Some Important Changes for GLBT Homeowners

A reminder to the gay community in Maryland that when marriage for GLBT partners becomes legal as of January 1, 2013 there are important considerations for  homeowners. Before January 1, 2013 gay couples could only take title to real property in Maryland as "joint tenants" or "tenants in common."   Prior to the new legislation only legally married couples (heterosexual) could take title to property as "tenants by the entirety." When the new law comes into effect, all legally married gay couples (no matter in which state they were legally married) can now take title to property in Maryland as "tenants by the entirety."  I will not discuss the ramifications as I am not an attorney, but in general tenants by the entirety tends to offer more legal protection to married couples than either other form of ownership. So, if you own property as a couple in Maryland, I advise you to contact an attorney who has knowledge of real estate law for advice. The easiest choice is for you to contact the attorney that conducted your closing. If you choose to proceed, the attorney can usually make application to change the type of ownership on your title for a reasonable fee.

This right also exists for property owners in the District since gay marriage is legal there as well. Many GLBT couples that are married are unaware of this right, and still hold title to their homes as joint tenants in the District. I advise District homeowners to place a call to their attorney as well.

Unfortunately, these changes do not apply in Virginia as gay marriage is not yet legal there.

State of the Market

As we wind down 2011 and head into 2012, I think it is a good idea to give you a few of my thoughts on the market and what to expect in the next year. 2011 was an erratic year for real estate in the Washington area. What looked liked to be shaping up as a decent year this past spring came to a screeching halt when congress got caught up in the budget crisis. The situation never really got better as we passed from one crisis to another. Right now with the uncertain financial situation in Europe the market remains in the doldrums. It is hard to find much in the way of consumer confidence when everybody is worried about the global financial situation. The problem is not being helped by the partisan battles that continue to plague our own congress.

The good news is that there will be a housing recovery and prices are bound to go up. The bad news is that nobody really seems to know when this will happen. Some areas in our regions have felt the pain a lot more than others. The western portion of Montgomery County is doing well and the District seems to be one of the strongest real estate markets in the nation. But the rest of the region is still bothered by low prices, high inventory and an abnormal number of distressed properties that keep prices depressed.

But there is one thing that I do know and feel pretty confident about. Recessions do eventually end and when they do, area property values in this area should rebound and prove to be very healthy. I firmly believe that the Washington area is one of the best places to own property. My 25 plus years in the industry and proved this to me. We are going to be just fine. Just be patient and give it a little time.

Market update for Maryland

Here is a great site where you can stay in touch with the Maryland and Regional Markets.

It is called rbintel

Tax credit extension until April 2010

Below you will find information about the extension of the housing tax credit. The credit now last until April of 2010 and can be very helpful not only for first time home buyers but move up buyers as well. The tax credit has been a devisive issue in congress and there are many who think that it is not such a great idea. As for me, I don't have much of an opinion. As a Realtor it is obvious that it will generate some business for me and that is a good thing. However, I am worried that it will only serve to increase the growing national debt and encourage some to purchase homes who really have no business doing so. I am a big believer in home ownership and think that it is the best path for most Americans to financial security. However, events in the sub prime mortgage market in the past few years clearly demonstrate that that there are a lot of people who really should "not" buy homes.



$8,000 First-time Home Buyer Tax Credit at a Glance

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

The tax credit applies only to homes priced at $800,000 or less.

The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.

The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.