What You Need to Know About the Hubbard Clause

The Hubbard Clause, or Sale of Buyer’s Property Contingency, is a clause in the real estate purchase contract that protects the buyer who must sell their home from having to buy their next home before selling their current home.

In Central Connecticut, we utilize a addendum to the real estate contract called the “Sale of Buyer’s Property Contingency.”  In the addendum, the buyer and seller agree to the following:

• That the buyer will immediately list their house for sale, if they haven’t already done so.
• The buyer has a certain period of time to obtain a contract on their home and for all the contingencies in that contract to be met – mortgage, inspection, etc.
• If another buyer puts in an offer on the seller’s house, how many days the buyer has to remove the Sale of Buyer’s Property Contingency (by either having the contingencies met in their contract or by obtaining a 2nd mortgage).
• Whether the seller may accept another contract with another Sale of Buyer’s Property Contingency.

Confused?  Don’t worry – you’re not alone.  Here are some common questions and answers regarding the Hubbard Clause.

The Truth About Deducting Private Mortgage Insurance

Private Mortgage Insurance, or PMI, is

“insurance that protects a lender or investor against loss if a borrower stops making mortgage payments. It makes it possible for you to buy a house with as little as a three percent down payment or less for qualified borrowers, helping you buy a home sooner than you otherwise could. “  PrivateMI.com

Although it protects the lender, the borrower actually pays for it.  And until recently, PMI was not a tax deductible item for primary residences. 

PMI is now tax deductible for some.  Here are the requirements:

• Borrower must have purchased or refinanced* the home using a loan backed by PMI in 2007.  For the next three years, ending in 2010, borrowers who pay PMI will also be able to deduct it as long as they meet the other restrictions.
• Only borrowers with an adjusted gross income of $100,000 may deduct 100% of the premium.  Families earning up to $109,000 may deduction a portion of the premium.
• Premiums are deductible for the borrower’s primary residence or for a second home.  Owners of rental property are already allowed to deduct PMI.

The IRS publishes a 16-page guide to “explain” this further. 

*There is some confusion about whether a loan that’s been refinanced qualifies.  Contact your tax advisor for more information.

Connecticut Political News Fix – Sites for the Afflicted

Where do you go if you want more local political news than local TV and print media can offer? From one political junkie to another, here are some sites I read (although I don’t necessarily agree with all of them). CTNewsJunkie.com – I do need it bad.

CTLocalPolitics.net – Check out the Hartford Civic Center (it will never be the XL Center to me) pictures of Barack Obama’s visit. My husband took a walk down to see if he could get in and he said the line stretched out of the building.

CapitolWatch – I don’t have a lot of love for the Hartford Courant. This is one exception.

CTTaxed.com – right

CTBob.com – left

The Secret Listing – Less is Not More in the Connecticut Multiple Listing Service

Is your home a “secret listing?”  As a home seller, your listing sheet should have all the information a buyer needs when deciding to see your home.  If the information isn’t there, buyers may just pass by your listing or move it to the bottom of their list.  Think of your listing sheet as you would a business card: without key information, buyers won’t contact your agent to buy your house.

How would you know if your listing is a “secret?”

If you recently listed your home for sale, did you ask for a copy of the listing as it appears in the Multiple Listing Service or the CT MLS as it’s called in Connecticut?  If you haven’t seen the sheet and looked at it objectively as a buyer would, then you should ask your agent for a copy. Make sure it has as much information as possible, or your listing may remain a secret.

Here’s What Your Listing Must Contain