With ever increasing mandatory disclosure obligations being placed on sellers of real estate, it can be difficult to keep-up with new requirements. Below is a summary of disclosures required in residential transactions (1-4) units. Local residential disclosures may exist also, therefore it is always prudent to inquire about such requirements before escrow closes.TDS (Transfer Disclosure Statement) The law requires a seller to provide prospective buyers with a written disclosure statement covering such items as appliances, structural defects and modifications, possible easements, neighborhood problems and other material fact that may affect the principal's decision in a transaction. Natural Hazards Disclosure Law The Natural Hazards Disclosure law requires the seller or seller's agent to disclose whether the property is located in one of the six flood zones.Lead Paint Disclosures The law requires both sellers and lessors to disclose known lead hazards by providing an informational booklet and a disclosure form as addenda to the purchase contract or lease. The federal lead paint disclosures apply to leases and sales of residential property, including mobile homes, constructed before 1978. Megan's Law Megan's Law was enacted to notify buyers and tenants about the proximity of registered six offenders. The law requires every purchase contract and lease agreement to contain a specific written notice that a database containing information about registered sex offenders may be accessed by buyers and tenants. This disclosure is required for every lease or real property sales contract for residential real property entered into on or after July 1, 1999. Neighborhood Environmental Contamination Hazardous substance contaminated sites in residential property could be anything from a local gasoline station with a leaking underground fuel tank to an industrial site. Real estate agents and sellers are being held to ever more stringent and higher standards of care. The number one claim on Errors & Omissions Insurance is "failure to disclose" some item that a Buyer felt was material.

If you moved in 2001, chances are you're ecstatic that the hassle of moving is finally over. But don't put it too far out of your mind - if you or your spouse got a new job or transferred to a new work location, you might be able to deduct your moving expenses from your taxable income. The U.S. Census Bureau reports that about 16 percent of all relocations in 2000 were work-related - a new job in a new community or state, or a move to ease a stressful commute. Before you start counting the dollars you might save, you must first pass the IRS' moving deduction test. In order to qualify, there are two major criteria you must meet - the move must be close to the time you begin work and your new home must be closer to your place of employment than your former home and workplace. The IRS says you can generally consider moving expenses incurred within one year from the date you begin work at the new location. It doesn't matter if you get the new job before or after you move. In order to pass the distance test, your new job location must be at least 50 miles farther from your former home than your old main job location was from your former home. For example, if your old workplace was 10 miles from your old house, your new place of employment must be at least 60 miles from the former home. And when it comes to the time test, if you are an employee you must work full-time for at least 39 weeks during the first 12 months after you arrive in the region of your new job location. It's a bit tougher if you're self-employed - you must work full time for at least 39 weeks during the first 12 months and for at least 78 weeks during the first 24 months after you arrive. If you're married, you can use you or your spouse in determining the number of weeks worked, but you can't combine weeks. Of course, there are exceptions. For example, if you're a member of the Armed Forces on active duty and you move because of a permanent change of station, you don't have to meet the time and distance tests. So, if you've passed the tests, what can you deduct? · The cost of packing, crating, and transporting your household goods. · Storage and insurance costs related to goods and personal effects within any 30-day period after your things are moved from your old home and before they are delivered to your new place. · The cost of connecting and disconnecting utilities. · The amount you pay to ship your vehicle and your pets to the new house. · Lodging expenses your family incurs during the move period. Meals are not deductible. · Traveling to your new home. If you travel by car, you can deduct the standard mileage rate of 12 cents a mile or deduct the actual expenses of gas and oil, parking fees and tolls. You can't deduct general repairs, maintenance, insurance or depreciation of your car's value. And the IRS lists a whole slew of things that can't be deducted - everything from the purchase price of your new home to your driver's license to refitting of carpets and draperies. One thing to keep in mind is that you can't double-dip by taking a moving expense deduction and a business expense deduction for the same expenses. You'll want to take a look at the IRS' publication 463, Travel, Entertainment, Gift, and Car Expenses to determine which deduction is more advantageous. You also can't deduct any moving expenses that were reimbursed by your employer. Moving expenses are figured on Form 3903 and deducted as an adjustment to income on Form 1040. Related Articles:· Tax Sites For Last-Minute Filers· Standard Versus Itemized Deductions· Home Office Deductions Add To Your Home's Tax Savings· Home Sweet Home: Shelter From TaxesBased in California, Michele Dawson has extensive experience as a reporter and editor and now specializes in housing and For homeowners with a high AGI, it may be more beneficial to tax the vacation home as a residence rather than a rental, in order to deduct mortgage interest and property taxes. Owners can receive a deduction of up

Home sales volume is currently setting a rapid pace in most cities. With mortgage interest rates continuing to stay low, the traditional peak spring home buying season promises to be an excellent time to be a buyer or seller. But a confusing aspect of home sales involves determining what is and is not included in the sale. Surprisingly, bitter fights between residence buyers, sellers and sometimes even their real estate agents too frequently evolve over what items automatically go along with the property. Ask any experienced real estate sales agent and they will usually have horror fixture stories to tell, especially about dining room chandeliers. For some unexplained reason, many home sellers presume they are entitled to take this precious light fixture with them. However, the law of fixtures is on the buyer's side because, unless specifically excluded, all light fixtures are automatically included in the sale. But sellers are entitled to remove the light bulbs, which are personal property not included in the sale. The law of fixtures determines when personal property becomes real property. Home buyers, sellers and their realty agents should be aware the simple law of fixtures determines when personal property has been converted into real estate and is included in a real property sale. After moveable personal property is permanently affixed to a building or land, it becomes known as a "fixture," which is part of the realty. The attachment can be by bolts, screws, nails, glue, cement or any other means of permanent attachment. For example, when a dining room chandelier is attached to the ceiling by bolts or screws, it is thereby converted from personal to real property. If the seller doesn't want to include an item in the sale, it's best to remove it before showing the home to prospective buyers. Some sellers make the major mistake of hanging a little sign, such as "chandelier is not included." Doing that is like waiving a red flag in the buyer's face, making the buyer insist on receiving the chandelier as part of the sales price because it is a permanent fixture. To avoid fixture problems, use a well-written contract. Most home sales fixture problems can be prevented by (1) understanding the law of fixtures and (2) using a well-written sales contract. A contract clause that avoids fixture misunderstandings reads: "All existing fixtures and fittings that are attached to the property are (if owned by seller and unless excluded below) included in the purchase price and shall be transferred free of liens. These shall be deemed to include, but are not limited to, the following: existing electrical, lighting, plumbing and heating fixtures, fireplace inserts and attached fireplace equipment, solar systems, built-in appliances, screens, awnings, shutters, window coverings, attached floor coverings, television antennas, satellite dishes and related equipment, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, water softeners, security systems/alarms, keys to all exterior locks, garage door openers/remote controls, mailbox, and in-ground landscaping." Any fixtures the seller wants excluded from the sale should then be listed. Next, the buyer should list in the purchase contract any non-fixture personal property items she or he wants included, such as patio furniture, freestanding stove, refrigerator, washer and dryer. The five rules for determining what is a fixture. If a legal dispute arises as to whether a personal property item has become a real property fixture that is included in the property sale, five basic rules are used by courts: 1 - Method of attachment. The most important test for determining if an item has become a fixture is its attachment to the land or building. If it is nailed, bolted, glued, wired, built-in or cemented, then the former personal property has become a fixture. However, if the item can be easily removed without damage, such as removing hanging drapes from a drapery rod, unscrewing a light bulb or unplugging a refrigerator, the seller can remove that personal property (unless the buyer listed it on the purchase contract as being included in the sales price). Weight of the item is irrelevant. To illustrate, a heavy above-ground swimming pool is removable personal property unless it is permanently attached to the land. Wall-to-wall carpet that is nailed, tacked or glued to the floor is included in the sale because it has become a fixture. Similarly, linoleum tile glued to the floor is part of the structure. But area rugs that are not permanently attached to the building are personal property the seller can remove. Window coverings, unless included by contract, often cause trouble. The drapery rods, since they are screwed to the wall, must remain because they are permanently attached fixtures. But drapes are personal property that the seller can remove (unless included in the sales contract). 2 - Agreement of the parties. As explained earlier, the buyer and seller can agree in the purchase contract to include or exclude specific items. Everything is negotiable. But any fixtures the seller wants to exclude must be specifically listed in the sales agreement; otherwise, they are automatically included. 3 - Intent of the buyer and seller. The intent of the buyer and seller often becomes important in determining if a disputed item is included or excluded. For example, if the home's multiple listing service (MLS) description says "beautiful Sub-Zero refrigerator matches kitchen cabinets," that indicates the seller intends to include it in the sales price. Or if the MLS says "new above-ground swimming pool," that is a strong indication of the seller's intent to leave it for the buyer. 4 - Adaptability for use with the property. Items that are specially adapted to the property, such as built-in stereo speakers, are usually considered to be included fixtures. However, the stereo equipment that can easily be unplugged, remains personal property and is not automatically included in the sale. 5 - Relationship of the parties. When the buyer and seller cannot resolve their disagreement and litigation becomes necessary, courts usually favor (a) buyer over seller, (b) tenant over landlord, and (c) lender over borrower. Business trade fixtures are an exception. When permanently attached items are trade fixtures used in a business, such as restaurant booths, outdoor business signs, restaurant kitchen equipment and display cabinets, the business owner is entitled to remove them and restore thepremises to its original condition. Still another exception to the fixture rules occurs when improvements are made to the wrong property. To illustrate, when a mistaken improver builds a fence on the wrong side of the property boundary, the fence can be removed and the premises restored without liability to the property owner. For further details on the law of fixtures, please consult a local real estate attorney.