Florida Today from Cocoa, Florida • Page 79

1 FIXED RATES ADJUSTABLE RATES Rates on one-year, adjustable-rate mortgages excluding points are 7.15, up from 6.96 last week. Interest rates on 30-year, fixed-rate mortgages excluding points are 8.64, up from 8.52 last week. REAL ESTATE SUNDAY, May 21, 2000 SECTION Victoria Reid, asst. business editor, 242-3685, 10 a.m.-6 p.m. HOT PROPERTIES ILaioir shortage slows projects Jakob Dylan buys home in Brentwood Los Angeles Times Aunt's assets pass to kids QUESTION: My aunt died recently.

She wasn't feeling well, so one of her adult children drove her to the hospital where she died of a massive heart attack. Her husband died a few years ago. They owned their house in Joint tenancy, so I presume she held title to the house at the time of her death. No will has been found. Her three children, ages 18 to 23, want to know what to do now? One of them is In college and needs money.

Can the house be rented to produce income? ANSWER: Since she died without a will your aunt's assets, such as the house, bank accounts, personal property and other property, will pass according to the state law of intestate succession to her children. Thankfully, they are all adults, so no LOS ANGELES Jakob Dy lan, lead singer and guitarist with the rock band the Wallflowers, has purchased a Brentwood home. The asking price was about $3.2 Dylan, 30, is the youngest of legendary rock star Bob Dylan's five children. The Wall .1 flowers made its debut album in 1992 Dylan but had a mega-hit with its '96 album, "Bringing Down the i guardian must be appointed to represent a minor child. They should hire a probate attorney to handle the estate assets and determine if any federal or state estate taxes are due.

If your aunt left a net estate below $675,000, there will be no federal estate tax. However, if the net estate is more than $675,000, a federal estate tax will be payable. Should there be insuffi- ROBERT BRUSS MAILBAG cient cash in her estate, assets must then be sold to pay the estate tax. The probate attorney will petition the probate court to appoint an estate administrator. This person can be one of the adult children.

The children should decide if they want to sell or divide the assets. Meanwhile, the administrator can rent the house to produce rental income. The attorney will publish a notice to creditors to file any claims. Unless there are complications, paying debts and distributing or selling the estate assets should take six to 12 months. Malcolm Denemark, FLORIDA TODAY minium lobby's roof by Hurricane Floyd last fall.

Malogrides said it took months to find a contractor who would agree to do the work. Horse. Since then, the group has been working in an L.A. studio, putting the finishing touches on a new album due out in September. The Brentwood home, described as Old World Spanish in style, was built in 1936, and has five bedrooms in about 4,000 square feet plus a pool.

Dylan's former home in the Hollywood Hills, built in the '60s, has three bedrooms in 3,000 square feet. He sold that house for about $1.8 million. Estevez purchases new home in Malibu Emilio Estevez, director and co-star with his brother Charlie Sheen of the Showtime movie "Rated has purchased a newly built home on slightly more than an acre in Malibu for about $2 million. Estevez also just sold his former oceanfront home nearby for about $3 million. Estevez, who turned 38 last week, was part of the '80s' Brat Pack, a group of young Hollywood stars.

His father is actor Martin Sheen, who plays the president of the United States in the hit NBC series "The West Wing." Estevez's new home is Spanish in style and has four bedrooms, a breakfast room, a guest DINO MALOGRIDES, president of the Crescent Beach Club Condominium Association in Cocoa Beach, inspects damage to the condo- Building boom boosts demand for qualified workers By Lyn Dowling For FLORIDA TODAY All this probate court hassle, with unnecessary costs and delays, could have been On the Web For the latest from real estate expert and columnist Robert Bruss, go to: www.spacecoasthomes.com financingbrussindex.htm and framers are an integral part of the building industry, but those trades do not have the they need, said Lauren Ramsey, director of construction for Lennar Homes. "Generally, I'll consistently lose two to four weeks from the time a home starts and the time I'm out of frame," she said, refer ring to getting the framework of a house up. "I've had homes sit a week be fore I can get them framed, be cause frame carpenters are so busy. The problem, the builders avoided if yourlate aunt held her major assets in a living trust. If her houje, bank accounts, stocks, bonds and other-major assets were in a living trust, upon her death the alternate trustee, such as one or all of the adult children, could have distributed the assets according to the living trust.

More details are in my special report Learn How to Avoid Probate Costs and Delays With a Revocable Living Trust, available for $4 from Robert Bruss, 251 Park Road, Burlin-game, CA 94010 or by credit card at (800) 736-1736 or www.lnman.combruss My niece is a real estate agent, and I have to list my home for sale with her when I sell; otherwise, I will never have peace in the family. She works for the biggest realty brokerage in the vicinity, but she says her firm recommends not putting my listing into the local multiple listing service. She says I will get the best service because my listing -m i ---in jft4 Ltt'4 CONTRACTORS SAY homeowners can expect longer construction times and higher prices for homes because of a labor shortage within the home-building industry. From left are Scott Clark, Holiday Builders Land Acquisitions; Keith Gover, Holiday Builders South Brevard Division manager; Bill Naber of Naber Plumbing, Inc; and Brian Young of Young Builders. Dino Malogrides never imagined it would take so long to fix his building.

Last fall, Hurricane Floyd left the condominium of which he is president, the Crescent Beach Club, without a good-sized slice of stucco facing, minus dozens of roof tiles and with a number of broken windows. "We got going after things settled down in October, but we couldnt get anyone interested in the work," said Malogrides, a retired quality engineer. "We called all kinds of people and several said, 'We'll call It was months, he said, before they finally got to agree to do the work. The problem, as many who are trying to get work done have learned, is that Brevard's contractors simply do not have enough help to keep up with the volume of work that has come their way during the past few years. Indeed, 75 percent of the members of the National Association of Home Builders say labor problems are their biggest concern, according to a 1999 survey.

Furthermore, 70 percent of the builders surveyed said they expect to construct more homes this year, which should put an even tighter pinch on the labor market, according to the NAHB. Said NAHB economist Dave Seiders, "From one end of the country to another, builders we house, a courtyard, a patio with a fountain and barbecue; a pool, spa and gardens. The gated home, described as having Old World charm, also has a brick drive. Alan King buys condo in Vegas Actor-comedian Alan King, who has appeared for decades on the stages of Las Vegas, has purchased a Las Vegas condo for $770,000. The unit is in a high-rise tower expected to be completed by the end of this year.

King, 72, has appeared on many TV variety shows and in about 20 movies, including "Casino" (1995). A native of Brooklyn, King also has a home on Long Island. Known as Turnberry Place, the Las Vegas development will include four 38-story, 183-unit towers. King bought a three-bedroom, unit on the 21st floor of the first tower scheduled for completion. Prices range from $400,000 to more than $3 million.

explain, is not with tneir own employees, but with their subcontractors who require tradesmen of varying degrees of skill to perform their jobs. "It's extremely difficult," said Rich Williams of Peays Electric, West Melbourne, a subcontractor for local homebuilders. "Never in my life did I think I'd see (electrical subcontractors) offering signing bonuses. No new blood Cragg said she believes the problem is societal, rather than strictly economic. "As a society, we just don't place as much value on the construction trades as we should," she said.

"Young people simply are not going into the industry, even though there is a tremendous amount of money to be made in it." Owners of subcontracting firms, usually referred to as "the trades," agreed. See HELP, 2H will be sold within her firm's office and the MLS cheapens a "prestige listing" such as my house. I thought you highly recommend the MLS. What should I do? Harvey H. I am shocked your niece would be so selfish and mislead her own uncle.

If your list serious situation because we know what's ahead. There is no stop to the building boom. Builders are selling properties before they're built and we have no one to do the work." "It was bad, it's been bad and it hasn't improved," added Anita Cragg, president of Signature Quality Homes and the Home Builders Contractors Association of Brevard County. "It has definitely caused the cost of labor to go up and consequently, the cost of housing to go up in order to meet the demand." Concrete workers, masons talk to complain about the availability and quality of labor." Recently issued reports show a slight nationwide slowdown in construction as interest rates continue rising. But until the slowdown is far greater than it is now, builders say homeowners can expect longer construction times, an increase in call-backs for repairs after construction is complete, higher prices for homes and long waits to get work done.

Bill Naber of Naber Plumbing in West Melbourne was direct about the situation here: "This summer we are going to be in a ing is not in the local MLS, your home won't receive maximum market exposure to buyers represented by agents from other member brokerage firms. Without maximum market exposure, you might not receive top price for your home. The reason your niece wants to keep your listing within her firm is she will receive a higher sales commission than if it is sold by an agent, through the MLS, with another firm. If I were you, I would not list with that niece Board lacked authority to shut off pool heater who is not looking out for your best interests. In 1999 I sold my home.

The realty agent did a great job; however, there was one surprise: capital gains taxes. My sale price was $170,000 more than my 1988 pur chase price. I figured this was well within fund. This has resulted in 36 former owners losing their money, which was not used for the assessed purpose, and 36 new owners receiving a windfall. Is this right? my $250,000 home-sale tax exemption, 1 Wrong.

Upon figuring my 1999 income taxes, I learned I owed tax on an additional capital gain from prior home sales. My house basis lected, become part of the operating revenues of the association. It if results in a surplus, the surplus belongs to the unit, not the former unit owner. Let's look at this from another perspective. Let's assume that you purchase a new condominium unit where you reside for 20 years.

Shortly after was not my purchase price, but the "ad- lusted basis from my 1988 IRS Form 21 19." My deferred capital gain from previous home sales was $336,000, rather than $170,000. Therefore, I owed $26,000 in capital GARY P0LIAK0FF ON CONDO LIVING J.D. Jupiter This question comes up all the time. More frequently than not a situation arises where unit owners gain taxes. This was a shock that your other readers who have fleierreo capital gains from previous home sales should anticipate.

Dennis R. without cause, at any time. If the board isn't responsive to the members' desires, why not remove them and install directors who are sympathetic to your desires? Our condominium association levied a $70 special assessment to cover the cost of Increased Insurance premiums. By switching insurance companies, the board was able to avoid the increased costs. The board is planning on using the funds for another purpose.

Is this legal? H.M. Daytona Beach Funds collected pursuant to a special assessment can only be used for the specified purpose of the special assessment. Any excess funds must either be returned to the unit owners or applied as a credit toward future assessments. To submit a question on condominiums to attorney Gary Poli-akoff, write to Becker Polia-koff, P.A., 3111 Stirling Road, Fo-t Lauderdale, FL33312. providing that any proceeds of insurance or settlement, or refund of a special assessment, is the property of the selling unit owner.

We have a unique problem. We own a home in a large complex of condominiums on the water in North Palm Beach. Two of the buildings with 1000 owners each share a swimming pool and fitness center. We also share a large party room overlooking the pool. Our setting Is beautiful; everyone loves it here.

The problem is that we have two separate boards. The party room is in desperate need of refurbishing and updating. The board refuses to address the situation. What can we do? J.B. North Palm Beach I don't understand the problem.

The board serves at the pleasure of the unit owners or, at a minimum, the pleasure of the association boards in the case of a master association. They can be removed, with or QUESTION: My wife and I purchased an oceanfront condominium which included a heated pool. In an effort to cut expenses, the board shut off the pool heater. Does the board have such authority? R.W. Indialantic ANSWER: No.

If a heated pool was part of the amenities since inception of the condominium, I am of the opinion that eliminating the pool heater, even cutting it off, is a type of material change which cannot be done without unit owner approval. The 300 plus unit owners In our complex are assessed $100, payable in four $25 Installments, for a security gate. After meeting with several gate companies and local officials, the board decided that the gate was no longer feasible. On advice of an accountant and an attorney, a credit for that portion of the unusual special assessment was refunded to the record title owners, not necessarily those who paid It, as of the date of the re Thank you for sharing that unpleasant home-sale taxing experience. Your $250,000 home-sale tax exemption applies to both the profit on the sale of your latest residence, plus anv deferred "residence replacement ruie gains from pre-May 1997 principal residence sales.

you sell your unit, the new owner is assessed for a new roof. Since you had the benefit of the roof during your time of ownership, why shouldn't you have paid for its future maintenance? The answer is, that's just the way it works. Having said this, I respectfully note that there is nothing which would have precluded a seller, as part of the consideration on the sale of hisher unit (assuming the buyer agrees), from setting the selling price at a level which recaptures the previously paid assessments or have paid special as- sessments to make building repairs for which monies were ultimately collected from a developer arising out of warranty litigation, or from an insurer when the repairs were necessitated by a casualty loss. In the intervening period, the unit owner who paid the assessment sells hisher unit, leaving the benefit of the subsequently received settlement or insurance proceeds to the new owner. The advice of your accountant and attorney was rect.

The proceeds, when col I am trying to buy some fixer-upper houses. They are old and need painting and nrinws. but the contractor said the foundations are good. Is this a bad investment? ToniW. See BRUSS, 2H.