Purchasing a new home can be very exciting, but there are several legal considerations to be taken and getting them wrong can be unforgiving for your investment. Residential property investment is thriving, and everyone wants to be a part of it. Truth be told, owning a home has numerous benefits since it can provide the ultimate backdrop when times get tough. With this in mind, many potential homeowners fail to recognize that some legal hurdles must be overcome and end up proceeding without caution. Taking caution means that a potential owner will be able to avoid being caught or trapped by legal issues.
1. Property Tax Law
Usually, when individuals purchase a home, they forget that they must pay property taxes as soon as ownership of the home is transferred to them. Some people often mistakenly believe that they can avoid property tax issues. Don’t make this mistake. Before you purchase a home, ask the seller if they had paid property taxes in advance. If so, you are entitled to reimburse the seller to avoid any controversies in the future. However, property taxes had not been paid in advance, paying the taxes should be your priority. Although dealing with tax laws always seems like both a humongous headache and a financial burden, doing so will provide peace of mind.
2. Title Scums.
Very few homeowners are aware that home ownership has a vocabulary that is uniquely its own. A potential owner should go an extra mile or use a title company to understand these important legal documents. Some sellers sell condemned properties that are usually characterized by a significant tax lien or selling a property to multiple individuals. In such cases, homeowners pay hefty amounts to the seller, spend even more making renovations and moving into their new home only to lose their dream home and massive sums of money. A solid understanding of the legal documents involved will help resolve any problems down the road.
Another legal hurdle that homeowners run into is the title insurance. After purchase, an owner may call a local landscaper to help improve the home appearance only to learn that the purchased property line cannot be planted on. When buying a home, a homeowner may be purchasing more or less than the land and the house that they see. There are occasions where the property is encumbered. In other words, a third party may own the rights to your land and hence restricts you from making certain changes to the property. An encumbrance can be minor or severe; such that some may prevent you from planting trees and others from building up to the property line. In any case, a title insurance aims to protect you from such issues.
Home ownership lies in the hearts of many individual’s dreams. It is the largest and most complex investment that consumers make. Purchasing a home can turn into a nightmare due to legal hurdles that may seem impossible and tiresome to overcome. The key to a smooth and satisfying homeownership is to be informed.