According to a June 2nd article in The Wall Street Journal, realtors would like Congress to extend the time for potential homeowners “to complete transactions that qualify for the $8,000 federal home-buyer credit.”

In order to qualify for the tax credit, a home-buyer must have a binding sales contract signed by April 30 with his or her home purchase completed by June 30. National Association of Realtors, or NAR,  is “asking for flexibility with the June 30 ^th deadline,” according to the WSJ article. If it approves such flexibility, Congress will have to act quickly for this to occur, and such time restraint makes it unclear whether Congress will act in favor of this lobby.

NAR argues that an extension of the June 30 ^th deadline would further help transactions that involve contracts on foreclosures and short sales. Both of these transactions take longer to process and flexibility on the deadline would thus ease the worry of whether they would be completed on time.

The Federal home-buyer tax credit gives up to $8,000 for first time home-buyers and up to $6,500 to repeat buyers in the Obama administration’s attempt to stimulate the real estate industry. An article in the Associated Press reports a positive outcome from the tax credit with a 6 percent home sale rise, seasonally adjusted, this April.


*Any information on all blog entries should not be construed as legal advice. If you have any legal issues, please consult an attorney.