there is a fine line between giving the Clients "possibilities" and giving them "advice".
Way back when, my Broken taught us to keep a log when we talk to Clients and write things like this down.
The wording is everything, and the documentation, when we could end up in court.
If the Realtor had written in his log; "Client asked about Vesting; recommended talking to Tax man or Attorney." then he would have been covered.
It's common mistake we RE agents go beyond, but I don't vest my client for their property investment as
learned from RE regal conference. I always suggest to get advise from their Real Estate Attorney.
Paul Kim / Coldwell Banker Los Altos , CA
It is always best to mention to your buyer that you can not give legal advice on how to handle vesting and ask them to consult with a real estate attorney.
Buyers see us understanding the difference because we are in working in the industry but they need to realize we are not the real estate attorney looking at the legal implications in their case. Therefore, we can only explain each title vesting definition but can not hep them make the selection for them.
Thank you for posting the question, John
Victoria Always, REALTOR
Alain Pinel Menlo park
Title advice: http://www.SteveManzo.com
How are you doing? And what a great question...
My answer, under no circumstances are we EVER to give advice to any client regarding property vesting for their home. When asked I do not provide advice. In fact, I let the title company do all of the "talking" on this point, and most of the time, the escrow officers will provide a sheet to help explain this topic to the buyers.
However, I do very much do this....I will tell someone about 5 days prior to our hitting the closing table that they should speak with their legal and tax professional about how to vest the property. I let them know that I am prohibited from giving this advice, and that because this can affect their taxes and/or ownership, they need to consult with professionals prior to getting to escrow. Most of them do exactly as I ask, and by the time we get to title, they already have the answer.
So that's what I do. I know I could make "couched" recommendations (you know, "It it were my home...blah blah blah" or "in my opinion only, I'd vest it like blah blah"), but it's just too risky. So, no, I never make that decision for anyone and I never make any recommendations. I do, however, prepare buyers for the question, and make sure they get the answer before we get to title.
But that's my take...
Area Pro Realty-People's Choice
When someone asks me this question I tell them that they need to speak to their accountant to find out how best to vest for their particular tax situation, for the very reason you bring up here.