?

In general, should homeowners re-evaluate and increase their title insurance policy in the event of an increased property appraisal? We normally do it for other types of insurance, why not title insurance?

Answer: The purchase of title insurance is a one-time deal, you pay for it at closing so there is nothing more to buy and nothing more to increase.

Title insurance broadly comes in two forms: lender's coverage and owner's coverage. If you get lender's coverage and something is wrong with the title, the policy will pay off the mortgage -- but it will not protect your equity. In other words, if you buy a property for $200,000 and get first loan for $160,000 the policy will assure that the $160,000 loan is paid off. Notice, though, that over time the loan balance will decline -- and thus the lender's coverage will also fall.

With an owner's policy you are protected against certain title claims up to the value of your equity -- the loan plus the cash put into the property at the time of purchase. However, title insurance policies have exclusions -- things they don't cover -- and you can get "endorsements" -- extra forms of coverage. One of the best endorsements is an inflation escalator which, in basic terms, means that coverage with an owner's policy rises as home prices increases.

You may actually have an inflation escalator already if you have owner's coverage -- check with the settlement agent for details. Inflation coverage is often included automatically in owner's policies.

Question: About seven years ago I moved in as a renter into co-op. In 2002 they offered me the opportunity to purchase at $32,000. I quickly submitted the requested "Letter of Intent to Purchase" along with the application and went about getting a loan. Five years later, after many phone calls and inquiries, no move on my purchase. The condo board as well as the management office will not directly answer any questions about when I can expect to complete my purchase. Since then all of the prospective buyers (about 5 or so) have become frustrated with the process and have moved out and bought homes elsewhere.

The area is now booming and for this reason I am still holding on. Additionally part of the option to purchase letter I received from them stated that if I chose to purchase my rent would not increase and it has not. However, I did not intend to rent for an additional five years and lose out on the tax breaks, accumulating equity etc., and -- more importantly -- the security of owing my own home.

Does my contract to purchase expire? The co-op's management office happened to do a walk-through of my unit a few weeks ago. This was unrelated to my purchase. I took the opportunity to ask the management company representative questions about the issue and she stated that they cannot find my paperwork (I have copies). Also she observed the improvements I had made to unit at my own cost (because I thought I was going to own it) and indicated that the original price quoted will go up. Can they do this?

Answer: Is this a "co-op" or a "condo" property? There's a huge difference -- typically with a co-op the board must approve all buyers while condo owners can freely sell to anyone. It's unclear what form of agreement (purchase, option, right of first refusal, etc.) you have or if you have any agreement. As to the lost paperwork, the solution is to always send paperwork by certified mail with a return receipt requested or to other get a signed and dated receipt when delivering important papers.

As to changing the price, to "change" the price there must first be a price to revise. Is this a recognition that an offer was made to you? Is the offer still valid? Or, is this a situation where you are making an offer which has yet to be accepted?

You'll need to take your paperwork to a local attorney to determine what it says and what specific rights you may have in this matter.

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Published: March 9, 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.