Commercial and Residential | Kansas and Missouri | 31 Years of Experience

Real Estate Lawyer in Kansas City

Legal Services

Real Estate Sale Contracts
Earnest Money Disputes
Deeds
Trusts
Estate Planning
LLC Formation
Realtor Disputes
Contract/Lease Review

Brokerage Services

List Properties For Sale on MLS
Buyer Representation
Sellers
Buyers

Same Day Production

Power of Attorney
Medical Directive
Quit Claim Deed
Beneficiary Deed

Our Firm

What Our Customers Are Saying

My grandfather was ill and we were told by the doctor to put his affairs in order. We called Mark to do a Beneficiary Deed and he was able to draft the Deed for signature the same day we called. Needless to say my grandfather passed away 3 days later allowing us to avoid probate altogether because his house was his only asset. This allowed us to ultimately sell the property quickly and split the proceeds among myself and my brother and sister which was what my grandfather wanted. I would recommend Mark to anyone needing a real estate lawyer. Mike Larson,
We sold our house FSBO and went to closing and it turned out that there were several liens against our house that we were unaware of. Mark was able to get the liens settled and removed and we were able to sell our home. We called all over town and never did speak with an attorney but Mark spoke to us on the first telephone call and took over from there. I do not know what we would have done if Mark had not helped us. James Tuttle,
We came to Mark because my siblings were unwilling to talk regarding property left for us and did not know what to do. Mark helped with selling the property and reaching agreements among my brothers and sisters and formalizing those agreements. It really helped that he was both a lawyer and a broker so he was able to take care of everything. Julie Wyatt,
I was in bankruptcy and needed to sell 20 acres of land. Mark was able to work with the Bankruptcy Trustee and file all the paperwork with the Bankruptcy Court and after getting approval from the Bankruptcy Trustee I was able to sell my 20 acres. Robert Anderson,
I went to closing on my house and was told by the title company that I could not get title insurance because my ex-spouse had a marital interest in my property. Mark was able to file a Quite Title action and clear the title and after doing so sold my house above list price. He also agreed to get paid his attorney fee's on the quite title action from the closing of the house. I would not have been able to get it all done any other way. Lise Gomez,
Mark and his staff are very professional. His fee's were reasonable and I was always able to talk to him directly when I needed to talk to him about my case. Andy Walford,

What We Offer

Affordable Legal Service in Kansas City

Affordable Legal Services – Kansas City Real Estate Lawyer

What I found over the years is the overhead of such arrangements often made it very difficult for clients to pay the fees necessary to do a great job and …

Professional References – Kansas City Real Estate Lawyer

Mark A. Roy REAL ESTATE LISTINGS, FSBO TRANSACTIONS, DEEDS, LLC FORMATION, DOCUMENT REVIEW     Attorney in Kansas and Missouri (32 years) Real Estate Broker in Kansas and Missouri (17 …

Real Estate Owner and Investor

Real Estate Broker and Investor – Kansas City Real Estate Lawyer

I own my own properties as a real estate investor and own my own real estate brokerage. I understand the challenges associated with buying, selling, and renting real properties.  One …

Who We Represent

Buyer Representation – Kansas City Real Estate Lawyer

Buyer Representation – Kansas City Real Estate Lawyer

  Buyer Agency involves completing a Buyer Agency Agreement wherein you agree to give one agent or one brokerage the Exclusive Right to Represent you in finding properties to make …

Seller Listing – Kansas City Real Estate Lawyer

Seller Listing – Kansas City Real Estate Lawyer

  Traditional Commission (3% Buyer Broker, 3% Seller Broker) $100,000 6% $6,000.00 $200,000 6% $12,000.00 $300,000 6% $18,000.00 $400,000 6% $24,000.00 $500,000 6% $30,000.00 $600,000 6% $36,000.00 $700,000 6% $48,000.00 …

Investors – Kansas City Real Estate Lawyer

Investors – Kansas City Real Estate Lawyer

Real estate investors purchase property for only one reason  investment (cash flow, appreciation, and depreciation). Real estate investors do not typically live in the properties being purchased making them non-owner …

Broker/Agents – Kansas City Real Estate Lawyer

Broker/Agents – Kansas City Real Estate Lawyer

There are a lot of challenges to running a real estate brokerage…agents, buyers, sellers, inspectors, appraisers, surveyors, and the Real Estate Commission to name a few. Most often, the legal …

Kansas City Missouri Real Estate Lawyer & Attorney Articles

Kansas City Missouri Real Estate Lawyer & Attorney News

Specific areas of interest covered in our legal and real estate attorney blog:

For Sale By Owner | Real Estate | Landlord/Tenant | Land/Boundaries | Estate Planning
Real Estate Brokers and Agents

For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets

INVESTOR SERVICES – WE ASSIST IN BUYING AND SELLING NON-PERFORMING NOTES AND NON-PERFORMING REAL ESTATE ASSETS

INVESTOR SERVICES  Our office assists in connecting BUYERS and SELLERS of NON PERFORMING REAL ESTATE ASSETS and NON PERFORMING REAL ESTATE NOTES.  NON-PERFORMING REAL ESTATE ASSETS Inherited Properties  – You and/or your siblings have inherited a property and do not have the time to go through the sales process or do not trust turning your family property over to a real estate agent.  You want to close on the house quickly but fairly and with the assurance, that your long-term interests are being professionally represented. (Commercial * Residential) Rental Properties – Let’s face it being a landlord sometimes is not what it is cracked up to be. Taxes, Insurance, Vacancy Rates, Property Destruction, Vandalism, Municipal Violations, Clean Up Costs, and the cost to relet the property if vacant, or hire an attorney for an eviction proceeding if not vacant.  In this case, we can find a buyer and get you out of the property and the expenses associated with regaining possession and rehabbing or making repairs to the property for resale. (Commercial * Residential) NON-PERFORMING REAL ESTATE NOTES Promissory Note and Deed of Trust/Mortgage – You may have loaned money on an owner-financed transaction and the borrower has stopped making payments or is otherwise in default on the note. You need your money back, but do not want to pay the legal fees and costs to foreclose on the property and/or do not have the time to go through the legal process to liquidate the asset such as a Quiet Title Action or Petition for Unlawful Detainer involving significant amounts of time and money.  CONTACT:        HTTPS://KCREALESTATELAWYER.COM HTTPS://SAINTLOUISREALESTATELAWYER.COM AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues

For Sale by Owner / Home Buying / Home Selling

OUR LAWFIRM OFFERS ONLINE VIRTUAL MEETINGS

SPEAK DIRECTLY WITH AN ATTORNEY NOW !! Our office offers online legal video/audio consultations directly with Real Estate Lawyer and Broker Mark Roy. You pick the day and time – the lawyer contacts you directly. $99.50 for a 1/2 hour legal video/audio consultation (not including document review) * Residential or $195.00 for a 1 hour legal video/audio consultation (includes document review) * Residential *Commercial contracts, or other non residential services must be booked for those specific services BOOK CONSULTATION ONLINE TODAY AT  AT THE “BOOK HERE” BUTTON ON OUR HOMEPAGE AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May     SearchSearch

Home Buying / Home Selling / Tax-Related Issues

What is a Side Letter Agreement in Real Estate?

What is a Side Letter Agreement? “A Side Letter Agreement is an agreement considered separate and apart from the underlying contract but facilitative of the underlying contract” A side letter or side agreement or side letter arrangement is an agreement that is not part of the underlying or primary contract or agreement, and which some or all parties to the contract use to reach an agreement on issues the primary contract does not cover or for which they require clarification, or to amend the primary contract. Under the law of contracts, a side letter has the same force as the underlying or primary contract. However, the validity of side letters has been denied by some courts in specific circumstances.[1] Side letters are often used in financial or property transactions or other commercial contracts. They are usually in the form of a letter signed by parties signatory to the primary contract but can also be an oral agreement. As part of a business organization’s governance strategy, side letters should be under similar controls to any other contractual agreement, as they can have significant financial or operational impact, or expose the organization to risks of many types.[2] Side letters may also be used in relation to private fund contracts, for example, a particular investor may wish to vary the terms of a limited partnership agreement with respect to that particular investor. An investor might be seeking more favorable terms under the contract or might need the side letter to enter the venture under terms to meet regulatory requirements. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch

For Sale by Owner / Home Buying / Home Selling / Real Estate Markets

MISSOURI STATUTE ON PROPERTY FRAUD

  570.095.  Filing false documents, offense of, elements — penalty, enhancement — restitution, when — system to log suspected fraudulent documents, procedure. — 1.  A person commits the offense of filing false documents if:   (1)  With the intent to defraud, deceive, harass, alarm, or negatively impact financially, or in such a manner reasonably calculated to deceive, defraud, harass, alarm, or negatively impact financially, he or she files, causes to be filed or recorded, or attempts to file or record, creates, uses as genuine, transfers or has transferred, presents, or prepares with knowledge or belief that it will be filed, presented, recorded, or transferred to the secretary of state or the secretary’s designee, to the recorder of deeds of any county or city not within a county or the recorder’s designee, to any municipal, county, district, or state government entity, division, agency, or office, or to any credit bureau or financial institution any of the following types of documents:   (a)  Common law lien;   (b)  Uniform commercial code filing or record;   (c)  Real property recording;   (d)  Financing statement;   (e)  Contract;   (f)  Warranty, special, or quitclaim deed;   (g)  Quiet title claim or action;   (h)  Deed in lieu of foreclosure;   (i)  Legal affidavit;   (j)  Legal process;   (k)  Legal summons;   (l)  Bills and due bills;   (m)  Criminal charging documents or materially false criminal charging documents;   (n)  Any other document not stated in this subdivision that is related to real property; or   (o)  Any state, county, district, federal, municipal, credit bureau, or financial institution form or document; and   (2)  Such document listed under subdivision (1) of this subsection contains materially false information; is fraudulent; is a forgery, as defined under section 570.090; lacks the consent of all parties listed in a document that requires mutual consent; or is invalid under Missouri law.   2.  Filing false documents under this section is a class D felony for the first offense except the following circumstances shall be a class C felony:   (1)  The defendant has been previously found guilty or pleaded guilty to a violation of this section;   (2)  The victim or named party in the matter:   (a)  Is an official elected to municipal, county, district, federal, or statewide office;   (b)  Is an official appointed to municipal, county, district, federal, or statewide office; or   (c)  Is an employee of an official elected or appointed to municipal, county, district, federal, or statewide office;   (3)  The victim or named party in the matter is a judge or magistrate of:   (a)  Any court or division of the court in this or any other state or an employee thereof; or   (b)  Any court system of the United States or is an employee thereof;   (4)  The victim or named party in the matter is a full-time, part-time, or reserve or auxiliary peace officer, as defined under section 590.010, who is licensed in this state or any other state;   (5)  The victim or named party in the matter is a full-time, part-time, or volunteer firefighter in this state or any other state;   (6)  The victim or named party in the matter is an officer of federal job class 1811 who is empowered to enforce United States laws;   (7)  The victim or named party in the matter is a law enforcement officer of the United States as defined under 5 U.S.C. Section 8401(17)(A) or (D);   (8)  The victim or named party in the matter is an employee of any law enforcement or legal prosecution agency in this state, any other state, or the United States;   (9)  The victim or named party in the matter is an employee of a federal agency that has agents or officers of job class 1811 who are empowered to enforce United States laws or is an employee of a federal agency that has law enforcement officers as defined under 5 U.S.C. Section 8401(17)(A) or (D); or   (10)  The victim or named party in the matter is an officer of the railroad police as defined under section 388.600.   3.  For a penalty enhancement as described under subsection 2 of this section to apply, the occupation of the victim or named party shall be material to the subject matter of the document or documents filed or the relief sought by the document or documents filed, and the occupation of the victim or named party shall be materially connected to the apparent reason that the victim has been named, victimized, or involved.  For purposes of subsection 2 of this section and this subsection, a person who has retired or resigned from any agency, institution, or occupation listed under subsection 2 of this section shall be considered the same as a person who remains in employment and shall also include the following family members of a person listed under subdivisions (2) to (9) of subsection 2 of this section:   (1)  Such person’s spouse;   (2)  Such person or such person’s spouse’s ancestor or descendant by blood or adoption; or   (3)  Such person’s stepchild while the marriage creating that relationship exists.   4.  Any person who pleads guilty or is found guilty under subsections 1 to 3 of this section shall be ordered by the court to make full restitution to any person or entity that has sustained actual losses or costs as a result of the actions of the defendants.  Such restitution shall not be paid in lieu of jail or prison time but rather in addition to any jail or prison time imposed by the court.   5.  (1)  Nothing in this section shall limit the power of the state to investigate, charge, or punish any person for any conduct that constitutes a crime by any other statute of this state or the United States.   (2)  No receiving entity shall be required under this section to retain the filing or record for prosecution under this section.  A filing or record being rejected by the receiving entity shall not be used as an affirmative defense.   6.  (1)  Any agency of the state, a county, or a city not within a county that is responsible for or receives document filings or records, including county recorders of deeds and the secretary of state’s office, shall, by January 1, 2019, impose a system in which the documents that have been submitted to the receiving agency, or those filings rejected by the secretary of state under its legal authority, are logged or noted in a ledger, spreadsheet, or …

For Sale by Owner / Home Buying / Home Selling / Real Estate Markets

OPTIONS FOR SELLER FINANCING

Top 10 Creative Financing Techniques Sometimes a loan from your bank isn’t going to meet your needs. Below are ten techniques to get your creative financing wheels turning! Interest-only loans — If you are an investor looking to purchase, rehab, and sell a property quickly, an interest-only loan may make sense. This financing allows you to make small payments at the beginning of the loan, leaving more money for renovations. When you sell the property for a profit, you can pay off the loan in full, having paid only a small amount of interest. Seller carry-back — Also known as owner-financing, the seller of the property agrees to finance the property outright. They transfer the title to you in exchange for a promissory note and deed of trust for the full purchase price of the property. Seller second mortgages — If the buyer can obtain a loan, but not for the full price of the property, sometimes a seller second mortgage is what is needed to make the transaction possible. In this case, the bank mortgage pays the seller for the bulk of the amount owed (for example 80 percent), and the seller deeds the property to the purchaser in exchange for a promissory note for the amount of the balance remaining (in this example 20 percent). Contract for deed — Similar to seller carry-back, a contract for deed is another method of owner- financing. The difference under a contract for deed is that the seller retains title to the property until the mortgage has been paid in full. Private mortgages — Private mortgages work like mortgages from a bank, but since the lender is an independent entity, they can follow different guidelines for lending. Interest rates are often higher, but this creative mortgage technique allows more borrowers to qualify for a loan. Assume payments — If you can find a seller who needs to sell a property quickly and has financing in place, you can assume the seller’s payments, often with little or no down payment. Short sales — A short sale is when a seller markets the property for less than the amount owed against it and the lien-holder agrees to accept that amount as payment in full. This is often done to avoid the credit implications and costs of foreclosure. Purchasing short sales allows you to purchase property at a discounted price. The resulting immediate equity in the property makes this a wonderful creative financing strategy! Lease options — A lease option allows the buyer to rent the property for a given amount of time, with a portion of their rent credited toward the purchase price of the home. At the end of the lease, the buyer has the option to purchase the property at the amount agreed upon when the lease was created. Retirement accounts — Most retirement accounts will allow you to borrow from yourself and repay the funds over time at a low interest rate. What a great creative financing resource! Loans from family and friends — Friends and family may be willing to invest in your business in the form of personal loans. Talk to the people around you, share your enthusiasm and your needs, and perhaps “Aunt Jan’s” loan will be the next option in your creative financing approach. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

For Sale by Owner / Home Buying / Home Selling / Real Estate Markets

INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS

  INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Democratic lawmakers are scrutinizing whether the American dream of a suburban home and white picket fence is being seized upon by large institutional investors, costing working people a shot at property ownership. The House Financial Services Subcommittee on Oversight and Investigations held the virtual panel Tuesday, titled “Where Have All the Houses Gone? Private Equity, Single Family Rentals, and America’s Neighborhoods,” to probe the impacts of firms engaging in what Rep. Al Green, the subcommittee’s chair, dubbed “mass predatory purchasing.” Shad Bogany, a real estate agent and advocate who testified before the committee, also said that institutional investors are “creating a generation of renters that will miss out on the benefits of homeownership, the ability to create wealth and stabilize communities.” “Congress, we need you to act,” Bogany said. Corporate ownership of single-family rental homes — which comprise about a third of the nation’s rental housing stock — has risen significantly since the 2008 financial crisis, when firms swooped in to purchase foreclosed properties, according to a committee memorandum. And the third quarter of 2021 marked the fastest annual increase in corporate ownership in 16 years, the memorandum said. What’s more, as the housing market grew hotter, and prices skewed higher, the investors had the advantage of being able to purchase homes with cash, trumping first-time and lower-income buyers.   ‘After an extensive investigation into this practice, we have found that private equity companies have bought up hundreds of thousands of single-family homes and placed them on the rental market.’ — Rep. Al Green, the Democratic chair of the House Financial Services Subcommittee on Oversight and Investigations In the Atlanta metro area, 42.8% of for-sale homes went to institutional investors in the third quarter of 2021, while investors purchased 38.8% of homes in the Phoenix-Glendale-Scottsdale area during the same period, the committee’s memorandum said.   “After an extensive investigation into this practice, we have found that private equity companies have bought up hundreds of thousands of single-family homes and placed them on the rental market,” Green, a Democratic congressman from Georgia, said during the hearing Tuesday. “This removes from the housing market homes that might otherwise have been purchased by individual homeowners,” he added. “These corporate buyers have tended to target lower-priced starter homes requiring limited renovation; these homes would likely have been bought by first-time buyers, low- to middle-income home-buyers, or both.” The homes, Green said, are often located in communities with higher-than-average populations of people of color. For example, the average population of five large investors’ top 20 ZIP codes is about 40% Black, although Black people comprise just 13.4% of the overall population in the U.S. according to to survey data from Invitation Homes, INVH, +0.64% American Homes 4 Rent AMH, +0.42%, FirstKey Homes, Progress Residential, and Amherst Residential, as well as an analysis of government data, according to the committee’s memorandum.   The average population of five large investors’ top 20 ZIP codes is about 40% Black, although Black people comprise just 13.4% of the overall population in the U.S. Republicans, however, said during the hearing that the Biden administration was to blame for rising prices and accused Democrats of scapegoating Wall Street while attempting to distract people from the worst inflation in decades.   AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

Home Buying / Real Estate Markets

MISSOURI ENACTS AMENDMENTS TO THE MISSOURI MECHANDISING PRACTICES ACT

  On July 2, 2020, Governor Mike Parson signed Senate Bill (SB) 591, which makes a number of reforms to the Missouri Merchandising Practices Act (MMPA) and statutes governing the standards and procedure for recovering punitive damages. The changes are intended to narrow the scope of the MMPA, constrain punitive damages and attorney’s fee awards, and make it easier for defendants to obtain early dismissal of MMPA claims brought by consumers who claim to have been misled by conduct that would not mislead a “reasonable consumer.” The MMPA is one of the most sweeping consumer protection laws in the country, covering a wide swath of conduct and authorizing fee-shifting. An MMPA claim is thus a powerful tool in the plaintiff lawyer’s arsenal and—coupled with class-action allegations—can represent significant potential liability for businesses. Because it can be difficult to obtain dismissal of MMPA claims even when they are based on innocuous conduct unlikely to mislead or harm the average consumer, litigation costs may drive defendants to settle even weak claims. SB 591’s amendments to the MMPA will likely give defendants facing marginal cases a greater chance of obtaining dismissal and, even if the case goes to trial, may lower the prospects of a significant attorney’s fee award where actual damages are limited or non-existent. The amendments will: Require both individual plaintiffs and class representatives seeking damages to prove: (1) they acted as a reasonable consumer would under the circumstances, (2) the business practice complained of would cause a reasonable person to enter into the transaction that resulted in damages, and (3) their damages can be proved with a reasonable degree of certainty using objective evidence Empower courts to dismiss a plaintiff’s claim as a matter of law if the plaintiff fails to plead facts demonstrating the conduct complained of would likely mislead a reasonable consumer Require any attorney’s fees award in a case where damages are awarded to bear a reasonable relationship to the amount of the judgment Exempt warranties provided by builders in connection with the sale of new residences from the scope of the MMPA so long as the warranty contains a statutory disclaimer SB 591 also alters the standards and procedures for recovering punitive damages in all cases, including those brought under the MMPA. The changes will: Preclude an award of punitive damages unless a plaintiff proves by clear and convincing evidence the defendant “intentionally harmed the plaintiff without just cause or acted with deliberate and flagrant disregard for the safety of others” Separately preclude the award of punitive damages if the jury awards only nominal actual damages, except in certain cases involving the violation of privacy, property, or constitutional rights Limit the circumstances under which punitive damages can be imposed on an employer for the acts of an agent Bar a plaintiff from requesting punitive damages in the initial pleading and instead require a plaintiff to request punitive damages in an amended claim requiring leave of court. To obtain leave, the plaintiff must submit evidence establishing a reasonable basis for the jury to award punitive damages. Under the amended MMPA, defendants may now be able to obtain early dismissal of a plaintiff or class representative’s claims if they can convince the court the plaintiff has not alleged conduct that would mislead a reasonable consumer. This change is likely to have the most impact in cases where a plaintiff alleges the defendant has committed a technical violation of some legal requirement that is unlikely to harm or mislead the average consumer (e.g., “slack-fill” claims). It is questionable whether the amendments concerning attorney’s fees will have much impact. The amendments state the amount of fees awarded “shall” bear a reasonable relationship to the amount of the judgment. The obvious intent here is to lower fee awards where actual damages are minimal. Currently, the relationship between fees and the amount recovered is but one factor considered by courts in awarding fees. However, the amended statute also provides that when the judgment grants equitable relief, the fee award shall be based on the time reasonably expended. Since that is the current standard and most plaintiff lawyers seek both damages and injunctive relief, it is not clear this change will meaningfully constrain fee awards. The most significant change to the punitive damages statutes for purposes of MMPA claims is the new procedure barring plaintiffs from requesting punitive damages without leave of court. These amendments are intended to give trial court judges a more active role in policing whether a defendant must face the threat of punitive damages. Depending on how rigorously trial courts apply this provision, defendants may gain greater leverage in settlement discussions without a punitive damages claim in the case. One byproduct of the changes to the punitive damages statutes and MMPA attorney’s fees provisions is that some out-of-state defendants may face increased difficulty removing cases to federal court. Historically, the ready availability of significant attorney’s fee awards and punitive damages in MMPA cases has made it somewhat easy for out-of-state defendants to remove cases asserting MMPA claims. The elimination of plaintiffs’ ability to request punitive damages in an initial pleading combined with restrictions on the amount of attorneys’ fees that can be recovered may maroon a greater number of defendants in state court. The amendments in SB 591 go into effect on August 28, 2020. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale …

Home Selling / Real Estate Markets

OPEN DOOR ORDERED TO PAY $62,000,000.00 FINE FOR DECEPTIVE PRACTICES

    The Federal Trade Commission today took action against online home buying firm Opendoor Labs Inc., for cheating potential home sellers by tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process. The FTC alleged that Opendoor pitched potential sellers using misleading and deceptive information, and in reality, most people who sold to Opendoor made thousands of dollars less than they would have made selling their homes using the traditional process. Under a proposed administrative order, Opendoor will have to pay $62 million and stop its deceptive tactics. “Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “There is nothing innovative about cheating consumers.” Opendoor, headquartered in Tempe, Arizona, operates an online real estate business that, among other things, buys homes directly from consumers as an alternative to consumers selling their homes on the open market. Advertised as an “iBuyer,” Opendoor claimed to use cutting-edge technology to save consumers money by providing “market-value” offers and reducing transaction costs compared with the traditional home sales process. Opendoor’s marketing materials included charts comparing their consumers’ net proceeds from selling to Opendoor versus on the market. Those charts almost always showed that consumers would make thousands of dollars more by selling to Opendoor. In fact, the complaint states, the vast majority of consumers who sold to Opendoor actually lost thousands of dollars compared with selling on the traditional market, because the company’s offers have been below market value on average and its costs have been higher than what consumers typically pay when using a traditional realtor. The agency’s investigation found that Opendoor also violated the law by misrepresenting that: Opendoor used projected market value prices when making offers to buy homes, when in fact those prices included downward adjustments to the market values; Opendoor made money from disclosed fees when in reality it made money by buying low and selling high; consumers likely would have paid the same amount in repair costs whether they sold their home through Opendoor or in traditional sales; and consumers likely would have paid less in costs by selling to Opendoor than they would pay in traditional sales. Enforcement Action Opendoor has agreed to a proposed order that requires the company to: Pay $62 million: The order requires Opendoor to pay the Commission $62 million, which is expected to be used for consumer redress. Stop deceiving potential home sellers: The order prohibits Opendoor from making the deceptive, false, and unsubstantiated claims it made to consumers about how much money they will receive or the costs they will have to pay to use its service. Stop making baseless claims: The order requires Opendoor to have competent and reliable evidence to support any representations made about the costs, savings, or financial benefits associated with using its service, and any claims about the costs associated with traditional home sales. The Commission vote to accept the consent agreement was 5-0. The FTC will publish a description of the consent agreement package in the Federal Register soon. The agreement will be subject to public comment for 30 days, after which the Commission will decide whether to make the proposed consent order final. Instructions for filing comments appear in the published notice. Once processed, comments will be posted on Regulations.gov. NOTE: When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $46,517. The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI …

real estate finance, FSBO, real estate markets, home buyers, home sellers

ITS FINALLY HAPPENED. COURT APPOINTED ATTORNEYS TO REPRESENT TENANTS AT NO COST TO THE TENANT

I have been practicing law for 32 years and I never thought I would see the day tenants would have free legal representation at a landlord-tenant docket.  Last week I was in Kansas City Jackson County Associate Court Docket and there were tenant lawyer representatives appearing and handing out flyers to tenants providing legal advice on what to do and what numbers to call for rental assistance and how to obtain continuances.  The whole thrust seemed to be applying for rental assistance and making the landlord at least substantially whole – whatever that means. My mind immediately began to spin about the implications of this for landlords.  I was at a docket a week prior and the Judge was handing out automatic continuances if the renter could show THEY APPLIED for rental assistance.  So months and months are going by while assistance is being obtained. But what about all the owners who have month-to-month tenants who have now decided to sell their property or better yet move into their own property.  These landlords do not want the tenant’s rent, they want the house back to sell or live in – or quit possibly the tenant has been paying under market rent for several years or decades and now with housing appreciation, the landlord wants to raise the rent, or sell the property.   I do not see how these types of services are going to make a difference.  However I would strongly encourage landlords with properties in Kansas City, Missouri – ONLY DO MONTH TO MONTH LEASES, if it is a term lease the Judge is going to give the tenant an automatic right to apply for housing assistance, etc….. like reinstatement rights in a mortgage and its hard to imagine the outside boundaries of that.  Evictions could take 6 months a year? ALSO, ADD SOME FORM OF RE-REINSTATEMENT FEE IF THE LEASE IS A TERM LEASE AND YOU FIND YOURSELF IN THIS VERY SITUATION.  If it is not in the lease it will not be allowed.  I suppose some of this is to shift the burden of housing back onto the landlords but it seems to me this is just going to make renting harder and less affordable.     AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

Real Estate Markets

JACKSON COUNTY LANDLORDS BEWARE OF WHAT IS COMING AFTER 6/1/2022

Jackson County Tenant’s Bill of Rights and Ordinance 190935 This bill was introduced in October 2019 by Kansas City Mayor Quinton Lucas. The bill, which becomes law on June 1, 2020, focuses heavily on implementing new policies and procedures centered around renter protections in the Kansas City area. Here is a list of important takeaways for landlords:  The ordinance applies to leases entered into after June 1, 2020. Any leases signed before June 1, 2020 are not covered by the ordinance.  Before entering into a contract, landlords are required to provide prospective tenants: 1. Phone number for every utility provider used to service the unit. (Section 34-848.2(a)). 2. A written description of all notices of deficiencies and citations issued to the owner of the property for the past 24-months. (Section 34-848.2(b)).  Landlords can show they have complied with this requirement, by including a page at the back of the lease stating prior to signing the contract, the tenant has been provided these three requirements.  There is no time frame stated in which a landlord has to provide this information to tenants. 3. Copy of the tenant’s bill of rights (Section 34-848.2(c)).  The Federal Fair Housing law has not changed. Landlords cannot discriminate against potential renters based on their race, color, national origin, religion, sex, familial status, and disability.  However, the new ordinance includes the prohibition of landlords discriminating against sexual orientation, gender identity, gender expression, and victims of domestic violence.  4. Landlords are now required to provide at least 24-hours’ advance notice to the tenant before entering the property. The notice must provide the date and time, the identity of the person or persons who will be entering, and the purpose of their entrance.  5, Landlords cannot discriminate against tenants based on their lawful source of income. Spousal support, child support, section 8, or other subsidies are considered lawful income.  6. The ordinance restricts a landlord’s ability to have a blanket policy to reject prospective tenants based on criminal or eviction backgrounds. The ordinance requires that landlords review all documents provided by a prospective tenant before rejecting their application. AT A RECENT COURT DOCKET THE JUDGE EXPLAINED TO ME THAT AS OF THE EFFECTIVE DATE OF THIS ACT, PUBLIC DEFENDERS ARE GOING TO BE APPOINTED TO REPRESENT TENANTS AT NO COST TO THE TENANT.  THIS WILL NO DOUBT MAKE EVICTIONS MUCH MORE EXPENSIVE AND TIME-CONSUMING AND CERTAINLY MAKE THE OUTCOME OF THE EVICTION LESS CERTAIN. SUGGESTION – GET NEW LEASES EXECUTED PRIOR TO JUNE 1ST, 2022. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

Boundaries / Deeds / Divorce / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Land Use / llc / Locations / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets / Tax-Related Issues

KANSAS MARITAL PROPERTY LAW AND REAL ESTATE LAW

    Kansas Marital Property Law and Real Estate Law “Marital property” is the legal term that refers to all of the possessions and interests acquired after a couple gets married. While a few states have enacted laws that consider all marital property as “community property,” which is equally owned by both parties and must be equally divided after a divorce. Kansas, however, has no community property law. This allows for courts and the parties to be more flexible (and also more unpredictable) when dividing marital property during a divorce. I. Marital Property Laws in Kansas Code Section Kansas Statutes 23-2801: Martial Property     Kansas Statutes 23-2802: Division of Property Community Property Recognized? No Dower And Curtesy Dower and curtesy abolished     Kansas Statutes 59-505: Half of the Realty to Surviving Spouse Marital Property and Separate Property As noted above, the majority of the property you buy or receive while married becomes marital property. In the case of a divorce, marital property is considered jointly owned by both spouses and will get jointly divided, normally as close as possible to an even split. There are a few exceptions to the marital property rule for things like inheritance, gifts, and in some cases 401Ks, which are considered separate property. Separate property is the property that you owned before the marriage and is normally not subject to division. Because there are no state community property laws, Kansas courts will determine a “fair” property division between divorcing parties. For the most part, courts consider each party getting about half of the jointly owned property as fair. That said, a court could decide that an unequal property split is fair, which could happen if one spouse alleges some fault on the part of the other spouse. If both spouses are able to create their own agreement regarding property division, courts will generally accept their agreement. Kansas is an equitable distribution state, and assets acquired both during and prior to the marriage can be subject to equitable division by Judicial Order. Unequal income or other offsetting factors may support an unequal distribution of assets.   AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYERONLINE CONSULTATIONS – SPEAK DIRECTLY WITH A LAWYER ON THE DAY AND TIME OF YOUR CHOOSING. Our law firm began offering online audio/video consultations prior to the outbreak of the pandemic. We offer a 1/2 hour audio/video consultation not involving review of documents for $99.50, and a 1 hour consultation involving review of documents for $199.50. Payment is made online and you book the specific time and day you want the attorney to contact you. A link is provided to upload the documents to be reviewed. Please contact RLG today at https:kcrealestatelawyer.com What is a Side Letter Agreement in Real Estate? What is a Side Letter Agreement? “A Side Letter Agreement is an agreement considered separate and apart from the underlying contract but facilitative of the underlying contract” A side letter or side agreement or side letter arrangement is an agreement that is not part of the underlying or primary contract or agreement, and which some or all parties to the contract use to reach an agreement on issues the primary contract does not cover or for which they require clarification, or to amend the primary contract. Under the law of contracts, a side letter has the same force as the underlying or primary contract. However, the validity of side letters has been denied by some courts in specific circumstances.[1] Side letters are often used in financial or property transactions or other commercial contracts. They are usually in the form of a letter signed by parties signatory to the primary contract but can also be an oral agreement. As part of a business organization’s governance strategy, side letters should be under similar controls to any other contractual agreement, as they can have significant financial or operational impact, or expose the organization to risks of many types.[2] Side letters may also be used in relation to private fund contracts, for example, a particular investor may wish to vary the terms of a limited partnership agreement with respect to that particular investor. An investor might be seeking more favorable terms under the contract or might need the side letter to enter the venture under terms to meet regulatory requirements. MISSOURI STATUTE ON PROPERTY FRAUD   570.095.  Filing false documents, offense of, elements — penalty, enhancement — restitution, when — system to log suspected fraudulent documents, procedure. — 1.  A person commits the offense of filing false documents if:   (1)  With the intent to defraud, deceive, harass, alarm, or negatively impact financially, or in such a manner reasonably calculated to deceive, defraud, harass, alarm, or negatively impact financially, he or she files, causes to be filed or recorded, or attempts to file or record, creates, uses as genuine, transfers or has transferred, presents, or prepares with knowledge or belief that it will be filed, presented, recorded, or transferred to the secretary of state or the secretary’s designee, to the recorder of deeds of any county or city not within a county or the recorder’s designee, to any municipal, county, district, or state government entity, division, agency, or office, or to any credit bureau or financial institution any of the following types of documents:   (a)  Common law lien;   (b)  Uniform commercial code filing or record;   (c)  Real property recording;   (d)  Financing statement;   (e)  Contract;   (f)  Warranty, special, or quitclaim deed;   (g)  Quiet title claim or action;   (h)  Deed in lieu of foreclosure;   (i)  Legal affidavit;   (j)  Legal process;   (k)  Legal summons;   (l)  Bills and due bills;   (m)  Criminal charging documents or materially false criminal charging documents;   (n)  Any other document not stated in this subdivision that is related to real property; or   (o)  Any state, county, district, federal, municipal, credit bureau, or financial institution form or document; and   (2)  Such document listed under subdivision (1) of this subsection contains materially false information; is fraudulent; is a forgery, as defined under section 570.090; lacks the consent of all parties listed in a document that requires mutual consent; or is invalid under Missouri law.   2.  Filing false documents under this section is a class D …

real estate finance, FSBO, real estate markets, home buyers, home sellers

SELLERS SETTING BUYER BROKER REAL ESTATE COMMISSIONS MAY BECOME A THING OF THE PAST

Thousands of Midwest home sellers are eligible to join a lawsuit challenging real estate fees KCUR | By Dan Margolies Published April 25, 2022, at 4:17 PM CDT   A federal judge certified the case as a class action, meaning thousands of home sellers in the Midwest may be eligible to recover damages if the plaintiffs prevail. A federal lawsuit in Kansas City challenging rules requiring home sellers to pay commissions to brokers representing home buyers has been certified as a class action, meaning thousands of home sellers in the Midwest may be eligible to recover damages if the plaintiffs prevail. U.S. District Judge Stephen Bough on Friday ruled that the lawsuit, which was originally filed in 2019 on behalf of Missouri home sellers who had listed their homes on the Multiple Listing Services system (MLS), met the criteria for a class action, including numerosity and common questions of law or fact. The Kansas City case, along with a nearly identical federal lawsuit in Chicago, challenges uncompetitive rules that consumer advocates have long criticized for artificially inflating real estate commissions. The suit names the National Association of Realtors (NAR) and the nation’s four largest national real estate broker franchisors: Realogy Holdings Corp.; HomeServices of America, Inc.; RE/MAX Holdings, Inc.; and Keller Williams Realty, Inc. The Defendants own and operate some of the largest real estate brokerages in the country. HomeServices of America, an affiliate of Berkshire Hathaway, owns and operates ReeceNichols Real Estate and Prudential Real Estate, among others. Realogy Holdings owns and operates Century 21 and Coldwell Banker, among others. The plaintiffs allege the real estate brokerages and NAR have conspired to require home sellers to pay brokers representing home buyers inflated amounts, in violation of federal antitrust law, Missouri antitrust law, and the Missouri Merchandising Practices Act. “The cornerstone of Defendants’ conspiracy is NAR’s adoption and implementation of a rule that requires all brokers to make a blanket, non-negotiable offer of buyer broker compensation …when listing a property on a Multiple Listing Service …,” the lawsuit states. As a condition of listing their homes on an MLS, a centralized database listing homes for sale, sellers are required to agree that the listing agent will split the commission with the agent representing the buyer. Absent that requirement, the plaintiffs claim, “seller brokers would set a commission to pay themselves alone and would likely begin to engage in more vigorous competition with one another to lower their rates and/or provide additional services to justify their newly transparent rates.” A federal judge in Chicago has allowed a similar class-action lawsuit to proceed, ruling that the home sellers had supported their allegations of a “pricing system in which the seller is essentially locked into a buyer-broker commission rate upfront that neither the buyer nor the seller has the incentive or ability to negotiate.” NAR argues that the MLS system is efficient and beneficial to consumers. It says that it allows many first-time, low-income buyers to purchase a home they couldn’t otherwise afford because they don’t have to pay brokers directly. In response to a request for comment, NAR emailed a statement to KCUR saying it was disappointed with Bough’s ruling, which it said it plans to appeal. “The pro-competitive, pro-consumer local broker marketplaces serve the best interests of buyers and sellers,” NAR said. “Local broker marketplaces ensure equity, transparency, and market-driven pricing options for the benefit of home buyers and sellers. These marketplaces reduce transaction costs by ensuring, among other things, that a buyer broker and their client understand how much the listing broker will pay the buyer broker for procuring a buyer for the listed property. “Local broker marketplaces also level the playing field among brokerages, allowing small brokerages to compete with large ones, and provide for unprecedented competition among brokers, including different service and pricing models.” NAR, which is headquartered in Chicago, represents more than 1.3 million real estate agents belonging to some 1,200 local associations and boards in all 50 states, the District of Columbia, and U.S. territories. Not long after the lawsuits in Kansas City and Chicago were filed, the U.S. Justice Department filed a civil suit against NAR alleging it had established and enforced illegal restraints on how real estate agents compete. The department later withdrew from a proposed settlement of the case, saying it was too narrow in focus and didn’t sufficiently protect its ability to pursue future claims against NAR. “Real estate is central to the American economy and consumers pay billions of dollars in real estate commissions every year,” Acting Assistant Attorney General Richard Powers said in a statement about the department’s withdrawal from the settlement. “We cannot be bound by a settlement that prevents our ability to protect competition in a market that profoundly affects Americans’ financial well-being.” NAR has petitioned to block the Justice Department’s withdrawal from the settlement, which was reached during former President Donald Trump’s administration. The petition is pending. In granting the plaintiffs’ request for class certification, Bough certified three separate classes, including one consisting of all home sellers since April 29, 2015, who used a listing broker affiliated with the defendants and who paid a commission to the buyer’s broker when they sold their homes. The plaintiffs estimate the classes include “hundreds of thousands of class members geographically dispersed throughout the state of Missouri and portions of Kansas and Illinois.” AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS …

real estate finance, FSBO, real estate markets, home buyers, home sellers

WHAT IS HOUSE HACKING?

WHAT IS HOUSE HACKING? Have you been curious about getting into real estate investing but feel discouraged because you haven’t even purchased your own home yet? Are you someone who is interested in earning passive income but doesn’t know how to get started? Read on to find out how house hacking could be the answer to significantly reducing your housing expense and finally launching your investing career. What Is House Hacking? House hacking is a real estate investing strategy through which investors earn rental income by renting out their primary residence. House hacking originated in areas where it became too expensive to own a home and live comfortably. Homeowners found it too costly to live close to work or in desirable areas and make their monthly mortgage payments. Their problem was living in one of their multiunit properties’ spaces and leasing out the other units. This way, their expenses were offset by the income of their tenants’ rent. House hacking a single-family home is also a popular option for those who don’t want to buy a multifamily property. Renting out one or more bedrooms, “hacking” the garage into a living space, or putting a tiny home on the premises are valid examples of house hacking. Top 4 Benefits Of House hacking According to the CONSUMER EXPENDITURE SURVEY conducted by the U.S. Bureau of Labor Statistics, the average American household currently spends close to $20,000 (or 33%) of their annual income on housing-related costs. Imagine what you could do if you could get your housing expenses covered and increase your disposable income by a third. Here are some other benefits to consider: Reduce or eliminate your housing cost: When done correctly, house hacking can help reduce your housing expense or even eliminate it. Although a multi-unit property will have a higher upfront cost, renting out the other units means someone else can pay your mortgage for you. Gain flexibility: House hacking provides flexibility for those with an evolving lifestyle. For instance, if your company suddenly transfers you to a new city, you can rent out your unit and continue earning your rental income. You even have the option of converting the property into a single-family home for when your family grows. Ease into your rental property career: When living on-site and near tenants, you will learn how to be a landlord quickly. Your personal involvement in the living community will provide you with the valuable skills needed to manage properties and perform regular maintenance. Get acquainted with the various tax benefits available to rental property owners, such as depreciation benefits or business-related tax deductions. Grow your wealth through passive income: The extra cash flow earned through house hacking gives you the option to pay down your mortgage quickly and save up toward your next investment property. Learn more about how you can pursue both of these options using the debt snowball method. Mitigate Risk: According to Daniel Sperling-Horowitz, the CEO of OfferMarket, house hacking is a great way to mitigate risk. “House hacking de-risks the home purchase because you subsidize your monthly costs of homeownership (principal, interest, taxes, and insurance (aka PITI) and maintenance). This is not only a great way to build equity instead of spending money on rent, it’s also a great way to dramatically reduce your overall housing costs, which allows increased savings and investment,” according to Sperling-Horowitz. How To House Hack If you’re convinced that house hacking is the right strategy for you, you’ll want to know how to get started. Before thinking about finding tenants or how much you want to charge for rent, the first order of business is knowing how to find the right property. The following steps will be expanded upon in the sections below: Determine your funding source. Conduct market research to find properties. Always run your numbers to find the best deal. 1. Figure Out The Financing Because of your status as an owner-occupant, not only will you have access to conventional loans, you may also have access to homebuyer-assistance programs. As long as you live in one of your property’s units, you may qualify for a loan that offers attractive terms and low down payment options. For example, the Federal Housing Administration (FHA) loan allows multifamily properties with up to four units. It requires a down payment that is as low as 3.5 percent of the purchase price. The FHA 203K loan is great for investors who want to improve units before renting them out. Find out if you qualify for any of these twelve homeownership programs and grants. Others may opt for the BRRR method, which stands for buy, rehab, rent, and refinance. Visit this resource on how to employ the BRRR strategy for house hacking, which involves the use of short-term funds to initially rehab and rent out your property, followed by long-term mortgage refinancing. 2. Find The Best Property When purchasing a multifamily property, you’ll want to have a rental property business owner’s mindset. This means that location is a critically important factor to consider, as it will determine your purchase price, rent price, and desirability. In addition, population growth, job growth, and the availability of local amenities are all factors that help indicate the stability and growth of a rental market. As a beginner, work with a real estate agent who specializes in multi-unit properties and can give you an idea of purchase prices and rental rates in each market. There are other aspects of a property you can look out for on your search for a house hacking opportunity. In addition to multifamily properties, also take note of the following features: Finished basements: Some single-family homes have finished basements that have been converted into living spaces. It is common for homeowners to even include kitchenettes, bedrooms, and even full bathrooms. This allows the homeowner to live in this added space while renting out the main portion of the property. The owner can have “free” housing while paying off their mortgage and building equity. Additional dwelling units: ADUs are usually separated, permitted structures added to the property. These additions usually have …

Home Buying

WHY RENTERS CANNOT GET AHEAD

  America conceives of itself as an “ownership society”.  Nearly two-thirds of U.S. households own their home, and the idea of renting is inseparable from ownership in the U.S. context. Renting is given meaning by its relationship to ownership—it’s how you live if you can’t afford, or aren’t yet ready, to own. America treats renting as it has treated the minimum wage for the past several decades: unworthy of serious concern, just a phase in young people’s lives, and a long-term outcome only for those unwilling to pull themselves up by their bootstraps. This perspective is a big part of why renters enjoy so few protections, and why the U.S. showers roughly $150 Billion on homeowners each year but only a fraction of that on renters, despite renters having about half the median household income of owners. Yet look no further than the Great Recession—or the declining home values in much of the Rust Belt over the past half-century—to see the tremendous drawbacks of homeownership. Those losses aren’t equitably distributed, either: Nearly 2 million mortgages are underwater in the U.S., and they’re disproportionally distributed in Black and Latino communities. Tenants in coastal cities, meanwhile, know the pain of forking over more and more rent every year, unable to save for a down payment, and living at the mercy of sometimes unscrupulous landlords. The housing situation is only getting worse—more expensive, more inequitable, more precarious. As prices have continued their climb in the country’s most economically dynamic regions, it’s no longer feasible for working-class residents to seek out the best opportunities there. Instead, younger and lower-income residents are being pushed out to places where jobs are less plentiful and lucrative, but where housing, at least, is relatively affordable. Largely as a consequence of housing prices, Generation X held less than half as much wealth in 2019 as Baby Boomers of the same age did two decades earlier, and Millennials are on course to hold even less. Something has gone catastrophically wrong, and the problem won’t be solved by doubling down on homeownership; we’ve seen where that leads. But our current model of renting—a lifetime of uncertainty only to make someone else rich—won’t do the job either. We need something new, an innovation on par with the government’s development of 30-year mortgages nearly a century ago. We need a housing option that combines the accessibility, flexibility, and limited risk of renting with some of the stability and wealth-generating potential of homeownership. Renting carries certain intrinsic advantages over ownership, for individuals as well as society. One is flexibility and the access to opportunity that accompanies it. Think of a woman who buys a home in one part of town, takes a new job in another area a few years later, and is then stuck with a 90-minute commute, or of a man who turns down the better job because he doesn’t want to sell his home or be saddled with a long commute. Now multiply that by millions of households across the country. Homeownership locks people in place, in large part because of the high transaction costs of buying and selling property. Renting offers diversification of risk. Renters are able to invest their resources in a wider array of assets, and they aren’t stuck holding the bag if their regional economy dries up and home prices fall. Mutual funds would not be seen as a worthy investment if they had a 10 percent chance of permanently losing much of their value at some unspecified date, yet that’s very similar to how our housing-as-retirement-vehicle system currently works. The investments renters might make, moreover—stocks, bonds, mutual funds, etc.—support the growth and innovation that strengthen the economy, whereas buying a home takes that money out of circulation. Most important, more renting may improve housing politics and make the nation’s affordability crisis easier to solve. We need to build more homes in order to stabilize home prices, yet stabilizing home prices runs counter to the financial interests of most homeowners. In California, the epicenter of the crisis, 75 percent of renters support building more homes in their community; only 51 percent of the state’s homeowners support this goal. A research paper by the political scientists William Marble and Clayton Nall similarly found that support for building new apartments is consistently higher among renters than homeowners; it’s higher even among conservative renters than liberal homeowners. (Conservatives overall are less supportive of new multifamily housing than liberals are.) The effects of this opposition extend beyond affordability. Pushing new housing into remote places that offer poor access to good jobs and schools contributes little to economic growth and productivity, increases emissions of greenhouse gases and other harmful pollutants, and destroys agricultural and undeveloped lands. Homeowner politics is putting the squeeze on our economy, our youth, and our environment. By themselves, these are rather abstract reasons for promoting more renting. They won’t be persuasive unless we also address renting’s most obvious disadvantage: the lack of wealth-building potential. In some u.s. cities, middle-class households are paying $30,000 in annual rent and have nothing to show for it but the prospect of paying $31,000 next year and $32,000 the year after that. This is why people buy suburban homes even when they’d prefer to stay in the city. Spending so much on a rental feels wasteful—irresponsible, even—when you could pay a similar price on a mortgage, at a constant level for the next 30 years, while also building substantial wealth. America’s challenge is to create comparable opportunities in cities and to make them accessible to people who can’t save $100,000 or more for a down payment. A public-ownership rental option might solve this problem, at least in part. The foundation of the program would be quite simple: public ownership of housing acquired or built with government loans—though run by local for-profit or nonprofit property managers—and rented at market prices. No saving for a down payment (or being given one by family) and no qualifying for a mortgage. The only requirements for participation in the public-ownership option would be (1) move in, and …

For Sale by Owner / Home Buying / Home Selling / real estate finance, FSBO, real estate markets, home buyers, home sellers

EVERYTHING YOU NEED TO KNOW ABOUT REAL ESTATE CONTRACTS

  EVERYTHING YOU NEED TO KNOW ABOUT REAL ESTATE CONTRACTS A real estate contract is a contract between parties for the purchase and sale, exchange, or other conveyance of real estate. The sale of land is governed by the laws and practices of the jurisdiction in which the land is located. Real estate called a leasehold estate is actually a rental of real property such as an apartment, and leases (rental contracts) cover such rentals since they typically do not result in recordable deeds. Freehold (“More permanent”) conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easement. Real estate contracts are typically bilateral contracts (i. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable. Details explained in the contract In writing It is a legal requirement in all jurisdictions that contracts for the sale of land be in writing to be enforceable. The various Statutes of Frauds require contracts for the sale of land to be in writing. In South Africa, the Alienation of Land Act specifies that any agreement of sale of immovable property must be in writing. In Italy, each transfer of real estate must be registered in front of a notary public in writing. The common practice is for an “exchange of contracts” to take place. This involves two copies of the contract of sale being signed, one copy of which is retained by each party. When the parties are together, both would usually sign both copies, one copy of which would be retained by each party, sometimes with a formal handing over of a copy from one party to the other. However, it is usually sufficient that only the copy retained by each party be signed by the other party only. This rule enables contracts to be “exchanged” by mail. Both copies of the contract of sale become binding only after each party is in possession of a copy of the contract signed by the other party—ie., the exchange is said to be “complete”. An exchange by electronic means is generally insufficient for exchange unless the laws of the jurisdiction expressly validate such signatures. A contract for the sale of land must: Identify the parties: The full name of the parties must be on the contract. In a sales contract, the parties are the seller(s) and buyer(s) of the real estate, who are often called the principles to distinguish them from a real estate agent who are effectively their intermediaries and representatives in the negotiation of the price. If there are any real estate agents brokering the sale, they are typically listed also as the real estate brokers/agents who would earn the commission from the sale. Identify the real estate (property): At least the address, but preferably the legal description must be on the contract. Identify the purchase price: The amount of the sales price or a reasonably ascertainable figure (an appraisal to be completed at a future date) must be on the contract. Include signatures: A real estate contract must be entered into voluntarily (not by force) and must be signed by the parties. Have a legal purpose: The contract is void if it calls for illegal action. Involve Competent parties: Mentally impaired, drugged persons, etc. cannot enter into a contract. Contracts in which at least one of the parties is a minor are voidable by the minor. Reflect a meeting of the minds: Each side must be clear and agree as to the essential details, rights, and obligations of the contract. Include Consideration: Consideration is something of value bargained for in exchange for the real estate. Money is the most common form of consideration, but other consideration of value, such as other property in exchange, or a promise to perform (i.e. a promise to pay) is also satisfactory. Notarization by a notary public is normally not required for a real estate contract, but many recording offices require that a seller’s or conveyor’s signature on a deed be notarized to record the deed. The real estate contract is typically not recorded with the government, although statements or declarations of the price paid are commonly required to be submitted to the recorder’s office. Sometimes real estate contracts will provide for a lawyer review period of several days after the signing by the parties to check the provisions of the contract and counter propose any that are unsuitable. If there are any real estate brokers/agents brokering the sale, the buyer’s agent will often fill in the blanks on a standard contract form for the buyer(s) and the seller(s) to sign. The broker commonly gets such contract forms from a real estate association he/she belongs to. When both buyer and seller have agreed to the contract by signing it, the broker provides copies of the signed contract to the buyer and seller. Offer and acceptance As may be the case with other contracts, real estate contracts may be formed by one party making an offer and another party accepting the offer. To be enforceable, the offers and acceptances must be in writing (Statute of Frauds Common Law)and signed by the parties agreeing to the contract. Often, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract. As with all other types of legal offers, the other party may accept the offer, reject it (in which case the offer is terminated), make a counteroffer (in which case the original offer is terminated), or not respond to the offer (in which case the offer terminates by the expiration date in it). Before the offer (or counteroffer) is accepted, the offering (or countering) party can withdraw it. A counteroffer may be countered with yet another offer, and a counteroffering process may go on indefinitely between the parties. To be enforceable, a real …

Deeds / llc / Tax-Related Issues / Title Issues

LAND TRUST – THE ULTIMATE ASSET PROTECTION

Land Trusts A land trust is a private agreement, where one party, the trustee, agrees to hold title to property for the benefit of another party or parties, the beneficiary(ies). The one who establishes the trust is the settlor or grantor. The settlor is usually the titleholder to the property before transfer into the trust. The settlor is often the beneficiary of the trust for his/her lifetime. Alternatively, for income property, the beneficiary may transfer beneficial interest in the trust to a limited liability company (LLC). Thus, the trustee holds the title to the property. If so drafted, the trustee must follow the instructions of the beneficiary. The beneficiary typically has the absolute right to direct and control the trustee and receive all income from the trust. The trust agreement, at the creation of the trust, governs the relationship between the trustee and beneficiary. Thus, the trustee often has no more power than the settlor gives him. Plus he or she has no function other than to do as the trust deed instructs. Land trusts are most often revocable. Therefore, the trustor may change, modify, or terminate them while he is or she is still alive. The beneficiaries may remove an uncooperative trustee. Since the trustee holds title as a fiduciary, they incur no personal liability for merely being on the title. Nor can the trustee lose the property to his or her personal creditors. Land Trust Pros and Cons Land Trust Benefits There are many land trust benefits. Here are some of the biggest advantages: Privacy of ownership Ease of transfer (by assigning beneficial interest in the trust to another party) Privacy of transfer (assigning beneficial interest is typically not public) Liability protection (a contingent fee attorney may not accept a case if he/she cannot find assets) Can use in any US state (not all states have land trust laws, but can use in all states) Helps to avoid due-on-sale clause (for one to four dwelling units) Keeps sales price secret Helps prevent property liens Can eliminate or minimize probate fees Land Trust Disadvantages Whereas land trust have many benefits, there are also some small disadvantages, as follows: Obtaining financing (may need to place property in personal name to obtain financing and transfer back into the trust afterwards) Does not protect property from lawsuits (need to include an LLC, for example, as the beneficiary) How Land Trusts Protect Privacy The land trust is comprised of two legal documents. There is a trust agreement between the trustor and the trustee. This document establishes the rights, powers, duties, and obligations of the parties; and A deed from the trustor to the trustee. First, you execute the trust agreement. Then, you record the trustee deed.  Once completed, the land titles office will no longer reveal to the world that you are owner of the property. In addition, the trust agreement remains private (in your file cabinet at home). Thus, no one need ever know that you retain an interest in the property. That is, the public records will not reveal this information. Litigators generally have not interest in suing people who have no assets. One of the easiest ways to determine whether or not someone has deep pockets is to search the public records for real estate holdings. For the successful real estate investor, the results of this search could paint a big fat bull’s eye on their backs. LLC + Land Trust for Asset Protection First, remember, a land trust is a privacy device, and not a corporate entity. Accordingly, land trusts do not enjoy the liability protections that corporations or limited liability companies may enjoy. If someone slips and falls on the property, the beneficiary can be held liable. That is why we establish a corporation, LLC or limited partnership to serve as beneficiary. Second, one can usually transfer property into a land trust free from taxation. The internal revenue code addresses this. The federal government will treat the property as if it was owned outright by the beneficiary. See I.R.C. §§ 671- 678. In addition, in many states, the transfer of property by a beneficiary to a revocable trust does not require the payment of any transfer or recording taxes. Finally, many investors may ask around and find that the attorneys and accountants with whom they come in contact have no idea what a land trust is, or how it works. While this can certainly be frustrating, there is an upside. Think about it. This means that many of the litigators in your community will be unfamiliar with land trusts. A significant number will stop their search for deep pockets at the end of the public records trail – the county recorder’s office. Benefits of a Land Trust There are many advantages to owning real estate through a Land Trust: Privacy of Ownership – Under a Land Trust arrangement, your identity as the legal owner of the real estate is not disclosed to the public or to any third party, except in cases of subpoena or court order. Ease of Transferability – The beneficiary (or “owner”) of a land trust may be changed without recording a change in the public records. Avoids Probate – Probate is usually necessary regardless of whether or not one has a will. A Land Trust arrangement, however, allows you to designate succession of ownership. You can do this exactly as you wish, thereby avoiding probate and costly, time-consuming proceedings relating to the property. Facilitates Multiple Ownership – Where there are multiple owners of a parcel of real estate, a Land Trust can be structured to provide for clear and easy legal division. You Retain Tax Advantage – You are still eligible for the homeowner’s and senior citizen’s real estate tax exemptions. Keep in mind, a land trust provides privacy of ownership, not true asset protection. There are tools that can provide true real estate asset protection So, you can use land trust for lawsuit prevention. That is, you so a contingent fee attorney does not readily see that you have “deep pockets” the land trust conceals …

For Sale by Owner / Home Buying / Home Selling

INTEREST RATES VS. PROPERTY VALUE

How Interest Rates Affect Property Value Interest rates, especially the rates on interbank exchanges and Treasury bills, have as profound an effect on the value of income-producing real estate as on any investment vehicle. Because the influence of interest rates on an individual’s ability to purchase residential properties (by increasing or decreasing the cost of mortgage capital) is so profound, many people incorrectly assume that the only deciding factor in real estate valuation is the mortgage rate. However, mortgage rates are only one interest-related factor influencing property values. Because interest rates also affect capital flows, the supply and demand for capital, and investors’ required rates of return on investment, interest rates will drive property prices in a variety of ways. Valuation Fundamentals To understand how government-influenced interest rates, capital flows, and financing rates affect property values, you should have a basic understanding of the income approach to real estate values. Although real estate values are influenced by the supply and demand for properties in a given locale and the replacement cost of developing new properties, the income approach is the most common valuation technique for investors. The income approach provided by appraisers of commercial properties and by underwriters and investors of real estate-backed investments is very similar to the discounted cash flow analysis conducted on equity and bond investments. In simple terms, the valuation starts by forecasting property income, which takes the form of anticipated lease payments or, in the case of hotels, anticipated hotel occupancy multiplied by the average cost per room. Then, by taking all property-level costs, including the financing cost, the analyst arrives at the net operating income (NOI), or cash flow remaining, after all, operating expenses. By subtracting all capital costs, as well as any investment capital to maintain or repair the property and other non-property-specific expenses from NOI, the result is the net cash flow (NCF). Because properties don’t usually retain cash or have a stated dividend policy, NCF equals cash available to investors and is the same as cash from dividends, which is used for valuing equity or fixed-income investments. By capitalizing dividends or by discounting the cash flow stream (including any residual value) for a given investment period, the property value is determined. Capital Flows Interest rates can significantly affect the cost of financing and mortgage rates, which in turn affects property-level costs and thus influences values. However, supply and demand for capital and competing investments have the greatest impact on required rates of return (RROR) and investment values. As the Federal Reserve Board has moved the focus away from monetary policy and more toward managing interest rates as a way to stimulate the economy or stave off inflation, its policy has had a direct effect on the value of all investments. As interbank exchange rates decrease, the cost of funds is reduced and funds flow into the system; conversely, when rates rise, the availability of funds decreases. As for real estate, the changes in interbank lending rates either add or reduce the amount of capital available for investment. The amount of capital and the cost of capital affect demand but also supply, capital available for real estate purchases and development. For example, when capital availability is tight, capital providers tend to lend less as a percentage of intrinsic value, or not as far up the “capital stack.” This means that loans are made at lower loan-to-value ratios, thus reducing leveraged cash flows and property values. These changes in capital flows can also have a direct impact on the supply and demand dynamics for a property. The cost of capital and capital availability affect supply by providing additional capital for property development and also affect the population of potential purchasers seeking deals. These two factors work together to determine property values. Discount Rates The most evident impact of interest rates on real estate values can be seen in the derivation of discount or capitalization rates. The capitalization rate can be viewed as an investor’s required dividend rate, while a discount rate equals an investor’s total return requirements. K usually denotes RROR, while the capitalization rate equals (K-g), where g is the expected growth in income or the increase in capital appreciation. Each of these rates is influenced by prevailing interest rates because they are equal to the risk-free rate plus a risk premium. For most investors, the risk-free rate is the rate on U.S. Treasuries; these are guaranteed by U.S. government credit, so they are considered risk-free because the probability of default is so low. Because higher-risk investments must achieve a commensurably higher return to compensate for the additional risk borne, when determining discount rates and capitalization rates, investors add a risk premium to the risk-free rate to determine the risk-adjusted returns necessary on each investment considered. Because K (discount rate) is equal to the risk-free rate plus a risk premium, the capitalization rate is equal to the risk-free rate plus a risk premium, less the anticipated growth (g) in income. Although risk premiums vary as a result of supply and demand and other risk factors in the market, discount rates will vary due to changes in the interest rates that make them up. When the required returns on competing or substitute investments rise, real estate values fall; conversely when interest rates fall, real estate prices increase. Conclusion Most retail investors, especially homeowners, focus on changing mortgage rates because they have a direct influence on real estate prices. However, interest rates also affect the availability of capital and the demand for investment. These capital flows influence the supply and demand for property and, as a result, they affect property prices. In addition, interest rates also affect returns on substitute investments, and prices change to stay in line with the inherent risk in real estate investments. These changes in required rates of return for real estate also vary during destabilization periods in the credit markets. As investors foresee increased variability in future rates or an increase in risk, risk premiums widen, putting increased downward pressure on property …

For Sale by Owner / Home Buying / Home Selling / Land Use / Real Estate Brokers

RENTABLE SQUARE FEET VS USABLE SQUARE FEET

  One of the first steps in evaluating a commercial property is determining the total rentable square feet. While this might seem like a straightforward calculation, it, unfortunately, doesn’t always end up being so simple. This is particularly true for multi-tenant buildings. In this article, we’ll go over how to calculate rentable square feet (RSF), usable square feet (USF), and the load factor, then we’ll tie it all together with a clear example. Usable Square Feet In a nutshell, usable square footage is the actual space you occupy from wall to wall. Usable square footage does not include common areas of a building such as lobbies, restrooms, stairwells, storage rooms, and shared hallways. For tenants leasing an entire floor or several floors, the usable square footage would include the hallways and restrooms exclusively serving their floor(s). Rentable Square Feet Rentable square footage is your usable square footage PLUS a portion of the building’s shared space. As mentioned above, shared space can be anything that is outside of your occupied space and is of benefit to you (lobbies, restrooms, hallways, etc). As a tenant in a commercial space, you pay for a portion of the shared space and thus your monthly rent is always calculated on RSF. The increase in the rentable square footage above your usable square footage is referred to variously as the “load factor,” “common area factor,” or “add-on factor.” This is generally in the 10-15% range and can be higher in some buildings. When evaluating commercial real estate space options, you’ll want to be aware of this factor so you know exactly what you’re getting and what you’re paying for. How to Calculate Load Factor Calculating the load factor is pretty straightforward. First, find out how much total floor area a building has. Then, subtract the shared square footage to determine the usable square footage. The owner or owner’s agent should be able to give you these numbers. Then divide the total floor space by the USF to get the load factor. Example: A 100,000 square foot building has 15,000 square feet of shared space. The usable square footage is 85,000 square feet. The load factor would be 1.176 (100,000 / 85,000). That would also be the same as saying the building has a load factor of 17.6%. Rentable Square Feet vs Usable Square Feet Example Let’s look at a quick scenario when comparing load factors and rentable square footage to see why it’s useful. The situation A tenant is looking at two different office spaces, both with 5,000 square feet of usable space and the exact same rental rates, but differing load factors. Option A The first suite has 5,000 usable square feet and has a 20% building load factor for an additional 1,000 sf (5000 x 20%) of rentable space. Thus, the rentable square feet is 6,000 square feet. Option B The second office has 5,000 usable square feet and a 15% load factor. The rentable square footage is 5,750 sf (5,000 x .15 = 750). Option B has less rentable square footage and thus would cost less per month for the same amount of usable space! With the same rental rate, the tenant would pay more per month on his lease for Option A at 6,000 rentable square feet. However, one factor to consider is with higher load factors, are you getting better-shared amenities that justify the cost? In some cases, a fancier lobby and shared kitchen area could be enough of a draw to justify the higher cost for the same amount of usable square footage. As shown above, rentable square feet are not always so simple. To make matters worse, sometimes landlords will even fudge the load factor and USF numbers to the point where it becomes part of the negotiation process itself. As with all commercial real estate leases, always read the fine print so you understand exactly what you’re paying for and exactly what you’re getting in return. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us …

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PRE-QUALIFICATION VS. PRE-APPROVAL

As you prepare to finance a new home, chances are you’ve come across mortgage pre-approval, mortgage pre-qualification, or possibly even both. So what does it mean to get pre-approved vs. get pre-qualified for a mortgage, and what’s the difference between the two? Let’s take a look. The Similarities of Pre-Approval and Pre-Qualification Mortgage pre-approval and mortgage pre-qualification have the same great benefits for anyone considering purchasing a home with a mortgage: Both can help estimate the loan amount that you will likely qualify for. This can help you save time by starting your home search by looking only at homes that you know will fit in your budget. And it will also prevent the frustration of finding out that the house you wanted to buy is actually out of your budget. Regardless of whether you have a pre-approval letter or a pre-qualification letter, both can help show sellers that you’re a serious contender when submitting your offer. For a seller to confidently accept your offer, they’ll want to know that you’ll be approved for a mortgage and the home sale will close. A pre-approval letter or a pre-qualification letter can help demonstrate that you have a good chance of being approved for a mortgage for the amount that you’ve offered on the home. Many sellers will require a pre-approval or pre-qualification letter if you’re planning to get a mortgage. If it’s not required, a pre-approval letter or pre-qualification letter may help your offer stand out. This can be especially helpful in competitive real estate markets. In addition to the benefits mentioned above, it’s important to remember that neither pre-approval nor pre-qualification is a guarantee that you’ll receive a loan from the lender. You are also not obligated to get a mortgage from the lender who pre-approved or pre-qualified you. While many home shoppers opt to apply for a mortgage with the lender who pre-qualified or pre-approved them, you should always shop around before applying for a mortgage. The Differences between Pre-Approval and Pre-Qualification According to the Consumer Finance Protection Bureau, there is often not a lot of difference between pre-approval and pre-qualification. Sometimes, lenders use the terms “pre-qualification” and “pre-approval” interchangeably. And different lenders might have different definitions for each. But generally, here’s how the two may differ. Pre-qualification is often seen as the first step in the mortgage process, and pre-approval is the next step. With pre-qualification, you’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score. The lender will review this information to give you an estimate of what you would qualify for. Mortgage pre-qualification doesn’t always require documentation of your financial history; it can often be self-reported. Mortgage pre-approval is very similar, but it usually requires documentation and verification of your income, assets, and debts. And it will often require a credit check, which will result in a hard inquiry on your credit report. Which One Should You Get? Since the terms “mortgage pre-approval” and “mortgage pre-qualification” are often used interchangeably, it can be hard to know which one you need. It really depends on how your lender defines the service if you want a credit check or not, and what real estate market you are in. Be sure to ask your lender exactly how he or she defines “pre-approval” or “pre-qualification” (and if it requires a credit check). Then find out from your real estate agent which version has more credibility in your market. That way, when it comes time to make an offer, you’ll have what you need to give sellers confidence that you’ll be approved for a loan. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May     Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home …

Deeds / For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Real Estate Markets

HOMEOWNER’S ASSOCIATIONS AND RESTRICTIONS ON SHORT TERM RENTALS

Short-Term Rental Restrictions and Home Owners Associations If the Association’s declaration prohibits rentals (short-term or long), then the HOA can likely enforce the prohibition unless there is some other reason why the restriction is unenforceable. Introduction At first blush, short-term rentals seem like a win-win situation. You can find a nice place to stay for a few nights, and it is frequently cheaper than booking a hotel. Just as importantly, vacation houses and condos rented out through Airbnb or VRBO are often more interesting places to stay, with the individual character and idiosyncrasies you do not get from a cookie-cutter hotel room. It can be a great deal for property owners, too. In the right location, a property rented for short-term stays can bring in significantly more revenue than with a traditional year-to-year lease. That extra cash can be put toward improving the property, making it into a more attractive destination that can command higher rates. Or, it can just provide supplemental income. Either way, the property owner is coming out ahead. So far, short-term rentals sound like a great deal for all involved parties. Yet, there has been a growing trend to prohibit them in HOA communities. Is it just a case of power-tripping HOA boards lording their authority over members by banning a potentially lucrative source of secondary income? Actually, no. As is so often the case, there is more to it than that. For all their virtues, Airbnb, VRBO, and similar services can have genuine downsides for a homeowners’ association. On a smaller scale, it is analogous to the so-called “Lemon Socialism,” where profits are privatized, and risks are socialized. In this case, the advantages of short-term rentals (i.e., increased income) are reaped by individual property owners, while the potential downsides (when they are present, which is not always the case) are borne by the community as a whole. Why Do HOAs Prohibit Short-Term Rentals? When an HOA imposes a restriction on homeowners’ use of their properties, it needs to have some justification (or at least a feasible pretense). With short-term rental restrictions, the purpose is generally to protect other members and preserve the character of the community. A quiet, sleepy neighborhood that all-the-sudden has vacationers coming and going on a regular basis stands a good chance of losing its quiet, sleepy nature. Vacation renters tend to be messier and noisier, especially at night, than permanent residents. The commotion can become a nuisance for people who reside in the community year-round—specifically, other homeowners and their families. Short-term renters also tend to ignore HOA rules or simply not know what the rules are. In a community with common areas and facilities, vacationers can overtax the commons, preventing full-time residents from enjoying the benefits for which their assessments pay. Vacationers do not pay HOA fees and are less vested in the long-term condition of the community. From a practical standpoint, short-term renters can increase a neighborhood’s traffic and parking problems. And, if travelers regularly use common facilities like a pool or recreation center, the HOA’s insurance rates are likely to increase, as additional use of the facilities by more people inevitably leads to more damage and risk of premises liability claims. With that said, a lot depends on the nature of an individual community. If the impact from short-term rentals will be minimal—or if the community is in a vacation hotspot where a large percentage of owners like the idea of renting through Airbnb or VRBO—a rental restriction might not make sense for that community. Authority to Restrict Short-Term Rentals. Even if a community has a valid reason to restrict short-term rentals, it still needs legal and/or contractual authority to support the restriction. Typically, the authority comes from an HOA’s declaration, from state law, or a combination of the two. A declaration is a contract among property owners in a community. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. If everyone complies, the community as a whole will benefit—or at least that is the idea. Throughout the country, courts generally assume HOA restrictions are enforceable as long as a restriction promotes a legitimate purpose and is not forbidden by statute. See, e.g., Saunders v. Thorn Woode Partnership, L.P. 265 Ga. 703, 462 S.E.2d 135 (Ga., 1995); Laguna Royale Owners Assn. v. Darger, 119 Cal.App.3d 670, 174 Cal. Rptr. 136 (Cal. Ct. App. 1981). Even broad restrictions against all rentals have been upheld in some jurisdictions if the restriction is in the HOA’s declaration, and the board can offer a legitimate justification for it. See, Four Brothers Homes at Heartland Condominium II, et al., v. Gerbino, 262 A.D.2d 279, 691 N.Y.S.2d 114 (N.Y. App. Div. 1999). So, the starting point when deciding if an individual HOA has the authority to ban short-term rentals is to look at the community’s declaration. If the declaration prohibits rentals (short-term or long), then the HOA can likely enforce the prohibition unless there is some other reason why the restriction is unenforceable. Armstrong v. Ledges Homeowners’ Assoc., Inc., 633 S.E.2d 78 (N.C. 2006). Limitations on Rental Restrictions. Though state HOA laws can vary considerably from state to state, multiple state legislatures have recognized that the right to rent out a property is valuable enough for homeowners to warrant some statutory protection. In general, state-law limitations on rental restrictions do not say that rental restrictions are per se unenforceable. Instead, the laws seek to protect property owners’ due process rights and avoid a scenario in which an owner is deprived of a valuable property right without adequate notice. In Arizona, for instance, an HOA cannot enforce a rental restriction against an owner unless the restriction was already in the community’s declaration when the owner acquired title to the property. A.R.S. §33-1260.01A. HOA declarations are public records recorded within county land records, so owners are assumed to have notice of restrictions and covenants in the declaration when accepting the deed to a property. The Arizona law …

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WHAT IS A PETITION FOR PARTITION AND WHEN IS IT USED?

  WHAT IS A PETITION FOR PARTITION AND WHEN IS IT USED? What can be done when a piece of real estate has two or more owners and one owner wants to sell and the others don’t? This happens frequently in families when real estate is left in a will to heirs, but it also happens when a couple divorces. How do you divide the property? What steps should be taken? A Petition to Partition may be the answer — once you’ve become familiar with the legal device. The number of cohabitants in America has been increasing and this has driven the petition to partition to become more common as a remedy to split real estate and personal property. There are three ways in which property can be owned by more than one individual: Joint tenants Tenants in common Tenants by the entirety (not an option in all states) The decision of which category to be placed in is made when the property is purchased. With all three types, each owner has the right to occupy the whole. That means that one person is not allowed to choose some rooms and make them off limits to others living there. Every spot in the property is fully available to everyone who owns the property. Petition to Partition Petitioning to partition is a legal right and the process starts with filing a petition with the Clerk of Court. Petition rules vary from state to state. The idea though can be generalized according to the type of existing deed to the property. The owners of Tenants in Common (TIC) and Joint Tenants with Rights of Survivorship (JTWROS) can file. When dividing up a JTWROS property, all proceeds are divided, equally, among the co-owners. JTWROS deeds give each owner equal stakes — or shares — in the property. No credit is given to either party for any excessive contribution to the purchase price. Credits may be given though for utilities and maintenance costs. Improvements which result in a higher property value may be eligible for credits as well. When a TIC deed is partitioned, owner shares are reviewed. If a property is owned by three people A, B, and C as tenants in common and A owns 50 percent while B and C each split the other 50 percent down the middle, then a sale of the property for $200,000 would mean A gets $100k and B and C each get $50k. The judge may look at other contributions by the property owners. If A made reasonable renovations and was never reimbursed, the judge may decide to give A a few extra dollars from the award which is given to B and C. A few states give one tenant the legal option to buy out the other tenant(s) to forestall a forced sale. Other states also allow multiple tenants to merge their shares, forming a majority ownership, which could prevent a forced sale. When Property Owners Can’t Agree When someone owns real estate with another individual, or several individuals own property together, a disagreement can come up at selling time. This frequently happens when an individual dies leaving their real estate to several owners. Utilizing a “Petition to Partition” may solve the standoff to solve this situation. When the process is started, a notification is delivered from the court and given to all owners of the property in addition to anyone who may have a legal interest such as lien or mortgage holders. The process can be expensive and consume a lot of time. Many owners will retain their own lawyer as anyone who doesn’t want the petition to move forward can file with the probate court seeking to stop the process. Usually, objects are overturned as the other owners till maintain the right to force a sale. When a family can’t agree on the terms of the sale itself, the petition to partition can force the co-owners to sit and negotiate. This makes a petition to partition the last resort when there is no cooperation among co-owners. Everyone involved must understand that there will be unnecessary time and delay and the final sale price may be considerably lower. One option many co-owners are turning to is mediation. Working with a disinterested third party, the co-owners sit and try to reach a compromise that is acceptable to everyone. Normally less costly, a mediation will have the full force of law behind it once a decision is reached and the documents are filed with the Clerk of Court. As with many life events where the courts are called to become involved, there can be an upside — as well as a downside. Pros and Cons of Petition to Partition Pros Beneficial when the co-owners can’t agree to terms Possibility of recovering unreimbursed costs of major renovations conducted by one of the owners Cons Potentially expensive Time-consuming Property is normally lost through re-sale and the proceeds are split     AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYERONLINE CONSULTATIONS – SPEAK DIRECTLY WITH A LAWYER ON THE DAY AND TIME OF YOUR CHOOSING. Our law firm began offering online audio/video consultations prior to the outbreak of the pandemic. We offer a 1/2 hour audio/video consultation not involving review of documents for $99.50, and a 1 hour consultation involving review of documents for $199.50. Payment is made online and you book the specific time and day you want the attorney to contact you. A link is provided to upload the documents to be reviewed. Please contact RLG today at https:kcrealestatelawyer.com What is a Side Letter Agreement in Real Estate? What is a Side Letter Agreement? “A Side Letter Agreement is an agreement considered separate and apart from the underlying contract but facilitative of the underlying contract” A side letter or side agreement or side letter arrangement is an agreement that is not part of the underlying or primary contract or agreement, and which some or all parties to the contract use to reach an agreement on issues the primary …

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MISSOURI STATUTE ON PSYCHOLOGICALLY IMPACTED PROPERTY

2020 Missouri Revised StatutesTitle XXIX – Ownership and Conveyance of PropertyChapter 442 – Titles and Conveyance of Real EstateSection 442.600 Psychologically impacted real property, defined — disclosure to buyer not mandatory — no cause of action for failure to disclose. Universal Citation: MO Rev Stat § 442.600 (2020) Effective – 28 Aug 1991, 2 histories 442.600. Psychologically impacted real property, defined — disclosure to buyer not mandatory — no cause of action for failure to disclose. — 1. The fact that a parcel of real property, or any building or structure thereon, may be a psychologically impacted real property, or may be in close proximity to a psychologically impacted real property shall not be a material or substantial fact that is required to be disclosed in a sale, exchange or other transfer of real estate. 2. “Psychologically impacted real property” is defined to include: (1) Real property in which an occupant is, or was at any time, infected with human immunodeficiency virus or diagnosed with acquired immune deficiency syndrome, or with any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place; or (2) Real property which was the site of a homicide or other felony, or of a suicide. 3. No cause of action shall arise nor may any action be brought against any real estate agent or broker for the failure to disclose to a buyer or other transferee of real estate that the transferred real property was a psychologically impacted real property.   AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

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10 WAYS BUYERS LOOSE EARNEST MONEY DEPOSIT

Before your buyers write that earnest money check, find out the purpose of an Earnest Money Deposit (EMD), how to avoid costly mistakes on the home purchase and ways to lose earnest money. They’ve found the home of their dreams and you’re working with your buyers to put together a winning offer. Part of that involves writing a fairly hefty check for the Earnest Money Deposit or EMD. You may take the EMD for granted as just part of the process — until a deal falls through, you’re losing earnest money, and those thousands of dollars are in jeopardy. The unexpected can happen prior to closing so it’s vital to explain to your buyers what’s at stake, ensuring that they are not blindsided by the loss of an Earnest Money Deposit. How can you lose your earnest money deposit? Whether it involves a change of heart or a change in circumstances, here are ten scenarios where you can lose earnest money deposits– and ways to protect your clients. 1. Failing to Meet Deadlines When your buyers sign a purchase contract, they also agree to a timeline for home inspections, contingencies, and closing. If these major milestones along the road to the closing table don’t happen, the transaction could be put into jeopardy — and that would be the buyer’s fault. If they are unable to fulfill the terms of the contract, the sellers would be justified in working to find another buyer — and keeping the EMD. Make sure you are keeping your buyers moving forward with effective transaction coordination so that they are able to meet their contractual obligations on time. 2. Getting Caught Up In a Bidding War We’ve all experienced low-inventory markets with multiple offers and bidding wars on every new home that comes on the MLS. In that kind of heated atmosphere, buyers can get scared and desperate — causing them to jump the gun and offer on anything that becomes available. In addition, they may include higher than normal EMD’s to sweeten their offer. If they then realize the house is not for them, they could find themselves losing thousands when they back out of the contract. Make sure you help clients stay steady in the midst of a high-pressure market so that they can avoid this type of mistake. 3. Agreeing to a Non-Refundable Earnest Money Deposit In some purchase scenarios, especially those involving bank-owned properties or investment properties, a non-refundable EMD may be required in order to show that the buyers are serious about seeing the transaction through. If your clients are confident that their financing and other contract requirements are on track, this may be worth it to them. However, make sure that they have a clear understanding of this part of the contract before they sign that earnest money check and sign away their rights to an earnest money deposit refund. 4. Waiving Contingencies Prematurely When you are putting together an offer in a multiple offer situation, you may be nervous about asking for too much from the sellers. In that case, you may add fewer contingencies to the sales contract. Alternatively, once you’re under contract, you may mistakenly assume that some of its requirements have been fulfilled and release those contingencies prematurely. In either case, a lack of adequate contingency protection can lead to a canceled contract or a canceled earnest money check– and a lost EMD. 5. Failing to Do Due Diligence If your client is an investor or just a bargain-hunter, he or she may find a great deal and be eager to act on it, going under contract without a home inspection or other due diligence. In fact, part of the value-add many investors offer is an inspection-free process and fast closing. If the client then finds out that the home has some costly problems, he or she may need to sacrifice that EMD in order to get out of the contract. 6. Failing to Understand “As-Is” Buying Many ask “when does a buys lost earnest money?” Well, some buyers are eager to take advantage of the money-saving opportunities offered by an As-Is property, assuming that they are handy enough to tackle a fixer-upper. However, major structural damage, termite damage, or other systems failure could result in more than they bargained for. In this case, it is important to have a home inspection contingency with the stipulation that no repairs will be requested. Otherwise, your buyers could find themselves losing their earnest money deposit to back out of the contract. 7. Voiding a Contract Without a Refund In the case of a mutual decision to void a sales contract, it is important that the full earnest money refund is stipulated clearly in order to ensure that the seller isn’t planning to keep some or all of it. Once the contract is void, the buyer has given up any possible leverage they would have in order to compel the seller to release their deposit. 8. Deciding the Home Isn’t “The One” Do you get earnest money back? Do you lose earnest money if you back out? For many people, buying a home is a very personal and emotional decision. For this reason, some buyers may decide on second or third viewing that the home just isn’t the right one for them. Since there is no contingency for a change of heart, it is important that buyers know that canceling the contract without cause may result in the loss of the EMD. 9. Developing FOMO Over Another Home Just like falling in love, some buyers may enjoy the pursuit more than the capture — falling in love with one home until they go under contract, then worrying that the right one is still out there somewhere. Here too, this emotion-based reason for canceling a contract will generally be punished with the loss of the EMD — in part because of the loss in value anticipated by the sellers when they have to put their home back on the market. …

For Sale by Owner / Home Buying / Home Selling / real estate finance, FSBO, real estate markets, home buyers, home sellers

CONTRACT REVIEW

One of the most important steps in the contracting process can be hiring a contract lawyer to review your written agreements, as the wording and format often have to be very specific to be legally binding. Working with a contract attorney will ensure that your agreements are legal, admissible in court, and are free of loopholes. Understanding exactly what you need a contract review lawyer to do when they review your contract will help you make the decision whether or not you want to make the investment in hiring an attorney. How much do legal fees cost for a lawyer to review a contract and give legal advice? First off, you are not required to seek legal help from a law firm – you can definitely draft an agreement by yourself, especially if you need something simple. Hiring an attorney that went to law school to look over your agreement before you sign can be quite expensive, but in the long run this decision might save you a bundle. When you hire a lawyer to review a contract, you are doing more than getting a second set of eyes – you are purchasing years of experience, knowledge, and training to guide you. Just like with any question related to a lawyer’s services, the fee you will pay for a legal professional to look over your contract depends on the lawyer’s hourly rate and the contract’s complexity. Here are some factors it can depend upon: The length of the contract Your budget What does the attorney need to look for? If you need just a review or help with drafting services Your industry Rules and regulations in your industry The amount of money at stake The duration of the contract How much risk are you willing to take on? The number of signing parties involved Your lawyer’s experience and current workload Different Types of Contract Reviews When you decide to hire an attorney to review your contract, you need to understand what they will do in that process, so you can better protect your financial interests. ISSUE-Specific Contract Review An issue-specific contract review is the most economical option if spending money is the most important factor for you. If you are mostly happy with the contract, but not quite clear on some of the specific terms or issues, or need a specific clause of the contract explained, the lawyer will just look over those specific areas of concern. A lawyer can help decipher the legalese and explain those terms in common English so you can figure out if they work for you. You don’t want to sign things you don’t understand, so if you’re on a tight budget, but still need the peace of mind, this is a good way to feel more confident before signing the agreement. In short, if you can limit the extent of the contract review, the attorney fees will not hurt your pocket as much. But you need to understand that there is always a quid-pro-quo, and you will have to accept the fact that your attorney will not review any other aspects of the contract except the ones you circled. If something goes wrong down the line, the attorney will not be responsible, and you’ll be on your own. Basic Contract Review This option is more intense in comparison to the issue-specific review we just discussed, but it is still very limited in scope. If you decide to choose the basic contract review, your lawyer will look over your agreement on the surface level and answer any questions that you may have about it and inform you if you need to pay special attention to an issue. In basic contract review you might want your attorney’s opinion on a particular issue, rather than just an explanation of terms. This type of review lacks the personal touch you might want as most basic reviews take place over the phone or through an email giving the client several bullet points to think about. These types of questions will require your attorney to get to know more about you, your preferences, and your business dealings. They may require some research or revisions to the contract. Basic Contract Review Plus Edits This type of contract review will definitely be more costly than the basic level, but you will get much deeper involvement from your attorney. Instead of having your lawyer just review your document, point out what needs to be fixed in your contract, and answer your questions, they will provide you with a version of your contract that you can submit to the other party for review, edit your agreement, and review those edits with you. In the legal world, this is known as “redlining a contract”, which can really help the whole process move along more smoothly. In other words, you don’t have to discuss the changes in your agreement with the other party, as they will receive the contract already finished with the option to accept or deny. Contract Review Plus Negotiation In serious contracts negotiating between the parties can be extremely difficult. When you opt to hire an attorney for this level of reviewing, they will not only review and edit your agreement, but they will submit a “redlined” document to the other signatory party and negotiate all the changes on your behalf. If you are not confident in tackling your complex contract, you should definitely choose this option. When you do, your attorney will handle everything for you, including reviewing, editing, redlining, and negotiating the contract. This most involved, “handle-this” contract review will be most costly, but you’ll be able to sleep at night knowing that all the back-and-forth is going to be avoided, as the attorney will take the helm and facilitate the process – and the emotions – on your behalf. How Contract Review Pricing Works Each lawyer sets his or her own prices depending on their own level of expertise and the fees they charge can vary greatly from one attorney …

For Sale by Owner / Home Buying / Home Selling

IS A CONTRACT VALID IF NO EARNEST MONEY IS EXCHANGED?

  IS A CONTRACT VALID IF NO EARNEST MONEY IS EXCHANGED? A real estate contract is valid whether there is an earnest money deposit or not. While a contract, to be valid, must have consideration, the earnest money is not consideration. Earnest money is a good faith deposit and is not necessary to have a valid contract. HTTPS://KCREALESTATELAWYER.COM   AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYERONLINE CONSULTATIONS – SPEAK DIRECTLY WITH A LAWYER ON THE DAY AND TIME OF YOUR CHOOSING. Our law firm began offering online audio/video consultations prior to the outbreak of the pandemic. We offer a 1/2 hour audio/video consultation not involving review of documents for $99.50, and a 1 hour consultation involving review of documents for $199.50. Payment is made online and you book the specific time and day you want the attorney to contact you. A link is provided to upload the documents to be reviewed. Please contact RLG today at https:kcrealestatelawyer.com What is a Side Letter Agreement in Real Estate? What is a Side Letter Agreement? “A Side Letter Agreement is an agreement considered separate and apart from the underlying contract but facilitative of the underlying contract” A side letter or side agreement or side letter arrangement is an agreement that is not part of the underlying or primary contract or agreement, and which some or all parties to the contract use to reach an agreement on issues the primary contract does not cover or for which they require clarification, or to amend the primary contract. Under the law of contracts, a side letter has the same force as the underlying or primary contract. However, the validity of side letters has been denied by some courts in specific circumstances.[1] Side letters are often used in financial or property transactions or other commercial contracts. They are usually in the form of a letter signed by parties signatory to the primary contract but can also be an oral agreement. As part of a business organization’s governance strategy, side letters should be under similar controls to any other contractual agreement, as they can have significant financial or operational impact, or expose the organization to risks of many types.[2] Side letters may also be used in relation to private fund contracts, for example, a particular investor may wish to vary the terms of a limited partnership agreement with respect to that particular investor. An investor might be seeking more favorable terms under the contract or might need the side letter to enter the venture under terms to meet regulatory requirements. MISSOURI STATUTE ON PROPERTY FRAUD   570.095.  Filing false documents, offense of, elements — penalty, enhancement — restitution, when — system to log suspected fraudulent documents, procedure. — 1.  A person commits the offense of filing false documents if:   (1)  With the intent to defraud, deceive, harass, alarm, or negatively impact financially, or in such a manner reasonably calculated to deceive, defraud, harass, alarm, or negatively impact financially, he or she files, causes to be filed or recorded, or attempts to file or record, creates, uses as genuine, transfers or has transferred, presents, or prepares with knowledge or belief that it will be filed, presented, recorded, or transferred to the secretary of state or the secretary’s designee, to the recorder of deeds of any county or city not within a county or the recorder’s designee, to any municipal, county, district, or state government entity, division, agency, or office, or to any credit bureau or financial institution any of the following types of documents:   (a)  Common law lien;   (b)  Uniform commercial code filing or record;   (c)  Real property recording;   (d)  Financing statement;   (e)  Contract;   (f)  Warranty, special, or quitclaim deed;   (g)  Quiet title claim or action;   (h)  Deed in lieu of foreclosure;   (i)  Legal affidavit;   (j)  Legal process;   (k)  Legal summons;   (l)  Bills and due bills;   (m)  Criminal charging documents or materially false criminal charging documents;   (n)  Any other document not stated in this subdivision that is related to real property; or   (o)  Any state, county, district, federal, municipal, credit bureau, or financial institution form or document; and   (2)  Such document listed under subdivision (1) of this subsection contains materially false information; is fraudulent; is a forgery, as defined under section 570.090; lacks the consent of all parties listed in a document that requires mutual consent; or is invalid under Missouri law.   2.  Filing false documents under this section is a class D felony for the first offense except the following circumstances shall be a class C felony:   (1)  The defendant has been previously found guilty or pleaded guilty to a violation of this section;   (2)  The victim or named party in the matter:   (a)  Is an official elected to municipal, county, district, federal, or statewide office;   (b)  Is an official appointed to municipal, county, district, federal, or statewide office; or   (c)  Is an employee of an official elected or appointed to municipal, county, district, federal, or statewide office;   (3)  The victim or named party in the matter is a judge or magistrate of:   (a)  Any court or division of the court in this or any other state or an employee thereof; or   (b)  Any court system of the United States or is an employee thereof;   (4)  The victim or named party in the matter is a full-time, part-time, or reserve or auxiliary peace officer, as defined under section 590.010, who is licensed in this state or any other state;   (5)  The victim or named party in the matter is a full-time, part-time, or volunteer firefighter in this state or any other state;   (6)  The victim or named party in the matter is an officer of federal job class 1811 who is empowered to enforce United States laws;   (7)  The victim or named party in the matter is a law enforcement officer of the United States as defined under 5 U.S.C. Section 8401(17)(A) or (D);   (8)  The victim or named party in the matter is an employee of any law enforcement or legal prosecution agency in this state, any other state, or the United States;   (9)  The victim or named party in the matter is an employee of a federal agency that has agents or officers of job class 1811 who are empowered to enforce United States …

real estate finance, FSBO, real estate markets, home buyers, home sellers

VOID VS VOIDABLE CONTRACTS

A contract is an agreement enforceable by law. A void agreement is one that cannot be enforced by law. Sometimes an agreement that is enforceable by law, i.e, a contract, can become void. Void agreements are different from voidable contracts, which are contracts that may be nullified. However, when a contract is being written and signed, there is no automatic mechanism available in every situation that can be utilized to detect the validity or enforceability of that contract. Practically, a contract can be declared to be void by a court of law. An agreement to carry out an illegal act is an example of a void agreement. For example, an agreement between drug dealers and buyers is a void agreement simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract. A void agreement is void ab initio, i.e. from the beginning while a voidable contract can be voidable by one or all of the parties. A voidable contract is not void ab initio, rather, it becomes void later due to some changes in condition. In sum, there is no scope of any discretion on the part of the contracting parties in a void agreement. The contracting parties do not have the power to make a void agreement enforceable. A contract can also be void due to the impossibility of its performance. For instance, if a contract is formed between two parties A & B but during the performance of the contract, the object of the contract becomes impossible to achieve (due to action by someone or something other than the contracting parties), then the contract cannot be enforced in the court of law and is thus void. A void contract can be one in which any of the prerequisites of a valid contract is/are absent for example if there is no contractual capacity, the contract can be deemed as void. In fact, void means that a contract does not exist at all. The law can not enforce any legal obligation to either party especially the disappointed party because they are not entitled to any protective laws as far as contracts are concerned. An agreement may be void for any of the following reasons: Made by incompetent parties (e.g., under the age of consent, incapacitated) Has a material bilateral mistake Has unlawful consideration (e.g., the promise of sex) Concerns an unlawful object (e.g., heroin) Has no consideration on one side Restricts a person from marrying or remarrying Restricts trade Restricts legal proceedings Has material uncertain terms Incorporates a wager, gamble, or bet Contingent upon the happening of an impossible event Requires the performance of an impossible act HTTPS://KCREALESTATELAWYER.COM AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

real estate finance, FSBO, real estate markets, home buyers, home sellers

WHAT IS A TITLE COMMITMENT?

If you’re the buyer in a real estate transaction, you’ll receive a copy of the title commitment before closing and have several days to review it. Here’s why that document is so important and what it means to your property. What is a Title Commitment? A title commitment is a document that iterates the details surrounding the property. It lists the various requirements, exclusions, and exceptions behind issuing title insurance on the property. It’s also a promise to issue title insurance as long as all stipulations in Section B are met. Without a title commitment, the buyer knows little about the property’s possible peculiarities such as a third-party ruling body like a condo association or any right-of-way existing on the property. Understand a Title Commitment The title commitment is divided into several sections. Depending on the state in which the property is located, the title commitment could vary slightly but they always contain the following parts. Schedule A Schedule A contains the commitment date; the policies to be issued, the amounts, and proposed insured; the interest in the land and the owner; and the description of the property. Schedule B Schedule B contains the requirements, exceptions, and exclusions. Schedule B is the most important part of the title commitment. Buyers should pay close attention to it. Requirements: this section lists the things that must be completed/adhered to in order for title insurance to be issued. If one of the requirements cannot be met, this will affect escrow, so the buyer should inform the escrow officer immediately. Requirements can include things like: Tax payments Recording the new deed Recording loan documents Release of liens Proof of identity Exceptions: this section lists what is not covered under title insurance. You’ll usually find generic wording contained in this section about mineral rights as well. In order for a buyer to fully understand the coverage of the title insurance on the property, the exceptions section should be read carefully. If any of the exceptions are unacceptable to the buyer, it might be possible for the title company to remove them, insure over it (with the use of an endorsement), or discard it with a release or affidavit. Contact the escrow officer or an attorney if there’s anything that strikes you as unusual in this section. It’s better for you to understand the stipulations and gain clarification now than find out later you left yourself exposed by not fully reviewing the document. Exclusions: this section discloses things that the title company will not cover. Common exclusions include: Governmental regulations relating to the use of the property Rights of eminent domain Claims arising from bankruptcy A title commitment is one of the most important documents in closing because it details what is covered and not covered in the title insurance policy. Without one it’s impossible to understand the stipulations and exclusions of the title insurance. You may be leaving yourself open to future legal challenges if you don’t examine it carefully. You have a choice when it comes to title agencies. Selecting a title company that helps you understand the process and works with you is wise. HTTPS://KCREALESTATELAWYER.COM AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch Areas of PracticeBrokerage ServicesSeller Listing – Kansas City Real Estate LawyerBuyer Representation – Kansas City Real Estate LawyerBrokersBuy Real Estate Form TemplatesCartCheckoutContactFlat Fee Legal Protection for Buyers and Sellers of Real EstateForeclosureFSBO Lawyer in Kansas CityFSBO-OWNER FINANCINGGeneral DisputesGlossary of TermsInvestor ServicesKansas City Real Estate Lawyer – Book Online Legal Services TodayKansas City Real Estate Lawyer in Missouri – Book same-day, online document reviews for transfer of beneficiary & quit claim deeds, marital waivers, commercial & residential contracts, Investments & more.Kansas Legal ResourcesKansas ResourcesLandlordsLegal ServicesReal Estate Sale Contracts – Kansas City Real Estate LawyerDeeds – Kansas City Real Estate LawyerTrusts – Kansas City Real Estate LawyerEstate Planning Law – Kansas City Real Estate LawyerLLC Formation – Kansas City Real Estate LawyerContract/Lease Review – Kansas City Real Estate LawyerRealtor Disputes – Kansas City Real Estate LawyerEarnest Money Disputes – Kansas City Real Estate LawyerLIFE ESTATE DEEDMissouri Legal ResourcesMissouri ResourcesMLS Commission RatesMy AccountMy accountMy CabinetOur FirmAffordable Legal Services – Kansas City Real Estate LawyerProfessional References – Kansas City Real Estate LawyerReal Estate Broker and Investor – Kansas City Real Estate LawyerPurchasersSame Day ProductionSeller AgentShopShort SaleSitemapTestimonialsTHE SANDWICH GENERATIONTitle InsuranceWHAT IS AN EASEMENT?What Makes Us DifferentWho we RepresentSellersBuyers – Kansas City Real Estate LawyerInvestors – Kansas City Real Estate LawyerBroker/Agents – Kansas City Real Estate Lawyer June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May     Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues May 2023 February 2023 October 2022 September 2022 August 2022 July 2022 June 2022 April 2022 March 2022 February 2022 January 2022 December 2021 November 2021 October 2021 September 2021 August 2021 July 2021 June 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 September 2020 August 2020 …

real estate finance, FSBO, real estate markets, home buyers, home sellers

WHAT ARE CLOSING COSTS IN A REAL ESTATE TRANSACTION?

Getting a mortgage isn’t free. Before you get those house keys, you’ll go to the closing table to sign loan documents and paperwork that transfer home ownership from the seller to you. Throughout your home purchase, third parties—such as your real estate attorney and your mortgage lender—have performed services. Closing costs include the fees these professionals (as well as others) charge for these services to finalize the real estate transaction and your home loan. What Are Typical Closing Costs? Closing costs typically range from 3%–6% of the home’s purchase price. Thus, if you buy a $200,000 house, your closing costs could range from $6,000 to $12,000. Closing fees vary depending on your state, loan type, and mortgage lender, so it’s important to pay close attention to these fees. Home buyers in the U.S. pay, on average, $5,749 for closing costs (including taxes), according to a 2019 survey from Closing Corp, a real estate closing cost data firm. The survey found the highest average closing costs in parts of the Northeast, including the District of Columbia ($25,800), Delaware ($13,273), New York ($12,847), Maryland ($11,876), and Pennsylvania ($10,076). Average closing costs in Washington State ($12,406) were also among the highest. The states with the lowest average closing costs included Indiana ($1,909), Montana ($2,063), South Dakota ($2,159), Iowa ($2,194), and Kentucky ($2,276). A lender is required by law to provide you with a loan estimate within three business days after receiving your mortgage application. This key document outlines the estimated closing costs and other loan details. Though these figures might fluctuate by closing day, there shouldn’t be any big surprises. Three business days prior to your closing, a lender must provide you with a closing disclosure form. You’ll see a column showing the original estimated closing costs and final closing costs, along with another column indicating the difference if costs rose. If you see new fees that were not on the original loan estimate or notice that your closing costs are significantly higher, immediately seek clarification with your lender and/or real estate agent. Why Are Closing Costs Necessary? You’re probably already paying a down payment, not to mention an earnest money deposit to show good faith and a sizable mortgage payment for the foreseeable future. Why do you also have to pay closing costs? A real estate transaction is a somewhat complex process with many players involved and numerous moving parts. Some states (and some loan products) require certain inspections beyond the basic inspection for which you directly pay a home inspector of your choice. Then there are property and transfer taxes, as well as insurance coverage and various additional fees, addressed below. Types of Fees With Closing Costs All of the closing costs will be itemized on your loan estimate and closing disclosure. Here are some of the standard fees you can expect to see (in alphabetical order). Application fee A loan application fee may be charged by the lender to process your mortgage application. Ask the lender for details before applying for a mortgage. Attorney fee A fee charged by a real estate attorney to prepare and review home purchase agreements and contracts.6 Not all states require an attorney to handle a real estate transaction. Closing fee Also known as an escrow fee, this is paid to the party who handles the closing, which could be the title company, an escrow company, or an attorney, depending on state law. Courier fee If you’re signing paper documents, this fee helps expedite their transportation. If the closing is handled digitally, you might not pay this fee. Credit report fee This is a charge ($15–$30) from a lender to pull your credit reports from the three main reporting bureaus. Some lenders might not charge this fee because they get a discount from the reporting agencies. Escrow deposit Some lenders require you to deposit two months of property tax and mortgage insurance payments at closing into an escrow account. FHA mortgage insurance premium FHA loans require an upfront mortgage insurance premium (UPMIP) of 1.75% of the base loan amount to be paid at closing (or it can be rolled into your mortgage). There’s also an annual MIP payment paid monthly that can range from 0.45%–1.05%, depending on your loan’s term and base amount. Flood determination and monitoring fee This is a fee charged to a certified flood inspector to determine whether the property is in a flood zone, which requires flood insurance (separate from your homeowners insurance policy). Part of the fee includes ongoing observation to monitor changes in the property’s flood status. Homeowners association transfer fee If you buy a condominium, townhouse, or property in a planned development, you must join that community’s homeowners association (HOA). This is the transfer fee that covers the costs of switching ownership, such as document costs. Whether the seller or buyer pays the fee may or may not be in the contract; you should check in advance. The seller should provide documentation showing HOA dues amounts and a copy of the HOA’s financial statements, notices, and minutes. Ask to see these documents, as well as the covenants, conditions, and restrictions (or CC&Rs), bylaws, and rules of the HOA before you buy the property to ensure it’s in good financial standing and a place you want to live. Homeowners insurance A lender usually requires prepayment of the first year’s homeowners insurance premium at closing. Lender’s title insurance This is an upfront, one-time fee paid to the title company that protects a lender if an ownership dispute or lien arises that was not found in the title search. Lead-based paint inspection You can pay a certified inspector to determine if the property has hazardous, lead-based paint, which is possible in homes built before 1979. Points Points (or discount points) refer to an optional, upfront payment to the lender to reduce the interest rate on your loan and thereby lower your monthly payment. One point equals 1% of the loan amount. In a low-rate environment, this might not save you much …

For Sale by Owner / Home Buying / Home Selling / Locations / Real Estate Brokers / Real Estate Markets / Tax-Related Issues / Title Issues

WHAT DOES IT MEAN TO BUY A PROPERTY WITH SELLER FINANCING?

Seller financing is when you get a mortgage to buy a home from the home’s seller instead of a bank. Let’s review when this approach is suitable, as well as pros and cons for buyers and sellers. When to Use Seller Financing Seller financing is rare overall, especially in a hot real estate market where sellers have their pick of buyers. Seller financing becomes more common in tough real estate markets when bank lending tightens up and/or buyers have been hit by hard economic times that make it difficult to qualify for a traditional bank loan. To do seller financing, sellers must own their home outright, or have enough equity in their home for the sale transaction to pay off their existing loan. For example, if someone was selling their home for $300,000 and only owed $30,000 on their existing loan, they could require a 10-percent down payment from a buyer to do seller financing. That 10-percent down payment would pay off their $30,000 loan, and they could do seller financing for the remaining $270,000. If, on the other hand, they owed $150,000 on their existing loan, the buyer’s 10-percent down payment would only pay their loan down to $120,000, so they’d need their lender’s permission to offer seller financing for as long as it took them to pay off the $120,000 — and it’s extremely rare for a traditional lender to grant this permission. As for when buyers should use seller financing, the most common reason is that a buyer might not qualify for a traditional bank loan. This could be because of challenges in a buyer’s credit, income or asset profile. Or it could be because the property needs repairs that a traditional lender requires to be completed before they fund the loan. In both cases, seller financing is a way to buy a home without being subject to these traditional lender requirements. Pros of Seller Financing Key benefits for buyers using seller financing include: Less stringent loan approvals. Even the most sophisticated sellers are unlikely to subject a borrower to the same rigorous federally-required loan approval procedures and documentation banks use. No mortgage insurance for low-down-payment deals. Most bank loans with less than 20 percent down require mortgage insurance ranging from about 0.45 percent to 1.05 percent of a loan amount. On the $270,000 loan example above, this translates to $101 to $236 per month in extra financing costs. Key benefits for sellers using seller financing include: Control over timing of closing. In bank-financed deals, sellers are subject to timing and viability of bank financing coming through. With seller financing, they can close faster because they’re the lender. Good source of income. Seller financing creates a monthly income stream the seller can rely on in lieu of a lump sum payment at closing. This income includes a rate of return (the interest rate they charge the buyer) on top of eventually getting their equity in the property back when the loan is paid off. Key benefits for both buyers and sellers include: Lower closing costs. Seller financing avoids bank fees, which makes the transaction cheaper for all parties. Property can close “as is”. As noted above, seller financing means a seller won’t be subject to a bank requiring certain repairs be made to the property before the loan can close. Reliable way to sell to tenants. If the buyer is a tenant who wants to buy the home, the buyer gets the home they’re already living in, and the seller already knows about payment history and creditworthiness of the buyer. HTTPS://KCREALESTATELAWYER.COM AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May     May 2023 February 2023 October 2022 September 2022 August 2022 July 2022 June 2022 April 2022 March 2022 February 2022 January 2022 December 2021 November 2021 October 2021 September 2021 August 2021 July 2021 June 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 September 2020 August 2020 May 2020 April 2020 February 2020 January 2020 December 2019 November 2019 October 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 January 2017 September 2016 August 2016 June 2016 February 2016 January 2016 December 2015 November 2015 October 2015 August 2015 July 2015 June 2015 May 2015 April 2015 October 2014 August 2014 May 2014

For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Tax-Related Issues / Title Issues

WHAT IS AN ATTORNEY REVIEW PERIOD IN A REAL ESTATE CONTRACT?

What is the Attorney Review Period in a Real Estate Contract? Many states have statutes that provide for an attorney review period. Kansas and Missouri are not one of those states. In order to have an attorney review period in Kansas or Missouri it must be stated and agreed to in the real estate contract. An attorney review period is highly suggested insofar as this is an opportunity to have a 3rd party not involved in the transaction to review the specific terms of the contract that each party to the contract will be held to. It is better to address these issues early in the transaction rather than to try to negotiate certain terms throughout the duration of the real estate purchase. Many real estate deals that blow up are over terms that could have originally been modified or changed so as to meet the particular needs of the buyer or seller. When there is an attorney review period clause in a real estate contract, the initial contract that you sign will only be conditional. In most cases, you are only signing to confirm the agreed-upon price and that there will be an attorney review period. The typical attorney review period is 5 business days after signing the initial contract. During the 5-day period, your attorney will need to decide whether to: Approve the contract; Reject the contract; or Entering into negotiations to modify the contract. The attorney review period allows either the buyer or the seller to modify the contract to meet their particular needs. Your attorney will review the contract and suggest modifications to the contract that would be in your best interest. If the contract is not expressly rejecting or approved, your attorney will make an initial request for modification of the original contract terms within the 5-days allowed for attorney review. Maybe you want to add real estate tax provisions to the contract. You might also want to make the contract contingent on certain terms as well. The attorney review period is the time to make sure all of these terms are added to the contract. The other party has the right to accept or reject the proposed changes. The other party may also want to counter the proposed changes and make additional proposals. During these negotiations, either party may walk away from the transaction without penalty if there is a failure to agree upon mutually acceptable terms. If the 5-day attorney review period passes without anyone making proposed changes, then no changes will be made to the initial contract terms. Both parties will be bound by the terms of the initial contract. HTTPS://KCREALESTATELAWYER.COM AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

real estate finance, FSBO, real estate markets, home buyers, home sellers

2022 PREDICTIONS FOR REAL ESTATE

The housing market may not reach the incredible heights of 2021, but Zillow economists predict it will be anything but slow next year. Expect the strong sellers market to persist, the Sun Belt to maintain its top spot as the most in-demand region, and flexible work options to continue to shape housing decisions in new ways in 2022. Zillow’s housing predictions for 2022: 2022 will fall just short of record-breaking 2021 marked the hottest housing market in U.S. history by some measures, including Zillow’s Home Value Index. While we may not see those records broken in 2022, Zillow economists expect incredibly strong price growth and sales volume to continue. Zillow’s forecast calls for 11% home value growth in 2022. That’s down from a projected 19.5% in 2021, a record year-end pace of home value appreciation, but would rank among the strongest years Zillow has tracked. Existing home sales are predicted to total 6.35 million, compared to an estimated 6.12 million this year. That would be the highest number of home sales in any year since 2006. Sellers keep the upper hand The usual seasonal cool down in the housing market is reappearing this fall after a hiatus in 2020. Fewer homes are selling above list price, homes are staying on the market a few days longer than they did during the summer, and more sellers are cutting their price. Zillow economists expect these metrics to trend slightly cooler in 2022, but don’t mistake that for a buyers market. The market forces that have given sellers the upper hand over the past two years or so — tight supply after years of under building, and elevated demand due to remote work, U.S. demographics and low mortgage rates — will persist next year as well. Expect to see bidding wars on many homes, especially as the market heats up during the spring and summer shopping season. Large rentals will be in high demand Rising home values will impact the rental market as well. After a slowdown in the early months of the pandemic, rent prices came roaring back, especially in what were previously some of the most affordable markets. As rising costs make it harder to save for a down payment, expect demand for larger rentals to increase, including for single-family homes, as families stay in the rental market longer. The ‘Sun Belt surge’ will extend to secondary markets 2021 was in many ways the year of the Sun Belt. Zillow predicted Austin would be the hottest market of 2021 as part of a “Sun Belt surge,” which proved to be the case — no metro has seen home values grow more than Austin so far this year, and all of the top destinations for long-distance movers were in the Sun Belt. Zillow predicts this surge will extend to smaller Sun Belt cities in 2022 as price hikes in this year’s star markets make more-affordable nearby markets more attractive. From April to August, Austin held the top spot in quarter-over-quarter home value growth, which is a good indicator of current housing demand. As of October, the smaller Florida metros of Fort Myers and Sarasota held the top spots, and 24 of the top 25 markets were in sunny states – a sign of things to come in 2022. More Gen Xers and millennials will buy a ‘second home’ before a primary residence Americans are taking advantage of remote work flexibility to move to larger homes in more-affordable markets, but many will not want to commit to a new location full-time. This is often true for younger people who are attracted to the amenities of living in a city, where expensive housing is more likely to put home ownership out of reach. With these factors in play,  there may be more people buying what’s traditionally a second home — either a part-time vacation home or an investment property — before they buy a home as a primary residence. Young people today are savvy watchers of the housing market, in part because of time spent Zillow surfing. Purchasing a “second” home in a market more affordable than the one they live in is a way to break into the market and start building equity while mortgage rates are low, possibly teaming up with friends or family to lessen the financial burden. Virtual home shopping tools available today, such as Zillow 3D Home® tours, make buying a home in a far-flung location easier. No end in sight for the renovation boom In the race to buy a home in the ultra competitive pandemic housing market, many buyers have had to make one or more compromises (81%). As prices and mortgage rates rise, expect many homeowners to upgrade their existing home rather than try to wade back into the market to trade up. A Zillow survey of homeowners found nearly three-quarters would consider at least one home improvement project in the next year. The top projects on their to-do list are renovating a bathroom (52%) or kitchen (46%), adding or improving a home office space (31%), finishing a basement or attic (23%), adding a room (23%) or adding a separate dwelling unit (21%). Work will play a key role in moving decisions The rise of flexible work options has changed how heavily a short commute factors into where Americans live. Home buyers used to pay handsomely to live near downtown and reap the benefits of a quick trip to and from the workplace each day, but that dynamic flipped in much of the country last year as buyers prioritized affordability and extra space. In 2022, hybrid and fully remote work will continue to reshape which areas are most in demand as the pandemic winds down and more workers receive permanent guidance on their flexible work options. Zillow economists expect fully remote workers to continue to seek affordable markets, like those in the Sun Belt and other nontraditional housing hot spots where they can afford to buy their first home or trade up for a bigger one. And amid the “Great Resignation” and a generally aging population, traditional retirement markets are likely to see elevated demand. New construction gains will only be a drop in the bucket despite …

Deeds / For Sale by Owner / Home Buying / Home Selling

CAN A SELLER REQUIRE A BUYER TO USE A PARTICULAR TITLE COMPANY?

CAN A SELLER REQUIRE A BUYER TO USE A PARTICULAR TITLE COMPANY?  YES AND NO Section 9 of the Real Estate Settlement Procedures Act (RESPA) prohibits a seller from requiring a home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.  However, a seller can offer certain incentives for the use of a particular title company but the seller cannot require that a particular title insurance company be used by the buyer as a condition of the sale unless the seller pays 100% of all title insurance and related title costs. The CFPB has issued guidance stating that if the seller requires the buyer to use a title company (without offering an incentive), unless the seller pays 100% of the title-related costs then the seller has violated RESPA. Even if the seller offers to purchase the owner’s title insurance policy for the buyer, there can still be a violation of RESPA if the buyer must purchase the lender’s title insurance policy. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

best real estate lawyers in kansas city in 2021
For Sale by Owner / Home Buying / Home Selling / real estate finance, FSBO, real estate markets, home buyers, home sellers

PRE AND POST CLOSING POSSESSION AGREEMENTS IN REAL ESTATE CONTRACTS

POSSESSION IS NINE-TENTHS OF THE LAW Possession is a key issue in real estate transactions and possession does not always transfer at the time of closing. Standard real estate contracts generally provide separate provisions for the date of closing and the date of possession. Most attorneys shudder at the thought of turning over or holding possession of real estate without a formal agreement of the parties which provides adequate protection to the client. In almost all cases, once beyond the attorney review and inspection period, the party in possession of the property holds a severe advantage over the other party. This is because possession is the seller’s bargaining chip. Buyers trade money for possession. There are two types of possession to be traded and both may be agreed upon contractually. First, pre-closing possession occurs when a purchaser takes possession of a property sometime before the real estate closing. Post-closing possession occurs when a seller retains possession of the property for some period of time after closing. There can be many reasons to justify pre and post-closing possession for the parties. Although a pre or post-closing transfer of possession is not the “ideal” situation, an attorney can provide additional contractual protections for sellers and buyers. When a buyer and seller agree to a pre or post-closing possession, one parties’ attorney will negotiate with the lawyer for the opposite side of the transaction to create an agreement that best protects the parties. PRECLOSING POSSESSION When a buyer is taking possession of the property prior to a closing, the seller’s attorney will have three main concerns. First, the purchaser will be asked to accept the property in the condition it was delivered as of the possession date. Because possession of the property is out of the seller’s control, the seller does not want to be liable for acts done by the purchaser to damage the property. In addition, during the purchaser’s pre-possession, the purchaser may discover some “defect” or unacceptable condition, such as an item needing repair or even that the local traffic is too noisy, that was not raised during the inspection period and attempt to back out of the deal. Some purchasers might rather forfeit their earnest money than proceed with closing after discovering an unacceptable condition. Second, the purchaser will generally be asked to pay some amount of daily rental for use, occupancy, and expenses. This amount is usually one-thirtieth of the seller’s monthly mortgage and assessment payments. Normally, utilities, services, and proratable items, including real estate taxes, are prorated as of the possession date. Finally, the purchaser will be required to provide some financial protection to the seller in the form of insurance on the property. The purchaser will be required to provide the seller with a copy of a paid and in-force insurance policy covering the value of the property and listing the seller as an “additional insured” on the policy. POST-CLOSING POSSESSION When a seller is holding possession beyond the closing date, the buyer’s attorney will have two main concerns. First, the seller will be asked to pay a daily rate for use and occupancy of the property in the amount of the daily rate of the purchaser’s new mortgage payment plus taxes and insurance. Second, the seller will be required to post a “possession escrow” or a certain amount of dollars to guarantee that the seller will actually move out. A common amount to be posted is two percent of the sale price. Many contracts call for a possession escrow which is used to pay the daily rental. This is generally not a good idea as there is no recourse against the seller once the escrow is exhausted. A better provision would be to specify that the escrow is to be used as a penalty which is forfeited in full if the seller fails to deliver possession and which is paid in addition to the daily rental amount. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

Boundaries / Deeds / For Sale by Owner / Home Buying / Home Selling / Locations / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets / Tax-Related Issues / Title Issues

WHAT IS A PARTIAL RELEASE?

What Is a Partial Release? The term partial release refers to a mortgage provision allowing some of the pledged collateral to be released after there is partial satisfaction of the mortgage contract. When a partial release is put into effect, the lender agrees to release some of the collateral from the contract when the borrower pays off a certain amount on the mortgage. Borrowers must contact their lender to see if they qualify and begin the process for a partial release. Lenders generally complete the paperwork that outlines the segments of property released. Key Takeaways A partial release is a mortgage provision that allows some of the collateral to be released from a mortgage after the borrower pays a certain amount of the loan. Lenders require proof of payment, a survey map, appraisal, and a letter outlining the reason for the partial release. Borrowers may need to pay fees to the lender and to the county recorder’s office. A mortgagor may request a partial release when they wish to sell a portion of the land on their property. Understanding Partial Releases may have a release schedule that outlines how much of the mortgage must be paid off before a partial release is possible. Since it isn’t automatically guaranteed or applied, borrowers must check with their lenders to apply for the provision. Keep in mind, not all lenders permit partial releases, so it’s important for borrowers to check before they apply. The partial release isn’t an industry standard, so it’s important to check with lenders to see if they accommodate this provision. Qualifying for a partial release may require the borrower to retain proof of payment on the mortgage. There is usually a minimum period of time that a borrower must pay before lenders will consider an application for partial release—usually 12 months. Many lenders won’t consider applications from borrowers who have recently defaulted on payments, even if the mortgage is brought up to date. The application process may also require submitting a survey map to show which part of the property is to be released and what will remain under the title with the lender as the mortgage continues to be paid. This means getting an appraisal that outlines the current value of the property retained by the lender. The borrower may also need to include a reason for the request for partial release. For instance, the borrower may want to obtain a release for unimproved land that they don’t intend to make use of and another party wishes to acquire for their development or other purposes. There may be nonrefundable fees payable to the lender to apply for a partial release. Additional fees may be required by the county recorder’s office to make changes with a mortgage. The approval process for a partial release may take several weeks. Special Considerations If the borrower has a deal to sell part of the property, this may be enough to convince the lender to all a partial release. It may still be necessary to offer some incentive to the lender, such as supplemental compensation to secure the partial release. Throughout the transaction, the lender will want to preserve their loan to value ration of the collateral. Part of the requirement for such an agreement could be to pay down the outstanding principal on the mortgage. When drafting the sale of a portion of a property, the seller must also furnish documentation to allow for the partitioning of the land. That can include conducting a title search to show any and all liens on the property, as well as other records and statements that show the remaining mortgaged property is still occupied. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues

For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Real Estate Markets

REALTOR DANGER SIGNS FOR HOME SELLERS

REALTOR DANGER SIGNS FOR HOME SELLERS Real estate agents are people, and as with all industries, there are some who you prefer to work with, and some you don’t. When it comes to selling a home, some real estate agents will deceive their clients to benefit themselves. Not all agents are like this, but it is worth knowing the strategies such real estate agents use, so you can spot them and steer clear of those agents who are not worth your commission. Keep in mind all of these things are legal, but that doesn’t make them suitable for you! In fact, it is quite the opposite. There is a significant percentage of agents who will go out of their way to do “the right thing.” Others are more concerned about their income than what’s best for their clients. These are the bad eggs you need to stay away from. If you are going to be selling a home shortly, you need to know the ways real estate agents will fool you. Below I will separate myth from facts in the real world. You will see why some of these standard real estate practices do more for an agent’s benefit than a home seller. 1. Dual Agency Dual agency is probably one of the worst things a Realtor can do for a client who wants to sell their home. With Duel agency the Real Estate agent attempts to represent you, the seller, and the buyer, all at the same time, which is technically impossible. You cannot serve the best interests of both a buyer and a seller involved in the same transaction. The seller wants to sell for as much as possible, while the buyer wants to buy for as little as possible. Yet, some agents will attempt to offer such a deal to clients because they can get a double commission from the sale. No seller would ever go for dual agency if they knew the actual facts. But any Real Estate agent willing to try and play dual agent is probably going to be willing to paint it as a prettier picture than it is. These types of Realtors may use the same salesmanship skills to convince you otherwise, implying that the agent can serve the needs of both the seller and the buyer. Be warned – THEY CAN’T. In fact, in many states, laws require that a Realtor serving as a dual agent do nothing to jeopardize the interests of his or her client – which means the agent can say nothing on behalf of either party. So you end up paying commission for an agent that does nothing essentially. Imagine for a moment that you are selling your home. The real estate agent gets a phone call from the pretty internet advertisement they are running. Mr. & Mrs. Jones want to see your home. If you allow dual agency, the agent YOU hired will no longer be representing your best interests. What does this mean in the real world? Try the following: When the buyer makes an offer and asks the agent you hired what you should counteroffer, they cannot answer. Remember, they don’t represent you anymore. They can’t by law give you any advice. When the home inspection happens, and the buyer wants you to fix X, Y, and Z, your agent also will no longer be able to help you with guidance. Throughout the whole transaction, the agent cannot offer you any real estate advice. Sounds lovely, doesn’t it? You are paying a real estate agent thousands of dollars, if not tens of thousands. Didn’t you hire the agent for their real estate expertise? Keep this in mind – your agent does not have to become a dual agent. They can work with the buyer and remain as a seller’s agent. What this means is they represent you and only you. Additionally, if the buyer wants their own agent, they can be referred to another agent who can help them. Trust me. There are a lot of agents that would never consider doing a referral. Why? Simple – it would be taking money out of their pocket. You don’t need this kind of agent. Understanding Dual agency in your state is critical. Don’t make the same mistake so many people have made before you. A significant amount of real estate agents get sued every year because of dual agency. Dual agency is akin to an attorney trying to represent both the plaintiff and defendant in a lawsuit. Sounds silly, doesn’t it! There is a reason why some states have been smart enough to ban dual agency! 2. Open Houses Some real estate agents just love to express to their clients how fantastic open houses are as a marketing activity. This is, in fact, the #1-way real estate agents fool their seller clients. What they fail to tell the seller is the benefit for the agent. Some unscrupulous agents will go so far as suggesting to their client’s open houses are necessary to sell a home. Folks, serious buyers always schedule showings. This is a fact, not fiction. With an open house, you invite many strangers into your home with no idea if they really want to buy or not. Nosy neighbors, others selling homes that want to compare, window shoppers, and the unqualified. Worse yet, sometimes even potential burglars are scoping out your home – these are the types of people who come to open houses. Tons of real estate agents never mention the potential downsides of holding your home open to a bunch of deadbeats. Open houses can be a magnet for crime! So why do Realtors push open houses so much? Open houses can potentially be great for prospecting new buyers and sellers. Those other sellers looking to compare may need a Realtor to represent them. Agents can get business from open houses. Unfortunately, that business rarely includes actual buyers for YOUR home. Statistically speaking, around 2 percent of all sales come from …

Boundaries / Deeds / For Sale by Owner / Home Buying / Home Selling / Land Use / Locations / Real Estate Brokers / Real Estate Markets / Tax-Related Issues / Title Issues

WHAT IS A PROPERTY SURVEY AND WHY WOULD I NEED ONE?

What Is A Property Survey? A property survey confirms a property’s boundary lines and legal description. It also determines other restrictions or easements included in the property. While you can technically get your property surveyed at any time, confirming the boundaries of your land is an important part of the home buying process. Depending on your mortgage company and where you live, a property line survey may or may not be needed to get a mortgage or otherwise legally required. However, getting a property survey done lets you know in no uncertain terms what land you’re responsible for and where you can build, while empowering you and your mortgage lender or title company to set the most accurate terms of your agreements. There are different types of property surveys, but they all determine important characteristics and features of the land based on what the property owner needs. Here are a few examples: Property Lines This one may sound obvious, but the legal boundaries of your property, a precise understanding of your property lines can either make or break your homeowning experience. By eliminating any confusion or gray areas, you can build or expand your home with confidence and avoid encroachments– property disagreements with your neighbors. In real estate terms, an encroachment happens when a neighbor builds something that invades another neighbor’s property. This type of conflict can easily turn into a legal issue, as there is a lot on the line (no pun intended) when it comes to land ownership and building rights. For example, it’s important to consider what could happen as a result of a new structure on your property, like injury or damage you could be liable for in the eyes of the law, higher insurance premiums, and lower resale value down the line. It’s not unheard of for potential buyers to offer less money for a property with poorly defined property lines, or to even pass on purchasing altogether. Easements A property survey will reveal any easements on the property you want to purchase. An easement is a situation in which you may have to share access to some part of your property. For example, a utility company could have the right to install electrical wires on your land, or you may be required to share a private road or beach with your neighbors. There are many different types of easements and they don’t always result in negative situations or experiences; however, you can avoid being caught by surprise by conducting a thorough property survey as a part of your home buying process. Elevation Elevation matters! Topographical surveys are surveys that go deeper into the contours, elevation, and features of the property. This type of survey will include your property’s exact elevation, building type, and flood map location in order to determine the proper flood insurance premium rates. This information is important to know for architects and building contractors and can impact the design and cost of any new structure you decide to build. Paying for a topographical survey and a flood certificate now could end up saving you hundreds of dollars per year. Hazard Areas The fieldwork a property surveyor does on the property results in a better understanding of the land you want to live or build on – including potential problems and hazard areas. This is especially important if you plan to build new structures on your land. A thorough survey from an accredited professional can help you avoid costly mistakes, like trying to build your new home only to find out your lot has a water table near the surface, or incurring future damages from land erosion, landslides or earth collapse. How To Get A Property Survey Now that you understand the benefits of property surveys, you’re probably wondering how you can get the most precise idea of your property’s legal boundaries. There are several ways to go about getting a property survey. Hire A Land Surveyor Luckily for grazing deer and hungry rabbits, not every plot of land is clearly defined and enclosed by a white picket fence. As land shifts over time, some initial property line markers may no longer exist. If you have any questions about property lines, the safest thing to do is hire a land surveyor. A professional land surveyor is an expert in defining property lines. They use their skills, education, and specialized field equipment to create legally binding property surveys. They can even serve as expert witnesses in court cases about land disputes (Remember when we talked about encroachments earlier?) During the property survey, a land surveyor will compare historical records and data with any existing markers to accurately define your property lines – and their findings are legally binding. This process takes time, effort, and boots-on-the-ground legwork, so hiring a well-respected and well-reviewed land surveyor before purchasing land or beginning any new home expansions is your best bet to avoid any legal issues in the future. Call around for quotes before you decide, and be wary of any too-good-to-be-true low estimates. Check The Property Deed Several different types of deeds are used in real estate. A property deed is a written legal document that transfers ownership of a property from the grantor to the grantee. (Not to be confused with a title, which is the actual document that states who legally owns the property.) This type of deed will have several pieces of important information about the property: accurate owner names, exact address, tax map number, legal description, restrictions, and other information like conditions of the transfer and reservations of rights by a prior owner. While some deeds only reference a lot or block number, many include detailed measurements in the form of – yep, you guessed it – a property survey done by a land surveyor. Search Property Survey Records While there is no national archive of real estate records, many states require property surveys to be filed with the local government. You can search for property surveys by visiting the courthouse, property, …

real estate finance, FSBO, real estate markets, home buyers, home sellers

BORROWERS SHOULD NOT REFINANCE AND REMODEL AT THE SAME TIME

“I applied to refinance my jumbo mortgage and was almost through the process when the loan officer asked if there had been any remodeling done.  I am in the process of replacing a bay window and am just now applying for the required town building permit which can take a couple of months. Will that hold up the refinance?”  It might. On the face of it, the lender should not be concerned about improvements in the property that increase its value, since that makes the loan a safer investment. But in fact the lender is concerned that in the process of making an “improvement”, the owner may have violated local building codes, which could make the property unsalable in the future. This danger is greatest when the owner does the work himself and doesn’t want to be bothered with (or doesn’t know about) the local building codes. If a loan officer asks about improvements, it is because he is following the instructions of the underwriter, who wants to make sure that work on the house has been done legally and is in compliance with building codes. The underwriter will want this verified by the local government entity that enforces the  codes. Since you have improvements in process, don’t be surprised if the loan officer tells you to come back after they have been completed and document that they are in compliance with the codes. Bottom line: Borrowers should not refinance and remodel at the same time. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

real estate finance, FSBO, real estate markets, home buyers, home sellers

MULTIPLE STRUCTURES ON ONE PARCEL A PROBLEM FOR SELLERS

MULTIPLE STRUCTURES ON ONE PARCEL A PROBLEM FOR SELLERS “We have a beautiful home with 5 acres, and there is a second smaller structure on the property. We have been trying to sell since 2008 with no bites until recently, when a buyer appeared. We lost the sale, however, because the bank refused to finance two structures on one parcel… Any suggestions?” Yes, split your parcel into two parcels, each with a structure, and sell them separately. Two structures on one parcel is a big problem for the owner trying to sell it because potential buyers will have difficulties getting financed. If the second structure is a habitable unit, the question arises of whether the buyer will rent it out. Under the rules, such a buyer is an investor rather than a permanent occupant. Investors are subject to more strict underwriting rules than permanent occupants, and pay more for their mortgage. If the second structure is some kind of an appendage to the main house, such as a barn or recreation facility, a potential purchaser will face a different problem. An appraisal of the property will be based on the assumption that the second structure has no value, which means that the loan amount will be smaller and the required down payment will be larger. Home appraisals are based primarily on “comparables”. These are recent sale prices of homes that are similar to the property being valued. But a parcel with two structures will not have any comparables, forcing the appraiser to ignore the second structure. The appraisal will therefore undervalue the property as a whole. The problem posed by two structures on one parcel will seldom arise in connection with very expensive homes, because the margin of error in appraisals is very large even without the complication posed by multiple structures, and eligible buyers will not need much if any financing. But the lower the price range within which the property falls, the more are potential buyers dependent on financing a major portion of the price, and the greater is the penalty posed by multiple structures. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May     RSS Error: WP HTTP Error: A valid URL was not provided. You need to select a widget type before you’ll see anything here. 🙂

real estate finance, FSBO, real estate markets, home buyers, home sellers

2021 HOUSING MARKET FORECAST AND PREDICTIONS

2021 National Housing Market Forecast and Predictions To say 2020 was a year of surprises is an extreme understatement. What started off as a bright year for the housing market and the economy was soon derailed by a global pandemic and severe economic recession. As detailed by my colleague, George Ratiu, the economic rebound has been sharp, but is by no means complete and created distinct winners and losers among sectors in the economy. Read more detailed thoughts on the overall economic context and outlook, here. One of the big winners has been the housing market, which saw home sales and prices hit decade-plus highs following decade lows in the span of just a few months. We expect housing’s winning streak to continue in 2021 as seasonal trends normalize and some of the frenzied momentum fades thanks to fresh affordability challenges. Below you’ll find our forecast and housing market predictions on key trends that will shape the year ahead. Realtor.com 2021 Forecast for Key Housing Indicators Housing Indicator Realtor.com 2021 Forecast Mortgage Rates Average 3.2% throughout the year, 3.4% by end of year Existing Home Median Sales Price Appreciation Up 5.7% Existing Home Sales Up 7.0% Single-Family Home Housing Starts Up 9% Homeownership Rate 65.9% Seasonality and 2020 Context: The Baseline In 2020, the seasonal pattern for home sales and other metrics was thrown out of whack by the timing of the coronavirus arrival as well as the shelter-at-home orders and other measures that were rolled out to arrest the spread of the virus. These measures were implemented just before what’s normally the best time of year for sellers to list a home for sale, and housing inventory never fully made up the gap as buyers returned in earnest before sellers. This uneven return of buyers and sellers created a housing market frenzy that pushed the number of sales to decade highs while time on the market dropped to new lows. This trend persisted well into the fall, a time when normal seasonal trends typically favor home buyers over sellers, thus buyers hoping for the usual break in 2020 were likely disappointed. Understanding this backdrop will be key to evaluating the data as it comes in for 2021 as we expect the housing market to settle into a much more normal pattern than the wild swings we saw in 2020. Year over year trends will need to be understood in the context of the unusual 2020 base year. Home Sales After whipsawing in tremendous fashion in early 2020, the housing market more than regained its early-year momentum to finish at new highs for home sales in the fall. For the year, we expect 2020 home sales to register slightly higher (0.9%) than the 2019 total thanks to the strong, if delayed, buying season. Going into 2021, we expect home sales activity to slow from those frenzied levels which represented underlying housing demand as well as make-up buying for a spring season many buyers missed out on plus a sense of urgency brought on by record-low mortgage rates. As sub-3 percent mortgage rates start to feel less exceptional, buyers may not react with the same immediacy to take advantage of them, initially, though as rates start to rise in the second half of 2021, buyers may feel the need to hurry purchases along to lock in a low rate. Additionally, as make-up buying from the disruption of spring 2020 fades, home purchases will be propelled by underlying demand in 2021. This demand will come from a healthy share of Millennial and Gen-Z first-time buyers as well as trade-up buyers from the Millennial and older generations. We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring, and sustaining the pace in the second half of the year. While home sales are expected to lose some momentum over the last months of 2020, the shallower than normal seasonal slowdown creates a higher base of activity leading into 2021 that is roughly maintained for the first half of the year. As vaccines for the coronavirus become broadly available to the public, and economic growth reflects the resumption of more normal patterns of consumer spending, home sales gain even more in the second half of the year. Home Prices With the already limited inventory of homes for sale relative to buyers pushed further out of balance by the pandemic that brought out buyers in mass and kept many sellers pondering their options, home prices skyrocketed surging up more than 10 percent over year-ago levels by the late fall. We expect the momentum of home price growth to slow as more sellers come to market and mortgage rates settle into a sideways pattern and eventually begin to turn higher. A large number of buyers in the market, including many Gen-Zers looking to buy their first-home and Millennials who are both first-time and trade-up buyers, will keep upward pressure on home prices, but rising numbers of home sellers will provide a better relief valve for that pressure. We expect home prices in 2020 to end 7.6% above 2019, after a seeing near-record high boost in the summer and early fall, but beginning to decelerate into the holidays. From there, we expect price gains to ease somewhat in 2021 and end 5.7% above 2020 levels, decelerating steadily through the spring and summer, and then gradually reaccelerating toward the end of the year. Inventory Although the housing market is healing and by many measures doing better than before the pandemic, inventory remains housing’s long haul symptom. There was an insufficient number of homes for sale going into 2020 in large part due to an estimated shortfall of nearly 4 million newly constructed homes. Much to the surprise of many, the coronavirus and recession did not lead to a distressed seller-driven inventory surge as we saw in the previous recession, but further reduced the number of homes available for sale. Starting in fall 2020 the …

real estate finance, FSBO, real estate markets, home buyers, home sellers

TITLE THEFT

“Title theft” was a term unknown just a generation ago. Now advertisers bombard us daily with warnings about it. They say that thieves can “steal” our homes by forging our names on deeds, then resell the property or take out mortgage loans to drain its equity. They pocket the proceeds and “stick” us with any mortgage payments. But can a thief really “steal” your house through forgery, and are you really obligated to pay off a thief’s mortgage loan? No. A forged deed conveys nothing. And, having acquired nothing, the forger has nothing to resell to a third party or to ‘mortgage’ to a lender. Although title theft isn’t real, a forged deed or mortgage can have a very real — often devastating — impact on the owner. Since the forger’s name will appear on the land records, the forger can sometimes deceive a third party into “buying” the property or a lender to take a “mortgage” of the nonexistent title. The owner cannot simply ignore the forgery unless the defrauded buyer or lender accepts the owner’s account and disclaims any interest in the property. That rarely happens. Usually, owners must file a lawsuit to clear title. Most owners need a lawyer to do that, and few lawyers are willing to handle such matters for free. The litigation can be lengthy, involving expert testimony as to the validity of the signatures, and prohibitively expensive. Although the owner has no legal obligation to repay the forger’s loan, the owner may ultimately feel constrained to do so as a practical matter. Some owners don’t learn of the forged mortgage until the lender moves to foreclose the mortgage, or even after the foreclosure process is complete and title has passed again. Bringing legal action at that late stage can be particularly expensive. Why do the advertisements for “protection” against so-called title theft say that a forger who subsequently “mortgages” the property to a lender can “stick the owner with the payments”? Either the advertisers don’t understand the law, or their statements are intentionally ambiguous. The advertisements speak of ‘putting a shield’ around your title, ‘monitoring’ it, and issuing ‘alerts.’ If you inquire further, here is what you are likely to learn: The provider will regularly check the land records to see whether your name has appeared on any deed or other instruments. The provider will alert you of any such instruments it finds. If you respond that an instrument was forged, the provider will prepare and file in the land records document to alert further buyers or lenders that the instrument was forged. Owners can check the land records on their own, but there’s value to the convenience of having someone regularly check the land records for them. There’s also a value to having a ‘red flag’ affidavit prepared and recorded as to any forged deed that is discovered — but only if the recording is accomplished before the forger succeeds in finding another victim to ‘buy’ or take a ’mortgage’ on the property. Will a provider of “title theft” protection also pay for a lawyer to represent an owner in seeking to clear title after a forgery? If the provider’s terms include its payment of the legal fees necessary to clear title of any forged instrument that it discovers, the service could prove to be extremely valuable. PLEASE READ THE FINE PRINT. I’m not aware of any providers of ‘title theft’ protection who do cover their customers’ legal fees in litigation to clear title. And if such providers do exist, their service would almost certainly cost much more than the dime-a-day rates advertised widely. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

real estate finance, FSBO, real estate markets, home buyers, home sellers

ACCELERATED AMORTIZATION

What Is Accelerated Amortization? Accelerated amortization is a process by which a mortgagor makes extra payments toward the mortgage principal. With accelerated amortization, the loan borrower is allowed to add extra payments to their mortgage bill to pay off a mortgage before the loan settlement date. The benefit of accelerated amortization is that it reduces the overall interest payments paid by the borrower over the life of the loan. And, of course, it retires the debt sooner. Accelerated amortization should not be confused with accelerated depreciation, an accounting method for recognizing the decline in value of a piece of property or equipment over its useful life. KEY TAKEAWAYS Accelerated amortization is when a borrower makes extra payments toward their mortgage principal beyond the stated amount due. There are different ways that a borrower can make accelerated payments, including increasing the size of each payment or making more frequent payments. Borrowers use an accelerated amortization strategy to save money on interest and pay off their mortgage faster. Accelerated amortization does have drawbacks: It can deprive the borrower of a tax deduction, and some lenders charge prepayment penalties. How Accelerated Amortization Works A home mortgage is a type of amortized loan, which means that the borrower repays the loan in regular installments (usually monthly) over a period of time. These payments consist of both principal and interest. Initially, most of the borrower’s payments will go toward paying the loan’s accrued interest, with a smaller portion of each payment going toward paying down the principal. This ratio will be reversed over time, and a larger portion of the borrower’s payment will go toward paying off the principal and a smaller portion will go toward interest. When a loan is taken out, the home mortgage lender provides the borrower with an amortization schedule This table shows how much of the borrower’s payment each month will be applied to the principal and how much to interest until the loan is paid off. With accelerated amortization, the borrower will make additional mortgage payments beyond what is listed in the amortization schedule. A borrower can accelerate the amortization of their loan by increasing either the amount of each payment or the frequency of payments (bi-weekly mortgage payments are a common example). The extra accelerated payments go directly toward reducing the loan’s principal, which in turn lowers the outstanding balance and the amount owed on future interest payments. Example of Accelerated Amortization Let’s say Amy has a mortgage with an original loan amount of $200,000 at 4.5% fixed-rate interest for 30 years. Consisting of principal and interest, the monthly payment amounts to $1,013.37. Increasing the payment by $100 per month will result in a loan payoff period of 25 years instead of the original 30 years, saving Amy five years’ worth of interest. Advantages of Accelerated Amortization Adopting an accelerated amortization strategy has several pluses for borrowers. The obvious one is that it shortens the life of the loan—meaning you get out of debt sooner. More specifically, paying a mortgage in an accelerated manner decreases the loan principal faster, which means your equity (ownership stake) in the home increases faster as well. This increases your net worth and often strengthens your credit score. Also, accelerated amortization diminishes the overall amount of additional interest that the borrower incurs. Generally, the longer a loan lasts, the more interest you pay. Although the interest rate itself doesn’t change, by reducing the principal, you reduce the total interest charged on that principal—saving money in the long run. Limitations of Accelerated Amortization There are also reasons why it might not make sense to pay down mortgage debt early. The most important reason is that interest in mortgage debt is tax-deductible according to the U.S. tax code. Anyone who takes out a mortgage from Dec. 15, 2017, to Dec. 31, 2025, can deduct interest on a mortgage of up to $750,000, or $375,000 for married taxpayers filing separately.1 While fewer American homeowners are opting to claim the deduction than in the past, it provides significant tax savings for some homeowners. By paying down a mortgage early, these homeowners could these homeowners could be losing out on a tax-savings strategy. In such a scenario, it may make sense for homeowners to use the funds that they would have used for accelerated amortization to invest in a retirement or college fund. Such a fund would earn a return while maintaining the tax advantage of a mortgage interest deduction. However, very affluent buyers, who already have sufficient retirement funds and sufficient capital to make other investments, may want to pay down their mortgages early. Some lenders include a prepayment penalty in their mortgage contracts. This is a clause that assesses a penalty to the borrower if they significantly pay down or pay off their mortgage during a specified time (usually within the first five years of the mortgage origination). Special Considerations Homeowners in the United States typically take out a 30-year fixed interest rate mortgage, secured by the property itself. The length of the loan, and the fact that the interest rate is not variable, mean that borrowers in the United States typically pay a higher interest rate on their loans than borrowers in other countries, like Canada, where the interest rate on a mortgage is typically reset every five years. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED …

real estate finance, FSBO, real estate markets, home buyers, home sellers

MISSOURI CHARGING ORDER ON LLC

MISSOURI CHARGING ORDER ON LLC A charging order can be an effective way to collect on a judgment. A person who obtains a judgment is commonly called a “judgment creditor”. A person against whom a judgment is entered is commonly called a “judgment debtor”. A charging order requires an LLC or partnership to pay to a judgment creditor the distributions from the LLC or partnership that the judgment debtor would have been entitled to receive. CHARGING ORDER AGAINST AN LLC Missouri charging orders against LLCs are governed by section 347.119 RSMo. Under this statute, if a judgment debtor is a member of an LLC, the judgment creditor can ask a court to enter a charging order against the LLC. Unlike a garnishment or execution on property, this procedure requires a hearing. Both the judgment debtor and the LLC must be given notice of the hearing and an opportunity to present evidence at the hearing. The judgment creditor must generally establish at the hearing that the judgment is a valid and final judgment, that the judgment was entered against the judgment creditor, the amount of the judgment that is unpaid, that the LLC exists as a legal entity, and that the judgment debtor is a member of the LLC. If the judgment creditor has presented sufficient evidence of these facts, the court will typically order the LLC to pay to the judgment creditor the portion of any distribution that the judgment debtor would have been entitled to receive. A charging order cannot force a distribution, nor can it attach or seize any asset owned by the LLC. The order can only provide that if and when the LLC makes a distribution, the portion of the distribution the judgment debtor is entitled to receive must be paid to the judgment creditor. The order will typically require the LLC to pay such funds to the court, which will then pay them to the judgment creditor. CHARGING ORDER AGAINST A PARTNERSHIP Missouri charging orders against partnerships are governed by two statutes. Section 359.421 RSMo. applies to limited partnerships, and section 358.280 RSMo. applies to all other forms of partnerships. As with an LLC, a court can order a partnership to pay to a judgment creditor distributions that a judgment debtor would have been entitled to receive. Also as with an LLC, the order cannot force a distribution, nor can it attach or seize any asset owned by the partnership. Unlike an LLC, a court can order the sale of a judgment debtor’s partnership interest. However, the purchaser does not acquire the judgment debtor’s non-economic rights in the partnership, such as the right to vote, to manage partnership property, to inspect partnership books, or to demand an accounting. Finally, the court has the discretion pursuant to a partnership charging order to “make all other orders, directions, accounts, and inquiries which the debtor partner might have made, or which the circumstances of the case may require.” The statute even allows the court to appoint a receiver as to the distributions owed by a partnership to the judgment debtor. Unlike with an LLC, the partnership charging order statutes give the court powerful tools to look into the economics of a partnership and to even perhaps control the economics to the benefit of the judgment creditor. CHARGING ORDERS IN SUMMARY In summary, a charging order against an LLC is pretty simple. A court can only order an LLC to pay to a judgment creditor the portion of a distribution that the judgment debtor would be entitled to receive. However, the court cannot force a distribution or seize any LLC asset. On the other hand, a charging order against a partnership can be complex. While a court cannot force a distribution from a partnership or seize any partnership asset pursuant to a charging order, a court can appoint a receiver as to the interest of a judgment debtor in a partnership, and it can even order a foreclosure sale of the judgment debtor’s partnership interest. As such, an LLC provides much better asset protection to a member, as to charging orders, than does a partnership. Finally, the natural inclination, when faced with a charging order, is to transfer LLC or partnership assets to another entity or to find ways to avoid making any distributions. Members and partners contemplating such transfers or workarounds should consider whether such strategies might be seen by the court as a fraudulent transfer. Partners of a partnership should also bear in mind the ability of the court to look into the economics of the partnership and to enter orders “which the circumstances of the case may require.” This language gives a judge a lot of discretion to address situations that the judge might not like. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May   …

For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets

CURRENT STATE OF THE KANSAS CITY REAL ESTATE MARKET

The Kansas City housing market is intense, with soaring prices and limited availability challenging the city’s reputation for affordability. Nationwide, record-low interest rates and rising demand are met with a depleted inventory. The result is dramatic price jumps and homes selling in days. According to the Kansas City Regional Association of Realtors, the median price in May 2021 for an existing home in the KC area was $255,000, about a nineteen percent increase from the same time last year. The number of available properties has dropped by fifty-three percent compared with 2020. How did we get here? And if you’re thinking about entering the market, what should you know? Covid didn’t start the crisis, but it did worsen it. “It’s always been a seller’s market,” says Sarah Montgomery, lead buyer specialist at Dani Beyer Real Estate. “However, it’s definitely intensified.” As people spent more time at home during the pandemic, they’ve recognized the need for more space and a comfortable home, says Sharon Barry, associate broker at Reece Nichols. And since the Federal Reserve cut interest rates to near-zero in the first days of the pandemic, there’s been a stronger incentive for prospective owners to enter now. It’s not ending soon, but it’s probably not a bubble. Despite the worrisome rise in prices, national experts don’t expect a crash. As prices continue to soar due to low inventory, demand should slow. But this won’t happen overnight. “I don’t foresee the buyer’s side changing much over the next two years,” says Trent Gallagher, a realtor at Compass Realty Group. Don’t expect a huge increase in inventory. Steep lumber prices shouldn’t slow down construction, Montgomery says, but it’s one of the reasons new housing is so expensive. The median new house price in the KC metro has jumped nearly twenty-one percent from last year to $439,425. In 2021, the metro has already issued nearly twice as many new building permits as last year, but it takes time to build. More existing homes might enter the market when the federal moratorium expires July 31 and foreclosures spike. But Gallagher doesn’t expect it to have a strong impact. “With buyer demand so high, they’d all be picked up, and we’d still be back where we are right now,” Gallagher says. It might be best to stay in the market. It sounds risky, but the future could be riskier. Interest rates won’t stay low forever. “I perceive the market’s going to continue to appreciate, and it’s a great time to buy,” Gallagher says. There are limited ways for buyers to have leverage. Cash buyers typically move to the front of the list, Barry says, but that isn’t a realistic option for many people. She believes having good credit and placing a large down payment can help. Some people are rolling the dice by waiving inspections, but Montgomery recommends against it “unless they have a solid pre-inspector report from a reputable inspector,” she says. Montgomery thinks the best advantage is finding the perfect agent. “Don’t hesitate to shop for agents and make sure you have a good fit,” she says. It can be a stressful process but having someone friendly and knowledgeable can help you push through it. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues

real estate finance, FSBO, real estate markets, home buyers, home sellers

KEY STEPS FOR A SUCCESSFUL 1031 EXCHANGE

With recent appreciation in real estate, we are seeing more clients interested in 1031 exchanges. These exchanges (often called “like-kind” exchanges) can be complex. But as long as you follow the rules, it is a great way to defer capital gains on real estate with substantial appreciation. 1031 Exchange1031 Exchange First of all, most real estate investors understand that a big tax bill can follow the sale of appreciated real estate held for investment purposes. When appreciated real property is sold, the profits from this sale—termed capital gain—are taxed as ordinary income (a tax rate of up to 39.6%) if the property is held for less than one year, or taxed at a more favorable rate of 15% (subject to certain exclusions) if held for a period of time longer than a year. However, Section 1031 of the Internal Revenue Code (“IRC”) allows for the deferral of capital gains tax if the proceeds of the sale are used to acquire a new property (or properties). There are certain criteria that must be met in order for the taxes to be deferred: The investor must obtain a “like-kind” replacement property. The definition of “like-kind” property provided by the IRC is very broad. Essentially all real property is like-kind (when applied to investment and exchange), allowing for the exchange of land with a commercial building, apartment buildings being exchanged with a single rental property, etc. The key is that they are held for investment purposes. This includes all real property within the United States; any purchase of property outside of the U.S. is not considered “like-kind”. The investor must not receive cash. Any cash received by the investor will be considered taxable boot. In addition, anything received in exchange for the property that is not considered “like-kind” is labeled boot. This includes private use property including cash, securities, debt relief, notes, etc. It is important to note that if the real estate investor receives a debt reduction, this amount will be considered “boot” and will be taxable to the investor. In order to avoid any taxable event, the investor must buy a replacement property that is of equal or greater value than the relinquished property. They also must invest all of the net proceeds from the sale of the original property and obtain debt that is equal or greater on the new investment property. Qualified Intermediary or Accommodator Before going into descriptions of the types of exchanges, there is an important term that should be understood in the exchange process. A Qualified Intermediary is often used in the process of these exchanges and acts as sort of a “middle man.” The real estate investor typically will enter into a 1031 exchange agreement with the qualified intermediary. During the sales process, the intermediary will basically acquire the property from the investor (or seller) and transfer it to the new buyer. The proceeds from the disposition of the relinquished property will go directly to the qualified intermediary and not the seller. The real estate investor will then identify the replacement property and the qualified intermediary will acquire the property and transfer it to the investor. This is the standard role of the qualified intermediary. Types of Exchanges There are various types of exchanges: delayed exchange (the most common), simultaneous exchange, and reverse exchange (the most complicated of the exchange methods, and least common). Let’s take a closer look at the types: Delayed Exchange. In a Delayed Exchange, a qualified intermediary is used to transfer the investor’s properties and proceeds. An Exchange Agreement is made between the investor and qualified intermediary, and the investor’s rights in a sales contract are transferred to the intermediary. The intermediary effectively becomes the seller and transfers the relinquished property to the buyer. The intermediary retains the proceeds from the sale and uses these funds to purchase the investor’s new replacement property. The new property is then transferred to the investor and the exchange is complete. We will discuss the specifics below. Simultaneous Exchange. This type of exchange occurs when the relinquished property and the replacement property are transferred at the same type (simultaneously). It is typically recommended that a qualified intermediary be used to make sure that the transaction is consummated correctly. Reverse Exchange. This type of exchange occurs infrequently. They typically utilize a “holding” company that is an entity established by a qualified intermediary. The real estate investor utilizes the holding company to “hold” the relinquished or the replacement property. Because of the complexity, you should ensure that you work closely with an experienced exchange professional. Delayed Exchange Considering the delayed exchange is the most common type, it deserves a closer look. It is imperative that the rules for the exchange are meticulously followed. The property investor has just 45 days from the close of escrow on the relinquished property to identify potential replacement properties. After the replacement properties have been identified, the real estate investor has 180 days to close escrow on the replacement property (or properties). Again, the qualified intermediary acquires the replacement property with the proceeds from the sale of the relinquished property and transfers the replacement property to the investor. An important point to note is that the real estate seller must put a clause in the real estate contracts that stipulate that all applicable parties to the contracts must cooperate in the 1031 exchange process. Once the investor has entered into an agreement with a buyer to purchase the property it will be placed into escrow. The investor will then typically enter into an exchange agreement with the qualified intermediary that will allow for the intermediary to become the “substitute seller.” The 45-Day Rule Let’s take a closer look at the first timing issue for a delayed exchange. The investor must close escrow on a replacement property or identify potential replacement properties within 45 days from the date of transfer of the exchanged property. The rule is satisfied if the replacement property is received before the 45 day expiration period. If the replacement …

real estate finance, FSBO, real estate markets, home buyers, home sellers

DANGERS OF NEW HOME CONSTRUCTION CONTRACTS

  Since most builder contracts favor the builder, you need to read them carefully and have your attorney review the contract as well. Before you sign anything, educate yourself and don’t rush into anything. The following issues are ones that are commonly unaddressed and can cause you problems. You should be aware of these and, where possible, try to negotiate a more favorable contract addressing these issues to protect your interests. Your ability to do so is often a function of whether you are operating in a buyer’s market or a seller’s market. As a minimum, you need to understand the risks you are undertaking. Common Issues for New-Home Buyers The House is Not Delivered on Time Builder contracts are notorious for allowing builders to deliver projects past the promised deadline without any penalties. Delays are a common occurrence, yet the home buyer does not generally does not have a right to recover damages if the builder is late in finishing the home. Many times the buyer has made plans to vacate their existing residence and when the builder does not finish the home as promised, it creates a myriad of financial problems for the home buyer. Solution Negotiate some type of penalty if the builder does not complete the home within a reasonable time from the date promised. Loss of Deposit Money Another issue that comes up frequently is deposits and advance payments made to the builder. Builders commonly ask for these advance fees prior to the house being completed. They can add up to substantial amounts of money. The money is supposed to go towards the payment of materials and sub-contractors. What happens many times is the builder has a cash flow problem and uses the funds from one project to finish another. Then when it gets down to your project, they have run out of funds and you are subject to mechanics liens for unpaid bills. Most builder contract either have no financing contingency or very vague and confusing ones. Nor, unless FHAS or VA financing are involved is there generally an appraisal contingency. This means that as to the absence of a financing contingency that you may lose your deposit even if you do not qualify for financing when the house is built (by which time rates and lending conditions may have changed) and with respect to the absence of an appraisal contingency means that you will have to make up the difference in cash if the property does not appraise high enough to support the originally anticipated loan. Solution Before you agree to hand over a large sum of money to your builder, you should request that the money be placed in an escrow account and that you be provided with copies of paid receipts to make sure the money is going where it is supposed to. Condominium builders are required by law to escrow deposit funds but single family home builders are not. Another way to protect yourself is to buy an owner’s title insurance policy protecting with protection against mechanic’s liens. Make sure that there is a real financing contingency and a valid appraisal contingency on the contract. Builder Retains Reservations of Rights Many construction contractors allow the builder to retain the right to create easements across your property. Solution In order to avoid this dangerous situation, you should negotiate upfront exactly what easements may be allowed on your property to avoid problems later after you move in. Bad Workmanship or Incomplete Work Typical builder contracts do not protect the purchaser from incomplete work or bad workmanship after the purchaser has paid the contractor the final payment. Solution Smart purchasers should negotiate with the builder that funds be set aside in escrow to cover incomplete work or bad workmanship even if the seller is able to obtain a certificate of occupancy. If the builder receives all the money before your punch list is complete, you have no leverage against getting the work corrected or completed. Legal Protection for Purchaser The majority of builder contracts provide a financial incentive for the purchaser to use the builder’s attorney as the settlement agent or closing agent. Solution You should hire your own attorney to protect your interests. At least have someone monitor the process. This way you do not forfeit any incentives built into the contract contingent on using the builder’s title company or attorney for processing the settlement. Contract Remedies for Breach Generally, the builder contracts only provide for the buyer to get their deposit back with no provision for monetary damages. Sometimes, they do not even provide for interest on your own deposit money. Conversely they often contain an option for the builder to either retain the deposit monies as liquidated damages or chose to pursue actual damages in the event the market value of the unit has declined. Solution In order to protect yourself, be sure to negotiate as many contract remedies as possible in case the builder breaches the contract. Just getting back your deposit money may not be good enough to cover losses incurred as a result of the builder’s breach. Consult with your real estate attorney first to find out what your legal remedies and liabilities are before signing the builder contract. Builder contracts are mostly one sided favoring the builder. It is your responsibility to educate yourself and to understand the contract terms and their impact upon you. If you are buying a new home from a new home builder, you should consult with a real estate attorney before signing the contract and/or insert a contingency in the contract that is contingent upon the review and approval of your attorney to protect your interests. Is it Too Late to Talk to a Lawyer? Sometimes buyers find themselves in the difficult position of having to seek counsel after a contract has been executed, either because they are unable to close due to change in financial condition or because delays in completion have caused the purchase to no longer be financially …

real estate finance, FSBO, real estate markets, home buyers, home sellers

3 DIFFERENT TYPES OF COMMERCIAL REAL ESTATE LEASES

3 Different Types of Commercial Real Estate Leases There are three basic types of commercial real estate leases. These leases are organized around two rent calculation methods: “net” and “gross.” The gross lease typically means a tenant pays one lump sum for rent, from which the landlord pays his expenses. The net lease has a smaller base rent, with other expenses paid for by the tenant. The modified gross lease is a happy marriage between the two. While terms vary widely building by building, this basic overview will help businesses shop for the best deal possible. Gross Lease or Full Service Lease In a gross lease, the rent is all-inclusive. The landlord pays all or most expenses associated with the property, including taxes, insurance, and maintenance out of the rents received from tenants. Utilities and janitorial services are included within one easy, tenant-friendly rent payment. When negotiating a gross lease, the tenant should ask which janitorial services are provided, and how often they are offered. Excess utility consumption beyond building standards is sometimes charged back to tenant; so if the tenant is a big consumer of electricity, this point should be clarified in the lease as well. The tenant pays his own property insurance and taxes. A benefit of this type of lease is that it is supremely easy for the tenant, which can forecast expenses without worrying about an unexpected lobby maintenance charge, for example. The landlord assumes all responsibility for the building, while tenants concentrate on growing their businesses. Net Lease In a net lease, the landlord charges a lower base rent for the commercial space, plus some or all of “usual costs,” which are expenses associated with operations, maintenance, and use that the landlord pays. These can include real estate taxes; property insurance; and common area maintenance items (CAMS), which include janitorial services, property management fees, sewer, water, trash collection, landscaping, parking lots, fire sprinklers, and any commonly shared area or service. There are several types of net leases: Single Net Lease (N Lease) In this lease, the tenant pays base rent plus a pro-rata share of the building’s property tax (meaning a portion of the total bill based on the proportion of total building space leased by the tenant); the landlord covers all other building expenses. The tenant also pays utilities and janitorial services. Double Net Lease (NN Lease) The tenant is responsible for base rent plus a pro-rata share of property taxes and property insurance. The landlord covers expenses for structural repairs and common area maintenance. The tenant once again is responsible for their own janitorial and utility expenses. Triple Net Lease (NNN Lease) This is the most popular type of net lease for commercial freestanding buildings and retail space. It is known as the net net net lease, or NNN lease, where the tenant pays all or part of the three “nets”–property taxes, insurance, and CAMS–on top of base monthly rent. Common area utilities and operating expenses are usually lumped in as well; for example, the cost for staffing a lobby attendant would be part of the NNN fees. Of course, tenants also pay the costs of their own occupancy, including janitorial services, utilities, and their own insurance and taxes. Landlords typically estimate expenses and charge tenants a portion of these expenses based on their proportionate, or pro-rata share. A tenant who leases 1,000 square feet of a 10,000 square foot building would be expected to pay 10% of the building’s taxes, insurance, and CAMS, for example. Triple net leases tend to be more landlord-friendly, and tenants should carefully review NNN fees and negotiate caps on the amounts they can be raised annually. An NNN lease can also fluctuate from month to month and year to year as operating expenses increase or decrease, making the company’s expense forecasting tricky and sometimes frustrating. There are tenant benefits in the NNN leases, however. Transparency is an excellent perk, since tenants can see business operating expenses in relation to what they are charged. Cost savings in operating expenses are passed on to the tenant rather than to the landlord. In addition, the monthly rent in a NNN lease is potentially lower than in a gross lease, as tenants have a higher level of responsibility for the building. Absolute Triple Net Lease This is a less common option that is more rigid and binding than the NNN lease, where tenants carry every imaginable real estate risk, for example, being responsible for construction expenses to rebuild after a catastrophe, or for continuing to pay rent even after the building has been condemned. Aptly called the “hell-or-high-water lease,” tenants have ultimate responsibility for the building no matter what. Modified Gross Lease As the gross lease is more tenant-friendly, and the net lease tends to be more landlord-friendly, there exists a compromise lease for the convenience of both parties. The modified gross lease (sometimes called the modified net lease) is similar to a gross lease in that the rent is requested in one lump sum, which can include any or all of the “nets”–property taxes, insurance, and CAMS. Utilities and janitorial services are typically excluded from the rent, and covered by the tenant. Tenants and landlords negotiate which “nets” are included in the base rental rate. The modified gross lease is more popular with tenants because its flexibility translates into an easier agreement between tenant and landlord. Unlike the NNN lease, if insurance, taxes, or CAM charges increase, the lease rate would not change. Of course, if those expenses decrease, the cost savings are passed on to the landlord. As janitorial service and electricity are not covered, tenants can better control how much they spend compared to a gross lease. Summary of NNN Lease, Modified Gross, or Full Service Commercial Leases When evaluating options for office space lease, it is important to compare the different lease options with an eye toward all expenses, and not just the base rental rates. NNN base rental rates tend to be much lower, with additional …

real estate finance, FSBO, real estate markets, home buyers, home sellers

WHAT IS A NOVATION AGREEMENT? NOVATION VS. ASSIGNMENT

Novating a contract Sometimes businesses enter into agreements, which they later need to give up, be it because of internal restructuring or following an asset purchase. In these types of cases, termination may not always be the most appropriate or possible solution. However, they may be able to transfer both their rights and obligations to a third party. Read this Quick Guide to find out how. Novation is the process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract. This means that the original party transfers both the benefits and burdens under the contract. The benefits could be in the form of money or the benefit of a service, while burdens are what the party is obliged to do in order to receive the benefits, for example, payment for a service or goods, or the performance of a service. Novation is a complex process, as all the parties involved (the original parties and the incoming party) have to sign the Novation agreement. This is because while the benefits under a contract can be assigned without the other party’s consent, contractual obligations cannot be assigned without their consent. This means that the original party can only achieve this if both the the new party and the third party agree to a Novation. This may be difficult in some cases, for example when there is a change of supplier of services. The other original party may find it difficult to agree, if they don’t see a benefit of Novating the contract or ask for further assurances that they won’t be worse off as a result of the Novation. In these kinds of situations, the party wishing to Novate the contract should be prepared to negotiate with the other party. Ask a lawyer if you need advice based on your specific circumstances. Parties wishing to Novate their contract should carefully check its terms as sometimes, there may be a provision in a contract which will ban all purported transfers of the rights and obligations under the contract or it may specify how consent is to be acquired. A Novation agreement is essentially notice to the remaining party, and therefore the requirements for serving notice should be followed. After the contract is Novated, the outgoing party and the remaining party usually release each other from any liability and claims in respect of the original agreement on or after the date the agreement was signed. They might also agree to indemnify (promise each other to compensate the loss incurred to the other party due to the acts of the first party or any other party). For example, the outgoing party can agree to indemnify the incoming party in respect of any liabilities and obligations the incoming party agrees to take over and the incoming party can agree to indemnify the outgoing party in respect of any liabilities that the outgoing party retains. A Novation agreement transfers both the benefits and the obligations of a contract to a third party. In contrast an assignment does not transfer the burden of a contract. This means the outgoing party remains liable for any past liabilities incurred before the assignment

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For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Title Issues

TYPICAL STEPS IN AN FSBO HOME SALE TRANSACTION

Typical Steps in an FSBO Home Sale Transaction To successfully complete the sale and legal transfer of one’s home, the following steps are generally taken: 1) The property must be valued by the seller in order to obtain a legitimate and reasonable sales price for the property. It must then be placed on market for sale and advertised. 2) A written Real Estate Purchase and Sale Agreement, a Lead Hazard Disclosure form and other Real Property Disclosure forms (and other legal documents as may be required by the laws of the state in which the home is located) must be prepared by seller and presented to purchaser. These documents are then signed by the parties. A down payment/deposit is then usually paid to seller by purchaser at this time. 3) The purchaser begins the process of obtaining financing to pay the purchase price. This step may require that the purchaser obtain a survey and/or have a title search completed (or other activity as required by lender). The purchaser and/or lender may require a title insurance policy to be purchased and issued on the property, too. 4) The seller prepares a Deed (Quitclaim, Warranty or some other form of Deed), signs it, has it witnessed and notarized so that the property can be transferred to the purchaser. 5) The closing takes place and the purchaser (and/or lender) tenders the remainder of purchase price (that amount that is to be paid after the down payment is applied to the purchase price of the property) to the seller. The seller pays off all liens and mortgages on the property, and the revised Deed is tendered to purchaser. The purchaser then files that Deed with the governmental recording office in the county or parish in which the property is located so that property is legally transferred to purchaser’s name.   What Else is Required to Complete the FSBO Process? While some additional steps are required if a bank loan is involved (e.g. the bank may require a survey, a home inspection, or may even require some testing for environmental issues), the steps listed above are those usually required in a For Sale by Owner real estate transaction. Additionally, a closing agent (usually a title company) can assist the buyer and seller in helping the parties transfer funds, file the deed and generally “close” the sale. The cost of a title company services are usually fairly modest. Please note that each home sale transaction may be unique and that issues may arise in the transaction requiring additional or different steps be taken (and, in some cases, additional forms and documents may be required). It is recommended that should any issues arise in the transaction that are not “typical”, a licensed attorney be contacted. This article is not intended to provide any legal advice with regard to the purchase or sale of any residential property.

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Boundaries / Deeds / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Land Use / Locations / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets / Title Issues

THE IMPORTANCE OF A PROPERTY SURVEY

  If you’ve noticed a person in an orange vest carrying around a brightly colored tripod with a metal device on top, you’ve likely come across a property surveyor. Property surveyors can come in handy when you’re buying a house, selling a house, or if you simply have a property dispute with a neighbor. Here’s more information on what property surveyors do, what they cost, and when you might need one. Property Surveyor Definition A property surveyor takes precise measurements to identify the boundaries of a parcel of land and prepares reports, maps, and plots that are used for construction, deeds, or other legal documents. A property surveyor determines the precise location of roads, buildings, and other features that are used to determine any changes to the property line, restrictions on what may be built on a property or where new structures must be located, how large structures may be, and the appropriate building depths for foundations. Some surveyors work for the county while others are employed by private companies such as engineering firms. What does a surveyor do? A property surveyor determines the precise location of roads, buildings, and other features of a specific property. This information is then used to determine any changes to the property line, restrictions on what may be built or where new structures must be located, how large structures may be, and the appropriate building depths for foundations. Some surveyors work for the county while others are employed by private companies such as engineering firms. When do you need a land survey? If you plan to construct a new home or structure on your existing property, you may need a land survey to identify the precise boundaries and any potential restrictions. For instance, some parcels of land have a right-of-way, which allows adjacent property owners to utilize a portion of your land to access their homes through a driveway or road. Other properties have easements, a service company’s (electric company, water or sewer company, etc.) right to access a portion of your property to make repairs. A property surveyor identifies these issues, allowing you to modify your plans by moving the location of your planned structure so that it meets requirements and doesn’t infringe on any rights of other property owners or local ordinances. You might need a property survey if you are having a dispute with a neighbor regarding boundary lines or fence locations. It’s not uncommon to discover that a neighbor’s fence is situated on your property or that a corner of your shed or garage is on a neighboring property. In any case, you should always hire a property surveyor before making any major improvements or additions such as installing a swimming pool, building a fence, constructing a garage or home addition. If you don’t have your property surveyed and it’s later discovered that you’ve built a structure on property that belongs to a neighbor or is restricted due to a right-of-way or easement, it could become an unpleasant and expensive legal conflict. What are easements? Easements are common land or utilities owned publicly and used by the local community. Easements are documented on a title report and may affect what a buyer can build or plant on a property. Common examples of easements include the placement of utility poles, water lines, sewer lines, and right-of-ways. A right-of-way is a type of easement that allows someone, such as a neighbor, to travel across your property. This can be along a pathway or roadway that is generally seen as public space, but does not affect your ownership of that land. Mortgage Survey vs. Boundary Survey When you’re buying a home, your lender may request a mortgage survey, which is different from other types of property surveys in that they are typically requested by lenders or insurance companies rather than homeowners. A mortgage survey is how your mortgage lender can verify that the property they’re lending you money to purchase is as described in legal documents and is suitable as collateral for your mortgage loan (if the property is worth at least as much as you’re borrowing). A boundary survey, on the other hand, is a type of house survey that determines the property lines of a home. It defines the property corners as described in the home’s deed and includes any easements on the property. Property surveyor costs Property surveyor costs vary widely, ranging anywhere from $200 to $1,000. The cost of depends on the size of the parcel you’re having surveyed, the complexity of the survey (such as how many structures or roads must be identified), and your location. For instance, a survey of a small plot of land in California could cost several times as much as a survey of a few acres in Iowa or Pennsylvania. Most property surveyors are found through word of mouth, or based on recommendations from your lender or title company. If you’re utilizing the services of a private company instead of your county’s property surveyor, it’s a good idea to research several companies that offer property surveying services to find the best price. It is important to note that there is a lot of scientific work as well as historical research done on the property to determine the boundaries, so the price is likely to reflect those factors. However, a good property surveyor should keep you updated on any additional costs before starting the property survey. Why a property survey is important It is important to have a property survey before starting any project or addition to your property. It can help avoid problems, in the long run, should you find out that your planned structure interferes with an easement or extends onto a neighboring property. While a property surveyor is not always needed when purchasing a home, it is best to be prepared that your mortgage lender may require a survey.

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SELLING A HOUSE WITH A SHARED DRIVEWAY

Save to Pinterest We all learned how to share as children, but that concept tends to work easier with crayons and cookies rather than property.Take a shared driveway, for instance. This type of setup, where two or more people jointly own a driveway but negotiate maintenance and use, can crop up in cities and suburbs alike. When the parties are agreeable, a shared driveway is just another quirk of your home. No one hogs the other’s half or blocks the neighbor’s access with bad parking. Everyone’s a happy camper. Unfortunately, that civility depends on how well you get along with your neighbors. Some residents have sued each other over how to navigate a shared driveway. Others might have a pleasant arrangement until one of them moves, leaving the remaining homeowner to assert that the shared driveway is theirs alone because they’ve used it longer, regardless of what a property survey says. “The next buyer quite possibly walks into a quagmire,” said Bryan Kasprisin, a top real estate agent in Joliet, Illinois, who has sold several properties with shared driveways. So how can a seller assure smooth sailing? Source: (K Quinn Ferris / Shutterstock) Talk about the positives A shared driveway can be a single space as wide as a single-car driveway (roughly 9 to 12 feet, although some can be smaller) or a double-car driveway (roughly 20 to 24 feet). They also can take the shape of a “Y,” a fish bone, or a flag on a pole. The plusses of such an arrangement might not immediately leap to mind, but there are advantages to a shared driveway: Shared maintenance: As long as a proper deed specifies equal ownership, all owners can shoulder the costs and labor of shoveling show, removing motor oil stains, or resealing the concrete or asphalt because of cracks. Coveted parking: In metropolitan areas like Brooklyn, New York, where parking is at a premium, a shared driveway is a “coveted” feature, regardless of having to split it with someone else. Clearer, safer streets: Streets with housing close together can appear clearer and become safer by reducing “vehicular access points,” such as driveways, said one steering committee about proposed road improvements in Washtenaw County, Michigan. “Sharing or joint use of a driveway by two or more property owners should be encouraged,” the committee’s report said. Address typical buyer concerns over shared driveways Some people refer to a shared driveway as a “common driveway,” but it has a legal definition. Almost all shared driveways are “appurtenant easements,” or rights to “exercise a limited form of ownership or possession of the property of another individual,” real estate lawyers say. These rights attach to the ownership of the land and typically pass along to the new owner. An easement can specify that each homeowner owns part of the driveway but has the legal right to use the full space to drive to and from the garage, according to Nolo.com, a leading legal website since 2011. Other times, one homeowner owns the entire driveway, and the easement grants the neighbor sharing the driveway the right to use part of it, such as parking to one side or for reaching the garage. Concerns that often arise with shared driveways include: One neighbor blocks how the other can reach the garage, the front door, or his or her car. Children leave bicycles or toys in the driveway. One neighbor fails to shovel snow or share in the cost of repairs. Neighbors mark out their driveway space with paint, posts, or other dividers. There’s uncertainty over legal liability regarding anyone injured in the driveway. Source: (S O C I A L . C U T / Unsplash) Disclose the property rights Kasprisin said he always discloses when a property has a shared driveway and often must explain to buyers what this means. “Sometimes it’s not an issue to the buyer until we make it an issue by letting them know this is what might happen,” he said. “It doesn’t really bother a buyer until they find out what the liability is or what the problems that could arise are.” Easements are recorded within the county where a property is located, so a title report or a property survey should outline a prospective buyer’s ownership rights. Einhorn, Barbarito, Frost & Botwinick, a Denville, New Jersey, law firm that handles real estate cases, says that homeowners also can check their title insurance policy about any easements regarding the use of or access to the driveway. However, there are neighbors who try to exercise more rights than they should upon learning they’ll have someone new next door. Kasprisin encountered this situation selling an 1895 Victorian home in Joliet, Illinois. The neighbor took the position that he owned the driveway because he’d lived on the street longer and told the buyer, “Just make sure that your people don’t park in the driveway,” the agent said. It turns out that the property line ran through the center of the driveway, giving the buyer the legal right to use half of it, just like the seller had. With the help of a real estate attorney, both parties drafted a maintenance agreement that outlined maintenance, liability, and access. (As of January 2020, 21 states require that a real estate attorney be present at closing, whereas other states require an attorney only to prepare certain documents.) “Some of it was just basic courtesy that I believe should go unsaid, [such as] promise not to park in the middle and not leave your car there on a Saturday night,” Kasprisin said. Negotiate the rights or divide it if needed Marshall, Roth & Gregory, a law firm in Asheville, North Carolina, that handles estate planning and real estate transactions, said that real estate agents should be alert for any such “shared access issues” before listing the property, as well as before closing. Regardless of how the shared driveway has been used previously, the owners and users should record their property boundaries, responsibilities, and costs in a document such as a Shared Driveway Agreement, these lawyers say. Some lenders will not grant loan approval to prospective buyers interested in a property with a …

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Boundaries / Deeds / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Real Estate Markets / Tax-Related Issues

WHAT IS A GIFT OF EQUITY AND HOW DOES IT WORK?

When homeowners sell the family home to a loved one, they may wish to do so at a discounted rate. When this happens, the difference between the home’s market value and its sale price acts as a gift of equity from the seller to the buyer. A gift of equity is beneficial to the buyer, but there are certain requirements and potential tax implications that both parties should be aware of. What Is A Gift Of Equity? A gift of equity occurs when someone sells a property to a family member or close associate for a lower price than the current market value. The difference between the two prices represents the gift of equity. The gift of equity generally serves as the homebuyer’s down payment. It makes it easier for them to get a mortgage by creating equity in the home. A gift of equity is often used when a home sale occurs between family members. For example, parents might use a gift of equity when selling the family home to their child. How Does A Gift Of Equity Work? When parties plan to use a financial gift of equity, the homeowner sells the residence to the buyer at a rate below its market value. No money changes hands between the two parties. Instead, the gift creates equity in the home for the buyer. Then, when it comes time to get a mortgage, that equity serves as the buyer’s down payment rather than having to put down cash. Suppose a retired couple was moving to a smaller home and decided to sell their family home to their son and his new wife. The home’s value is $200,000, but the parents wish to cover the 20% down payment for their son. Rather than writing their son a check for $40,000, they would simply sell the home to their son for $40,000 less than its market value. The $40,000 difference is the gift of equity and serves as the son’s 20% down payment. The son is likely to have an easier time getting a mortgage since he’ll have 20% equity in the home. He’ll also avoid paying private mortgage insurance, which is often required for down payments less than 20%. Gift Of Equity Requirements There are a couple of specific requirements that the parties must meet to complete a gift of equity. Sellers should keep these in mind if they’re considering using this strategy to sell a home to a loved one. Equity Letter A gift letter is a document that summarizes all of the information about the gift, including the appraisal price and the sale price. Both the buyer and seller must sign the letter. A second letter will accompany other official documents at the home’s closing. An Official Appraisal To complete a gift of equity, the home’s seller must have an official appraisal done. Using the appraisal, the parties can determine the sale price and the gift of equity. The lender requires this appraisal, and the appraisal value will be included in the gift letter. The Pros And Cons Of A Gift Of Equity Pros Of A Gift Of Equity Avoid paying real estate agent commissions: Because a gift of equity often happens between two family members, these home sales often don’t require a real estate agent or an agent’s commission. This benefits the seller, who typically pays commission for both agents. Lower or no down payment for recipient: Because the gift of equity serves as the down payment, the buyer often doesn’t have to put down any additional money. Faster home sale: A gift of equity can help to expedite a home sale. First, the buyer doesn’t need time to save a down payment and may have an easier time qualifying for a mortgage. And because the sale occurs between family members, the process can go more smoothly. Potentially avoid paying private mortgage insurance: Buyers typically must pay private mortgage insurance (PMI) when they purchase a home with less than 20% down. Because the gift of equity often serves as a down payment, it can negate the need for PMI. Keeping a home within the family: For many people, their family home is an important memento. A gift of equity can help to keep a home within the family even when the buyer may not be able to save enough for a down payment. Cons Of A Gift Of Equity Legal fees for both parties: A gift of equity requires a contract between the two parties. As a result, one or both parties may have fees to an attorney to draft the contract. Potential trigger of the gift tax: The IRS requires that people file a gift tax return when they transfer more than $15,000 in gifts to another individual. If the gifted equity equals more than $15,000, then a seller would have to file this return. Negative effect on home’s cost basis: When you sell a home for more than you bought it for, you may be subject to capital gains taxes on the profit. Because a gift of equity reduces the sale price of a home (aka the cost basis), it increases the chances that the buyer will end up paying those capital gains taxes. Negative effect on local real estate market: A gift of equity reduces the sale price of a home. Doing so could impact the neighborhood’s real estate market because there’s a record of a property being sold below market value. The Bottom Line A gift of equity is a strategy that people can use to sell a family home to a relative for less than its market value. The lower sale price serves as the buyer’s down payment, making it easier for them to buy the home. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC …

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LAND PATENT

A land patent is a form of letters patent assigning official ownership of a particular tract of land which has gone through various legally proscribed processes – such as surveying and documentation, followed by the letters signing, sealing, and publishing in public records – made by a sovereign entity. It is the highest evidence of right, title, and interest to a defined area. It is usually granted by a central, federal, or state government to an individual, partnership, trust or private company. The land patent is not to be confused with a land grant. Patented lands may be lands previously granted by a sovereign authority in return for services rendered or accompanying a title or otherwise bestowed gratis, or they may be lands privately purchased by a government, individual, or legal entity from their prior owners. “Patent” is both a process and a term. As a process, it is somewhat parallel to gaining a patent for intellectual property, including the steps of uniquely defining the property at issue, filing, processing, and granting. Unlike intellectual property patents, which have time limits, a land patent is permanent. In the United States, all claims of land ownership can be traced back to a land patent, first-title deed, or similar document regarding land originally owned by France, Spain, the United Kingdom, Mexico, the Kingdom of Hawaii, Russia, or Native Americans. Other terms for the certificate that grants such rights include first-title deed and final certificate. A land patent is known in law as a “letters patent”, and usually issues to the original grantee and to their heirs and assigns forever. The patent stands as the supreme title to the land because it attests that all evidence of title existent before its issue date was reviewed by the sovereign authority under which it was sealed and was so sealed as irrefutable; thus, at law, the land patent itself so becomes the title to the land defined within its four corners. In practice, the “irrefutability” of counter-claims is relative; however, once a patent is granted permanence of title is established. History of land patents in the United States of America Land in the United States of America was acquired by claim, seizure, annexation, purchase, treaty, or war from France, Great Britain, the Kingdom of Hawaii, Mexico, Russia, Spain and the Native American peoples. As England, later to become Great Britain, began to colonize America, the Crown made large grants of territory to individuals and companies. In turn, those companies and colonial governors later made smaller grants of land based on actual surveys of the land. Thus, in colonial America on the Atlantic seaboard, a connection was made between the surveying of a land tract and its “patenting” as private property. Many original colonies’ land patents came from the corresponding country of control (e.g., Great Britain). Most such patents were permanently granted. Those patents are still in force; the United States government honors those patents by treaty law, and, as with all such land patents, they cannot be changed. Many early patents of lands originally granted by Native peoples were contested, occasionally in court, as a result of different understandings of “private property” and “ownership” between those people, who typically held land and its bounties communally, reinforced by oral tradition, and colonizers from Western Europe who held established and finite views on assets, their transfer, and their adjudication in a system of written laws, Crown rights and officials, courts, and permanent records. After the American Revolution and the ratification of the Constitution of the United States, the United States Treasury Department was placed in charge of managing all public lands. In 1812, the General Land Office was created to assume that duty. In accord with specific Acts of Congress, and under the hand and seal of the President of the United States of America, the General Land Office issued more than 2 million land grants made patent (land patents), passing the title of specific parcels of public land from the nation to private parties (individuals or private companies). Some of the land so granted had a survey or other costs associated with it. Some patentees paid those fees for their land in cash, others homesteaded a claim, and still, others came into ownership via one of the many donation acts that Congress passed to transfer public lands to private ownership. Whatever the method, the General Land Office followed a two-step procedure in granting a patent. First, the private claimant went to the land office in the land district where the public land was located. The claimant filled out entry papers to select the public land, and the land office register (clerk) checked the local registrar records to make sure the claimed land was still available. The receiver (bursar) took the claimant’s payment because even homesteaders had to pay administrative fees. Next, the district land office register and receiver sent the paperwork to the General Land Office in Washington. That office double-checked the accuracy of the claim, its availability and the form of payment. Finally, the General Land Office issued a land patent for the claimed public land and sent it on to the President for his signature. The first United States land patent was issued on March 4, 1788, to John Martin. That patent reserves to the United States one-third of all gold, silver, lead and copper within the claimed land. A land patent for a 39.44-acre (15.96 ha) land parcel in present-day Monroe County, Ohio and within the Seven Ranges land tract. The parcel was sold by the Marietta Land Office in Marietta, Ohio in 1834. Usage restrictions (e.g., oil and mineral rights, roadways, ditches, and canals) placed on the land are spelled out in the patent. These are distinct from state and local statutory regulations relative to property appurtenant to the land, such as zoning and building codes, as well as property taxes applying to both land and property. Private property rights accompanying land patents can also be thereafter negotiated in accord with the terms …

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WHAT IS A GIFT OF EQUITY?

    When homeowners sell the family home to a loved one, they may wish to do so at a discounted rate. When this happens, the difference between the home’s market value and its sale price acts as a gift of equity from the seller to the buyer. A gift of equity is beneficial to the buyer, but there are certain requirements and potential tax implications that both parties should be aware of. What Is A Gift Of Equity? A gift of equity occurs when someone sells a property to a family member or close associate for a lower price than the current market value. The difference between the two prices represents the gift of equity. The gift of equity generally serves as the homebuyer’s down payment. It makes it easier for them to get a mortgage by creating equity in the home. A gift of equity is often used when a home sale occurs between family members. For example, parents might use a gift of equity when selling the family home to their child. When parties plan to use a financial gift of equity, the homeowner sells the residence to the buyer at a rate below its market value. No money changes hands between the two parties. Instead, the gift creates equity in the home for the buyer. Then, when it comes time to get a mortgage, that equity serves as the buyer’s down payment rather than having to put down cash. Suppose a retired couple was moving to a smaller home and decided to sell their family home to their son and his new wife. The home’s value is $200,000, but the parents wish to cover the 20% down payment for their son. Rather than writing their son a check for $40,000, they would simply sell the home to their son for $40,000 less than its market value. The $40,000 difference is the gift of equity and serves as the son’s 20% down payment. The son is likely to have an easier time getting a mortgage since he’ll have 20% equity in the home. He’ll also avoid paying private mortgage insurance, which is often required for down payments of less than 20%.Gift Of Equity RequirementsThere are a couple of specific requirements that the parties must meet to complete a gift of equity. Sellers should keep these in mind if they’re considering using this strategy to sell a home to a loved one. Equity Letter A gift letter is a document that summarizes all of the information about the gift, including the appraisal price and the sale price. Both the buyer and seller must sign the letter. A second letter will accompany other official documents at the home’s closing. An Official Appraisal To complete a gift of equity, the home’s seller must have an official appraisal done. Using the appraisal, the parties can determine the sale price and the gift of equity. The lender requires this appraisal, and the appraisal value will be included in the gift letter. The Pros And Cons Of A Gift Of Equity Pros Of A Gift Of Equity  Avoid paying real estate agent commissions: Because a gift of equity often happens between two family members, these home sales often don’t require a real estate agent or an agent’s commission. This benefits the seller, who typically pays commission for both agents. Lower or no down payment for recipient: Because the gift of equity serves as the down payment, the buyer often doesn’t have to put down any additional money. Faster home sale: A gift of equity can help to expedite a home sale. First, the buyer doesn’t need time to save a down payment and may have an easier time qualifying for a mortgage. And because the sale occurs between family members, the process can go more smoothly. Potentially avoid paying private mortgage insurance: Buyers typically must pay private mortgage insurance (PMI) when they purchase a home with less than 20% down. Because the gift of equity often serves as the down payment, it can negate the need for PMI. Keeping a home within the family: For many people, their family home is an important memento. A gift of equity can help to keep a home within the family even when the buyer may not be able to save enough for a down payment. Cons Of A Gift Of Equity Legal fees for both parties: A gift of equity requires a contract between the two parties. As a result, one or both parties may have fees to an attorney to draft the contract. Potential trigger of the gift tax: The IRS requires that people file a gift tax return when they transfer more than $15,000 in gifts to another individual. If the gifted equity equals more than $15,000, then a seller would have to file this return. Negative effect on home’s cost basis: When you sell a home for more than you bought it for, you may be subject to capital gains taxes on the profit. Because a gift of equity reduces the sale price of a home (aka the cost basis), it increases the chances that the buyer will end up paying those capital gains taxes. Negative effect on local real estate market: A gift of equity reduces the sale price of a home. Doing so could impact the neighborhood’s real estate market because there’s a record of a property being sold below market value. The Bottom Line A gift of equity is a strategy that people can use to sell a family home to a relative for less than its market value. The lower sale price serves as the buyer’s down payment, making it easier for them to buy the home. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement …

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COMMON HOA RULE VIOLATIONS

Here are some of the most common HOA rules violations you should know about: 1. LandscapingHOAs are responsible for the community’s curb appeal, so expect yours to have rules about overgrown lawns, weeds and unkempt exteriors. Be sure to check your bylaws about what types of trees, plants and shrubs are allowed to be planted. 2. VehiclesHOAs often limit how many and what type of motor vehicles (RVs, boats and commercial vehicles, for example) can be kept on the property, as well as enforce speed limits and rules about parking in designated areas. 3. RentalsSome HOAs have rules about subletting homes, both because of security and because most communities’ insurance is dependent on the percentage of owners versus renters. Most HOAs require written permission to rent a home, which may require a homeowner to join a waitlist. 4. TrashHomeowners in an HOA can get into trouble for throwing certain items, like boxes that haven’t been broken down or pieces of furniture, into community dumpsters. It might also be against the rules to put trash cans out too early or not bring them in by a certain time, since they can attract pests and detract from the community’s appearance. 5. Exterior storageHOAs sometimes limit what types of equipment can be stored outside. For instance, you might have to keep bicycles or kayaks out of view, behind a fence. Your HOA might also have rules limiting or preventing the addition of storage structures that aren’t attached to the home. 6. PetsTo keep their residents safe and comfortable, HOAs often have restrictions about where pets can and can’t walk, keeping dogs on leashes and picking up after your pet. You might also be limited to how many pets you can own, and specific breeds and sizes. 7. NoiseMost HOAs have rules that restrict loud noises between certain hours. (Most cities and counties also have noise ordinances that must be followed, even if the HOA doesn’t have restrictions.) 8. Holiday decorationsIf you’re the neighbor who keeps Christmas lights up until Valentine’s Day, living in an HOA community might not be ideal. Some HOA rules include rules for how long before and after a holiday you can decorate your home’s exterior. Others might even regulate the size and type of decor allowed. 9. Design changesHOAs often have strict rules about changing the appearance or structure of your home. Simple things like painting your house, adding a patio or deck or even changing your mailbox usually require written approval from the HOA’s design review committee. Can the police enforce HOA rules?The short answer is yes, police can enforce some HOA rules. That’s because HOA rules have to comply with state and local laws and ordinances. For instance, police could enforce speed limits, noise ordinances and pet leash laws because they are legal matters, but they wouldn’t enforce other HOA rules on landscaping or paint violations. What happens if you violate HOA rules?An HOA can’t force a homeowner to sell a home for not following the HOA rules; however, it can enforce the rules and initiate reasonable fines for violations. Just ask Atlanta homeowner Parker Singletary. Before Atlanta hosted the Super Bowl in 2019, one of Singletary’s neighbors mentioned that residents were allowed to rent their homes just for that weekend. Singletary cleaned his house, took photos and posted them on a popular property rental site. “Nobody ended up taking my house for the weekend, so I thought I was done with the situation,” Singletary says. Instead, he received a cease-and-desist letter from a local law firm for breaking the HOA rules, along with a $1,000 fine. As Singletary discovered, whether you knowingly break the HOA rules or overstep them by mistake, the consequences can be costly. If a bylaw is broken, it’s the association’s responsibility to notify the offending resident to allow them to comply, or assign a fine. In Singletary’s case, he didn’t receive a warning. Instead, he received a $1,000 fine, which he appealed. The fine was later reduced to $300 to cover legal fees. If a homeowner doesn’t pay a fine for a violation, late fees can pile up, and the HOA can put a lien against their home (even if it has a mortgage). The HOA can opt to foreclose on the lien, too, so it’s best to avoid that outcome if possible. How to respond to HOA rules violationsAddress it. Ignoring a violation won’t make it go away, and can actually make the situation much worse. Once you’ve received a violation notice, take steps to understand and correct the violation, and either pay or appeal the fine, if there is one.Don’t take it personally. Remember that the HOA’s rules were created to keep the community safe and comfortable for residents, including you. You also agreed to abide by the rules when you bought your home.Communicate. While friendly face-to-face communication can address minor infractions or warnings, written communication and documentation helps create clarity for everyone involved. When you’ve been accused of an HOA rule violation, it’s best to address it in writing. If there are extenuating circumstances — like a family emergency that causes you to fall behind on lawn care — communicate that to your HOA property manager. You don’t know if an exception can be made until you ask.Get involved. “There is usually a correlation between the level of homeowner involvement and the long-term success of a community,” Bauman says. So, if you want to improve your community, volunteer for a board position or attend meetings to see how you can contribute.Bottom lineLiving in an HOA community isn’t for everyone, but if you’re interested in joining one, be sure to do your homework and understand the rules before making an offer on a home. How an HOA enforces its rules and handles violations can vary between communities, so obtain a copy of the association’s CC&Rs to ensure you understand what you’re buying into and agreeing to. “Homeowners have the right to receive all documents that address rules and regulations governing …

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HOA RESTRICTIONS ON SHORT TERM RENTALS

At first blush, short-term rentals seem like a win-win situation. You can find a nice place to stay for a few nights, and it is frequently cheaper than booking a hotel. Just as importantly, vacation houses and condos rented out through Airbnb or VRBO are often more interesting places to stay, with the individual character and idiosyncrasies you do not get from a cookie-cutter hotel room. It can be a great deal for property owners, too. In the right location, a property rented for short-term stays can bring in significantly more revenue than with a traditional year-to-year lease. That extra cash can be put toward improving the property, making it into a more attractive destination that can command higher rates. Or, it can just provide supplemental income. Either way, the property owner is coming out ahead. So far, short-term rentals sound like a great deal for all involved parties. Yet, there has been a growing trend to prohibit them in HOA communities. Is it just a case of power-tripping HOA boards lording their authority over members by banning a potentially lucrative source of secondary income? Actually, no. As is so often the case, there is more to it than that. For all their virtues, Airbnb, VRBO, and similar services can have genuine downsides for a homeowners’ association. On a smaller scale, it is analogous to the so-called “Lemon Socialism,” where profits are privatized, and risks are socialized. In this case, the advantages of short-term rentals (i.e., increased income) are reaped by individual property owners, while the potential downsides (when they are present, which is not always the case) are borne by the community as a whole. Why Do HOAs Prohibit Short-Term Rentals? When an HOA imposes a restriction on homeowners’ use of their properties, it needs to have some justification (or at least a feasible pretense). With short-term rental restrictions, the purpose is generally to protect other members and preserve the character of the community. A quiet, sleepy neighborhood that all-the-sudden has vacationers coming and going on a regular basis stands a good chance of losing its quiet, sleepy nature. Vacation renters tend to be messier and noisier, especially at night, than permanent residents. The commotion can become a nuisance for people who reside in the community year-round—specifically, other homeowners and their families. Short-term renters also tend to ignore HOA rules or simply not know what the rules are. In a community with common areas and facilities, vacationers can overtax the commons, preventing full-time residents from enjoying the benefits for which their assessments pay. Vacationers do not pay HOA fees and are less vested in the long-term condition of the community. From a practical standpoint, short-term renters can increase a neighborhood’s traffic and parking problems. And, if travelers regularly use common facilities like a pool or recreation center, the HOA’s insurance rates are likely to increase, as additional use of the facilities by more people inevitably leads to more damage and risk of premises liability claims. With that said, a lot depends on the nature of an individual community. If the impact from short-term rentals will be minimal—or if the community is in a vacation hotspot where a large percentage of owners like the idea of renting through Airbnb or VRBO—a rental restriction might not make sense for that community. Authority to Restrict Short-Term Rentals. Even if a community has a valid reason to restrict short-term rentals, it still needs legal and/or contractual authority to support the restriction. Typically, the authority comes from an HOA’s declaration, from state law, or a combination of the two. A declaration is a contract among property owners in a community. The owners jointly agree to accept certain obligations and restrictions on how properties in the community can be used. If everyone complies, the community as a whole will benefit—or at least that is the idea. Throughout the country, courts generally assume HOA restrictions are enforceable as long as a restriction promotes a legitimate purpose and is not forbidden by statute. See, e.g., Saunders v. Thorn Woode Partnership, L.P. 265 Ga. 703, 462 S.E.2d 135 (Ga., 1995); Laguna Royale Owners Assn. v. Darger, 119 Cal.App.3d 670, 174 Cal. Rptr. 136 (Cal. Ct. App. 1981). Even broad restrictions against all rentals have been upheld in some jurisdictions if the restriction is in the HOA’s declaration, and the board can offer a legitimate justification for it. See, Four Brothers Homes at Heartland Condominium II, et al., v. Gerbino, 262 A.D.2d 279, 691 N.Y.S.2d 114 (N.Y. App. Div. 1999). So, the starting point when deciding if an individual HOA has the authority to ban short-term rentals is to look at the community’s declaration. If the declaration prohibits rentals (short-term or long), then the HOA can likely enforce the prohibition unless there is some other reason why the restriction is unenforceable. Armstrong v. Ledges Homeowners’ Assoc., Inc., 633 S.E.2d 78 (N.C. 2006). Limitations on Rental Restrictions. Though state HOA laws can vary considerably from state to state, multiple state legislatures have recognized that the right to rent out a property is valuable enough for homeowners to warrant some statutory protection. In general, state-law limitations on rental restrictions do not say that rental restrictions are per se unenforceable. Instead, the laws seek to protect property owners’ due process rights and avoid a scenario in which an owner is deprived of a valuable property right without adequate notice. In Arizona, for instance, an HOA cannot enforce a rental restriction against an owner unless the restriction was already in the community’s declaration when the owner acquired title to the property. A.R.S. §33-1260.01A. HOA declarations are public records recorded within county land records, so owners are assumed to have notice of restrictions and covenants in the declaration when accepting the deed to a property. The Arizona law protects owners from being deprived of a right they reasonably anticipated having when deciding to purchase the property. California law gives potential purchasers of homes in HOA communities the right to receive a written statement of …

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OWNING PROPERTY INUNEQUAL SHARES

A tenancy in common is a popular way for co-owners to take title to a home. This way of vesting offers an alternative to joint tenancy, in which a home is co-owned, but the owners split their interests evenly. Here, we talk about what a tenancy in common is, and why its allowance for co-owning in unequal shares can be a benefit. The Tenancy in Common: A Popular Choice for Co-Owners When people acquire a property together, they should be ready to specify what form of vesting will appear on the deed. In some states, the tenancy in common is the default vesting mode for married couples. In some states, it’s the default mode for unmarried co-owners, so these owners become tenants in common unless they affirmatively pick another form of vesting. Tenants in common can be a pair of owners or a group. They can be related to each other or unrelated. They can be spouses, siblings, partners, or friends. When they decide to hold title to a home in a tenancy in common, can these co-owners divide ownership unequally? Can each co-owner pitch in for maintenance in different amounts? On both counts, yes: The co-owners need to state their specific share percentages. This is sometimes overlooked by title companies — but the co-owners should have their own plan. Equal shares might not be optimal. Each owner can hold any percentage of the whole, and the deed will show each co-owner’s ownership percentage. Unless otherwise agreed, co-owners share expenses in proportion, too. When two or more people buy a house together, they’ll likely have different reasons and capacities for investing. We’ll take a look at some scenarios in the next section. Do the co-owners need to inhabit the home together? Only if that’s the plan. No one, legally speaking, is allowed to keep any part of the home off-limits to the other co-owner(s). In other words, the co-owners, even if they hold unequal portions of the property, enjoy a right to of access to all of it. But they can buy a home together without any intention to physically share it. Scenarios: Why Co-Buy Many people decide to share equity in their homes. Payments and expenses can be collaborative investments. Co-buying with a friend, business colleague, or sibling as tenants in common may help one or more of the co-buyers become homeowners. One owner might be on firmer financial ground than the other, and offer to be a co-buyer in order to help the other buy. The plan might involve refinancing later, in order to transfer the title into sole ownership, without the benefactor. A lender may want the additional co-signer on the loan to be a co-owner, so the financially stronger person has a stake in the asset. In this case, the primary buyer will live in the house, pay for the house, make all mortgage and tax payments, and take full responsibility for repairs, homeowner’s association dues, landscaping, and so forth. “Owner B” will pay nothing, and is only in the tenancy in common to help “Owner A” buy and have real estate. “Owner B” may take the lower percentage of ownership the lender allows. Later, when “Owner A” achieves sole ownership, only the smaller portion needs to be conveyed from B to A, so the new sole owner will have a lower transfer tax. These co-owners should think through every what-if scenario. What if “Owner B” passes away before the refinancing and transfer to sole ownership is complete? Did the co-owners create a legal agreement, explaining what should happen to the property if one co-owner dies during a temporary co-ownership? By default, the house will go into probate. Another reason for co-buying with a small ownership percentage could involve a condo purchase. Condo properties generally limit the renting of units and restrict owner-investors to some extent. A tenancy in common with unequal interests can be a workaround for the investor—if the mortgage lender approves of the ownership disparity on the deed. How the Mortgage Works for a Tenancy in Common If co-owners are taking title without having to finance the home, their unequal ownership percentages are up to them. They could have 99% and 1% interests; they tenancy in common allows for it. But if the house is financed, a lender is unlikely to let one borrower have minimal rights to the asset’s value. The point of requiring co-owners is to have everyone on the loan share responsibility for paying it back. Ultimately, the lender wants the option to claim the whole property in the event of default—thus, banks like co-signers to be co-owners. In reality, though, just one person might be paying the mortgage, and the other is on the deed in name only. “Owner B,” the Good Samaritan co-borrower, should be aware that no one is exempt from responsibility for paying off the mortgage and prepare for that unintended possibility. Selling: What Happens When a Co-Owner Wants Out When co-owners buy a home in a mutually beneficial agreement, they can later sell and divide the proceeds according to their share percentages. But tenants in common do not need to all be on board with selling at the same time. The co-owners in a tenancy in common: Can sell or take a loan out against their own share. Can sell their own interests in the property without the other owners’ consent. Cannot sell the entire property (forcing the others to sell) without the others’ consent. People can come into, as well as leave, the agreement. At any time, a new co-owner may come on board. At this time, the current group will need to convey their deed to the new, larger group—while leaving their original agreement intact. Unmarried tenants in common must pay tax when selling the property in whole or in part. Yet owners who make capital gains from the sale are eligible to exclude up to $250,000 of that profit from income tax, if they meet the IRS requirements. Last Wishes: What Happens …

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QUIT CLAIM DEED

Quitclaim Deed Quitclaim Deeds can be complicated legal documents. They are commonly used to add/remove someone to/from real estate title or deed (divorce, name changes, family and trust transfers). Last updated: April 9, 2021 The quitclaim deed is a legal document (deed) used to transfer interest in real estate from one person or entity (grantor) to another (grantee). Unlike other legal conveyance deeds, the quitclaim conveys only the interest the grantor has at the time of the deed’s execution and does not guarantee that the grantor actually (legally) owns the property. Without warranties, the quitclaim deed offers the grantee little or no legal recourse against the seller if a problem with the title arises in the future. This lack of protection makes a quitclaim unsuitable when purchasing real property from an unknown party in a traditional sale. It is, however, a useful instrument when conveying property from one family member or spouse to another, and it is commonly used in divorce proceedings or for estate planning purposes. Title companies may require a person to execute a quitclaim document in order to clear up what they consider to be a cloud on the title prior to issuing title insurance. Similarly, prior to funding a loan, lenders may ask someone who is not going to be on a loan, such as a spouse, to complete and record a deed quit claiming their interest.

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WARRANTY DEED

Warranty Deed, the Most Common Deed in Real Estate Of all the real estate deeds, General Warranty Deeds provide the most protection to the grantee (buyer). This type of deed guarantees that the grantor (seller) holds a clear title to a piece of real estate and has a right to sell it to the grantee. The guarantee is not limited to the time the grantor owned the property as with a special warranty deed; rather, it extends back to the property’s earliest title. As such, earlier grantors occasionally find themselves confronted by issues from future grantees. The grantors also guarantee that, during their period of ownership, they did not encumber the property in any way that prohibits its transfer. Incorporate express references to any easements, restrictions, or other agreements of record that relate to the specific parcel of land, into the text of the deed. Providing this information puts the grantee on notice of the warranty’s limitations and upholds the covenant against encumbrances. Traditionally, general warranty deeds include six common law covenants of title. Those six covenants can be separated into two categories: present covenants and future covenants. Present Covenants: Covenant of seisin: the grantor promises that he/she holds valid title to and possession of the property Covenant of right to convey: the grantor guarantees that he/she may legally convey both title to and possession of the property Covenant against encumbrances: the grantor legally declares the property to be free of any liens (encumbrances) unless stated in the deed Future Covenants: Covenant of warranty: the grantor will protect and defend the buyer against anyone who claims a superior title to the property Covenant of quiet enjoyment: the grantee will be able to access and use the property without restrictions Covenant of further assurances: the grantor will take reasonable actions necessary to resolve defects in the title

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GRANT DEED

Grant Deed A grant deed is a legal document that is used to transfer (convey) rights in real property from one entity or person (the grantor) to another (the grantee). A grant, or bargain and sale deed, contains no express warranties against encumbrances. It does, however, imply that the grantor holds title and has possession of the property. The language used in the granting clause is usually “ABC grants and releases,” or “XYZ grants, bargains, and sells,” and is often dictated by statute. Because the warranty is not specifically stated, the grantee has little recourse if title defects appear later. In some states, this deed is used in foreclosures and tax sales. Each party transferring an interest in the property, or the grantor, is required to sign it. Then, the document must be acknowledged before a notary public (notarized) or other official authorized by law to administer oaths. The notary public or other official then places a seal and marks the document accordingly. The grant deed must be notarized in order to provide evidence that the instrument is genuine, as transaction documents are sometimes forged. The grant deed must also include a legal description of the property, which includes boundaries and/or parcel numbers. In most cases Grant deeds do not need to be recorded to be valid; however, it is in the grantee’s best interest to record the deed at the country recorder’s office in the county where the property is located. The law recognizes a grant deed in writing. Hence, it must be an original and filed with the proper government authority. The deed must indicate the involved parties, which is both the grantor (seller) and the grantee (buyer). It must clearly state a legal description of the property being transferred. Guarantees and responsibilities must be stated in the deed as well. These guarantees indicate that the grantor owns the property free and clear, and the seller assumes the responsibility for settling any future claims. If there is a time limit on the guarantees, it must also be incorporated in the deed. The finished copy of the deed must be duly signed by the parties and notarized according to law. The grantor settling any future claims on the property is the main criterion of writing a grant deed. However, this depends on the stipulated period, i.e., for the duration of time when the grantor maintains the rights to the property before the deed comes into effect. This clause is akin to general warranty deeds in some states, while a limited warranty deed for others. The seller is obliged to prove the falsehood of any claim challenge, and if the grantor fails to prove the claim fraudulent then he/she must pay the amount to settle the claim. Further, if the claim remains unsettled and the grantee must forgo the ownership, the grantor must return the amount to the buyer. The amount also involves the cost of renovating or improving the property.

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CORRECTION DEED

Correction Deed – Correcting A Recorded Deed Once a deed has been recorded, it is part of the public record and cannot be changed. It is possible, however, to amend that record by adding a newly executed deed, usually called correction or corrective deed, deed of correction, or, in some states, deed of confirmation. As a confirmatory instrument, it perfects an existing title by removing any defects, but it does not pass title on its own. A correction deed confirms the covenants and warranties of the prior deed. It needs to refer to that instrument by indicating its execution and recording date, the place of recording, and the number under which the document is filed. It also must identify the error or errors by type before supplying a correction. The body of this new deed contains the same information as the original deed and thus confirms the conveyance of title. Generally, all parties who signed the prior deed must sign the correction deed in the presence of a notary, who will acknowledge its execution. A corrective deed is most often used for minor mistakes, such as misspelled or incomplete names, missing or wrong middle initials, and omission of marital status or vesting information. It can also be used for obvious errors in the property description. For example, errors transcribing courses and distances; errors incorporating a recorded plat or deed reference; errors in listing a lot number or designation; or omitted exhibits that supply the legal description of the property. A correction deed can also amend defects in the execution or acknowledgment of the original deed. Resolving material errors often causes confusion. A material correction constitutes an actual change in the substance of the deed, such as changing the legal description, adjusting the amount of consideration, and adding or removing names. Some states allow a corrective instrument to address these flaws, but others require an entirely new deed. Non-material changes are generally typographical in nature and may be adjusted with a less involved correction. For example, some states accept a re-submission of the original deed with corrections, along with a cover page that contains a correction statement, error identification, and clear reference to the previously recorded deed. Depending on the error type and gravity, re-acknowledgment may not be required under such circumstances. In some states, an affidavit of correction or a scrivener’s affidavit may be recorded and serve as notification of an error in a recorded deed. It is usually reserved for minor corrections and typographical mistakes, and it can often be given by persons other than the parties of the original instrument, as long as reasons for the correction and knowledge of the facts corrected are stated and evidence of notification of the original parties or their heirs are provided. However, it does not constitute an actual correction of the original deed in the way a corrective deed does. Changes affecting the legal description of the property are often sensitive in nature and best handled by a new corrective deed, signed by the original grantor. Some states generally recommend that both parties, that is, the grantor and grantee, sign a corrective instrument to assure valid title. For larger errors or to include/omit a name from the existing deed, a new standard conveyance, such as a warranty or quitclaim deed, may be more appropriate than a correction deed.

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TRANSFER ON DEATH DEED

Transfer on Death Deed Setting up real estate to be transferred upon your death. Real estate is often one of the most significant assets to consider in a comprehensive estate plan. There are a number of ways to distribute the property after the owner’s death. Some of the more common options are wills, trusts, joint ownership, or transfer on death (TOD) deeds. Note: unless identified otherwise, all definitions originated with Black’s Law Dictionary, Eighth Edition. Wills are probably the first thing people think of when considering how to handle their assets. More specifically known as a last will and testament, this is the most recent document by which a person directs his or her estate to be distributed upon death. Regardless of other available tools, almost everyone should have something in place for this purpose. A well-constructed will reinforces other estate planning strategies, such as a trust or a transfer on death instrument. On the surface, wills appear simple, and they can be, but their complexity tends to increase quickly. In addition, changes demand a review of the entire document and can incur legal and filing fees associated with every update. Real property distributed by a will must pass through probate, which adds time and expense to the process. Provisions exist to simplify things for smaller estates, but otherwise, both wills and probate can be tricky and are best approached by an attorney. A trust is a property interest held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). The structure and purpose can vary — there are dozens of different kinds of trusts, and variations within each type. They can exist independently from a will (nontestamentary), or be triggered by provisions found in a will (testamentary). It is important to seek legal guidance when arranging a trust because the wrong choice can have serious financial consequences. Because of these and other issues, it makes sense to consult an attorney to construct, administer, and modify a trust. Survivorship tenancy is a form of shared ownership that identifies the joint owner’s right to the whole title upon the death of the other joint owner. The remaining owner(s) gains the title as a function of law, meaning it happens almost automatically (in theory). Three primary forms of property ownership support the right of survivorship: most joint tenancy, tenancy by the entirety, and some community property. Note that tenancy by the entirety and community property are only available to couples who are either married or in a legal civil union. For clarity, the right of survivorship must be written into the portion of the deed that identifies how the owners will hold title to the property. The exact format and wording may vary by state, but something along the lines of “John Doe and Jane Doe, as joint tenants with right of survivorship, and not as tenants in common.” Survivorship tenancies can lead to potential complications. For example, the property could be at risk if one owner has credit problems or other financial issues. Real estate held this way cannot be included in a will except by the last surviving owner. Any sale or transfer of the property requires participation from all co-tenants or the joint tenancy is broken and changes to tenancy in common. Life is unpredictable, and sometimes the best way to handle an unexpected situation is to change or even revoke (cancel) a beneficiary designation. The established tools discussed above can be cumbersome and expensive to modify, and savvy clients needed more flexibility in their estate planning. Enhanced life estate, or “Ladybird” deeds, originated as the earliest direct answer to those demands. These deeds provided landowners with a responsive, non-probate option to direct the distribution of their real estate after death. They build on the premise of the life estate, which immediately transfers ownership of the property to the grantee/beneficiary, but allows someone else named in the document to live there for the remainder of his/her life. Traditional life tenants have little or no control over what happens to the property after they die. The “enhanced” part comes in with the reservation of powers to the grantor/owner on an otherwise standard warranty, grant, or quitclaim deed. When executed, grantors transfer the property to one or more grantees/beneficiaries but convey a life estate back to themselves, and reserve the power to sell the property outright, change or revoke the future transfer, or otherwise use the real estate as they wish, with no restrictions other than the requirement to formally record the changes during their natural lives. This reservation of powers enables landowners to retain full title rights, preserving their homestead status (if claimed) as well as any deductions, protections, and tax exemptions associated with the real estate during their lifetimes. The remainder, if any, goes to the named grantees/beneficiaries after the owner’s death, thereby avoiding the probate process. Ladybird deeds are most common in Michigan, Florida, California, and Rhode Island. Even though they have been used and accepted for years, enhanced life estate deeds are not generally statutory (Rhode Island is one exception. See R.I.G.L. 34-4-2.1). Some states decided to take the concept of an enhanced life estate a step further and include laws for real property transfers on death (TOD) in their statutes. For example, Arizona (A.R.S. section 33-405) and Colorado (C.R.S. 15.15.401, et seq.) offer statutory beneficiary deeds. Ohio codified its transfer on death designation affidavit at ORC 5302.22 et seq. While Ladybird and beneficiary deeds, as well as other state-specific instruments, are still in use, a newer, but related, approach is gaining popularity — a transfer on death deed under the Uniform Real Property Transfer on Death Act (URPTODA). Unlike wills, trusts, or survivorship tenancies, which tend to follow the same rules across the US, TOD instruments vary according to each state’s interpretation and application of the law. Completed in 2009, the URPTODA describes the Uniform Law Commission’s process to unify and standardize the use of these …

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AFFIDAVIT OF DEED

Affidavit of Deed Protect Yourself from Unrecorded Real Estate Transfers In general, a real estate deed must be delivered to and accepted by the grantee(s) to be properly executed or valid. Since most states do not require the grantee’s signature on a deed, the grantor may find it difficult to prove delivery and acceptance. With the Affidavit of Deed form, grantors in a transaction can verify the date of the completed conveyance and protect themselves from future claims or questions when applying for Medicaid or other asset-based benefit programs. An affidavit is a sworn statement, made in front of a notary or other officer authorized to administer oaths. An affidavit of deed confirms delivery and acceptance of a deed by the grantee, and thereby its validity. It is a useful document because most states only require the grantor’s signature on a deed, so it can be difficult to prove delivery and acceptance, both of which are required to have a properly executed deed in many states. With a correctly executed affidavit of deed, grantors in a transaction are able to prove the date of the completed conveyance and protect themselves from future claims regarding ownership of their former property. In addition, Medicaid and other asset-based benefit programs often uncover title problems when processing applications. If the grantor is protected by an affidavit of deed, these issues are generally easier to resolve. Unsuspecting homeowners have found their wages garnished, their credit destroyed, and their tax refunds seized, all because of unrecorded deeds for property they thought they sold. They’ve opened their mail to find bills for back taxes, graffiti-scrubbing services, demolition crews, and trash removal. They answered their front doors to encounter bailiffs brandishing summonses to appear in court. In some cities, people in this situation can be sentenced to probation with the threat of jail if they don’t bring their houses into compliance. There has been much talk about so-called Zombie Titles in the wake of the recent foreclosure crisis. While an affidavit of deed will not directly help in these situations unless the foreclosing lender accepts a deed in lieu of foreclosure and signs an affidavit, it will help in similar situations caused by unrecorded deeds. For example, Tom Homeseller inherited a vacant house and no longer wants it. He sells the house to a company that specializes in managing low-end rental properties. Mr. Homeseller prepares the deed, signs it, and delivers it to the company buying the property. Despite the fact that the company placed tenants in the house (and collected rent from them), they never bothered to record the deed. The company also failed to provide suitable property insurance, to pay the real estate taxes, or even to cover the water and sewer bills. A few years go by and the house catches fire. The company walks away from the property. The tax collectors come after Mr. Homeseller since the deed was never recorded and his name still appears on the title as the owner the property. For the same reason, he is also obligated to pay the removal and cleanup costs of the property as required by local codes. He could even be held responsible for any loss the tenants suffered if the fire was a result of poor maintenance. Without an affidavit of deed, signed by the grantee, Mr. Homeseller will have a difficult time proving that he ever sold the property. These are just a few reasons why the grantor should require the grantee to sign an affidavit attesting to the deed whenever ownership of or interest in real property is transferred from one party to another. Information deemed reliable but not guaranteed, you should always confirm this information with the proper agency prior to acting. The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date.

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IF YOU ARE A PURCHASER OF AN INVESTMENT PROPETY YOU NEED TO OBTAIN AN ETOPPEL CERTIFICATE TO AVOID LAWSUITS AND POTENTIAL CLOUDS ON TITLE

An Estoppel Certificate (or Estoppel Letter) is a document often used in due diligence in Real estate and mortgage activities. It is a document often completed, but at least signed, by a tenant used in their landlord’s proposed transaction with a third party. A mortgage lender intending to collateralize a tenant-occupied property or a purchaser intending to purchase such a property will often want to verify certain representations made by the landlord. An estoppel certificate provides confirmation by the tenant of the terms of the rental agreement, such as the amount of rent, the amount of security deposit, and the expiration of the agreement. Further, the estoppel certificate may give the opportunity to the tenant to explain if they may have any claims against the landlord, which may affect a buyer’s or lender’s decision to complete the proposed transaction. Some lease agreements require the tenant to complete such a certificate or to waive their responses by allowing the landlord to complete the estoppel certificate under certain circumstances.[ If the language in the lease so provides, a tenant can be in default under a lease after failing to comply with a request from the landlord for an estoppel certificate. The majority of commercial leases include a provision establishing the requirements for the provision of a tenant estoppel certificate following the landlord’s request.

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PENDING RENTAL MARKET CRISIS FOR RENTERS

At the coronavirus pandemic’s onset in March 2020, millions of people saw cuts to their work hours, and millions more were laid off. The result of this was an inability to pay rent, and in response to lost wages, the federal government offered rental assistance through the CARES Act, while a September executive order directed federal agencies to halt evictions for some renters.  One year later, the pandemic’s persistence threatens to expose the cracks in federal and state policy designed to absorb renter shock and prevent landlords from evicting tenants who cannot pay rent. Expiring eviction moratoriums raise the question that housing justice advocates have long wondered: How will we face a potential eviction cliff? Advocates are worried that tens of billions in rent debt coupled with an expiring eviction moratorium will lead to mass evictions. Rent debt (the unpaid rent between the months of March 2020 and April 2021) plagues as many as 14.2 million renter households across the country. There are about 43 million renting households in the U.S., accounting for nearly one-third of the country’s housing market. And much like the pandemic itself, rent debt — and a potential eviction — is a crisis that also disproportionately burdens the least resourced in the country, like poor people, people of color, disabled people, and immigrants.   An eviction crisis was brewing even before the pandemic struck, prompted by multiple forms of income inequality and socioeconomic class stratification. According to the non-partisan Economic Policy Institute, wages for low-earning people have not risen in recent decades while income for the very rich has skyrocketed. Taken together, this led to a widening income gap between low-wage workers (who tend to be renters) and those in the top 10 percent of earners (who are likely to be salaried white-collar workers).   Because of a system that increases profits for business owners while keeping wages low for workers, renters have only saved 2.4 percent of their income in the past two decades, or about $440 in today’s dollars, according to the Urban Institute. While wages have plateaued, the cost of rent has continued to increase across the country in the past decade — as much as 90 percent in large cities. In some cases, renters are paying over 70 percent of their income on housing costs, leaving little money for food and other expenses while making saving extraordinarily difficult, if not impossible.  Behind the economics of the situation are the political conditions: The federal government has never guaranteed affordable home purchases and there is no federal right to housing. American social and legal structures don’t have adequate backstops and protections for renters, and generational wealth is built and sustained through property ownership.  Renters who do face eviction see a ripple of negative effects. Landlords are less likely to rent to those who’ve faced eviction proceedings, which means that renters might be forced into choosing homes in neighborhoods with under-resourced schools, fewer hospitals, fewer grocery stores, and less public transportation, meaning that a home isn’t just a home: neighborhoods can be determinative of life outcome.  “There are so many renters who are basically facing homelessness,” says Shanti Singh, the communications and legislative director of Tenants Together, a California-based coalition of tenant’s rights organizations. Without state or federal legislative action and broad cultural change, Singh says that California’s 18 million renters could be headed for the eviction cliff. In California, renters face $2.4 billion in rent debt, which Singh explains will remain with families long after individuals are vaccinated. While we know that the economic fallout of the pandemic will persist, it’s unclear if state and federal protections will. Singh says that at the very least, California needs to pass a legislative extension of protection against evictions and institute policies that achieve a just recovery where renters are able to find work again without having to shoulder the burden of repaying thousands of dollars of rent debt. Other than legislative proposals to forgive debt increase wages, and allow renters to save money and build wealth, Singh says that broad cultural shifts are needed to value renters in the ways homeowners are. “Renters blame themselves for what’s happened to them [and] for their inability to pay rent, [but] they did not lose their jobs on purpose,” Singh says. “When you see the ways people take it out on themselves, it speaks to [the] culture that we have to change where we blame the most vulnerable people in our society.”

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PURCHASING A PROPERTY SUBJECT TO

What Buying Subject-To Means Buying subject-to means buying a home subject to the existing mortgage. It means the seller is not paying off the existing mortgage. Instead, the buyer is taking over the payments. The unpaid balance of the existing mortgage is then calculated as part of the buyer’s purchase price. Under a subject-to agreement, the buyer continues making payments to the seller’s mortgage company. However, there’s no official agreement in place with the lender. The buyer has no legal obligation to make the payments. Should the buyer fail to repay the loan, the home could be lost to foreclosure. However, it would be in the original mortgagee’s name (i.e., the seller). Reasons a Buyer May Purchase a Subject-To Property The biggest perk of buying subject-to real estate is that it reduces the costs to buy the home. There are no closing costs, origination fees, broker commissions, or other costs. For the real estate investor who plans to rent or re-sell the property down the line, that means more room for profits. For most homebuyers, the primary reason for buying subject-to properties is to take over the seller’s existing interest rate. If present interest rates are at 7% and a seller has a 5% fixed interest rate, that 2% variance can make a huge difference in the buyer’s monthly payment. For example: A $200,000 mortgage at a 5% interest rate is amortized at a payment of $1,073.64 per month A $200,000 mortgage at a 7% interest rate is amortized at a payment of $1,330.60 per month The monthly savings to a buyer under these circumstances is $256.96 or $3,083.52 per year Another reason certain buyers are interested in purchasing a home subject-to is they may not qualify for a traditional loan with favorable interest rates. Taking over the existing mortgage loan may offer better terms and fewer interest costs over time. Buying subject-to homes is a smart way for real estate investors to get deals. Often, investors will use county records to locate borrowers who are currently in foreclosure. Making them a low, subject-to offer can help them avoid foreclosure (and its impact on their credit) and result in a high-profit property for the investor. Three Types of Subject-To Options A subject-to sale does not necessarily involve owner financing, but it could. Whether the seller carries any type of financing depends on whether they wrap the mortgage or the amount of the down payment versus the purchase price. There are three types of subject-to options: A Straight Subject-To Cash-To-Loan The most common type of subject-to is when a buyer pays in cash the difference between the purchase price and the seller’s existing loan balance. For example, if the seller’s existing loan balance is $150,000 and the sales price is $200,000, the buyer must give the seller $50,000. A Straight Subject-To With Seller Carryback Seller carrybacks, also known as seller or owner financing, are most commonly found in the form of a second mortgage. A seller carryback could also be a land contract or a lease option sale instrument. For example, let’s say the home’s sales price is $200,000, with an existing loan balance of $150,000. The buyer is making a down payment of $20,000. The seller would carry the remaining balance of $30,000 at a separate interest rate and terms negotiated between the parties. The buyer would agree to make one payment to the seller’s lender and a separate payment at a different interest rate to the seller. Wrap-Around Subject-To A wrap-around subject-to gives the seller an override of interest because the seller makes money on the existing mortgage balance. For example, an existing mortgage carries an interest rate of 5%. If the sales price is $200,000 and the buyer puts down $20,000, the seller’s carryback would be $180,000. At a rate of 6%, the seller makes 1% on the existing mortgage of $150,000 and 6% on the balance of $30,000. The buyer would pay 6% on $180,000. The Difference Between a Subject-To and a Loan Assumption In a subject-to transaction, neither the seller nor the buyer tells the existing lender that the seller has sold the property. The buyer is now making the payments. The buyer did not obtain the bank’s permission to take over the loan. Lenders put special verbiage into their mortgages and trust deeds that give the lender the right to accelerate the loan and invoke a “due-on” clause in the event of a transfer. This clause simply means the loan balance is due in full. Not every bank will call a loan due and payable upon transfer. In certain situations, some banks are simply happy that somebody—anybody—is making the payments. But banks can exercise their right to call a loan due to the acceleration clause in the mortgage or trust deed, which is a risk for the buyer. If the buyer can’t pay off the loan upon the bank’s demand, it could initiate foreclosure. If a buyer makes a loan assumption, the buyer formally assumes the loan with the bank’s permission. This method means the seller’s name is removed from the loan, and the buyer qualifies for the loan, just like any other kind of financing. Generally, banks charge the buyer an assumption fee to process a loan assumption. The fee is much less than the fees to obtain a conventional loan.  FHA loans and VA loans allow for a loan assumption. However, most conventional loans do not. Pros and Cons of Buying Subject-To Real Estate Subject-to properties mean a faster, easier home purchase, no costly or hard-to-qualify-for mortgage loans, and potentially more profits if you’re looking to flip or resell the home. On the downside, subject-to homes do put buyers at risk. Since the property is still legally the seller’s liability, it could be seized should they enter bankruptcy. Additionally, the lender could require a full payoff if it notices the home has transferred hands. There can also be complications with home insurance policies.

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REPAYING THE FIRST TIME HOME BUYERS CREDIT

Have you claimed the first-time homebuyer tax credit? For some buyers, it’s time to start repaying Uncle Sam. Introduced in 2008, the first-time homebuyer tax credit originally was a type of interest-free loan. Anyone who purchased a house in 2008 and claimed the credit the following spring on their tax return would have to repay the sum starting two years later. That means the first payment is due in April. The government waived the payback rule for homes purchased in 2009 and after unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase. Still, the Internal Revenue Service maintains specific rules for getting the full benefit of the tax credit. Here’s what you need to know: The repayment plan If you claimed the first-time homebuyer tax credit in 2008, you have to start paying it back this tax-filing season. Repayment is made in equal installments over 15 years. So, if you claimed the maximum $7,500 credit, you’ll owe $500 per year. To make the payment, you have to file Form 5405, which is available in the free and basic versions of most tax-prep software, including those offered through the Internal Revenue Service’s Free File program. Don’t know how much you owe? Check your mail: The IRS sent letters outlining the amount of credit you received and what you owe this year. Exceptions to the rule There are few ways to avoid repaying the credit, unfortunately. “You can’t get around this,” said Mark Luscombe, principal federal tax analyst for CCH, a provider of tax-prep software. “Even though Congress eliminated the repayment requirement in 2009, they didn’t do it retroactively.” Some exceptions exist, however. For one, if you’ve since gotten divorced and transferred the house to your ex as part of the settlement, you are no longer responsible for payments. Your ex-spouse is. Or, if you’ve sold the home, you owe only up to the amount of gain you made on the sale. In other words, if you pocketed $5,000 from selling your home, you’re on the hook for only $5,000, not the full $7,500, if you claimed the maximum credit. If you incurred a loss, your debt to the IRS gets erased. To see a complete list of exceptions, visit tinyurl.com/co4sng. You could owe the lump sum If you sell your home or stop using the property as your main residence, the 15-year repayment plan goes out the window, and the full credit (or balance) is due in full that tax-filing season. A similar rule applies if you claimed the first-time homebuyer’s credit in 2009 or 2010: For those buyers only, you owe the full credit if the home no longer serves as your principal residence within 36 months of buying the property. Sell after that three-year period, and you don’t owe the credit. The maximum credit in 2009 and 2010 was $8,000 if you were buying a principal home for the first time, or $6,500 if you had been a homeowner. The government considers first-time homebuyers those “taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase,” according to IRS.gov.

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ASSIGNMENT AND ASSUMPTION AGREEMENTS

The Assignment and Assumption Agreement An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party’s rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee. In order for an assignment and assumption agreement to be valid, the following criteria need to be met: The initial contract must provide for the possibility of assignment by one of the initial contracting parties. The assignor must agree to assign their rights and duties under the contract to the assignee. The assignee must agree to accept, or “assume,” those contractual rights and duties. The other party to the initial contract must consent to the transfer of rights and obligations to the assignee. A standard assignment and assumption contract is often a good starting point if you need to enter into an assignment and assumption agreement. However, for more complex situations, such as an assignment and amendment agreement in which several of the initial contract terms will be modified, or where only some, but not all, rights and duties will be assigned, it’s a good idea to retain the services of an attorney who can help you draft an agreement that will meet all your needs. The Basics of Assignment and Assumption When you’re ready to enter into an assignment and assumption agreement, it’s a good idea to have a firm grasp of the basics of assignment: First, carefully read and understand the assignment and assumption provision in the initial contract. Contracts vary widely in their language on this topic, and each contract will have specific criteria that must be met in order for a valid assignment of rights to take place. All parties to the agreement should carefully review the document to make sure they each know what they’re agreeing to, and to help ensure that all important terms and conditions have been addressed in the agreement. Until the agreement is signed by all the parties involved, the assignor will still be obligated for all responsibilities stated in the initial contract. If you are the assignor, you need to ensure that you continue with business as usual until the assignment and assumption agreement has been properly executed. Filling in the Assignment and Assumption Agreement Unless you’re dealing with a complex assignment situation, working with a template often is a good way to begin drafting an assignment and assumption agreement that will meet your needs. Generally speaking, your agreement should include the following information: Identification of the existing agreement, including details such as the date it was signed and the parties involved, and the parties’ rights to assign under this initial agreement The effective date of the assignment and assumption agreement Identification of the party making the assignment (the assignor), and a statement of their desire to assign their rights under the initial contract Identification of the third party accepting the assignment (the assignee), and a statement of their acceptance of the assignment Identification of the other initial party to the contract, and a statement of their consent to the assignment and assumption agreement A section stating that the initial contract is continued; meaning, that, other than the change to the parties involved, all terms and conditions in the original contract stay the same In addition to these sections that are specific to an assignment and assumption agreement, your contract should also include standard contract language, such as clauses about indemnification, future amendments, and governing law. Sometimes circumstances change, and as a business owner you may find yourself needing to assign your rights and duties under a contract to another party. A properly drafted assignment and assumption agreement can help you make the transfer smoothly while, at the same time, preserving the cordiality of your initial business relationship under the original contract. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

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Deeds / For Sale by Owner / Title Issues

EXECUTORS DEED VS. ADMINISTRATORS DEED

What is the difference between an executors deed and an administrators deed? When dealing with the distribution of an estate after a person dies, you will likely either hear the term executor’s deed and administrator’s dee d. Both are documents designed to officially distribute property and transfer it to the decedents, but an executor’s deed is used when the deceased left a will behind. An administrator’s deed is the document of someone who died without official notification of how he or she wanted their property distributed. An executor is the person appointed by the deceased to see to it that property is distributed according to the will. The executor may be named in the will itself, or may have been officially given the role before the person in question passed away. The executor may also be an official, such as a lawyer – or it may be a family member, spouse, or friend. This depends entirely on the wishes of the deceased.Should a person die with property left behind and no will stating how to distribute it, the probate court will take responsibility for the property and appoint an administrator. This person is then given the official power to distribute the property. Legally, none of the family of the deceased has the right to this property until it has been officially handled by the probate court and released to them by the administrator.Both executors and administrators must prepare official deeds to transfer property titles into the names of those receiving them. The deeds generally must be officially worded and state the process by which the decision to transfer the property was made, whether it is in accordance with a will or by the judgment of the court-appointed administrator. The deed must be witnessed and notarized, and then becomes a legal and binding document. In any case, after a death, you should strongly consider speaking with a lawyer to handle the distribution of assets and other legal complexities that arise. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

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IS AN ORAL AGREEMENT FOR THE SALE OF REAL ESTATE ENORCEABLE IN MISSOURI?

IS AN ORAL AGREEMENT FOR THE SALE OF REAL ESTATE ENORCEABLE? Generally, a verbal contract is binding in Missouri. However, there are certain circumstances in Missouri when a verbal contract is not enforceable. Those circumstances are described in Missouri’s “statute of frauds”. According to the statute, the following verbal contracts are not binding. EXECUTOR OR ADMINISTRATOR Any administrator of an estate will not bind the estate to pay for a claim against the estate unless the agreement is in writing and signed by the administrator. PROMISE TO PAY THE DEBT OF ANOTHER In Missouri, a guaranty to pay the debt of another person must be in writing and signed by the guarantor. A guaranty is a contract whereby the guarantor agrees to pay the debt of another in the event of a default. In Capital Group, Inc. v. Collier, defendant was the President of a company. The company entered into a credit agreement with plaintiff. The agreement signed by the defendant said that the undersigned will be liable for the payment “of any and all goods and/or services furnished by [plaintiff]”. Plaintiff contended that defendant was personally liable for the debt of the company, because he signed the agreement without indicating his title. The court disagreed, holding that the agreement did not clearly show that defendant intended to guaranty payments owed under the agreement. AGREEMENT IN CONSIDERATION OF MARRIAGE In the Estate of Kilbourn, Wayne and Marjorie Kilbourn entered into an antenuptial agreement stating that they relinquished all rights to the property of the other. Marjorie then died, and Wayne asserted that her estate owed him for labor and other things he provided to her property when she was alive. The court denied his claim and said that any modification of the antenuptial agreement must have been in a writing signed by Marjorie, as the antenuptial agreement had been made in consideration of the marriage. CONTRACT FOR THE SALE OF LAND In Shaffer v. Hines, the administrator of an estate obtained an order from the probate court to sell certain land owned by the estate. Defendant was the high bidder at the auction. Defendant tendered a check to the attorney for the administrator, made payable to the estate. He later stopped payment on the check. The administrator then sued the defendant, claiming that he breached his verbal contract to purchase the land. Both parties agreed that the check was not a written agreement to purchase the land. The court of appeals held that the verbal contract was not enforceable pursuant to Missouri’s statute of frauds. LEASE LONGER THAN ONE YEAR A lease for more than one year must be in writing and signed by the party against whom a breach is asserted. A lease for more than one year that is not in writing and signed is not a lease. Rather, the tenants are tenants at will. In fact, pursuant to Section 432.050 RSMo., any lease not in writing and signed creates a tenancy at will. A tenant at will may be terminated with one month’s notice. Missouri courts have interpreted the one month period to encompass one rent period. For example, if rent is due March 1st, the notice must be served on the tenant before March 1st. The tenancy will then terminate on April 1st. AGREEMENT NOT TO BE PERFORMED WITHIN ONE YEAR An agreement that cannot be performed within one year must be in writing and signed. In Sales Service v. Daewoo, plaintiff agreed to provide consultation services to defendant over three years in exchange for $40,000 per year. Plaintiff was also to receive a percentage of defendant’s sales during the three years. Plaintiff sent a memo to defendant to this effect, but defendant never signed it. Defendant sent numerous signed memos to plaintiff related to the agreement, but none of them stated that the agreement was for three years. After 23 months, defendant informed plaintiff that defendant would no longer perform the services of the agreement. Plaintiff sued defendant for the amount plaintiff would have received under the rest of the contract. However, the agreement had to be in a signed writing, because it could not be performed within one year. TAKE-AWAY Most rules have exceptions. Such is true with Missouri’s statute of frauds. In Missouri, if a party committed a fraud in the formation of a verbal contract covered by the statute of frauds, then the courts nonetheless have the discretion to enforce such verbal contract. However, the verbal contract must still conform to all of Missouri’s other requirements for the formation of a contract. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch June 2023 M T W T F S S  1234 567891011 12131415161718 19202122232425 2627282930   « May    

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Deeds / For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Title Issues

CHECKLIST OF CLOSING DOCUMENTS

Checklist of Closing Documents for Home Buyers So, what kind of paperwork will you have to sign when you close? While the process can vary from one borrower to the next, there are some commonalities that apply to most situations. Here’s a checklist of common documents that are needed for the mortgage closing process. 1. The Mortgage Promissory Note This is one of the most important documents home buyers sign on closing day, and you’ll soon understand why. This doc is also referred to as the “mortgage note” for short, and sometimes just “the note.” By signing this document, you are agreeing to repay the mortgage loan as outlined within the document itself. The promissory note will contain important details relating to your loan, such as the total amount you owe, the interest rate assigned, the length of the repayment period (e.g., 30 years), and other key details. It also specifies where the payments are to be sent, and what happens in the even of default (where the borrower fails to repay the debt). As a home buyer and borrower, it’s crucial that you read this mortgage document at closing and ask questions about anything you don’t understand. The promissory note obligates you to repay the debt in the manner specified. So you want to make sure you understand it prior to signing. 2. The Mortgage / Deed of Trust / Security Instrument When you sign the previous closing document above (the promissory note), you’re agreeing to repay the loan in the manner outlined within that document. The actual mortgage or deed of trust, on the other hand, is what gives the lender a legal right to take the home back through foreclosure — should you fail to repay the debt. This closing document is also referred to as the “security instrument.” What you need to know is this: When you hear your lender talk about “the mortgage,” they’re most likely referring to this document in particular. The deed of trust is a fairly lengthy form, and most of it is boilerplate. As a borrower, you’ll want to pay particular attention to the fill-in-the-blank portions of the deed of trust / security instrument. Those are the sections that will contain information specific to your loan. 3. The deed (for property transfer). You’ll notice there are two closing documents on this list with “deed” in the title. They’re actually two separate things. Bear with me. The deed of trust mentioned earlier (a.k.a., “the mortgage”) gives the lender the right to foreclose on the home if you don’t make your payments. The “deed” covered here is the document that transfers ownership of the property from the seller to the buyer. The terminology here is confusing. So let’s clarify it again: Deed: Document used to give the new owner rights to the property. Deed of trust: Document that allows the lender to take the home in default scenarios. 4. The Closing Disclosure This is another important document home buyers sign at closing. Actually, you should receive this disclosure before the day you close. Federal law requires mortgage lenders to give borrowers a Closing Disclosure document three days prior to the scheduled close. This gives you time to review the disclosure and, if necessary, resolve any issues. As its title suggests, the Closing Disclosure shows how much money you’ll have to pay on the day you close. This includes whatever down payment is due, along with all of your other closing costs. Collectively, these items are referred to as your “cash to close” amount. In a typical home-buying scenario, the borrower will bring this amount to the closing in the form of a cashier’s check. A wire transfer is another option, but most people bring a check. Home buyers should review this mortgage closing document as soon as they receive it. If something looks different from what you expected, be sure to ask your loan officer and/or escrow agent about it. The idea is to get your questions answered and resolve any issues prior to the closing day, to avoid unwanted delays. 5. The initial escrow disclosure statement. This document, which home buyers usually sign at closing, shows the specific charges you will pay into your escrow account each month (in accordance with the terms of your mortgage agreement). An escrow account is a special kind of account used to pay property-related expenses. As a homeowner, you pay money into the account. And your mortgage lender or bank then uses those funds to pay your property taxes and home insurance premiums on your behalf. When you sign the initial escrow disclosure document at closing, you are basically agreeing to the terms of that arrangement. 6. The transfer tax declaration (in some states) This is a regional closing document that’s required in some states but not in others. So, depending on where you live, you might have to sign this document when you close on a home as well. It’s primarily used in states (and counties) that charge a property transfer tax. Both the home buyer and seller have to sign the transfer tax declaration, at or before closing. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT …

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WHAT IS A FINAL WALKTHROUGH?

What Is a Final Walkthrough? A final walkthrough is just like it sounds—it’s a walk through the house you’re about to buy. It’s an opportunity for you and your real estate agent to spend a few hours looking over the place—room by room, inside and out—to check that everything works as it should. Here’s what to know: The final walkthrough gives you time to confirm that the seller made agreed upon repairs, and to check that no new issues have cropped up since the home inspection (which happens earlier in the house-buying journey). It’s really rare (and often really awkward) for the seller and buyer to meet on final walkthrough day. But if the seller does hang around, they should have their realtor there, too. A final walkthrough is never a waste of time—even if you feel great about the house. Buying a home is probably the biggest purchase you’ll make in your lifetime, and you want to make the most of this chance to give it one more look before you commit! When Does a Final Walkthrough Happen? The walkthrough happens as close to closing day as possible—usually a few days before. It can sometimes happen on closing day itself. This part is important: Having the walkthrough near closing day means the house should be empty, giving you a good look at the whole place as a blank canvas. The seller should have moved out their stuff and hopefully not damaged floors and walls in the process. Be sure to clarify this with your real estate agent to make sure the timing of the walkthrough is after the seller moves out and not before. Otherwise, you’ll be left wondering if the movers are going to accidentally knock a dent in the wall between the time you last saw the house and the closing that makes it legally yours. You don’t want any nasty surprises on closing day! How Long Does a Final Walkthrough Take? It could take one hour. It could take four hours. It all depends on the size of the property you’re walking through! Let’s pretend you’re closing on a three bedroom, two bathroom detached home in five days. For your final walkthrough, you should set aside at least three hours from beginning to end. What Should You Take to the Final Walkthrough? Want to be prepared for anything? Bring these things: Home purchase agreement: This legally binding contract lays out the terms agreed upon by the seller and the buyer. It covers everything from the appliances included in the purchase to repairs that should be carried out before the final walkthrough. Home inspection report: This report contains the results of the home inspection. You can use it to review the issues the inspector flagged, then check that the seller made the necessary repairs. Pen, paper and sticky notes: These are handy to make notes and mark any areas in the house that need further attention—like drywall or mold. Camera: You’ll want to take photos of anything that concerns you in and around the house. Something to test outlets: A night-light or phone charger is useful when testing electrical outlets—especially if the seller agreed to fix specific ones around the house. What to Look For During a Final Walkthrough Your final walkthrough day has arrived! What do you need to look out for? And let’s not forget the seller. What should they do in the days up until the final walkthrough? For the Buyer Outside the Home The first thing you should do during your walkthrough is go through the agreed upon repairs. Did the seller need to replace a faulty smoke alarm? Was the HVAC overdue for a tune-up? The seller should make all the agreed upon repairs by final walkthrough (and have receipts for everything to give to you.) Next, is anything missing from the house that you expected to remain? For example, is the flower bed missing a row of shrubs that were there before? You could withhold money from the seller for the shrubs you assumed would stay put. Here are a few other items to check for: Do the roof and gutters look okay from ground level? Is there any debris around the home that the seller should’ve cleared? (You don’t want to be responsible for disposing of tins of paint or bags of cement.) Are there any signs of pests—like rodent droppings or rotting wood from termites? Check that the garage door openers are available and work correctly. Make sure the doorbell works and that the mailbox is in good shape. Keep in mind, this is not necessarily the time to bring up new issues you didn’t cover in the contract or after the home inspection. It’s more of a final check to make sure there aren’t any glaring issues or unexpected red flags—like a back door that may have been broken since you last viewed the home. Inside the Home You should first check that the utilities (water, electricity and gas) are all on. Run major appliances like the washing machine and dishwasher to ensure that they work and don’t cause any leaks. You should also do a brief test of the dryer. Here are other items to check: Run the heating and cooling using the HVAC system regardless of the temperature outside! Is the refrigerator switched on and working as it should be in all compartments? Run hot and cold water through all the faucets in the home, and check that sinks drain properly and don’t leak. Briefly test all the showers and bathtubs. Look for any mold that wasn’t there before. Check in the corners of rooms and in places where there used to be furniture. Flush all the toilets a few times to ensure they work and fill correctly. Check for leaks. Run the garbage disposal. Test all the stove burners. If there’s an extractor fan above the stove or any bathroom extractor fans, check them. Test any outlets the inspector flagged for repair and make sure …

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Deeds / Divorce / For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Title Issues

SPECIAL WARRANTY DEED

What Is a Special Warranty Deed? Although general warranty deeds are more common in residential real estate transactions, there is one area where the special warranty deed becomes the norm. This one arena is for foreclosed properties, real-estate-owned (REO), or short-sold properties. Most Federal National Mortgage Association (FNMA), Housing and Urban Development (HUD), and bank-owned residences sell using this sort of deed. Perhaps one primary reason for the use of special warranty deeds is because the selling authority has no wish to be liable for any situation concerning the property before the seizure. A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during their physical ownership. In other words, the grantor doesn’t guarantee against any defects in clear title that existed before they took possession of the property. Special warranty deeds are most commonly used with commercial property transactions. Single-family and other residential property transactions will usually use a general warranty deed. Many mortgage lenders insist upon the use of the general warranty deed. Special warranty deeds go by many names in different states including covenant deed, grant deed, and limited warranty deed. KEY TAKEAWAYS A special warranty deed is a deed in which the seller of a piece of property only warrants against problems or encumbrances in the property title that occurred during his ownership. A special warranty deed guarantees two things: The grantor owns, and can sell, the property; and the property incurred no encumbrances during his ownership. A special warranty deed is more limited than the more common general warranty deed, which covers the entire history of the property. Understanding Warranty Deeds A warranty deed provides the transfer of ownership or title to commercial or residential real estate property and comes with certain guarantees made by the seller. These guarantees include that the property title is being transferred free-and-clear of ownership claims, outstanding liens or mortgages, or other encumbrances by individuals or entities other than the seller. A special warranty deed—also known as a limited warranty deed—is a variation of the general warranty deed. The general warranty deed is the most common and preferred type of instrument used to transfer real estate titles in the United States. Both the general and special warranty deeds identify: The name of the seller—the grantor The name of the buyer—the grantee The physical location of the property The property is free of debt or encumbrances other than those noted in the deed The grantor warrants that they are the rightful owner of the property and have a legal right to transfer the title. The grantor warrants that the property is free-and-clear of all liens and that there are no outstanding claims on the property from any creditor using it as collateral. There is a guarantee that the title would withstand any third-party claims to ownership of the property. The grantor will do whatever is necessary to make good the grantee’s title to the property. Both deeds provide the same general protections for the buyer. However, the primary difference between a special warranty and a general warranty deed is how they deal with the timeframe of protection given to title ownership. Special Warranty Deed While the use of the word “special” may communicate to a buyer the idea that the deed is of higher quality, the special warranty deed is less comprehensive and offers less protection due to the limited timeframe it covers. In residential property, special warranty deeds are frequently used in foreclosures and the forced sale of the property to satisfy a debt. A general warranty deed covers the property’s entire history. It guarantees the property is free-and-clear from defects or encumbrances, no matter when they happened or under whose ownership. The general warranty deed assures the buyer they are obtaining full rights of ownership without valid potential legal issues with the title. With a special warranty deed, the guarantee covers only the period when the seller held title to the property. Special warranty deeds do not protect against any mistakes in a free-and-clear title that may exist before the seller’s ownership. Thus, the grantor of a special warranty deed is only liable for debts, problems, or other encumbrances to the title that they caused or that happened during their ownership of the property. The grantee assumes responsibility for any problems that arise from the previous owners. As an example, imagine a home has had two previous owners before you. The first owner was a hoarder, and soon the home and yard fell into disrepair. The city’s code enforcement department issued fines against the owner which attached to the property. The owner fell behind on their mortgage and the bank foreclosed, selling the home to the second owner. To the pleasure of the neighborhood, the new owner fixed the house and cleaned the yard. After 10 years they put the home on the market, and you buy it using a special warranty deed. A few years later you decide to sell the home. However, because the code enforcement liens remain against the property, they could encumber your sell. At the very least, you will need to satisfy the city’s lien to free the title. Title Searches and Title Insurance Most times a title search will uncover any liens or claims to the title of a property. A title search is a review of available public records to determine the ownership of property. Attorneys, title companies, and individuals can complete title searches to verify ownership of property. While these searches are extensive, there is always the possibility that something will be missed. For this reason, most buyers—regardless of the type of warranty deed they use—also purchase title insurance when buying a property. Title insurance is an indemnity insurance policy that protects a buyer from financial claims against the title of a property that they own. Pros Special warranties allow the transfer of property title between seller and buyer. The purchase of title insurance can mitigate the …

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Deeds / Divorce / Estate Planning

CERTIFICATE OF TRUST

The Definition of a Certificate of Trust When creating a revocable living trust, you are acting as a trustee. This means that you can move property within the trust at will, even dissolving it if you wish to do so. When doing business, banks, lenders, and other types of financial institutions may want to confirm that some assets are still within the trust and that you can still access them. A certification of trust is a document that is used to certify that a trust was established. It provides important information, like the name of the trust, the trustees, and the date it was formed. It is also referred to as an abstract or memorandum of trust. It provides substantiation that property is being held in the trust. This certificate will do the same job with an irrevocable trust. A certification of trust is a type of self-certification. This means it is made by the trustee as a declaration on penalty of perjury. What the Certificate of Trust Includes While the certificate requirements will be different in each state, it generally provides the following: The identification of the trustee who is in charge of moving, selling, or otherwise giving away property in a trust It will cite the creation of the trust and any changes that are made from the original trust. If its a revocable trust, it will explain who is allowed to revoke. Advantages of a Certificate of Trust One advantage of a certificate of trust is that it does not include information that you want to keep private. It will not list your beneficiaries, what they are going to inherit, or when they will receive it. This permits your trustee or you to conduct business while not disclosing information that you want to keep private. What is a Certification of Living Trust? Another name for the certification of living trust is the certification of inter vivos trust. A living trust is sometimes referred to as a family trust or inter vivos trust. They make sure that all assets acquired are in the name of the trust. Banks and brokerage firms require that when you are opening a new account you need to provide a copy of the trust. It is also requested from escrows when you purchase real estate. Some don’t want to provide a copy of the trust since it has private information inside, which includes the name of their children. The certificate of inter vivos trust will provide the necessary information to facilitate a transfer from the trust to your banking institution, transfer agent, or other third party. It will also confirm that the trustee has the authority to act for the trust. It will prevent anyone from getting into the trust that should not, including individuals and other institutions that have no business doing so. What is a Memorandum of Trust? A memorandum of trust is also a certification, abstract, or certificate of trust. It is a shorter version of the trust certificate. It provides institutions with information they need, but allows you to keep some components confidential. You are not required to provide the names of beneficiaries. It is almost always accepted in place of a regular trust. States with Their Own Certification Rules A lot of states will have their own laws regarding trusts. They state that if a certification of trust has certain information, the institution has to accept it in place of the whole trust document. Many states have certain statutes that lay out the contents of the certification of trust. As long as your certificates meet all state requirements, different institutions have to accept it. Otherwise, it will be liable for any losses that occur. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Deeds / For Sale by Owner / Home Buying / Home Selling / Land Use / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets

IS YOUR HOA UNDER FUNDED?

How Much Should an HOA Have in Reserve? Choosing to live in a condominium complex or gated townhouse community certainly has many perks as to the maintenance of the property. As part of such a community, homeowners enjoy care-free living while the homeowners association or HOA is tasked with ensuring that all of the common areas of the property are well-maintained and cared for. This includes having all the landscaping cared for on a weekly basis, the pool (if there is one) cleaned and maintained, and all other physical aspects of the property kept in good working condition. Basically, anything that isn’t connected with the individual unit in which you live is the responsibility of the HOA to repair and replace in a timely manner. That’s why you pay your HOA fees on a regular basis. A portion of these resources are allocated to the Operating budget, which covers the routine management, upkeep and maintenance of the shared areas of the property. From the pool, to the utilities, to the yard work, your association fees are being used to make sure these parts of the community are tended to on a regular basis and everything is in good working order. If the Board of Directors is acting responsibly, a portion of these fees are also allocated towards the Reserve budget. This covers repair and replacement costs that will come about over time. Let’s say the driveway needs to be sealed or the exterior of the buildings need to be repainted, your HOA fees will be used for those things, in addition to the various routine costs of managing the property. But if your HOA doesn’t have enough cash in reserve to cover the expenses of a major repair or replacement, you could be subject to a Special Assessment in which all of the homeowners of the units contained on the property will be expected to come up with their proportionate share of the project cost. Depending on the work that needs to be performed, you could be on the hook for thousands of dollars when you least expect. Does this mean your Board of Directors is being derelict in their duties? If the special assessment is for a predictable (Reserve) project that failed in plain sight right on schedule, it certainly appears that way! In some states, an HOA is not bound by law to conduct a Reserve Study. In others, the Board must disclose relevant reserve information to all pertinent parties involved in any real estate transactions within the HOA. Regardless, a Board is responsible to meet the financial needs of the association & comply with all applicable laws. Reserve Fund Adequacy Let’s consider those HOAs that do conduct regular Reserve Studies and work towards maintaining “adequate reserves”. A long time HOA trade organization called the Community Associations Institute (CAI) worked closely with a number of Reserve Study professionals to develop the following definition of reserve adequacy: “Adequate Replacement Reserves” is defined as a Replacement Reserve Fund and stable and equitable multi-yr Funding Plan that together provide for the timely execution of the association’s major repair and replacement expenses as defined by National Reserve Study Standards, without reliance on additional supplemental funding. You’ll notice that the definition contains two parts: having enough cash -and- not relying on outside funding sources like loans or Special Assessments. A current Reserve Study is the only way to determine reserves adequacy. That’s because a Reserve Study contains a funding plan designed as much as possible to avoid the need for outside funding sources. Absent a Reserve Study, it’s just a guess! The Reserve Study examines the basics of the HOA, things like age and condition of the building, as well as all of the features and common area amenities that the HOA is responsible to maintain. The study is a forecast of sorts, estimating when certain components of the property would be due for a repair or a replacement and the expenses associated with having this work performed at that time. While the Reserve Study is certainly a projection, it is based on projects that are both inevitable and predictable! The study provides Boards with numbers to work with in attempting to fund reserves at the same pace of the property’s deterioration and ahead of repair or replacement costs. It’s possible that your HOA is currently underfunded and the Board will be forced to rely on a Special Assessment at the time of an expensive repair or replacement of something around the property. Resources on Reserve But let’s assume for the sake of argument that your homeowners association is taking all of the necessary steps to ensure that the property’s reserves are well funded and prepared for both inevitable and predictable future repair and replacement expenses. How much should the HOA have on hand to address these costs? Although every property is unique, most reserve experts will suggest that the reserves be funded at 70% or higher of the property’s calculated deterioration. A reserve fund at that level will, in most cases, mean a low risk of Special Assessment, and satisfy the definition of reserve adequacy as long as responsibly sized contributions continue to be made. However, HOAs with weaker reserve funds (i.e., less than 30% funded) can also satisfy adequacy requirements. Despite being underfunded, they can achieve reserve adequacy by adopting an aggressive funding plan that avoids reliance on outside funding sources. Home Values Whether or not the homeowners association takes action to ensure the money is available to complete repairs and replacements in a timely manner is a decision the Board will need to make. It is important for the owners of the various units of the property to have confidence that the Board is fulfilling their responsibility in this regard. Studies have shown that homes in condominium associations with strongly funded reserves sell for 12% more than comparable homes in underfunded associations. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real …

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EFFECTS OF INFLATION ON REAL ESTATE

Ways Inflation Affects the Real Estate Market Inflation from January 2007 through December 2016 was extremely low, averaging only 1.77% per year in the U.S. and 2009 was actually negative (i.e. falling prices = deflation). Although 2017 has seen a bit more inflation it is still low by historical standards. In times of low inflation, inflation is a vague term that economists throw around when they’re trying to make one point or another. However, when inflation begins rising and hitting your pocket, the reality begins to set in. And it can have a quite noticeable effect on, not only the goods you buy at your favorite big box store, but even on real estate. Let’s take a quick look at some ways rising (or sinking) prices get their tentacles into that new house being built or the one for sale down the street. Material Costs Stop and think for a moment about the different materials go into building a house. This is an example where the final product is a sometimes less-than-obvious sum of its parts. A partial list would include wood, copper, concrete, glass, steel, etc. Do you notice a pattern? These are all basic commodities to one degree or another, and there are many more that go into a house before it is finished. When the prices of these basic materials go up, it costs your friendly neighborhood construction company more money to build a house. They can choose to either make less profit (not likely) or raise prices. Guess what they usually choose? So price inflation drives up basic materials costs making new houses more expensive. Money Gets Expensive Another effect of rising inflation is that interest rates rise due primarily due the the FED raising the Federal Funds Rate (i.e. the interest rate at which banks lend reserve balances to other banks overnight). The FED does this in an effort to quench the fires of inflation, Thus it becomes more expensive to borrow money. So fewer people are able to afford loans, which causes demand to drop and fewer houses to be built. In times when less money is borrowed, economic growth in general becomes suppressed. A Shift Into Rentals The higher cost of borrowing also tends to shift people into rentals rather than the home buyer market. Obviously, this is bad for single family residential sales but can be a boon for landlords, perhaps even motivating them to build more multi-unit structures. Plus unlike mortgages, rents can be raised to compensate the landlord for inflation thus affecting those who can least afford it the most. Houses Provide Protection Against Inflation As mentioned above, once you lock in your mortgage, as inflation cuts the value of each dollar, you are able to pay off your mortgage with ever less valuable dollars. In addition, since a house is a commodity, it tends to appreciate pretty much in sync with rising inflation. So although owning a home won’t make you rich it does provide some protection against rising prices. Unlike your personal home, investing in income producing Real Estate however, can make you rich by getting your tenants to pay off your mortgage. The one caveat where a mortgage can bite you during rising inflation is if you have an “Adjustable” mortgage where your mortgage payment can be increased due to rising interest rates. What Do Foreclosures Have to Do With It? Follow this chain of logic and you’ll understand why an increase in foreclosures is another result of inflation. We’ve already discussed how growing inflation makes everything you buy more expensive. Let’s say a family has a mortgage they can barely afford with prices the way they are. Throw higher prices for food, gas, and all of life’s other basics into the mix and suddenly they’re having to choose between eating supper or paying the house note. This is how waves of foreclosures start like we had back in 2007. It is also a time when lenders become more predatory in their willingness to approve loans. It is something that borrowers have to be very careful about. And another reason we caution you against Variable (or Adjustable) mortgages. Deflation The focus here has been rising prices, which we call Price inflation which is commonly the result of “Monetary Inflation” (i.e. an increase in the money supply). Though inflation is much more common than its opposite, known as deflation – or sinking prices – there have been a few short instances of the latter in recent memory. At first, it seems that dropping prices would be a good thing. The problem is that it is usually associated with sinking demand brought on by high unemployment or by a contracting money supply due to a market crash. In the long run, it’s not a good thing for the housing market since it can result in falling housing prices as well. And once people see that they owe the bank more than their house is worth many end up defaulting on their mortgage which in turn increases the supply of houses on the market thus driving house prices down even further. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home …

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Deeds / For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Title Issues

WHAT IS OWNER FINANCING?

Buying or selling a home can be a complicated process. Sometimes, homebuyers have trouble qualifying for a mortgage. Other times, sellers yearn to cut through the red tape and net potentially more profit. The solution for both may be owner financing. Although not very common today, owner financing is when the seller offers direct financing to the buyer instead of or in addition to a mortgage. What is owner financing? Owner financing occurs when the owner of a property for sale provides partial or complete financing to the buyer directly, after the buyer makes a down payment. The agreement here is very similar to a mortgage loan, except the owner of the home owns the debt instead of a bank or other lender. Owner financing is usually not reported on the buyer’s credit report. There is typically a substantial down payment required (usually 10 percent to 15 percent) that makes up for the fact that the financing is usually not dependent on the buyer’s income or credit history — although sellers are advised to perform a credit check regardless. Chris McDermott, real estate investor and broker of Jax Nurses Buy Houses in Jacksonville, Florida, has offered owner financing himself on investment properties he’s sold. McDermott says it can be a common practice in some areas, “specifically for rural land or homes that a seller owns free and clear.” Owner financing can be beneficial to buyers who aren’t eligible for a desired loan from a mortgage lender, or if the lender only qualifies the buyer for a portion of the purchase price. In the latter scenario, the buyer might be able to take out a first mortgage from the lender for that portion, and then obtain owner financing for the shortfall. How does owner financing work? In most owner financing arrangements, the owner (seller) records a mortgage against the property, which is sold via deed transfer to the buyer. Typically, the owner lets the buyer take over and move into the house without a mortgage, but after the buyer makes a down payment the buyer signs a promissory note and makes monthly payments to the seller, but the owner keeps the title to the home as leverage in the deal.” The buyer makes mortgage payments to the seller over an agreed-upon amortization schedule at a specified fixed interest rate. Typically, the seller will not hold that mortgage for longer than five or 10 years. After that time, the mortgage commonly comes due in the form of a balloon payment owed by the buyer. To make that balloon payment — generally a large lump sum — the buyer usually (by that time) qualifies for and obtains a mortgage refinance, likely for a lower interest rate. Alternatively, the buyer can get a first mortgage from a bank or other lender while the seller takes a second interest in lieu of some of the down payment. Say you want to buy a $200,000 house but the bank will only loan you $160,000. If the seller will take back a second mortgage for $40,000, the deal may be able to close. Just because a seller is providing the funds doesn’t mean the buyer won’t pay closing costs which costs can include deed recording and title fees. The good news is that the costs “are usually substantially less than you’d pay with bank financing. These are some of the different types of owner financing you might encounter: Second mortgage – If the homebuyer can’t qualify for a traditional mortgage for the full purchase price of the home, the seller can offer a second mortgage to the buyer to make up the difference. Typically, the second mortgage has a shorter term and higher interest rate than the first mortgage obtained from the lender. Land contract – In a land contract agreement, the homebuyer makes payments to the seller on an agreed-upon basis. When the buyer finishes the payment schedule, they get the deed to the property. A land contract typically doesn’t involve a bank or mortgage lender, so it can be a much faster way to secure financing for a home. Lease-purchase – With a lease-purchase agreement, the homebuyer agrees to rent the property from the owner for a period of time. At the end of that time, the buyer has the option to purchase the home, usually at a prearranged price. Typically, the buyer needs to make an upfront deposit before moving in and will lose the deposit if they choose not to buy the home. Wraparound mortgage – Home sellers can use wraparound financing when they still have an outstanding mortgage on their home. In this situation, the owner agrees to sell the home to the buyer, who makes a down payment plus monthly loan payments to the owner. The seller uses those payments to pay down their existing mortgage. Often, the buyer pays a higher interest rate than the interest rate on the seller’s existing mortgage. Example of owner financing Say a seller advertises a home for sale with owner financing offered. The buyer and seller agree to a purchase price of $175,000. The seller requires a down payment of 15 percent — $26,250. The seller agrees to finance the outstanding $148,750 at an 8 percent fixed interest rate over a 30-year amortization, with a balloon payment due after five years. In this example, the buyer agrees to make monthly payments of $1,091 to the seller for 59 months (excluding property taxes and homeowners insurance that the buyer will pay for separately. At month 60, a balloon payment of $141,451.27 will be due. The seller will end up collecting $233,161.27 after 60 months, broken down as: $26,250 for the down payment$58,161.27 in total interest paymentsTotal principal balance of $148,750 Pros and cons of owner financing For homebuyers ProsFaster closingNo closing costsFlexible down payment requirementLess strict credit requirements ConsHigher interest rateNot all sellers are willingMany deals involve large balloon paymentsMany lenders won’t allow unless seller pays remaining balance For home sellers Pros Potential for a …

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HOW TO REMOVE A LIS PENDENS NOTICE

SUMMARY A party to a lawsuit intended to affect real estate may record a notice on the land records containing the names of the parties, the name and object of the suit, the court where it will be heard, and a description of the property. This is called a notice of lis pendens, which signifies pending litigation. This notice binds any subsequent acquirer of an interest in the real estate to the result of the lawsuit just as if the acquirer were a party to the lawsuit. The law has procedures a property owner may follow to get the lis pendens notice removed from the land records. If the underlying lawsuit has been filed, the property owner may file a motion with the court to have it discharged. If the underlying lawsuit has not been filed, the property owner may file an application for discharge, together with a proposed order and summons. In addition, the law allows any interested party to file a motion to discharge a notice of lis pendens if it is not intended to affect property, if certain procedural requirements were not complied with, or the notice never became effective or has become ineffective. APPLICATION OR MOTION FOR PROBABLE CAUSE HEARING FOR DISCHARGE OF LIS PENDENS NOTICE The property owner may either make application for, or file a motion for, a hearing to determine whether the notice of lis pendens should be discharged. An application may be made if the litigation affecting the property is not yet before the court; a motion may be made if such litigation is already pending. A motion may be made at any time unless an application was previously ruled upon. The application must be made to the court where the underlying litigation is planned and must be accompanied by a proposed court order and a summons. The application, order, and summons must be substantially the same as those, which appear as suggested forms in the law. The court must give reasonable notice of the hearing to the person who filed the lis pendens notice. In no event may the notice be given less than seven days before the hearing. HEARING TO DISCHARGE LIS PENDENS NOTICE The burden of proof at the hearing is on the person who filed the lis pendens notice to establish that (1) there is probable cause to sustain the validity of his claim, and (2) if the notice involves an allegation of an illegal, invalid, or defective transfer of a real estate interest, the transfer occurred fewer than 60 years before the court claim. After the hearing, the court may either deny the application or motion or order that the lis pendens notice be discharged. APPLICATION TO STAY DECISION OF COURT PENDING APPEAL Either party may appeal the court’s decision within seven days of the date it is handed down. The party taking such an appeal may within the seven-day period, file an application with the court which rendered the decision requesting a stay of the decision’s effect pending the appeal. The application must state the reasons for the request and a copy must be sent to the adverse party. A hearing on the application must be held promptly. If the party taking the appeal gives a bond with surety in an amount the court deems sufficient to indemnity the adverse party for any damages, which might result from the stay, the court must stay the decision pending appeal. MOTION TO DISCHARGE LIS PENDENS NOTICE BY ANY INTERESTED PARTY An interested party (as opposed to just the property owner) may file a motion requesting the court to discharge a lis pendens notice in any case in which: 1. the lis pendens is not “intended to affect real property” as defined by law; 2. the recorded lis pendens notice does not contain the information required by law; 3. the property owner did not receive notice of the litigation the recording of the lis pendens notice as required by law; or 4. for any other reason the lis pendens notice never became effective or became in effective. RECORDING OF DISCHARGE OF LIS PENDENS OR STAY Any order of discharge or any order of a stay takes effect when a certified copy is recorded in the office of the town clerk in which the order of lis pendens was recorded. The court clerk is not permitted to provide any certified copies of the order until the time for taking an appeal elapses or, if applicable, until a decision is rendered relative to the granting of a stay. EFFECT OF RECORDING ORDER OF DISCHARGE When a certified copy of an order discharging a lis pendens notice has been recorded, the lis pendens no longer constitutes constructive notice of the litigation to any third party who acquires an interest in the property that is subject to the litigation. DURATION OF NOTICE OF LIS PENDENS No list pendens notice can be valid as constructive notice for more than 15 years unless it is re-recorded within 10 years after it was first recorded and the recording party serves a copy of the notice on the record owner within 30 days after it is re-recorded. If a lis pendens notice is re-recorded it is only valid for 10 years from the re-recording date. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real …

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MISSOURI MERCHANDISING PRACTICES ACT

https://kcrealestatelawyer.com Our office gets calls everyday from home purchasers who discover after taking possession that there is a Material Defect to the property purchased – defective sewer line, defective foundation, defective roof, defective mechanical systems, defective plumbing, and the remedy in these cases usually falls under the Missouri Merchandising Practices Act. The Missouri Merchandising Practices Act (MMPA) exists to protect consumers. Missouri’s Supreme Court has observed that the unfair practices declared unlawful by the MMPA are exceedingly broad and, for better or worse, cover every practice imaginable, and every unfairness to whatever degree. Because attorneys may recover attorneys’ fees if a defendant is held liable for an MMPA action, it may be easier to find a lawyer to take your case, even if the damages are not significant.The elements of an MMPA Claim There are four elements to an MMPA claim: (1) the plaintiff purchased, or attempted to purchase, merchandise (which includes services) from a defendant in the state of Missouri; (2) the plaintiff’s purchase of, or attempt to purchase, merchandise (or services) was for personal, family, or household purposes; (3) the plaintiff suffered an ascertainable loss of money or property; and (4) the plaintiff’s ascertainable loss was a result of an action by a defendant that has been declared unlawful by § 407.020 RSMo. The MMPA statute declares many things to be unlawful. For example, the MMPA specifically prohibits “any deception, fraud, … [or] misrepresentation.” It also prohibits “the concealment, suppression, or omission of any material fact.” However, reliance is expressly not an element of the MMPA. Thus, the fourth element requires the plaintiff to establish that his or her ascertainable loss was the result of either deception or fraud or a misrepresentation or the concealment or suppression or omission of any material fact by a defendant. Any one of these acts is sufficient to satisfy this element. Importantly, the MMPA specifically states that these acts can be before, during, or after the sale. The only requirement for this fourth element is that the ascertainable loss be the result of the unlawful act. There is no requirement that the ascertainable loss occur before the sale. Thus, damages which arise after the sale are also recoverable (as they would be in other cases). If these elements are satisfied, then the plaintiff may recover his or her actual damages. Importantly, actual damages are not limited to the ascertainable loss. For instance, emotional distress damages may be recoverable.Reliance is not an element The MMPA is a strict liability statute. As such, it does not require intent on the part of the actor, but it also does not require reliance. Indeed, even a consumer who admits that they did not believe the false statements may still recover damages arising from those false statements. Hess v. Chase Manhattan Bank, USA, N.A., 220 S.W.3d 758, 774 (Mo. banc 2007) (“a fraud claim requires both proof of reliance and intent to induce reliance; the MPA claim expressly does not.”) (citing 15 C.S.R. § 60-9.110(4)). Likewise, the MMPA does not contain an intent requirement for civil liability for actual damages. Thus, even if the defendant does not know whether a representation is not truthful or otherwise know that it is committing an unlawful act, that does not defeat a plaintiff’s claim under the MMPA. See State ex rel. Webster v. Areaco Inv. Co., 756 S.W.2d 633, 635 (Mo. App. 1988) (“It is the defendant’s conduct, not his intent, which determines whether a violation has occurred.”).Damages recoverable under the MMPA Upon a showing of the four elements of the MMPA claim, a plaintiff is permitted to recover all of his or her “actual damages.” The statute does not define what constitutes “actual damages.” There is little question that out-of-pocket losses and diminution of value damages are recoverable. But these are not the only types of actual damages which may be recovered under the MMPA. In addition, to the damages discussed below, a plaintiff may in certain circumstances recover punitive damages.Inconvenience damages The law is clear that inconvenience damages are recoverable under an MMPA claim. Crank v. Firestone Tire & Rubber Co., 692 S.W.2d 397, 408 (Mo. App. 1985) (“when the inconvenience is coupled with a compensable element of damage, the inconvenience occasioned by the breach may be compensated where it is supported by the evidence and shown with reasonable certainty.”).Garden variety emotional distress damages These types of emotional distress damages are recoverable in MMPA cases. In Lewellen v. Franklin, the Missouri Supreme Court En Banc affirmed a judgment in an MMPA case which awarded a consumer damages for “damage to her good credit”, “stress of being unable to make her loan payments” and “fear that she would go to jail.” 441 S.W.3d 136, 147 (Mo. banc 2014) (emphasis added). Likewise, in Dierkes v. Blue Cross & Blue Shield of Mo., the Missouri Supreme Court recognized that in fraud cases the benefit of the bargain rule can be inadequate, in which case “other measures of damages may be used.” 991 S.W.2d 662, 669 (Mo. banc 1999)Garden variety emotional distress damages do not require medical diagnosis Garden variety emotional distress damage are “ordinary or common place emotional distress, which [are] simple or usual.” Recently, the Missouri Court of Appeals, Western District has held that garden variety emotional distress damages such as “humiliation may be established by testimony or inferred from the circumstances. Intangible damages, such as pain, suffering, embarrassment, emotional distress, and humiliation do not lend themselves to precise calculation.” Soto v. Costco Wholesale Corp., 502 S.W.3d 38, 55 (Mo. App. 2016). Specifically, these damages do not require medical testimony, and may be supported solely based upon testimony of the plaintiff and lay witnesses. In conclusion, the MMPA is very broad and can be used against parties who use any unlawful act or deceptive practice in connection with the sale or services of a product for personal, family, or household purposes. You will see the MMPA asserted a lot of the time in Missouri class action cases where the damages …

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NOMINEE MANAGER

For many, the use of a nominee manager is a simple and effective way to maintain private business matters private and to make the business owner a less attractive target for potential lawsuits, solicitations or other nuisances. Nominee manager service is not about hiding things. It is about keeping private business matters private vis-a-vis on line records readily available to the general public. The Secretary of State (or equivalent agency) in each jurisdiction in the U.S. looks to that jurisdiction’s business statutes to determine what information it must collect and maintain in order for business entities to remain in compliance with the minimum disclosure requirements in that jurisdiction. For LLCs, the general requirement is to list the managers or the members of the LLC. Corporate Creations can provide a corporate nominee to appear as manager of the LLC in state on line public records. This is significant because the publicly available information relating to the LLC becomes that of the corporate nominee manager, not the business owner’s. The owner can now limit and better control who has their information. Further, the owner of the LLC retains all operational authority and remains in full and complete control of the LLC. The owner retains sole signature authority over any bank or other financial accounts, the owner retains the sole right to enter any lease arrangements or other contracts, etc. The corporate nominee does not touch or have any access or signature authority over any funds or company bank or financial accounts associated with the LLC. Also, the owner of the LLC can, at any time, remove the nominee manager from the LLC if they so choose. The nominee manager thus preserves the business owner’s privacy by satisfying the legal requirement for an LLC to have one or more listed managers. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch

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KANSAS CITY MISSOURI IS A GREAT CITY TO LIVE AND INVEST

The Kansas City Real Estate Market: Investor’s Guide For 2021Jeff RohdeWritten by Jeff Rohde Kansas City has been named as one of the top 10 housing markets for buyers to consider. Looking at the recent performance statistics for the real estate market in Kansas City, it’s easy to understand why. Active listings are down by nearly 50% year-over-year, while median sales prices have increased by almost 15% over the last 12 months. As homes become more expensive and harder to find, many households in Kansas City are choosing to rent rather than own. In fact, growth and demand are two words that best describe the real estate market in Kansas City, according to one local economist. Today, it seems like Kansas City is growing everywhere you look: downtown, in the first-ring suburbs, and in the outlying areas. Kansas City, Missouri (nicknamed ?KC? for short) is the largest city in the state and spans the Missouri and Kansas state lines. Located where the Missouri and Kansas Rivers meet, KC is known for its jazz music, pro sports teams, and delicious Kansas City-style barbecue. The economy is diverse, and the government is pro-business, two of the many things that help keep the real estate market in Kansas City growing strong and steady. Population Growth There are about 500,000 people in Kansas City itself and more than 2.1 million residents in the metropolitan area. The population of Kansas City has grown faster than St. Louis and other large Midwestern cities including Cincinnati and Cleveland. Key Population Stats: With more than 2.1 million residents, Greater Kansas City is the 38th most populated metropolitan area in the U.S.Population of Kansas City has grown by 0.73% year-over-year.The population of the nine-county Kansas City metro area is about the same as Austin, Las Vegas, and Pittsburgh, based on data from the Mid-America Research Council.People moving to Kansas City from other parts of the country account for about 50% of KC’s population growth, according to a recent report from station KCUR in Kansas City.Over the last 10 years the population of Kansas City grew by 7%, and is expected to add another 400,000 residents by 2040. Job MarketUnemployment in the Kansas City MSA is down to just 4.5%, according to the BLS (as of Oct. 2020). The U.S. Bureau of Labor Statistics reports that some of the employment sectors in Kansas City showing the fastest signs of recovery include construction, trade and transportation, education and health services, and government. Kansas City is a major transportation hub and is also home to high-growth tech sectors like IT and finance. Going forward, it’s likely that employment in the management and business, sales and office, and production and transportation sectors in Kansas City will continue to match or outpace U.S. averages. Key Employment Stats: GDP of Kansas City is nearly $138.5 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 38% over the last 10 years.Kansas City, Missouri accounts for 56% of the metro area workforce with employment growing by 0.85% over the last 12 months.Largest employment sectors in Kansas City are education and health services, professional and business services, retail, trade, and manufacturing and construction.Major companies with headquarters in Kansas City include American Century Investments, Commerce Bancshares, Dairy Farmers of America, Garmin, Hallmark Cards, Interstate Bakeries (maker of Twinkies and Wonder Bread), Sprint Nextel, and one of the largest freight shipping companies in the world, YRC Worldwide.Ford and General Motors both have large manufacturing and assembly facilities in the Kansas City metro area, and Sanofi-Aventis has one of the largest drug manufacturing plants in the U.S. in south Kansas City.Largest federal government employers in Kansas City include the Department of Defense, Internal Revenue Service, Social Services Administration, and the Department of Veterans Affairs. The Kansas City Federal Reserve Bank is also headquartered here.Companies in Kansas City that recently created new jobs include Amazon Flex, CarMax, Hostess, U.S. Department of Agriculture, and Zillow Home Loans.Major universities in the Kansas City metro area include University of Kansas, University of Missouri-Kansas City, University of Central Missouri, and Park University.92.8% of people in the metro area are high school graduates or higher, while 37.7% hold a bachelor’s degree or advanced degree.Four major Interstate highways (I-70, I-49, I-35, and I-29) pass through Kansas City.Major cities less than 800 miles from KC include Atlanta, Chicago, Dallas, Denver, Houston, and Minneapolis.Freight railroads serving Kansas City include Burlington Northern Santa Fe and Union Pacific.Shipping channels in Kansas City have 41 dock and terminal facilities in the metro area.Kansas City International Airport (KCI) is served by major airlines including Air Canada, American, Delta, Southwest, and United. Real Estate Market The Kansas City real estate market is booming with buyers ‘snatching up new homes especially in the mid-price range.? As FOX4 recently reported, the surge of home buying in the Kansas City metropolitan area was completely unpredictable, even while building permits are up 15% compared to this time last year. Rising construction and materials costs help to make resale homes an attractive option, which further increases the demand for single-family homes in Kansas City. Key Market Stats: Zillow Home Value Index (ZHVI) for Kansas City is $176,763 (as of November 2020).Home values in Kansas City have increased by 10.8% year-over-year and are forecast to growth by another 11.0% in the next 12 months.Over the past five years home values in Kansas City have grown by 51%.Median list price of a single-family home in Kansas City is $215,000 based on the most recent report from Realtor.com (Nov. 2020).Median listing price per square foot for a home in Kansas City is $120.Listing prices for homes in Kansas City have increased by 16.7% year-over-year.Median sales price for homes in the Kansas City area is $250,000.Of the 217 neighborhoods in Kansas City, KCI – 2nd Creek is the most expensive with a median listing price of $410,000.Most affordable neighborhood for home buyers in Kansas City is Ruskin Heights where the median price of a home is $91,300. …

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Missouri real estate sex offender law

Missouri prohibits sex offenders from living within 1,000 feet of a public or private school up to the 12th grade or childcare facility which existed at the time the offender established his/her residency. In addition, sex offenders are prohibited from working or loitering within 500 feet of a school, childcare facility, or public park with playground equipment or a public swimming pool. Residency restriction policies are universally applied to all registered sex offenders. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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MAKING CHANGES AFTER CONSTRUCTION STARTS

MAKING CHANGES AFTER CONSTRUCTION STARTS Have you always wondered how you go about making changes to your house plans once the project is already underway? Or, perhaps you are in the middle of a project right now, and you are wondering how to proceed. The good news is that you can make changes to an extent. Once parts of your new home are in place, you wont be able to do a major redesign or make structural changes. But you can make changes to many of the smaller details. We will give you an overview of the things you can and cant do once construction has started. The Trouble with Structural Changes The key thing to remember about a home is that designers go to great lengths to make sure that loads are properly balanced from the roof all the way down to the footing. This means that any major structural changes should be made during the design phase, not during the construction phase. Theoretically, you could add space or move rooms around once construction has started, but you will run into some major problems: You will need new drawings and new permits for the changes, which means you will spend time and money as your designer and your local engineer go over the changes and approve everything. Changing the layout of a home changes the structure of the home. You will face major delays as your builder deconstructs most or all of the things that are already in place to start over with new footers, new roof trusses and more. The cost of your new home will skyrocket. Not only will your builder need more labor and materials to make the changes, but you will also be responsible for paying for the time and materials that have already been used but cant be reused. major structural changes should be made during the design phase, not during the construction Which Changes Can You Make? This isn’t to say that you cant make changes at all. Changes that involve the homes structure may be a bad idea, but there are many other, smaller changes that you can make. You can decide to go with a different roofing or siding material. However, keep in mind that if you make a drastic change ? say, from lightweight shingles to an extremely heavy tiled roof, your home may need extra structural support, which would count as a structural change. Before the plumbers and electricians arrive, you can tweak the layout of your fixtures, but you will need to consult with your designer and your builder to see where they can be moved to. You can go with different kitchen and bathroom cabinetry and you can even change up the layout of those cabinets if desired. You can also make changes to paint and flooring choices, wallboards, window styles and more. However, all of these changes need to be made sooner rather than later. Don’t expect to change the shape and size of your windows if your builder has already installed the framework for them. You should also make every effort to specify a change before your builder orders the materials, otherwise you could end up paying for the materials you originally specified as well as your new choice. Overall – it’s truly most cost effective to make changes during the design phase of your home – before construction starts. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Experts Predict What The Housing Market Will Be Like In 2021

Experts Predict What The Housing Market Will Be Like In 2021Brenda RichardsonBrenda Richardson Senior Contributor The housing market is largely being driven by a shortage of available housing inventory. The housing market has been on fire this year with record-low mortgage rates and a sudden wave of relocations made possible by remote work. Meanwhile, home prices have pushed new boundaries as buyer demand continues to surge. As we near the end of 2020, here is a look at the expectations of real estate experts for 2021. Danielle Hale, realtor.com chief economist: We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels. While we expect mortgage rates to tick up gradually, sales and price growth will be propelled by still strong demand, a recovering economy, and still low mortgage rates. High buyer demand and still-lagging supply will keep prices growing, but at a slower pace than 2020 as buyers contend with mortgage rate and price increases that create affordability challenges. While younger Millennial and Gen-Z buyers are expected to play a growing role in the housing market, fast-rising prices will create a bigger barrier to entry for the many first-time buyers in these generations who don’t have existing home equity to tap for down payment savings. Although supply is expected to lag, we do expect the declines to slow and potentially stop by the end of the year as sellers grow more comfortable with the market environment and new construction picks up. Single-family housing starts are expected to grow another 9 percent in 2021. On the whole, the market will remain seller-friendly, but buyers will still have relatively low mortgage rates and an eventually improving selection of homes for sale. Robert Dietz, senior vice president and chief economist, National Association of Home Builders: With home builder confidence near record highs, we expect continued gains for single-family construction, albeit at a lower growth rate than in 2019. Some slowing of new home sales growth will occur due to the fact that a growing share of sales has come from homes that have not started construction. Nonetheless, buyer traffic will remain strong given favorable demographics, a shifting geography of housing demand to lower-density markets and historically low interest rates. But supply-side headwinds will persist. Residential construction continues to face limiting factors, including higher costs and longer delivery times for building materials, an ongoing labor skills shortage, and concerns over regulatory cost burdens. For apartment construction, we will see some weakness for multifamily rental development particularly in high-density markets, while remodeling demand should remain strong and expand further. Elana Knoller, Better.com chief product officer: Homeowners and the housing industry at-large will utilize technology even more next year to engage buyers and execute deals. 2020 changed the game in everything from touring properties to looking for and locking rates, and participating in secure eClosings. We expect homeowners looking to refinance will do so sooner rather than later to take advantage of the low interest rate environment. While the Fed has indicated it doesn’t plan to hike rates soon, uncertainty over what the new administration might do in addition to broad availability of a Covid-19 vaccine, on top of what we hope is an improving economy, could bring an end to the ultra-low rates that we have seen this year. We will continue to see the growth of Millennial home buying regardless of the rate backdrop. Todd Teta, chief product officer at ATTOM Data Solutions: Were exiting 2020 with a number of dynamics that will more than likely keep this crazy housing market going. There is incredibly low inventory, with less than 500,000 homes for sale, mortgage rates are at 50-year lows, and there’s no sign yet of distressed sellers from the recession coming out. These supply and demand factors will push prices even higher in the first half of the year. Inventory and pricing should ease a bit in the second half of the year, and larger economic headwinds could start showing up. Until then, buyers should be cautious and sellers jubilant. Selma Hepp, CoreLogic deputy chief economist: While 2020 did not surprise with its fair share of surprises, 2021 could still have more surprises in store for us. Still, expectations for the housing market remain generally positive. First, interest rates, which have motivated many buyers in 2020, are expected to remain low and will help ameliorate some of the affordability concerns resulting from rapid home price appreciation seen in 2020. In other words, low mortgage rates continue to provide greater purchasing power, especially for first-time home buyers. Second, first-time home buyers will remain a strong force in the market as the largest cohorts of Millennials are turning 30 ? critical household formation years. But also, the oldest Millennials are increasingly contributing to the trade-up market. As a result, 2021 home sales activity is expected to remain strong and outpace 2020 levels. Third, inventory levels are likely to see some improvement, partially from sellers who have been on the sidelines, partially from distressed homeowners, and partially from more new construction. But the housing market will continue to struggle with an imbalance between supply and demand, which will lead to sustained competition among buyers and further home price appreciation, albeit at a slower pace than seen in 2020. Amy Kong, president of the Asian American Real Estate Association of America: Asian American households saw the biggest income growth of any racial or ethnic group in the United States over the past decade and a half ? almost 8% compared to a 2.3% national average. Education certainly is a major contributor to this growth with more than 54% of Asian Americans having a bachelors degree compared to the national average of 32%. With this income growth and low interest rates, we project a continued increase in homeownership rates within our community across non-traditional markets, particularly in the Southwest and Southeast region of the country. States like North Carolina, Alabama and Texas are seeing an increase in …

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HOUSING INVENTORY IN 2021

Housing Inventory in 2021 Although the housing market is healing and by many measures doing better than before the pandemic, inventory remains housings long haul symptom. There were an insufficient number of homes for sale going into 2020 in large part due to an estimated shortfall of nearly 4 million newly constructed homes. Much to the surprise of many, the coronavirus and recession did not lead to a distressed seller driven inventory surge as we saw in the previous recession, but further reduced the number of homes available for sale. Starting in fall 2020 the housing market saw more than half a million fewer homes available for sale than the prior year. We expect to see an improvement in the pace of inventory declines starting just before the end of 2020 that will continue into Spring 2021, so that while the number of for-sale homes will be lower than one year ago, the size of those declines will drop. We expect a more normal seasonal pattern to emerge which will contrast with the unusual 2020 base and lead to odd year over year trends, but taken as a whole we expect inventories to improve and, by the end of 2021, we may see inventories finally register an increase for the first-time since 2019. While total inventories will remain relatively low thanks to strong buyer demand, the number of new homes available for sale and existing home sellers, what we call newly listed homes, will be more numerous which will help power the expected increases in home sales. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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SUBURBAN MIGRATION IN 2021

2021 TRENDS: Suburban Migration With remote work becoming much more common, home shopping in suburban areas had a stronger post-COVID lockdown bounce back than shopping in urban areas, starting in the spring and continuing through the summer. These trends, which have been visible in rental data as well, suggest that city-dwellers freed from the daily tether of a commute to the office and looking for affordable space to shelter, work, learn, and live were finding the answer in the suburbs. In fact, a summer survey of home shoppers showed that while a majority of respondents reported no change in their willingness to commute, among those who did report a change, three of every four reported an increased willingness to commute or live further from the office. Even before the pandemic, homebuyers looking for affordability were finding it in areas outside of urban cores. The pandemic has merely accelerated this previous trend by giving homebuyers additional reasons to move farther from downtown. Housing Market Perspectives Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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REAL ESTATE TRENDS WITH MILLENIALS & GEN Z

2021 TRENDS: Millennials & Gen Z The largest generation in history, millennials will continue to shape the housing market as they become an even larger player. The oldest millennials will turn 40 in 2021 while the younger end of the generation will turn 25. Older millennials will be trade-up buyers with many having owned their first homes long enough to see substantial equity gains, while the larger, younger segment of the generation age into key years for first-time homebuying. At the same time, Gen Z buyers, who are 24 and younger in 2021, will continue their early foray into the housing market. In early 2020, younger generations, including Millennials and Gen Z, were putting down smaller downpayments and taking on larger debts to take advantage of low mortgage rates despite rising home prices. In fact, only a quarter of respondents to a summer survey reported lowering their monthly mortgage budget or not changing their home search criteria in response to lower mortgage rates. The other three-quarters said low rates would enable them to make a change to their home search, and the most commonly cited change was buying a larger home in a nicer neighborhood. We expect these trends to persist as rising home prices require larger upfront down payments as well as a bigger ongoing monthly payment due to the end of mortgage rate declines. Early in the pandemic period, there was concern that temporary income losses could prove to be particularly disruptive to younger generations? plans for homeownership, as these were the groups expected to face income disruptions that might require dipping into savings which would otherwise be used for a down payment. Thus far, these disruptions have not had an effect on overall home sales, and some home shoppers report an ability to save more money for a downpayment as a result of sheltering at home, but we are still not completely through the pandemic-related economic disruption. AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch

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HOW REMOTE WORKING WILL EFFECT HOME SALES IN 2021

2021 TRENDS: Remote Work The ability to work from home is not new. In fact, as long ago as 2018, roughly one-quarter of workers worked at home, up from just 15 percent in 2001. More recently, a scan of real estate listings on realtor.com in early 2020 showed that in the ten metro markets where they are most common, as many as 1-in-5 to 1-in-3 home listings mentioned an ?office.? Remote working was already more common among home shoppers than the general working population, with more than one-third of home shoppers reporting that they worked remotely even before the coronavirus. Additionally, remote working has gained an unprecedented prominence in response to stay-at-home orders and continued measures to quell the spread of the coronavirus. Another 37 percent of home shoppers reported working remotely as a result of the coronavirus. While a majority of home shoppers reported a preference for working remotely, three-quarters of workers expect to return to the office at least part-time at some point in the future. However, the ability to work remotely was a factor prompting a majority of respondents to buy a home in 2020. This was the case even when most expected to return to offices sometime in 2020. As remote work extends into 2021 and in some cases employers grant employees the flexibility to continue remote work indefinitely, expect home listings to showcase features that support remote work such as home offices, zoom rooms, high-speed internet connections, quiet yards that facilitate outdoor office work, and proximity to coffee shops and other businesses that offer back-up internet and a break from being at home, which can feel monotonous to some, to become more prevalent AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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GROCERY STORES AND REAL ESTATE VALUES

While it is no surprise that homeowners want to maximize the value of their property, it might come as an eye-opener that proximity to certain grocery stores can substantially improve the value of real estate. Surprising Statistics According to a recent study from ATTOM Data Solutions, major grocery store chains like Trader Joe’s, Whole Foods, and ALDI, were found to increase home prices. In fact, across the country, the average home value near Trader Joe’s is $608,305, compared to $521,142 near Whole Foods and $222,809 near ALDI. The average home seller return on investment over a five-year span with these grocery stores was 37%, with homes near a Trader Joe’s having an average home seller ROI of 51%, compared to homes near a Whole Foods with an average home seller ROI of 41% and ALDI at 34%. Why It Matters The findings are compelling because homebuyers, whether they are solely looking to invest in real estate or simply seeking to raise a family, may count on their purchase paying off by just living near certain grocery store chains as those chains seem to provide a quality return on investment and secure higher home equity. For an investor, real estate near certain grocery store chains contributes to strong home flipping returns and attractive home price appreciation. In short, proximity to certain grocery stores can substantially improve the values of residential property nearby, particularly if the stores offer high quality service and products. Historically, residential home buyers sought properties nearby schools that they wished for their children to attend. In terms of increasing home values, it almost seems as though purchasing real estate near certain grocery chains may have the same importance or may have usurped purchasing near desirable schools. Moving Forward Among the core tenants of real estate is location ? location ? location! After all, residential real estate purchasers who choose the ?best? locations will have an asset that appreciates more than the norm. With that in mind, whether you are an investor looking for more bang for your buck or a homebuyer looking to purchase residential real estate near conveniences such as grocery chains, look for a well-branded chain like Trader Joe’s, Whole Foods, or ALDI as those grocery chains seem to have a significant statistical positive effect on property values. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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For Sale by Owner / Home Buying / Home Selling / Locations / Real Estate Brokers / Real Estate Markets

TOP 10 REAL ESTATE MARKETS POST COVID 2021

The National Association of REALTORS identified the top 10 markets that have shown resilience during this pandemic period and that are expected to perform well in a post-COVID-19 environment. In identifying these markets, NAR considered a variety of indicators that it views to be influential to a metro areas recovery and growth prospects in a post-pandemic environment in 2021-2022. In alphabetical order, the Top 10 markets are: Atlanta-Sandy Springs-Alpharetta, GeorgiaBoise City, IdahoCharleston-North Charleston, South CarolinaDallas-Fort Worth-Arlington, TexasDes Moines-West Des Moines, IowaIndianapolis-Carmel-Anderson, IndianaMadison, WisconsinPhoenix-Mesa-Chandler, ArizonaProvo-Orem, UtahSpokane-Spokane Valley, Washington Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Home Buying / Home Selling / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets / Tax-Related Issues

WHAT IS A LIMITED PARTNERSHIP?

What Is a Limited Partnership (LP) A limited partnership (LP) not to be confused with a limited liability partnership (LLP) is a partnership made up of two or more partners. The general partner oversees and runs the business while limited partners do not partake in managing the business. However, the general partner has unlimited liability for the debt, and any limited partners have limited liability up to the amount of their investment. Limited Partnership A limited partnership exists when two or more partners go into business together, but one or more of the partners are only liable up to the amount of their investment.The general partner of the LP has unlimited liability. There are three types of partnerships: limited partnership, general partnership, and joint venture.Most U.S. states govern the formation of limited partnerships, requiring registration with the Secretary of State. Understanding Limited Partnerships Generally, a partnership is a business owned by two or more individuals. There are three forms of partnerships: general partnership, joint venture, and limited partnership. The three forms differ in various aspects, but also share similar features. In all forms of partnerships, each partner must contribute resources such as property, money, skills, or labor to share in the business’ profits and losses. At least one partner takes part in making decisions regarding the business’ day-to-day affairs. All partnerships should have an agreement that specifies how to make business decisions. These decisions include how to split profits or losses, resolve conflicts, and alter ownership structure, and how to close the business, if necessary. LPs are often formed to manage passively ran businesses and for raising money for investment purposes. Types of Partnerships An investment partnership is a type of business formation. Its a partnership that’s generally structured as a holding company that’s created by individual partners or companies for investing purposes. These investments can be other businesses, securities, and real estate, among other things. A limited partnership is usually a type of investment partnership, often used as investment vehicles for investing in such assets as real estate. LPs differ from other partnerships in that partners can have limited liability, meaning they are not liable for business debts that exceed their initial investment. In a limited liability company (LLC), general partners are responsible for the daily management of the limited partnership and are liable for the company’s financial obligations, including debts and litigation. Other contributors, known as limited or silent partners, provide capital but cannot make managerial decisions and are not responsible for any debts beyond their initial investment. A general partnership is a partnership when all partners share in the profits, managerial responsibilities, and liability for debts equally. If the partners plan to share profits or losses unequally, they should document this in a legal partnership agreement to avoid future disputes. A joint venture is a general partnership that remains valid until the completion of a project or a certain period elapses. All partners have an equal right to control the business and share in any profits or losses. They also have a fiduciary responsibility to act in the best interests of other members as well as the venture. Limited Liability Partnership A limited liability partnership (LLP) is a type of partnership where all partners have limited liability. All partners can also partake in management activities. This is unlike a limited partnership, where at least one general partner must have unlimited liability and limited partners cannot be part of management. LLPs are often used for structuring professional services companies, such as law and accounting firms. However, LLP partners are not responsible for the misconduct or negligence of other partners. Special Considerations for a Limited Partnership Almost all U.S. states govern the formation of limited partnerships under the Uniform Limited Partnership Act, which was originally introduced in 1916 and has since been amended multiple times. The most recent revision was in 2001.1 The majority of the United States 49 states and the District of Columbia have adopted these provisions with Louisiana as the sole exception. To form a limited partnership, partners must register the venture in the applicable state, typically through the office of the local Secretary of State. It is important to obtain all relevant business permits and licenses, which vary based on locality, state, or industry. The U.S. Small Business Administration lists all local, state, and federal permits and licenses necessary to start a business. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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Estate Planning / For Sale by Owner / Home Buying / Home Selling

13 NATIONWIDE HOUSING PREDICITIONS FOR 2021

13 Nationwide Housing Market Predictions for 2021 Unemployment rates will continue to improve There will be a slight uptick in mortgage defaults Lending standards will loosen There will be a permanent shift working remotely Low interest rates will stick around There will be more government spending and increased national debt People will continue to invest in more stable, cash flowing assets The number of renters will rise Consumers will leave big cities to buy or rent new homes Inflation will increase Home prices will continue rising, especially in the affordable range Political certainty will calm the real estate market Tariffs will continue to impact the cost of goods and services, driving prices up. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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Boundaries / Deeds / Divorce / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Land Use / Real Estate Brokers / Real Estate Markets

7 MOST COMMON REASONS A REAL ESTATE TRANSACTION GOES BAD

Every business decision is followed by a lot of anxiety. That’s because there is a variety of issues that may occur before, during and/or after it. Transactions are one of the most problematic fields when it comes to real estate. Some situations just can’t be avoided, while you can try to prevent others. Make sure to inform yourself about common situations that may occur during the buying and selling process. This way, you’ll be able to recognize if you’re in a bad situation. Here are the seven most common things that can go wrong during a real estate transaction. Paperwork Real estate transactions involve a lot of paperwork. If there’s any document missing, it can sabotage a deal. Many agents start marketing a property without even looking through its profile. This way, there’s a possibility that the transaction can go wrong due to missing documents. That’s usually because when they see a good title behind a property, they don’t see a need in doing any research. Therefore, be sure that both parties have prepared, read, and signed all the paperwork that’s required. Money A lot of people depend on mortgage companies when purchasing a property. This is, of course, a common thing if someone has enough income to support the mortgage. But, if someone gets denied, it can cause the deal to turn sour. In order to avoid this from happening, make sure to acknowledge the amount of money that a buyer has direct access to. Fixing Refusal There are situations where the seller refuses to make repairs that were agreed upon beforehand. In this case, there’s not much you can do about it. If all parties agree, you can try hiring someone to fix those issues, but remember to include the renovation pricing in the paperwork. Unfortunately, buyers usually back off when they see that the seller was dishonest at any given moment. So, it’s best to get to know the seller before you start marketing a property. Inflexibility Some people are really stubborn when it comes to negotiating. Regardless of the fact whether a buyer might come across their dream house or not, there’s a possibility that he or she might not get along with the seller. In order to make a deal, both parties should keep in mind that they should compromise a bit. Parties can disagree on a lot topics, starting from pricing to who will cover the repair costs. In order to avoid these situations, get to know the seller before you introduce him to the potential buyer. This way you’ll be able to give some tips to the person that’s willing to buy the property. Problematic Property It is a common procedure for a home inspection to arrive after the deal is set. This way, the buyer assures himself that there are no hidden issues with the property. If a home inspector finds something that’s problematic enough to postpone the closing date, there’s a big possibility that the buyer will pull out. So this doesn’t happen, make sure to get a pre-inspection and see if there’s anything that needs to be fixed. If so, consider hiring a contractor that will fix these issues beforehand. Indecision There are people who just can’t make up their mind like sellers who aren’t sure if they want to sell the property and buyers who make realtors show them bunch of properties without committing to any of them. Outside the Control of any Principal Parties Transactions may go wrong even if both parties did everything right. There are various reasons why this can occur. For instance, a land transaction may have already been concluded and after a few days, the government acquired the land due to a major construction project. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Estate Planning / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets

THE IMPACT OF COVID ON COMMERCIAL REAL ESTATE

Foster Swift Collins & Smith PC – Robert A Hamor With no end in sight to the public health and economic crises resulting from the COVID-19 pandemic, businesses across all sectors of the economy continue to grapple with the fallout. Those who own and manage commercial real estate face unique obstacles, and must plan strategically and act aggressively in order to navigate the challenges they face. If you own and/or manage commercial real estate, there are a number of issues to consider and actions to implement that will help bolster the health and longevity of your business. The path forward may be rocky, but as with past cyclical downturns, there are steps you can take to protect yourself as well as opportunities for those who emerge on the other side. What Has Led Us Here? COVID-19 has sent shockwaves through commercial real estate markets worldwide. In the United States, various state executive orders forced the closure of many consumer-facing businesses and the mass exodus of white-collar workers from office space in favor of working from home. While many presumed during the early days of the pandemic that the disruption would be relatively short-lived, those hopes were misplaced. For example, in Michigan, most restaurants are still severely restricted in terms of indoor dining capacity, event venues remain shuttered, and significant numbers of office workers remain at home. Nationally, many large employers such as Google, Microsoft and JPMorgan Chase have announced their intentions to allow workers to continue working from home, in some cases, well into 2021. Investments in communication technology have helped make remote work possible, and this ?grand experiment? in distributed work has many businesses fundamentally rethinking how much square footage they need in the future. Working from home, of course, is not the only catalyst of change in commercial real estate. The shift from physical retail toward online shopping has negatively impacted mall traffic and brick-and-mortar stores. The lack of business and leisure travel has hit hotels. All of these events and others have conspired to make 2020 a particularly challenging year for commercial real estate. Some estimates have shown that commercial real estate investment fell nearly 30% globally in the first six months of 2020 compared to the year-earlier period. However, consistent with the old adage that opportunity lies in every crisis, there are bright spots to be optimistic about. For instance, demand for warehousing, distribution, and logistics centers is growing, fueled by the e-commerce boom. Ongoing Issues of Importance for Commercial Real Estate. There are myriad issues that commercial real estate owners and/or managers must continue to grapple with moving forward. The challenges ahead include a blend of business and legal issues that require equal parts strategic planning and risk mitigation, and in many instances will call for the support and counsel of trusted advisors. A proactive, rather than a wait-and-see, approach is critical to strengthen your business. Dealing with Tenants. Most commercial landlords are dealing with tenants who are slow-paying rent or not paying altogether. At the beginning of the COVID-19 crisis, in anticipation of a relatively short-term business disruption, many landlords and tenants engaged in discussions and struck agreements for rent accommodations that were intended to help tenants preserve cash flow, and allow landlords to plan accordingly, until business picked back up over the summer. As the crisis has dragged on, those short-term lease modifications need to be revisited; unfortunately, many parties are avoiding having these difficult conversations. Therefore, its critical that landlords take it upon themselves, either directly or through legal counsel, to re-engage with their tenants and address the issue head on. When engaging with tenants, insist on an honest, open-book evaluation. Getting all the facts on the table is the only way to craft effective solutions, be they further lease modifications or a more creative approach. For example, in the course of my negotiations with a tenant who had a strong business but no cash flow or borrowing capacity, we negotiated the sale of the business to the landlord. This was a win-win situation, allowing the tenant to get out from under debt and giving my client an asset they could sustain. Unfortunately, despite best efforts, sometimes it is clear that there is no path forward. In such instances, its incumbent on landlords to take aggressive action. Once the facts are clear, there is no benefit from delay and procrastination, which will result in landlords potentially getting stuck behind other creditors who may take more decisive action to collect debts they are owed. Regardless of the path forward, any agreement struck with a tenant should be documented in writing and reviewed by legal counsel. Dealing with Lenders. Just as tenants have financial obligations to landlords, most commercial real estate owners have obligations to lenders. The fact that many commercial real estate owners are dealing with slow-pay or no-pay tenants means that they may be struggling to keep up with their own debt obligations. As a result, they may need to restructure the loans secured by their properties in order to avoid loan defaults, foreclosures and the loss of their properties. While the constraints of this article do not allow for a full discussion of all of the issues involved in a commercial loan workout, there are several important principles to keep in mind when dealing with lenders. First, understand your lenders perspective. Lenders are reevaluating their lending models based on the fallout from COVID-19. They are repricing loans based on new expectations regarding occupancy levels and borrower risks which have changed since early 2020. At the same time, most lenders do not want to be in the business of owning commercial real estate, so while they may drive a harder bargain, most are willing to engage in reasonable negotiations with borrowers to avoid foreclosure.Second, be fully prepared. Understand the root causes of distress and be ready to present a complete picture of your business to the lender. Your objective should be to fully address all issues so that any loan modification or …

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Deeds / Divorce / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Land Use / Real Estate Brokers / real estate finance, FSBO, real estate markets, home buyers, home sellers / Real Estate Markets / Tax-Related Issues / Title Issues

WHAT IS A REAL ESTATE ATTORNEY AND WHEN DO I NEED ONE?

Buying a home isn’t just a simple purchase; its also a legal transfer of a property from one entity to another. Because the legal side of this transaction can be so complex, sometimes it makes sense (or is even required) for home buyers or sellers to enlist an attorney who can look out for their best interests. While you will likely already be dealing with a myriad of costs as you work to close on your house, and probably arent keen to add another, having a lawyer on your side can be an expense that ends up paying for itself. What Is A Real Estate Attorney? A real estate attorney is someone who is licensed to practice real estate law, meaning they have the knowledge and experience to advise parties involved in a real estate transaction, such as a home sale. What Does A Real Estate Attorney Do? Real estate attorneys know how to and are legally authorized to prepare and review documents and contracts related to the sale and purchase of a home. In some cases, a real estate attorney is also the person who will be in charge of your closing. In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, the attorney may actually represent the mortgage lender. When Do I Need A Real Estate Attorney? Depending on your state and locality laws and the exact nature of the transaction, you may need to enlist the services of a real estate attorney (and have the cost included in your closing costs), whether you like it or not. If you end up needing an attorney, whether youve decided you want one or your state or lender requires it, there are a few different points during the home buying process where they can come in and provide assistance. This can include drafting and finalizing purchase contracts, writing amendments to a standard contract utilized by your real estate agent, completing a title search or conducting the closing. Here are a few reasons you might need or want an attorney to be part of your home buying team: State or lender requirement: Every state has slightly different laws regarding real estate transactions, and some states consider certain actions that are part of the process to be practicing law. These regulations are often meant to prevent real estate agents from acting in a legal capacity that they aren’t trained or licensed for. For example, in many areas only a licensed attorney can put together legal documents related to the sale of a home, because they consider that to be within the realm of the practice of law. (However, in many areas, real estate agents now use standardized form contracts for home purchases that non-lawyers can legally fill out on their own.) Certain states may also consider performing a home closing to be a practice of law, and as such, an attorney may be required to be present during closing. If you are getting a mortgage with Rocket Mortgage by Quicken Loans, we require you to have an attorney conduct your closing if the subject property is located in any of the following states: Connecticut, Delaware, Georgia, Massachusetts, New York, South Carolina or West Virginia. Contractual issues with the purchase: If your home purchase involves any out-of-the-ordinary elements that could complicate your purchase contract, a good real estate attorney can make sure that all your contracts take into account the complexity of your situation as well as help you out if contractual issues arise during the process.Peace of mind: If you just have a feeling that something could go wrong or you want to be sure all your bases are covered, having a lawyer on your side can help give you the confidence that even if the transaction does go awry, you have a legal professional who is looking out for your best interests and can help you work through a tricky situation.How Much Does A Real Estate Attorney Cost?How much you will spend paying your real estate attorney (or attorneys) will depend on what services they have provided for you and who is responsible for that particular closing cost. If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing attorney will depend on how your contract was negotiated. If you want your own attorney in addition to the one required by your lender, you will also pay for any services they provide you. How and how much a real estate attorney charges will vary, but here are some basic ranges to give you an idea of what you will spend: Fixed hourly rate: A real estate attorney who charges an hourly rate may charge $150 ? $350 per hour, but this can vary a lot depending on how experienced the attorney is and what area you are in.Fixed rates for specific services: They may also charge a flat fee for the particular services they provide. For example, a real estate attorney might charge $500 $1,500 to conduct a home closing. Their fees may also depend on the sale price of the property in question. How Can I Find A Real Estate Attorney Near Me? Since buying a home is such a large, important purchase, you want to make sure that the professionals you work with know what they are talking about and are good at what they do. If you are not sure where to look to find a reputable real estate attorney, here are some places to start: Ask for recommendations from friends and family: If someone in your social circle recently purchased or sold a home and had an attorney, you might consider asking them who they used and what their experience was like. Utilize your states Bar association directory: Your state Bar associations website …

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real estate finance, FSBO, real estate markets, home buyers, home sellers

EVICTION PROTECTIONS WILL END ON DEC 31, 2020

Eviction protections will end on Dec. 31, leaving as many as 19 million people at risk A nationwide ban on evictions will expire Dec. 31 with no replacement in sight. Even still, landlords are finding creative ways to get around it. Dale Smith, Shelby Brown The national eviction moratorium is running out. Starting Jan. 1, 2021, landlords will once again be able to legally evict tenants for failure to pay rent. Dec. 31 is the last day of protection from evictions and from a handful of other coronavirus relief measures that will expire on Dec. 31 if there’s no new stimulus bill or executive action to renew them. The National Low Income Housing Coalition estimates as many as 19 million people in 6.7 million households are at risk of being evicted when the calendar flips to 2021. In the meantime, even the protections that are currently in force are not necessarily enough to save everyone from being turned out. Some judges have refused to accept the current moratorium and allowed evictions to proceed anyway. In other situations, landlords have figured out loopholes by filing evictions for infractions other than not paying rent, like barking dogs or smoking, or by not renewing tenants’ leases. It doesn’t help that the current eviction ban requires renters who’ve fallen behind on their rent to submit a signed declaration form to their landlord stating they’ve lost income due to the coronavirus pandemic and have made an effort to look for financial assistance, as well as a few other conditions. (This part is critical, more below.) Landlords can challenge the truthfulness and accuracy of those statements and some landlords’ lawyers have gone so far as to challenge tenants with perjury charges. Some states and cities continue to have their own eviction bans on the books ( here’s an up-to-date list). A few offer more protection than the federal eviction moratorium, but many have let their laws expire. We’ll dig into the national eviction moratorium to unpack who is covered, what might not be covered and what you need to do now if you’re worried about getting evicted. Plus, we’ll take a look at what other resources and options are available to help you stay in your home. This story was recently updated. If you’re worried about making rent, you aren’t alone. What the national eviction ban does and doesn’t protect The current national eviction moratorium was ordered by the Centers for Disease Control and Prevention using a 1944 public health law intended to curb the spread of a pandemic. Because homelessness can increase the spread of COVID-19, the order halts evictions across the US for anyone who has lost income due to the pandemic and has fallen behind on rent. The federal mandate doesn’t prohibit late fees (although some local ordinances do), nor does it let tenants off the hook for any back rent they owe. It also doesn’t establish any kind of financial assistance fund to help renters get caught up, a safeguard some say is critical to preventing a massive wave of evictions when the ban eventually lifts. (Many cities and states, however, have set aside money to help with rent — keep reading for how to find assistance where you live.) The order only halts evictions for not paying rent. Lease violations for other infractions — criminal conduct, becoming a nuisance, etc. — are still enforceable with eviction. And it only protects renters who earn less than $99,000 per year or $198,000 for joint filers. Finally, renters must print and sign an affidavit declaring their eligibility for protections (the next section breaks down those requirements). For most people, the payment they make on their home is the biggest bill they pay each month, whether they rent or own. Qualifying for the eviction moratorium requires paperwork The CDC’s order requires renters facing eviction to meet five requirements, which they must declare, under penalty of perjury, by copying or printing, signing and delivering an affidavit to their landlord. The five qualifications are, in brief: You’ve used “best efforts” to look for financial assistance. You don’t expect to earn more than $99,000 in 2020 (or no more than $198,000 if filing jointly). You can’t pay your full rent amount because of lost income or “extraordinary” medical expenses. You’ve tried to pay as much of your rent in as timely a manner as you can. If evicted, you would likely become homeless and have to live in a shelter or some other crowded place. It’s not yet entirely clear what happens if your landlord chooses to challenge or deny your declaration. The New York Times spoke to both legal experts and government officials who helped draft the order, and they suggest it could be up to a housing court to decide whether you qualify or not. If your landlord challenges your request, they recommend providing “‘reasonable’ specifics to prove your eligibility.” That could include bank statements and other documents. It’s still unclear how much cash Congress plans to put in American’s pockets with a second stimulus bill. What to dhttps://kcrealestatelawyer.com/wp-admin/post-new.php#o if you’re facing financial hardship today If you’re in need of immediate shelter or emergency housing, the federal Department of Housing and Urban Development maintains a state-by-state list of housing organizations in your area. Select your state from the drop-down menu for a list of resources near you. In response to the coronavirus pandemic, many stg and cities have expanded their available financial assistance for those who are struggling to pay rent. To see what programs might be available near you, find your state on this list of rent relief programs gfmgtained by the National Low Income Housing Association. Nonprofit 211.org connects those in need of help with essential community services in their area and has a specific portal for pandemic assistance. If you’re having trouble with your food budget or paying your housing bills, you can use 211.org’s online search tool or dial 211 on your phone to talk to someone who can try to help. …

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Divorce / Estate Planning / For Sale by Owner / Home Selling / Real Estate Markets / Title Issues

WHO GETS TO LIVE IN THE HOUSE DURING A DIVORCE?

Typically, its the husband asking and he is initiating the divorce. He is worried about giving up his interest in the house, and the right to return. From a strictly legal perspective, those fears are unfounded. If the home is jointly owned, each has an equal right to the house, an equal stake in its value. Similarly, the person moving out has the right to move back in, should that be necessary, even if the other spouse objects. For a home owned solely by one spouse, the non-owning spouse has the same right to live in the home, or return to it, as the other. The non-owner cannot be evicted while they are married to the owner, except where an ?order of protection? has been issued. (Whether an owner or not, an abusive spouse can be evicted by the court with an ?order of protection?.) However, whether you should leave the family home has several practical considerations. First, can you afford to maintain separate households? Even the most spartan apartment will likely cost several hundred dollars a month, plus utilities, and require minimal furnishing, which you will have to purchase or rent, if they cannot be sourced from your existing possessions. (?Abandoned? spouses arent always generous when it comes to sharing household furnishings!) Couples that are able to work out a tolerable coexistence with separate bedrooms, shared but separate child care schedules, and even separate eating arrangements can save themselves thousands of dollars. In the process, these small steps in mutual accommodation may lead to greater benefits down the road through less contentious (and less expensive) negotiations dividing up their property and working out child custody and support plans. Of course, ‘tolerable coexistence? and ?mutual accommodation? are not always associated with couples in a divorce. More often, the chance to get away from each other and the constant bickering justifies the extra expense. The time apart can relieve the tension and anger sufficiently to bring about a more constructive resolution to the marriage, while occasionally providing a few couples I have known the opportunity to reconsider whether a divorce is what they really want. Besides financial and quality-of-life issues, the vacating spouse should keep other realities in mind. The person remaining in the house often comes to expect that the home will be awarded to them, even when there is no equitable basis for doing that. With locked-in, unrealistic expectations, the inevitable result is a more adversarial proceeding and the possibility the judge will order the home sold as the only way to fairly divide the property. Even so, judges are loath to separate children from their homes whomever is awarded primary physical custody of the children will likely receive the house as well. Lastly, before hitting the road, the departing spouse should bear in mind that his/her most prized possessions will be left in the care of their spouse. If you leave on less than amicable terms, you would be wise to take with you all that is most dear. Otherwise, you may face the predicament of a husband who left his wife to move in with his girlfriend. Two days later, his wife telephoned demanding that he retrieve the rest of his clothing. Upon arriving at his former residence, he found several boxes stacked in the driveway, marked suits, pants, shirts, etc. Surprised that his wife packed and cataloged his belongings, he was horrified to learn that she had also taken a scissors to every stitch he owned! AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Estate Planning / Home Buying / Land Use / real estate finance, FSBO, real estate markets, home buyers, home sellers

DESPITE FEDERAL BAN, RENTERS ARE STILL BEING EVICTED

Despite federal ban, renters still being evicted amid virusBy MICHAEL CASEYNovember 29, 2020 The 46-year-old, who was hospitalized in August for the coronavirus and cant work due to mental health issues, said she fell behind on her $500-a-month rent because she needed the money to pay for food. When she was evicted in October, Mormon said she was unaware of President Donald Trumps directive, implemented in September by the Centers for Disease Control and Prevention, that broadly prevents evictions through the end of 2020. It was difficult. I had to leave all my stuff, said Mormon, who has been staying with friends and relatives since her eviction. I do not have no furniture, no nothing. With most state and local eviction bans expired, the nationwide directive was seen as the best hope to prevent more than 23 million renters from being evicted amid a stalemate in Congress over tens of billions of dollars in rental assistance. It was also billed as a way to fight the coronavirus, with studies showing evictions can spread the virus and lead to an increase in infections. The CDC order has averted a wave of evictions, housing advocates said, but tenants are increasingly falling through the cracks. Some judges in North Carolina and Missouri refused to accept the directive, tenant advocates said. The order has been applied inconsistently, and some tenants, who had no legal representation, knew nothing about it. Landlords in several states also unsuccessfully sued to scrap the order, arguing it was causing them financial hardship and infringing on their property rights. Right now, we are seeing variations in the way courts are applying the CDC order, and we are also seeing a lack of knowledge among tenants and property owners, said Emily Benfer, a law professor at Wake Forest University and the chair of the American Bar Associations COVID-19 task force committee on evictions. Advocates are working overtime to inform tenants of their rights under the CDC order and, in many places, evictions are going forward. In Fremont, Nebraska, Dana Imus went to court this month to avoid getting evicted for falling behind on rent. The 41-year-old mother of four lost her job as a forklift operator in March due to the pandemic and has not been able to get another one partly due to her car breaking down. When she presented a declaration to her landlord that she qualified for the federal moratorium, she said he told her wrongly that Nebraska didnt recognize it. She also tried to pay her landlord $400 of the $1,000 rent for October, but he refused. She used the money, instead, for a car payment and now has no money for rent. Its been a struggle, she said. Its stressful. But I trust God so, I mean, I am not too worried about it. I know I am not going to be evicted because I trust God. Those who didn’t know about the CDC moratorium include Charlene Wojtowicz, who thought she had avoided eviction from her two-bedroom house in Cleveland after a nonprofit paid three months of her back rent and her landlord withdrew his lawsuit. This week, the landlord demanded the 33-year-old mother of three pay the $455 she owes for November. I am worried that me and my kids will be out on the street, said Wojtowicz, who lost a new housekeeping job after getting COVID-19 this summer. I am a single mother with three children trying my hardest. Its not like I don’t want to pay this man. Eviction filings have begun creeping up in several states, with the Eviction Lab at Princeton finding cities in South Carolina, Ohio, Florida and Virginia saw big jumps during October. A factor, tenant advocates said, was the CDC’s guidance related to the order last month that allows landlords to start eviction proceedings. Its pretty alarming that lots of evictions are still, at least, being filed, said Eric Dunn, director of litigation at the National Housing Law Project in Richmond, Virginia. The act of filing an eviction, he said, can prompt tenants to move out ahead of a hearing over fears that an eviction record would prevent them from renting another apartment. Because tenants often value their ability to obtain other rental housing over remaining in one specific property, the fact that such cases are being filed likely has a chilling effect on tenants who would otherwise assert the moratorium, he said. Tenants who receive eviction notices will move out to avoid the creation of an eviction record, rather than stay in their homes. The CDC last month also said landlords have the right to challenge the veracity of tenants declarations that they qualify for the moratorium. A false claim could result in criminal charges for perjury, and lawyers for landlords have taken advantage of that language to challenge tenants in court. To be eligible for protection, renters must earn $198,000 or less for couples filing jointly, or $99,000 for single filers; demonstrate that they have sought government help to pay the rent; declare that they can’t pay because of COVID-19 hardships; and affirm they are likely to become homeless if evicted. We now have to fight this battle every time we go into court, where its not enough that the tenant provides the declaration, said Hannah Adams, an attorney for Southeast Louisiana Legal Services. Now they have to explain where every penny of their monthly check is going or even if they are getting a check. It creates a higher burden for tenants than was intended by the original order. Also driving evictions is that the order only applies to nonpayment of rent. As a result, landlords are increasingly trying to sidestep the order by evicting tenants for minor lease violations like excessive noise or trash, or they are simply not extending leases, tenant advocates said. That is what is happening to Imus, according to Caitlin Cedfeldt, a staff attorney at Legal Aid of Nebraska. Even before a judge ruled Monday that she qualified for the …

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REAL ESTATE SETTLEMENT PROCEEDURES ACT

RESPA   Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act (RESPA) provides consumers with improved disclosures of settlement costs and to reduce the costs of closing by the elimination of referral fees and kickbacks. RESPA was signed into law in December 1974 and became effective on June 20, 1975. The law has gone through a number of changes and amendments since then, all with the intent of informing consumers of their settlement costs and prohibiting kickbacks that can increase the cost of obtaining a mortgage. RESPA covers loans secured with a mortgage placed on one-to-four family residential properties. Originally enforced by the U.S. Department of Housing & Urban Development (HUD), RESPA enforcement responsibilities were assumed by the Consumer Financial Protection Bureau (CFPB) when it was created in 2011. RESPA prohibits service providers from giving anything of value in exchange for referrals of business. RESPA violations can carry serious consequences. Examples of what you can and cannot do to comply with RESPA: Do: RESPA allows a title agent to pay for your dinner when business is discussed, provided that such dinners are not a regular occurrence.RESPA allows a home inspection company to sponsor association events when representatives from that company also attend and to post a sign identifying its services and sponsorship of the event.RESPA allows a lender to pay you fair market value to rent a desk, copy machine and phone line in your office to pre-qualify applicants.RESPA allows a title agent to provide, during an open house, a modest food tray in connection with the title company’s marketing information indicating that the refreshments are sponsored by the title company.RESPA allows you to jointly advertise with a mortgage broker if you pay a share of the costs in proportion with your prominence in the advertisements.RESPA allows a hazard insurance company to give you marketing materials such as notepads, pens and desk blotters which promote the hazard insurance company’s name.Don’t:   RESPA prohibits acceptance of payment from a mortgage lender just for taking a loan application.RESPA prohibits accepting gifts from mortgage brokers, such as paying your greens fees.RESPA prohibits a mortgage broker or title company from paying for your tickets to a sporting event.RESPA prohibits acceptance of contributions from a title company to offset the cost of a real estate agents promotional event except to the extent of the value of any marketing done by the title company during that event.RESPA prohibits a title company from regularly providing dinner and reception for real estate agents.RESPA prohibits acceptance of a dinner paid for by a home inspector who doesn’t attend the dinner to market his/her services to you. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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LAW ON RETURN OF DEPOSIT IN MISSOURI – PET DEPOSIT DOES NOT COUNT AS DEPOSIT REQUIRED TO BE RETURNED OR ACCOUNTED FOR UNDER STATUTE

2015 Missouri Revised StatutesTITLE XXXVI STATUTORY ACTIONS AND TORTS (521-538)Chapter 535 Landlord-Tenant ActionsSection 535.300 Security deposits, limitation–return of deposit or notice of damages, when–withholding deposit, when–tenant’s right to damages–security deposit defined.Universal Citation: MO Rev Stat ? 535.300 (2015)535.300. 1. A landlord may not demand or receive a security deposit in excess of two months’ rent. 2. Within thirty days after the date of termination of the tenancy, the landlord shall: (1) Return the full amount of the security deposit; or (2) Furnish to the tenant a written itemized list of the damages for which the security deposit or any portion thereof is withheld, along with the balance of the security deposit. The landlord shall have complied with this subsection by mailing such statement and any payment to the last known address of the tenant. 3. The landlord may withhold from the security deposit only such amounts as are reasonably necessary for the following reasons: (1) To remedy a tenant’s default in the payment of rent due to the landlord, pursuant to the rental agreement; (2) To restore the dwelling unit to its condition at the commencement of the tenancy, ordinary wear and tear excepted; or (3) To compensate the landlord for actual damages sustained as a result of the tenant’s failure to give adequate notice to terminate the tenancy pursuant to law or the rental agreement; provided that the landlord makes reasonable efforts to mitigate damages. 4. The landlord shall give the tenant or his representative reasonable notice in writing at his last known address or in person of the date and time when the landlord will inspect the dwelling unit following the termination of the rental agreement to determine the amount of the security deposit to be withheld, and the inspection shall be held at a reasonable time. The tenant shall have the right to be present at the inspection of the dwelling unit at the time and date scheduled by the landlord. 5. If the landlord wrongfully withholds all or any portion of the security deposit in violation of this section, the tenant shall recover as damages not more than twice the amount wrongfully withheld. 6. Nothing in this section shall be construed to limit the right of the landlord to recover actual damages in excess of the security deposit, or to permit a tenant to apply or deduct any portion of the security deposit at any time in lieu of payment of rent. 7. As used in this section, the term “security deposit” means any deposit of money or property, however denominated, which is furnished by a tenant to a landlord to secure the performance of any part of the rental agreement, including damages to the dwelling unit. This term does not include any money or property denominated as a deposit for a pet on the premises. (L. 1983 H.B. 175  1) (2007) Subsection 5 of section allowing award of twice the security deposit for wrongful failure to return deposit does not apply to tenants of commercial property. PDQ Tower Services, Inc. v. Adams, 213 S.W.3d 697 (Mo.App.W.D.). Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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STATES WITH COMMON LAW MARRIAGE

States With Common Law Marriage Colorado: Common law marriage contracted on or after Sept. 1, 2006, is valid if, at the time the marriage was entered into, both parties are 18 years or older, and the marriage is not prohibited by other law (Colo. Stat. ?14-2-109.5) Iowa: Common law marriage for purposes of the Support of Dependents Chapter (Iowa Code ?252A.3) Otherwise it is not explicitly prohibited (Iowa Code ?595.1A) Kansas: Common law marriage will be recognized if the parties are 18 or older and for purposes of the Divorce and Maintenance Article, proof of common law marriage is allowed as evidence of marriage of the parties (Kan. Stat. ?23-2502; Kan. Stat. ?23-2714) Montana: Not strictly prohibited, they are not invalidated by the Marriage Chapter (Mont. Stat. ?40-1-403) New Hampshire: Common Law Marriage: “persons cohabiting and acknowledging each other as husband and wife, and generally reputed to be such, for the period of 3 years, and until the decease of one of them, shall thereafter be deemed to have been legally married.” (N.H. Stat. ?457:39) South Carolina: allows for marriages without a valid license (S.C. Stat. ?20-1-360) Texas: Common Law Marriage in specific circumstances (Tex. Family Law ?1.101; Tex. Family Law ?2.401-2.402) Utah: Utah Stat. ?30-1-4.5 Not all state statutes expressly allow for common law marriages. In Rhode Island, case law recognizes common law marriages. Oklahoma’s statute requires couples to get a marriage license; however case law has upheld common law marriages in the state. States Previously Allowing Common Law Marriage States that did allow, and will still recognize as valid, common law marriages entered into prior to the date it was abolished. Pennsylvania: No common law contracted after Jan. 1, 2005 (Pa. Cons. Stat. Ann. tit. 23, ? 1103) Ohio: No common law if entered into on or after Oct. 10, 1991 (Ohio Stat ? 3105.12) Indiana: No common law if entered into after Jan. 1, 1958 (Ind. Code ?31-11-8-5) Georgia: No common law after Jan. 1, 1997, however, common law marriages entered into prior to that date will be recognized by the state. (Ga. Stat. ? 19-3-1.1) Florida: No common law entered into after Jan. 1, 1968 (Fla. Stat. ? 741.211) Alabama: No common law after Jan. 1, 2017, however, common law marriages entered into prior to that date will be recognized by the state. (Ala. Code ? 30-1-20) AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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Deeds / For Sale by Owner / Home Buying / Home Selling

NON-MARITAL COHABITATION AGREEMENT

NON-MARITAL COHABITATION AGREEMENT MISSOURI IS NOT A COMMON LAW STATE. KANSAS IS A COMMON LAW STATE. IF A COUPLE IS MARRIED UNDER COMMON LAW IN ANOTHER STATE, MISSOURI MUST RECOGNIZE THAT UNDER THE FULL FAITH AND CREDIT CLAUSE OF THE UNITED STATES CONSTITUTION. IF A COMMON LAW MARRIAGE IS FORMED, A DIVORCE PROCEEDING MUST BE INITIATED TO UNDO IT. THIS IS WHAT A NON-MARITAL COHABITATION AGREEMENT IS DESIGNED TO PREVENT. What rights do unmarried couples have? Generally, unmarried cohabitants do not enjoy the same rights as married individuals, particularly with respect to property acquired during a relationship. Marital property laws and other family laws related to marriage do not apply to unmarried couples, even in long-term relationships. The characterization of property acquired by unmarried cohabitants is less clear than that of married couples whose ownership of property is governed by marital and community property laws. Some property acquired by unmarried couples may be owned jointly, but it may be difficult to divide such property when the relationship ends. There is no obligation of financial support attached to a couple who cohabits, absent an agreement to the contrary. If you are financially dependent on a romantic partner and the relationship ends, the effects of the breakup can be much harsher. How is cohabitation defined? Cohabitation is generally defined as two people living together as if a married couple. State laws vary in defining cohabitation. Some states have statutes which make cohabitation a criminal offense under adultery laws. Under one state’s law, cohabitation means “regularly residing with an adult of the same or opposite sex, if the parties hold themselves out as a couple, and regardless of whether the relationship confers a financial benefit on the party receiving alimony. Proof of sexual relations is admissible but not required to prove cohabitation.” Another state statute defines cohabitation as “the dwelling together continuously and habitually of a man and a woman who are in a private conjugal relationship not solemnized as a marriage according to law, or not necessarily meeting all the standards of a common-law marriage.” Yet another state, Georgia, defines cohabitation as “dwelling together continuously and openly in a meretricious relationship with another person, regardless of the sex of the other person. Is it possible for unmarried couple to establish rights as a couple? Living together, or cohabitation, in a non-marital relationship does not automatically entitle either party to acquire any rights in the property of the other party acquired during the period of cohabitation. However, adults who voluntarily live together and engage in sexual relations may enter into a contract to establish the respective rights and duties of the parties with respect to their earnings and the property acquired from their earnings during the nonmarital relationship. While parties to a nonmarital cohabitation agreement cannot lawfully contract to pay for the performance of sexual services, they may agree to pool their earnings and hold all property acquired during the relationship separately, jointly or to be governed by community property laws. They may also agree to pool only part of their earnings and property, form a partnership or joint venture or joint enterprise, or hold property as joint tenants or tenants in common, or agree to any other arrangement. Other legal issues that may be affect cohabiting couples include estate planning and medical care. Generally, someone who cohabits with another is not considered an heir under the law or have the same rights to make medical care decisions in the same manner as a spouse. Therefore, unmarried cohabitants may consider estate planning and power of attorneys in addition to having a nonmarital agreement. In some cases of people who formerly cohabited, courts have found a trust created in property of one person who cohabits with another, whereby the property is deemed held for the benefit of their domestic partner. When there is no formal trust agreement, a resulting trust may still be found under certain circumstances in order to enforce agreements regarding the property and income of domestic partners. If there is evidence that the parties intended to create a trust, but the formalities of a trust are lacking, the court may declare a resulting trust exists. The court may also declare that a constructive trust exists, which is essentially a legal fiction designed to avoid injustice and prevent giving an unfair advantage to one of the parties. This may be based on the contributions made by one partner to the property of the other. Each case is decided on its own facts, taking all circumstances. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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CAN A SELLER BACK OUT OF A REAL ESTATE PURCHASE CONTRACT?

  Selling a house can be expensive, complex and time-consuming, so its a huge relief to everyone involved when a deal is struck and the sale closes. But what if the seller wants to back out? Is it legal? What are the buyers options in that case? Its very, very common for home sellers to renege on buyers, especially in a hot real estate market, says Zachary D. Schorr, lead attorney at Los Angeles-based Schorr Law, APC, which handles real estate litigation. Even when the seller doesn’t have a clear legal right to renege on a deal, it can still happen. I do these cases all the time, but its generally a very tough case for the seller and typically you would rather be on the buyer side, Schorr says. Its easier for a buyer to cancel and hard for a seller to get away without a penalty.? Buyers have the upper hand because most contracts for a home purchase contain provisions that protect them and keep the purchase process moving along. Sellers who want to renege have an uphill battle unless a buyer ?fails to perform? by missing a deposit or closing deadline, for example. A word of warning to sellers: If you are selling a property, you should not enter into a contract unless you are going to sell it,? Schorr says. There’s not much room to have doubt or second thoughts. The buyer has ways out, but the seller really does not.? Why do home sellers renege on sales contracts? Sellers may have a variety of reasons for trying to back out of an accepted purchase agreement. Among them: The seller gets a higher offer from another buyer.The seller has been unable to find a suitable replacement home.The seller loses a job or a family member dies, making it financially difficult to move.The seller has emotional ties to the house and cant let go.There is a disagreement within the sellers family about leaving the house.The property appraises for more than what the buyer has offered. Why its crucial to get everything in writing The first thing that both home sellers and buyers should know is that all purchase offers, counteroffers and acceptances should be in writing and signed by each party agreeing to the contract. Typically, when the seller accepts the buying partys signed offer or counteroffer and communicates that acceptance to the buyer, a binding agreement has been reached. Until there is a contract, there is no obligation on behalf of the (home) owner, Schorr says. An oral agreement is generally not binding. A contract to sell real property is required in writing. Backing out of a home sale can have costly consequences A home seller who backs out of a purchase contract can be sued for breach of contract. A judge could order the seller to sign over a deed and complete the sale anyway. The buyer could sue for damages, but usually, they sue for the property, Schorr says. A seller often has to pay the buyers legal fees, as well as his own, says Schorr. That could be a harsh penalty. The seller also may be ordered to: Return the buyers good faith deposit, plus interest;Pay back fees the buyer shelled out for inspections and appraisals;Pay for lost equity the buyer may have realized from the home;Pay any other reasonable expenses the buyer incurred;Reimburse the listing agent for the lost commission and marketing costs.A seller who wants to avoid a court fight could offer to pay the buyer enough to make them whole and hope they will agree to exit the deal. Since breach of contract is a civil matter, a seller need not worry about jail time, however. There is generally no criminal liability for breaching a contract, Schorr says. How can the home seller avoid penalties?Home sellers can give themselves an out by adding contingencies to the sales contract  in other words, make the sale contingent upon certain conditions. For example, a seller can make the sale contingent upon having a contract to buy another house, so he has a place to move to. Or the seller can give himself contractual latitude by adding a time frame or deadline for all purchase offers. Generally, (a seller) cant cancel without cause, Schorr says. You could build in some contingency, but absent that, you had better be committed to the sale. There has to be a contingency or the buyer failed to perform. One way in which buyers fail to perform is not being able to get a mortgage. If, for some reason, the buyers lender does not appraise the home at a value that would secure financing, the seller is not required to negotiate and can cancel the contract for the buyers lack of performance in terms of securing financing, says Susan Chong, founder of Denver-based Iconique Real Estate, a brokerage in the luxury market. A remorseful seller who wants to back out after a sale has closed has no chance of succeeding since the title, money and everything else have been transferred at closing and they no longer own the property. If the seller has a reason that they still need to occupy the home after the closing, they can attempt to lease back the property from the buyer, says Chong. What are homebuyers options when the buyer reneges? A buyer that has a purchase contract with a seller who wants to back out should consult a real estate attorney. If the buyer wants to take it to court, they can sue the seller for breach of contract. Legal redress against a seller can be expensive and time-consuming, however, and may not result in a satisfying conclusion. A prudent move for the buyer would be to record a lis pendens, a document you can file to let the world know that somebody, the buyer, is claiming interest in a property, Schorr says. This makes the property not marketable and puts a stop or hold on any transactions on the property. Buyers …

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For Sale by Owner / Home Buying / Home Selling

WHY DO HOME SELLERS RENEGE ON SALES CONTRACTS?

Sellers may have a variety of reasons for trying to back out of an accepted purchase agreement. Among them: The seller gets a higher offer from another buyer. The seller has been unable to find a suitable replacement home. The seller loses a job or a family member dies, making it financially difficult to move. The seller has emotional ties to the house and can’t let go. There is a disagreement within the seller’s family about leaving the house. The property appraises for more than what the buyer has offered. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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WHAT STATES RECOGNIZE TENANCY BY THE ENTIRETY?

What States Recognize Tenancy by the Entirety? These states recognize tenancy by the entirety: Alaska, Arkansas, Delaware, District of Columbia, Florida, Hawaii, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, and Wyoming. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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Deeds / Estate Planning

WHAT STATES ARE COMMUNITY PROPERTY STATES?

What States are Community Property States? The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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SURVIVORSHIP AFFIDAVIT

A survivorship affidavit (sometimes called an affidavit of death or affidavit of continuous marriage) is a legal document used to remove a deceased owner from title to property by recording evidence of the deceased owners death in the land records. The purpose of a survivorship affidavit is to clear up the land records by letting third parties including title companies, lenders, and the property tax officials know that an owner has passed away and that you now own the property without that owner. Many people want to remove a deceased owner from title to real estate after the owners death. Removing a deceased person from a property deed clears up the land and property tax records and allows the new owners to deal with the property. Removing a deceased owner can be very simple or very complicated. If the deceased owner was the only owner, it is likely that probate or an alternative to probate will be required. If the property was held with a surviving spouse or other co-owner, an affidavit of survivorship may be used to avoid probate. These options are discussed in more detail below. Using an Affidavit of Survivorship to Remove a Deceased Owner from Title If you are already listed as a co-owner on the prior deed or if you inherited an interest in the property through a life estate deed, transfer-on-death deed, or lady bird deed you may use an affidavit of survivorship to remove the deceased owner. What is an Affidavit of Survivorship? An affidavit of survivorship is a legal document used to remove a deceased owner from title to property by recording evidence of the deceased owners death in the land records. The purpose of an affidavit of survivorship is to clear up the land and tax records by letting third parties including title companies, lenders, and the property tax officials know that an owner has passed away and that you now own the property without that owner. It can be used in two situations: While the deceased owner was alive, you and the deceased owner jointly owned the property as joint tenants with right of survivorship, tenants by the entirety, or community property with right of survivorship. You did not own jointly own the property with the deceased owner while the deceased owner was alive, but the deceased owner named you to inherit the property through a life estate deed, TOD or beneficiary deed, or lady bird deed. An affidavit of survivorship is sometimes called a survivorship affidavit, affidavit of surviving spouse, affidavit of surviving joint tenant, or affidavit of continuous marriage. These terms all refer to the same instrument. How Do I Know if I Can Use an Affidavit of Survivorship? To determine if you can use an affidavit of survivorship, review the most recent deed to the property. If you are listed as a beneficiary under a life estate, lady bird, or TOD deed, look at the deed that gave you an interest as a beneficiary. If you co-owned the property with the deceased owner, review the deed that transferred the property to you and the deceased owner. Look for language that creates a right of survivorship. How Can I Tell if I Have a Right of Survivorship? The only way to confirm that you have a right of survivorship is to review the deed. There are three ways you may hold title with right of survivorship: Joint Tenants with Right of Survivorship. Both spouses and non-spouses may hold title as joint tenants with right of survivorship. Look for language like joint tenants with right of survivorship. Tenants by the Entirety (Spouses Only). If you are in a state that recognizes tenancy by the entirety (see below), you can use a survivorship affidavit to remove your deceased spouse from the deed. Any language that indicates that you were married when you acquired the property should be enough. Look for the phrase husband and wife or tenancy by the entirety. Community Property with Right of Survivorship (Spouses Only). If you are in a community property state (see below), you may hold title as community property with right of survivorship. Not all community property contains a right of survivorship, so look for the phrase right of survivorship. If the deed included survivorship rights, and if the other owners named in the deed survived the deceased owner, you can usually use an affidavit of survivorship to remove the deceased owner. What States Recognize Tenant’s by the Entirety? These states recognize tenancy by the entirety: Alaska, Arkansas, Delaware, District of Columbia, Florida, Hawaii, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia, and Wyoming. What States are Community Property States? The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A Note on Deeds to Remove Deceased Owner We sometimes get questions from customers looking for a deed to remove a deceased owner. Some have been told by a government clerk that they need a quitclaim deed to remove a deceased owner from title to real estate. As a preliminary matter, it is important to note that county clerks are not attorneys. Although most are competent and experienced, there are many who are not. County clerks are not always correct and, in any event, should not be giving legal advice. The problem with using a deed to remove a deceased owner comes from the simple fact that the owner is deceased. Because the owner is deceased, he or she cannot sign the deed to transfer title to the new owner. For someone to sign on behalf of the deceased owner, he or she would need legal authority to do so. The only way to get legal authority to act on behalf of a deceased owner is to open a probate proceeding as described below. This hassle can be avoided by simply using an affidavit of survivorship. Probate and Alternatives to Probate Probate is a …

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Deeds / Estate Planning / For Sale by Owner / Home Buying / Home Selling

DEATH AND REAL ESTATE

What effect does the death of an owner of real estate have on the title to real estate? When a person who owns real estate passes away, depending on the manner on which the title to the real estate was held, a number of issues become necessary to address following such a persons death. If the title is held as a joint tenant or as a tenant by the entirety, the title to the real estate passes automatically to the surviving joint tenant (tenants) or the surviving spouse. In a tenancy by the entirety situation, there is no need for the deceased persons estate to be probated in order to pass title to the real estate to the survivor. However, if the title to the real estate is held as a tenant in common, then the deceased persons interest in the real estate will pass in accordance with a devise under the Will (if the person dies leaving a will ? which would then require that the Will be probated), or the deceased tenant in commons interest will pass in accordance with laws of intestacy, which will also require the probating of the deceased persons estate, in order to establish the decedents heirs-at-law to whom the real estate passes. Also, upon the death of a person owning real estate, there is an automatic Massachusetts Estate Tax Lien and an automatic Federal Estate Tax Lien which is placed upon the property, to protect the Commonwealth of Massachusetts or the federal government getting its estate tax paid, if there is a Massachusetts or Federal Estate Tax due, resulting from the deceased persons estate. The current (calendar year 2012) threshold amount of estate assets that would trigger a Massachusetts estate tax due is $1,000,000, and the current (calendar year 2012) threshold amount of estate assets that triggers a Federal Estate Tax due following the death is the amount of $5,125,000. Unless the decedents estate exceeds these thresholds, there generally is no need to file either a Massachusetts Estate Tax return or a Federal Estate Tax return; however, in both instances, there is a need to record an Affidavit/Certificate of No Estate Tax with the Registry of Deeds or Registry District of the Land Court, in which the decedents property is located, the effect of which Affidavit/Certificate will be to document that there is no Massachusetts Estate Tax Lien and no Federal Estate Tax Lien. Where the real estate is held by a joint tenant or a spouse in a tenancy by the entirety situation, although the title of the deceased persons interest in real estate passes automatically to the surviving spouse (in the instance of a tenancy by the entirety) or to the surviving joint tenant(s), in the instance of a joint tenancy, there is still a need to record in the Registry of Deeds or the Registry District of the Land Court, a certified copy of the decedents death certificate so as to document of record in the Registry and/or in the Registry District of the Land Court, the fact that the person has passed away. The death certificate is generally recorded at the same time that Affidavit/Certificate of No Estate Tax is recorded. When the real estate involved is registered land (also sometimes referred to as Land Court property), there may also be a need to record other documentation following a death in the chain of title, such as an Affidavit of No Divorce, and attested copies of certain probate related documents. Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate SearchSearch

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RULES OF HOME AFFORDABILITY

The rules of home affordability Mortgage lenders use something called qualification ratios to determine how much they will lend to a borrower. Although each lender uses slightly different ratios, most are within the same range. Some lenders will lend a bit more, some a bit less. We have taken average qualification ratios to come up with our three rules of home affordability. Your maximum mortgage payment (rule of 28) The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). For example, if you and your spouse have a combined annual income of $80,000, your mortgage payment should not exceed $1,866. Your maximum total housing payment (rule of 32) The next rule stipulates that your total housing payments (including the mortgage, homeowner’s insurance, and private mortgage insurance [PMI], association fees, and property taxes) should not exceed 32 percent of your gross monthly income. That means, for the same couple, their total monthly housing payment cannot be more than $2,133 per month. Your maximum monthly debt payments (rule of 40) Finally, your total debt payments, including your housing payment, your auto loan or student loan payments, and minimum credit card payments should not exceed 40 percent of your gross monthly income. In the above example, the couple with $80k income could not have total monthly debt payments exceeding $2,667. If, say, they paid $500 per month in other debt (e.g. car payments, credit cards, or student loans), their monthly mortgage payment would be capped at $2,167. This rule means that if you have a big car payment or a lot of credit card debt, you won’t be able to afford as much in mortgage payments. In many cases, banks won’t approve a mortgage until you reduce or eliminate some or all other debt. How to calculate an affordable mortgage Now that you have an idea of how much of a monthly mortgage payment you can afford, you’ll probably want to know how much house you can actually buy. Although you cannot determine an exact budget until you know what interest rate you will pay, you can estimate your budget. Assuming an average six percent interest rate on a 30-year fixed-rate mortgage, your mortgage payments will be about $650 for every $100,000 borrowed. (Just trust me on that’the math is complicated.) For the couple making $80,000 per year, the Rule of 28 limits their monthly mortgage payments to $1,866. ($1,866 / $650) x $100,000 = $290,000 (their maximum mortgage amount) Ideally, you have a down payment of at least 10 percent, and up to 20 percent, of your future home’s purchase price. Add that amount to your maximum mortgage amount, and you have a good idea of the most you can spend on a home. Note: If you put less than 20 percent down, your mortgage lender will required you to pay private mortgage insurance (PMI), which will increase your non-mortgage housing expenses and decrease how much house you can afford. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch Notice: JavaScript is required for this content.

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WHAT IS AN FHA 203K LOAN?

Whether youare interested in snapping up a bargain home and renovating it to meet your needs, or you have a kitchen full of outdated appliances that you would like to replace, an FHA 203k home loan may be the solution to your financial needs. Unlike standard mortgage loans, this loan ? officially known as the Federal Housing Administrations 203k Rehabilitation Mortgage Insurance Program  wraps renovation and purchase or renovation and refinancing costs into one mortgage. Advantages of an FHA 203k Loan Prospective buyers sometimes shy away from homes that need renovation because they cannot come up with the cash for a new roof or new flooring in addition to a down payment, closing costs, and moving expenses. A mortgage loan that combines all of these expenses allows you to extend your payments for the renovation over the life of the loan rather than paying a lump sum. You can also deduct the interest you pay on your entire mortgage on your income taxes, even the portion you use for renovations. If you paid for renovations with a credit card, you wouldnt be able to deduct any of those interest payments. Back in the days of easy money before the housing bubble burst, homeowners who wanted to redo their kitchen or add a whirlpool tub to their master bath could easily take out a home equity loan or line of credit to pay for their pet projects. Today, mortgage lenders are far less likely to approve a home equity loan. In fact, without significant home equity and excellent credit, your chances of qualifying for a second mortgage are slim. Heres where an FHA 203k loan can help: You can refinance your existing mortgage and add the cash needed for your home renovation project into the loan balance. This option can help you decide whether to remodel or move. If youre considering a FHA 203k loan, a great place to start is LendingTree.com. You will receive multiple loan offers in minutes. FHA 203k Loan Options While many of the features of an FHA 203k loan are similar to a standard FHA loan, the renovation component makes these loans a little more complex for borrowers. There are two types of 203k loans: a standard option and a streamlined option. Which one is right for you depends on how much you intend to spend on your renovation and what you intend to do. Streamlined Loan. The streamlined loan is limited to a maximum of $35,000 in repairs, regardless of the home value. Theres no minimum you need to spend, so if you would just like to replace your carpet, you can wrap a few thousand dollars into your mortgage and avoid spending cash. Repairs must start within 30 days of your loan closing and be finished within six months. This loan product also limits the types of renovations you can make to non-structural, non-luxury items. In other words, you cant add a second floor to your house or install a pool with a swim-up bar. You can use it, however, to upgrade to granite kitchen counters, replace your air conditioner, or put in new windows.Standard Loan. For bigger projects, you need a standard FHA 203k loan. For this loan, you must make at least $5,000 worth of renovations. You can do almost any home improvement project as long as it adds value to the property, such as building an addition, finishing a basement, and remodeling your bathrooms and your kitchen. However, even with the standard loan, some luxury items ? such as a hot tub or a swimming pool ? cannot be financed. In addition to the size of the renovation, the big difference with this loan option is that you are required to work with a HUD-approved consultant who inspects and evaluates your renovation. You can even finance as much as six months of mortgage loan payments into this 203k loan if you cant live in your home during the renovation.Fha 203k Loan OptionsQualifying for a Loan To qualify for a 203k loan, you will need to meet the same requirements as any other FHA loan: Your credit score must be at least 620 or 640, depending on the lender. If you are unsure what your credit score is, you can get it for free through Credit Karma.Your maximum debt-to-income ratio can only be 41% to 45%You need a down payment (or home equity if you are refinancing) of 3.5% or moreThe loan amount (including both the purchase and renovation costs) must be lower than the maximum loan limit for your areaYou must be an owner-occupant of the property you intend to renovateAll FHA borrowers pay upfront mortgage insurance, regardless of how much home equity they have or the size of their down payment, which increases the size of the monthly payment. Annual mortgage insurance is also required for borrowers who make a down payment of less than 20% or have a loan-to-value of 78% or more. FHA mortgage insurance covers any losses to lenders if borrowers default, and 203k borrowers pay additional fees including a supplemental fee of $350 or 1.5% of the repair costs, along with other fees for an extra appraisal and title policy update after the repairs are complete. Depending on the size of your project, these fees average a total of $500 to $800. The biggest difference in qualifying for an FHA 203k mortgage rather than a traditional FHA mortgage is that you must qualify based on the costs of your renovation, in addition to the purchase price. For example, if you want to refinance or purchase a home valued at $150,000 and finance $25,000 in repairs, you need to qualify for a $175,000 mortgage and have the home equity or down payment of 3.5%. FHA 203k Loan Process Once youve decided you want to apply for a combo loan for your renovation and purchase, you need to identify contractors who can do the work. Its best to work with a lender who has experience with this loan …

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REAL ESTATE TRANSACTION RED FLAGS

REAL ESTATE TRANSACTION RED FLAGS 1. Documentation includes deletions, correction fluid, or other alteration2. Different handwriting or type styles within a document3. Buyer currently resides in subject property4. Seller is not currently reflected on title5. Buyer is not the applicant6. Buyer(s) deleted from/added to sales contract7. Power of Attorney is used8. Owner is someone other than seller shown on sales contract9. Purchase price is substantially higher than predominant market value10. Purchase price is substantially lower than predominant market value11. Title Work Prepared for and/or mailed to a party other than the lender or attorney12. Evidence of financial strain may indicate a compromised sale transaction (flip, foreclosure rescue, straw buyer refinance, etc.), or might suggest undisclosed credit problems in the case of a refinancea. Income tax, judgments or similar liens recordedb. Delinquent property taxesc. A Notice of default or modification agreement recorded13. Seller owned property for short time14. Buyer has pre-existing financial interest in the property15. Date, amount of existing encumbrances appear suspicious16. Chain of title includes an interested party such as realtor or appraiser17. Buyer and seller have similar names (property flips often utilize family members as straw buyers)18. Borrower or seller name is different than on sales contract and title19. Payouts to unknown parties or parties not providing real estate related services20. Refinance pay offs for previously undisclosed liens21. Short sale offer is from a related party22. Numbers on the documentation appear to be ‘squeezed? due to alteration23. Loan purpose is cash-out refinance on a recently acquired property24. Earnest money deposit equals the entire down payment, or is an odd amount AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues SearchSearch

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NATIONWIDE HALT ON EVICTIONS

The Trump administration is ordering a halt on evictions nationwide through December for people who have lost work during the pandemic and don’t have other good housing options. The new eviction ban is being enacted through the Centers for Disease Control and Prevention. The goal is to stem the spread of the COVID-19 outbreak, which the agency says in its order “presents a historic threat to public health.” It’s by far the most sweeping move yet by the administration to try to head off a looming wave of evictions of people who have lost their jobs or taken a major blow to their income because of the pandemic. Housing advocates and landlord groups both have been warning that millions of people could soon be put out of their homes through eviction if Congress does not do more to help renters and landlords and reinstate expanded unemployment benefits. But this new ban, which doesn’t offer any way for landlords to recoup unpaid rent, is being met with a mixed response. First, many housing advocates are very happy to see it. “My reaction is a feeling of tremendous relief,” says Diane Yentel, CEO of the National Low Income Housing Coalition. “It’s a pretty extraordinary and bold and unprecedented measure that the White House is taking that will save lives and prevent tens of millions of people from losing their homes in the middle of a pandemic.” That said, she adds that a move like this from Congress or the White House is “long overdue.” And she says with no money behind it, it kicks the can down the road. “While an eviction moratorium is an essential step, it is a half-measure that extends a financial cliff for renters to fall off of when the moratorium expires and back rent is owed.” Landlords are worried about falling off a cliff too. Doug Bibby is the president of the National Multifamily Housing Council. He says, “We are disappointed that the administration has chosen to enact a federal eviction moratorium without the existence of dedicated, long-term funding for rental and unemployment assistance.” “An eviction moratorium will ultimately harm the very people it aims to help by making it impossible for housing providers, particularly small owners, to meet their financial obligations and continue to provide shelter to their residents,” Bibby said. He’s calling for a myriad of financial assistance measures to help property owners. Under the rules of the order, renters have to sign a declaration saying they don’t make more than $99,000 a year ? or twice that if filing a joint tax return ? and that they have no other option if evicted other than homelessness or living with more people in close proximity. Evictions for reasons other than nonpayment of rent will be allowed. The government says it will impose criminal penalties on landlords who violate the ban. Both Bibby and Yentel are calling on Congress to enact legislation with funding to help renters and landlords. “Congress and the White House must get back to work on negotiations to enact a COVID-19 relief bill with at least $100 billion in emergency rental assistance.” Yentel says. “Together with a national eviction moratorium, this assistance would keep renters stably housed and small landlords able to pay their bills and maintain their properties during the pandemic.” AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Notice: JavaScript is required for this content.

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PROS AND CONS OF DOING AN NEW LLC FOR EVERY REAL ESTATE TRANSACTION

Pros of Using a New LLC Every Deal Ownership structure: Perhaps you are working with several different owners on a new deal. It makes sense to have a new LLC, as it will define the ownership percentages and the roles of each owner.Working in a new state: This could be argued either way, but to me, it makes sense to incorporate in the state where your investment property is.Doing a flip: Many investors do a new LLC every flip. This makes sense, as it separates that flip from other properties with respect to taxes and liability. More on this in the video above.Asset protection: Holding each purchase in its own LLC will compartmentalize each property from the other. If there is a liability claim with one property, it wont affect any others held by you.  Cons of Using a New LLC Every Deal Higher costs: You will pay a fee to set up each LLC and, in most states, another fee to file a return every year and a fee to your CPA.Growing portfolio: Depending on the size of your portfolio, it might be easier to get a loan if you lump several properties into one LLC. Holding each property individually could make it harder to get financing, especially if the values are less than $100K.Insurance: You can obtain a reasonably sized general liability policy on your properties and arguably have the same level of asset protection as you would if you held each address individually. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues Notice: JavaScript is required for this content.

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MISTAKES REAL ESTATE PROPERTY MANAGEMENT COMPANIES MAKE

1. Scaling Without Systems In Place I see a lot of property managers that fail once they hit a certain scale because they don’t have systems in place. They get to a certain point, such as 200 doors, where they need to have solid systems and processes. If not, they fail in serving their clients. Owners start losing money and the entire business goes downhill quickly. Vet your PM and understand how they are going to deal with growth. – Noel Christopher, Renters Warehouse 2. Going With The First Tenant You need to find the right tenant, not the first tenant. To find the right tenant, you need to attract them. Don’t keep putting off repairs and maintenance. By showing them you take pride in maintaining the property, they will treat it with respect and it will cost you less in the long run. – Sam Grooms, WhiteHaven Capital 3. Not Being Aware Of The Property’s Physical Condition And Components This lack of awareness can result in system failures and high capital expenditures where small improvements or regular maintenance could have diverted more significant costs. Two strategies to prevent costly, preventable repairs are hiring a third-party inspector for an annual property visit and report, and to develop a system for reviewing work orders by category to see if there are any trends. – Lee Kiser, Kiser Group 4. Being Reactive Versus Proactive With Maintenance Property managers have a tough job. They are paid to field the phone calls and the 1 a.m. maintenance requests that we, as owners, pay them to handle. The common mistake that property managers make is simply being too reactive versus proactive. Often, a small repair issue becomes a capital expenditure when it goes unresolved for months (or years). Simply said, the most common mistake is neglect. – Spencer Hilligoss, Madison Investing 5. Not Checking the Contractor’s References A big mistake many of us make is hiring a contractor who looks great on paper. Always call a minimum of two references. The wasted time, money and inconvenience of hiring a general contractor who cannot handle the project effectively and efficiently results in frustration all around. Also, walking on the site of a previous project helps you align your styles and expectations. – Susan Leger Ferraro, Peace, Love, Happiness Real Estate 6. Imprecise Accounting Practices It is essential for investors to be able to rely on accurate records from the property manager. Precise accounting is of the utmost importance. Reputable property managers use software to manage your accounting and will send monthly statements. – Beatrice de Jong, Open Listings (YC W15) 7. Failing To Properly Prepare A Vacant Unit Poor property managers fail to adequately prepare your vacant unit for turnover to a new tenant. Everything should be clean, even the windows. Walls should have a uniform texture, with holes removed. If you attract a tenant that accepts an unkempt unit, then that tenant will keep it the same way. A clean unit also reduces vacancy. To attract a respectable tenant, show a respectable property. – Keith Weinhold, Get Rich Education 8. Poor Service The rental space is a lucrative business, but poor property management can hurt you. Property managers should be mindful of falling into situations that can become costly or ruin reputations. If the tenant informs the property manager about a problem, ignoring the situation can lead to costly repairs or disgruntled renters who may leave, causing high turnover and potential vacancies. – Bobby Montagne, Walnut Street Finance 9. Installing Smart Home Tech All too often, overeager property managers will jump at the chance to install the latest connected home devices in new apartment buildings. Hardware can get outdated quickly, and buildings rarely have the expertise in-house to solve the inevitable bugs and technical failures. Most connected devices are better suited for a savvy homeowner than an institutional multifamily developer. – Brad Hargreaves, Common Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS

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AFFIRMATIVE DEFENSES

You have been sued. First, you panic. Then, you think about how to defend yourself. One of the best ways to fight back when you are being sued is through affirmative defenses. What is an affirmative defense? An affirmative defense is a reason why a defendant should not have to pay damages even when the facts in the complaint are true. You can assert affirmative defenses while still denying the allegations in a complaint. Its not recommended that affirmative defenses be the first thing you file upon getting served with a complaint. A motion for extension of time and a motion to dismiss are more appropriate first filings. However, your affirmative defenses should be uppermost in your mind early on. They are an essential part of your case strategy. Affirmative defenses give you something to focus on in discovery. They keep you in the case long after most pro se litigants would have been defeated. If theyre well written, they may even give you leverage in settlement negotiations or a final win. So what do you need to know about affirmative defenses? Important Things to Know About Affirmative Defenses Its often best to file your affirmative defenses with your answer as a single document with two main sections.A person asserting an affirmative defense is required to meet all the elements (requirements) of that defense. If any element is missing, the affirmative defense can be easily defeated.Each defense must be expressed as a set of facts.In order to defeat you, the plaintiff has to strike all of your affirmative defenses.Listing all viable affirmative defenses makes your case stronger.Elements of an affirmative defense may vary across jurisdictions, so check to be sure you have the right ones for your jurisdiction.Asserting an Affirmative Defense: An Example First, find the elements of the defense you want to assert. Statutes and appellate cases are good resources for this. Then, state any facts in your own case that make up the elements of that defense. Heres an example. In your jurisdiction, the affirmative defense of fraud has five elements, (1) a false representation; (2) about a material fact; (3) made with knowledge of its untruth; (4) with intent to deceive; and (5) defendant relied on the representation. If you want fraud as an affirmative defense in a breach of contract case, how might you assert it? Sample 1. Affirmative Defense Fraud ASSERTION: The plaintiff made a false statement when I signed the contract. NOT GOOD: This is missing some elements of fraud. It can be easily struck. Sample 2. Affirmative Defense Fraud ASSERTION: The plaintiff committed fraud. NOT GOOD: This is simply stating a legal conclusion. It can be easily struck. Sample 3. Affirmative Defense Fraud The plaintiff said he owned the property in dispute but knew all along he didn’t. He wanted me to believe his statement so I could enter into a rental contract with him. I thought he owned the land, so I signed the contract. GOOD: This defense alleges facts that support each and every element of fraud. It includes (1) a false representation; (2) about a material fact; (3) made with knowledge of its untruth; (4) a statement about intent to deceive; and (5) the defendants reliance on the representation. Below is a list of sample affirmative defenses and their elements or requirements. To repeat, the elements and requirements vary by jurisdiction. 1.Abandonment. In a case of copyright infringement, a defendant can argue that the owner of a trademark cannot exclude others from using that trademark if it has been abandoned. Sample Elements the owner, assignor, or licensor of a trademark discontinued its good faith and exclusive use of the trademark in the ordinary course of trade;the owner, assignor, or licensor intended not to resume using the trademark;the owner, assignor, or licensor acts, or fails to act, so that the trademarks primary significance to prospective consumers has become the product or service itself and not the producer of the product or provider of the service; andthe owner, assignor, or licensor fails to exercise adequate quality control over the goods or services sold under the trademark by a licensee.Source: Manual of Model Civil Jury Instructions for the District Courts of the Ninth Circuit (2017), Section 15.22, pg. 343. 2. Accord and Satisfaction an agreement between two parties to accept terms that differ from the original amount of a contract or claim. Sample Elements Consideration to support an accord and satisfactionan offer of partial payment in full satisfaction of a disputed claimacceptance of the partial payment by the creditor with the knowledge that the debtor offered it only upon the condition that the creditor accepts the payment in full satisfaction of the disputed claim or not at allSource: Charleston Urban Renewal Authority v. Stanley, 176 W.Va. 591, 346 S.E.2d 740 (1985) 3. Assumption of Risk a defendant must prove that the plaintiff knew of a dangerous condition and voluntarily exposed himself to it Sample Elements knowledge on the part of the injured party of a condition inconsistent with his safetyappreciation by the injured party of the danger of the conditiona deliberate and voluntary choice on the part of the injured party to expose his person to that danger in such a manner as to register assent on the continuance of the dangerous conditionSources: Alley v. Praschak Machine Co., 366 So.2d 661 (Miss.1979), citing Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994). 4. Breach of Contract the act of breaking the terms of a contract without a legal excuse Sample Elements a legally enforceable obligation of a plaintiff to a defendantthe plaintiffs violation or breach of that obligationinjury or damage to the defendant caused by the breach of obligationSources: Filak v. George, 267 Va. 612, 619, 594 S.E.2d 610, 614 (2004). 5. Collateral Estoppel (Issue Preclusion)?a doctrine that bars a party from re-litigating issues Sample Elements the issue previously decided is identical with the one presented in the action in questionthe prior action has been finally adjudicated on the meritsthe …

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THE FUTURE OF COMMERCIAL REAL ESTATE

The retail industry has been experiencing disruption due to technological innovations that have pushed a growing number of consumers to mobile purchases and e-commerce transactions. In 2017, nationwide e-retail sales totaled over $409 billion. Amazon accounted for $54.47 billion and Walmart sold $14 billion in the U.S. alone. By the year 2021, forecasts for global e-retail sales expect the number to reach $603.4 billion (USD). In tandem, local and national media headlines in the last few years have reported stories of major retail industry giants closing hundreds of brick-and-mortar locations due to steady declines in sales. Among the most notable retailers closing doors or filing for bankruptcy protection are RadioShack, Gap Inc., Kmart, and Toys R Us. Across the commercial property board, access to information that was once limited to CRE brokers who paid fees for such data is now available to the general public for free. This has removed barriers between commercial real estate owners and prospective tenants. For example, the website 42Floors provides office space rentals and commercial real estate listings for owners and prospective tenants. A fair amount of information is available for free, and a premium service lets licensed brokers access better-qualified prospective tenants. Some companies like CompStak and DealX implement a crowd-sourced platform by providing lease comparables for public usage, coupled with details like the tenant’s name, rent amount, length of lease and landlord concessions. Real Massive and VTS have even more comprehensive platforms, offering property listings, relevant market data, workflows and information to owners, CRE professionals and tenants. These are just a few of the startups looking to transform commercial real estate through innovation and by making data transparent and ubiquitous. Digital Disruption Is Affecting All Real Estate Asset Classes It’s clear that technological innovation has affected many asset classes of real estate, including workspaces, retail shopping centers, distribution centers, offices and more. With an increasing amount of work and consumer purchases being performed from anywhere on mobile devices that have internet access, employees and consumers are transforming the way they do their jobs, purchase goods and services, and live. Retail stores are reorganizing their traditional infrastructure from a decade ago to better compete with e-commerce giants such as Amazon and Walmart. Because of the amount of information consumers are able to access, change is taking place in the retail industry. Retail store owners, commercial brokers and staff are no longer the ones with absolute power. Consumers are not taking a back seat anymore and the ramifications for the commercial real estate industry cannot be taken lightly. The road to a purchase is no longer a straight line for consumers. Nowadays, they include both traditional store and online channels. Consumers are investigating and learning all there is to know about the product well before going into a physical location ? if they ever do. One of the outcomes is that square footage demand for retail space has decreased due to shifts in consumer behavior and buying patterns, efficiencies of the physical store and online channels. In many major cities across the U.S., foot traffic has been on a gradual decline. Disruption in the retail market is having a similar influence in manufacturing. Warehousing and distribution markets have experienced an increasing demand due to the yearly growth in online purchases. It should come as no surprise that many large retailers are making investments in extremely complex technical fulfillment sites that are strategically located. Customers can now receive merchandise that is directly shipped from the warehouse inventory instead of retail stores having to keep it within the store. This works out well for retailers since the cost per square foot of warehousing space tends to be a lot less expensive than retail space. In the office class, the integration of technology, mobile devices and infrastructure empowers workers to work virtually anywhere. Traditional office environments have been places where employees go to perform their jobs Monday through Friday on a 9-5 work schedule. People communicated with colleagues and fellow staff and even met with customers. In essence, the original social network was the office. This system was linear, strict and offered few to no opportunities for personalization and uniqueness. Overall, disruption is a positive thing that brings about progressive change for the disrupted industry. Commercial real estate agents and investors who are open to new methods and who evolve with the latest disruptive technologies should remain market leaders. Innovation will often produce very good results if you’re willing to embrace it. If not, you are likely to be left behind. AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues Notice: JavaScript is required for this content.

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NOTARY

Overview Documents are notarized to deter fraud and to ensure they are properly executed. An impartial witness (the notary) identifies signers to screen out impostors and to make sure they have entered into agreements knowingly and willingly. Loan documents including deeds, affidavits, contracts, powers of attorney are very common documents needing notarization. To “notarize” a document or event is not a term of art, and its definition varies from place to place; but it generally means the performance by a notary of a series of possible steps, which may include the following (not an exhaustive list): Identifying the person appearing before the notary through personal acquaintance or by reference to significant proofs of identity including passport, driving license, etc. Where land titles are involved or significant rights may accrue by reference to the identity, signatures may also be verified, recorded and compared. Recording the proof of identity in the notarial register or protocol. Satisfying the notary that the person appearing is of full age and capacity to do whatever is intended. Taking an affidavit or declaration and recording that fact. Taking detailed instructions for a protest of a bill of exchange or a ship’s protest and preparing it. Recording the signature of the person in the register or protocol. Taking an acknowledgment (in the United States) of execution of a document and preparing a certificate of acknowledgement. Preparing a notarial certificate (in most other jurisdictions) as to the execution or other step. Sealing or stamping and signing the document. Recording all steps in the register or protocol. Delivering the completed original to the person appearing. In some cases, retaining a copy of the document in the register or protocol. Charging the person appearing a fee for the service. Common law vs. Civil law notaries Most common law systems have what is called in the United States a notary public, a public official who notarizes legal documents and who can also administer and take oaths and affirmations, among other tasks.[3] Although notaries public are public officials, they are not paid by the government; they may obtain income by charging fees, provide free services in connection with other employment (for example, bank employees), or provide free services for the public good. In the US (except Puerto Rico), any person ? lawyer or otherwise ? may be commissioned as a notary. Most civil law-based systems (including Puerto Rico and Quebec) have the civil law notary, a legal professional performing many more functions than a common-law notary public. They are qualified lawyers who provide many of the same services as common-law attorneys/solicitors (negotiation and drafting of contracts, legal advice, settlement of estates, creation of a company and its status, writing of wills and power of attorney, interpretation of the law, mediation, etc…) except any involvement in disputes to be presented before a court. In the United States, a signing agent, also known as a loan signing agent, is a notary public who specializes in notarizing mortgage and real estate documents. Notaries in civil law jurisdictions are specialized in all matters relating to real estate, completing title exams in order to confirm the ownership of the property, the existence of any encumbrances such as easements or mortgages and hypothecs. Often, in the case of lawyer notaries, the certificate to be provided will not require the person appearing to sign. Examples are: certificates authenticating copies (which are mostly not within the permissible functions of U.S. notaries) and certificates as to law, such as certificates as to the capacity of a company to perform certain acts, or explaining probate law in the place. Online systems In the United States, the states of Virginia, Texas, and Nevada have all passed laws allowing for online witness by notaries, using screen sharing or webcam as well as identity verification processes. Virginia was the first state to pass legislation allowing online notarization in 2012. Texas and Nevada passed similar laws in 2017 that went into effect in July, 2018. Some sites and apps include Notarize, DocVerify, NotaryCam, Safedocs, and SIGNiX. Notarize is also the first company to offer fully online mortgage closings, executing the first in August 2017 with United Wholesale Mortgage and Stewart Title. In the United States as of 2017 there are estimated to be over 4 million notaries employed. Notice: JavaScript is required for this content.

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WHAT IS AN AFFIDAVIT OF TITLE?

What is an Affidavit Of Title? An affidavit of title is a legal document provided by the seller of a piece of property that explicitly states the status of potential legal issues involving the property or the seller. The affidavit is a sworn statement of fact that specifies the seller of a property holds the title to it. In other words, it’s proof that the seller owns the property. It also attests that certain other facts about the property are correct as sworn to by the seller and duly notarized. For example, someone looking to sell real estate would need to provide an affidavit of title indicating that the property is theirs to sell, that the property is not being sold to another party, that there are no liens or unpaid taxes against the property and that the seller is not in bankruptcy proceedings. KEY TAKEAWAYS An affidavit of title is a notarized, legal document provided by the seller of a piece of property attesting to the status of and certain facts about the property, including ownership and the presence of any legal issues. An affidavit of title is designed to protect the property’s buyer. Most states and title companies require affidavits of title in real estate transactions. Understanding Affidavit Of Title An affidavit of title is designed to protect the buyer from outstanding legal issues that might be facing the seller. If an issue arises at a later date, after the transaction, the buyer has possession of a physical document one that contains sworn statements by the seller that can be used in court or should some of legal action need to be taken. Most states require an affidavit of title as part of the legal paperwork required for transferring property from one party to another. An affidavit of title is also generally required by the title company before it will issue title insurance. Contents of an Affidavit of Title Guidelines for an affidavit of title can vary from state to state. Generally, though, the basic contents include personal details about the seller, including a name and address. In addition there are statements to the effect that: The seller is the true and exclusive owner of record for the property being sold. The seller is not concurrently selling the property to anyone else. There are no liens or assessments outstanding against the property. The seller has not declared bankruptcy or is not currently in bankruptcy proceedings. Beyond that, there can be specific exclusions given in an affidavit of title. For example, the affidavit of title may note that there is a mortgage remaining on the property that will only be paid off after closing or that a specific lien or issue does exist, but is in the process of being settled or dealt with. Broader exclusions include things like easements, encroachments and other issues that may not be shown on public records. If an exception in the affidavit of title is an area of concern for the buyer, the buyer can notify the seller that the item must be remedied prior to closing. This could be as simple as having the seller clear a lien, or something more involved, such as paying for an updated survey of the land allotment and any easements upon it. Real Life Example of an Affidavit of Title Affidavits of title can be used for real estate transactions other than purchases. The New York State Dept. of Parks and Recreation has an affidavit of title form it uses for non-profits seeking grant money for construction projects. The form first has the seller, “the owner in fee simple of the property,”, indicate when they acquired the property, with the date and recording number of the deed. Second, there’s a clause that states: “During the entire period of such ownership, said property was in the possession of said owner or owners; that such possession was peaceable and undisturbed, and title thereto was never disputed, questioned or rejected. I/We know of no facts by reason of which such possession or title might have been called into question or by reason of which any claim to any part of said property or interest therein adverse to said ownership might have been set up. There are no judgments against such owner or owners unpaid or unsatisfied of recorded entered in any Court of this State or of the United States. Said property is free and clear of all mortgages, attachments, judgments, leases, tenancies, easements, licenses, charges, estates, unpaid taxes and assessments, unredeemed or uncancelled tax sales, contracts of sale, actions or proceedings that may affect the same, or of any and all other rights, liens and encumbrances whatsoever?”   AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues Kansas City Real Estate Lawyer – 816-545-9708Home https://saintlouisrealestatelawyer.com https://fsbomidwest.com https://flatfeelegalprotection.com

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7 WAYS TO MAKE MONEY IN REAL ESTATE WITHOUT GIVING UP YOUR FULL TIME JOB

Virtual Assistant Digital nomads and side hustlers all over the world start out as a virtual assistant (aka VA). VAs don’t have to ever meet their clients in order to make money’they just do all of the tasks that the client is too busy to do themselves. In the real estate field, being a virtual assistant may include: Managing appointments Sending emails to clients Writing and sending personal newsletters Updating mailing lists Maintaining property listings It’s not the most glamorous job, but it will give you a taste of what it’s like to work in the real estate field. Content Creator/Real Estate Blogger It is possible to make money writing a blog. One option is writing for an existing blog that pays writers. Another option is to start your own blog. If you start your own blog, you willneed to invest more time and effort in the beginning to generate readership and eventually make passive income. If you are passionate about real estate, writing, and making an income on the side, it could be a great investment. Airbnb Management Granted, Airbnbs have been put on pause for the last couple of months. But as cities continue to open back up and travel resumes, the popularity of short-term rentals will rise again. And you do not have to own a property to make money off Airbnb. All you need is a property owner with some rooms to fill. Not all property owners have the time to manage guests coming in and out of their rental every other day even if it could potentially mean more money in their pocket. That is where the Airbnb manager comes in. Here is how it works. You approach a property owner who is looking for tenants. You tell them that you will pay rent as an Airbnb manager. Throughout the month, you clean the property, welcome guests, pay the right insurance payments, and rake in the cash. This is a great side hustle for someone who isn’t willing (or doesn’t have the funds) to make a down payment on a property. Wholesaling (Bird-Dogging) There are plenty of ways to earn money in real estate without buying any property. In fact, you do not even need a lot of cash to start a side hustle. Wholesaling is one of the least expensive ways to get into the real estate industry you just need the skills and network to get started. Here is how it works. Wholesalers essentially act as a middleman and make some commission for their efforts. They connect sellers who need to get out of their place fast with buyers who want a good deal on a property. The wholesaler walks away a few thousands dollars richer all for knowing how to make connections and make things happen. Part-Time Real Estate Agent Not all real estate agents make this job their whole hustle. A few showings on the weekend could be the key to that extra cash you need for a luxury vacation or a down payment. Plus, there’s no better way to get to know your local market than to become an agent. Of course, you will need to put in a bit of time, effort, and money to make this side hustle work. Fortunately, its a career that will always catch you if you need some extra cash. Referral Fees If you have a real estate license, you have more opportunities to earn money from side hustles. One of these opportunities is making referral fees. Like wholesaling, you have to have a good network and eye for opportunity to make this work. Lets say you have a client who is looking to move to a new city or state. You are not licensed to help them find their dream house in that particular market. Luckily, you know just the agent who is. In exchange for your referral, you get a cut of the agents commission. House Flipper Like real estate agents, house flippers can make this hustle a lifestyle. If you have access to the right contractors, however, you can make this a hands-off project that still rakes in money. Knowledge of the market and an eye for the latest design trends will also help you out here. We have all seen house-flipping shows on HGTV, but just because you have seen a surprise cost does not mean you are fully prepared. Make sure to team up with experts in construction, real estate agents, and legal services providers to help you make the best decisions on flipping. HTTPS://KCREALESTATELAWYER.COM

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REAL ESTATE WHOLESALING

If you enjoy keeping up to date with market trends, following respected real estate blogs, or are addicted to HGTV, you might have more in common with a real estate investor than you think. Perhaps you have been considering a career in real estate for quite some time now but have yet to take the plunge. Maybe you have even come close to making an offer on a property but the deal fell through because you were too afraid to take action. If the above statements ring true for you, wholesale real estate just might be the solution you have been looking for. Wholesale real estate is the perfect way to get your feet wet as a real estate investor. As with any new business opportunity, there are both benefits and disadvantages to the process. Make sure to evaluate the following pros and cons before getting started. What Is Real Estate Wholesaling? Real estate wholesaling is the process through which an individual, the wholesaler, acquires a contract from the seller of the property and assigns that same contract to an end buyer. Wholesaling is considered one of the best short-term investment strategies and is a great way for individuals to break into the real estate investing industry. This is because wholesaling does not require significant capital to get started. Wholesaling can also help beginners learn quickly about the real estate market as well as gain invaluable negotiation skills. A wholesaler is able to make a profit by identifying properties being sold for under market value, making an agreement with the seller of the property, and assigning the purchase contract to another buyer. They earn revenue through a wholesaling fee that is attached to the transaction  often a percentage of the overall property cost. End buyers are typically real estate rehabbers or other types of investors who prefer not to spend time identifying discounted properties or negotiating with sellers. By acting as the middleman, wholesalers generate income by helping real estate investors find and close on potential deals. However, there are some things to keep in mind in order to make wholesaling work well, discussed next. Does Real Estate Wholesaling Work? Real estate wholesaling works for those who are willing to put in a great deal of sweat equity. While it is relatively risk free, wholesaling requires plenty of due diligence and effort in order to see a healthy return. Running a wholesaling business can be challenging because you must be able to identify properties being sold for well under market value, negotiate deals with sellers, and target cash buyers who are willing to purchase those properties. To be successful in wholesaling, you must be prepared to invest a lot of effort in building strong lead lists, as well as networking and curating your wholesale buyers list over time. Those who are willing to master the process in such ways are sure to experience the benefits of wholesaling real estate. Example Of Wholesaling The concept of wholesaling real estate is fairly simple. For example, lets assume there is a homeowner intent on selling. However, the property is fairly distressed, and therefore incapable of being sold for its true market value if at all. Instead of rehabbing the home themselves, the homeowner has another option: enter into a wholesale agreement with a subsequent investor. Whether the homeowner cant afford to make the upgrades or they simply do not want to, they can agree to enter into a wholesale contract with a wholesaler. The contract will give the wholesaler the right to buy the property at a specified price (often lower than market value because of the work needed to rehab it). The wholesaler will then find an end buyer willing to pay slightly more than the wholesalers original contract, and sell their rights to buy the house to the new investor. Remember, the wholesale is not selling the property, but rather the right to buy the property. Wholesaling Vs House Flipping The wholesaling vs house flipping debate does not have a correct answer. Instead, investors need to determine what they want out of investing, and choose which exit strategy is best suited to get them one step closer to their goal. House flipping, for example, is typically reserved for investors with a little more access capital, time, and experience. If for nothing else, house flipping, costs more, takes longer, and comes with more risk. However, in the event investors are adequately prepared, house flipping also comes with more generous returns. Wholesaling real estate, on the other hand, has become synonymous with entry-level strategies. Real estate wholesaling generally takes a lot less time to complete, costs investors a lot less upfront, and reduces risk exposure. Consequently, wholesaling also comes with smaller returns. Whether an investor should wholesale or flip will depend entirely on their experience, access to capital, available time, and risk aversion. However, there is no right or wrong answer. It is entirely possible to make a lucrative career out of each strategy. While wholesaling generally makes less money per deal, the short-time period will make up for lower returns in volume. Flipping, on the other hand, will see investors complete fewer deals, but also increase profits. 3 Benefits Of Wholesaling Real Estate Earn profits in a shorter time frame Accessible to those with limited cash and credit Now that we have defined wholesale real estate, you are probably wondering about the benefits associated with the strategy. Read on to gain insights to the top three benefits of property wholesaling: 1. Make Money In Less Time If you have done your due diligence and educated yourself on the process, wholesaling can be a very lucrative business. Wholesaling is great for new investors because it requires little to no personal finances or experience. In the event your offer is accepted, it is entirely possible to close the deal and get your check in 30 to 45 days, or less. Imagine this: You come into contact with a motivated seller, whose property has an …

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For Sale by Owner / Home Buying / Home Selling / Real Estate Brokers / Real Estate Markets

THE FUTURE OF REAL ESTATE AGENTS

Future Of Real Estate Agents A growing disconnect between homeowners and real estate agents is among the biggest changes happening in real estate investing. Many find themselves asking: Is it better to list a property by yourself, or enlist the help of a professional agent? To this day, real estate agents have yet to become obsolete, and it is hard to imagine that their services will ever not be needed. They simply offer too much value to the average homeowner. For starters, their negotiating skills and local market expertise will always help sellers receive the most money for their property. Homeowners that take on the task of selling a home could lose money with one single mishap. At the very least, the buyers agent may talk down the price. Any number of things could go wrong without a professional agent to represent your side of a transaction. Outside of selling a home for its maximum value, agents have the potential to sell faster. In addition to marketing campaigns, there is a good chance they already have a competent buyers list. The right agent could have a buyer in place before the home is officially up for sale. There is no questioning that a good real estate agent is worth their weight in gold, especially for those in the investing industry, but there are a few trends that warrant your attention. Specifically, the advent of For Sale by Owner (FSBO) sites are beginning to carve out a niche among a select population of sellers. According to a survey conducted for Redfin, approximately 17 percent of homebuyers in the last two years didnt feel the need to enlist the services of a real estate agent. The same survey, made possible by SurveyMonkey Audience, identified an increasing trend in discounted commissions. Of the homeowners that did use an agent to purchase a home, one-third said their agent offered incentives in the form of a refund or savings in excess of $500. It is not uncommon for Realtors to charge six percent of the sales price for their services. On a $230,000 home (the median value of a single-family house), commissions can reach upwards of $14,000. At that rate, the prospect of foregoing a Realtor altogether becomes very enticing. According to data provided by ForSaleByOwner.com, about half of all homeowners in America would consider selling their home without the help of a Realtor. At the same time, 55 percent of Millennials acknowledged that they would like to use the ?for sale be owner? sales model to list their home. We are seeing a dramatic transformation of the real estate industry with todays consumers, especially millennials exerting more control over the buying and selling process than we have ever seen before, said Lisa Edwards, director of business strategy at ForSaleByOwner.com. Listings on ForSaleByOwner.com increased an impressive 57 percent in spring, the pinnacle of the 2015 selling season, and there is nothing to suggest that the trend wont continue. It is important to note, however, that most of the sellers reside in the Northeast. Major metros like New York, Boston and Philadelphia appear to be more interested in foregoing the agent experience. Even the National Association of Realtors (NAR) has concurred that FSBO sales are more likely to occur in major metropolitan areas. ?Today [sellers] can quickly understand market conditions by using free online pricing tools, reviewing recently sold homes and homes currently for sale online without the help of an agent, said Edwards. Sellers have found sites like Redfin to be extremely helpful. In fact, Redfin charges sellers 1.5 percent of the sales price, whereas traditional agents can get away with charging twice as much. On a $250,000 home, the difference can save sellers as much as $3,750. There is no denying that online listing services have changed the way people look at selling. Agents, in particular have had to react to the advent of technology. Real estate agents are reacting to more competition in the market, said a Redfin spokesperson, adding that traditional brokers have had to change the way they do business to stay competitive. Of course, there is no reason to believe that any trends will result in the extinction of real estate agents. The creation of FSBO and other websites have made listing a home easier for the average seller, real estate agents still have their place. HTTPS://KCREALESTATELAWYER.COM AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues

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Deeds / Estate Planning / For Sale by Owner / Home Buying / Home Selling / Real Estate Markets / Tax-Related Issues / Title Issues

BUYING PROPERTY IN PROBATE

Probate real estate has proven time and time again that it deserves a place amongst today’s best acquisition strategies. At the very least, investors who are able to acquire houses in probate may find themselves with an attractive deal that’s too good to pass on. It is worth noting, however, that the process of acquiring a deal through probate strays from what the average investor is used to. There is a unique process when it comes to buying homes in probate, and it could be in your best interest to learn it. If for nothing else, understanding the basic tenants of the probate real estate process could put you on the path to finding your next deal. And what better way to understand the process than to gather as much information as you can from this probate real estate guide. What Is Real Estate Probate? Real estate probate is the legal process following a homeowner’s death, where the property either transfers ownership to someone or is sold. It is another way of describing the proceedings by which a decedent’s will is processed in court ? a special court, nonetheless. In the case of real estate, it refers to the previous owner’s respective home. Let me explain. According to the Branch Banking and Trust Company, ?An executor of the estate is named to handle the decedent’s affairs and administer the estate throughout the probate process. Assets that are distributed under a will (or all assets in the absence of a will or other ownership forms) go through this process and are subject to probate.? In other words, probate often refers to the administering of a deceased person’s will. More often than not, said administering will include a home ? the same probate real estate investors are eager to get their hands on. But why would investors be interested in probate properties, especially when they aren’t even on the will of the deceased? The answer is simple: there are great deals to be had. You see, not everyone wants to inherit a property from a deceased relative. The recipient may not be able to afford the costs that coincide with the property, and are, therefore, may be more willing to quickly part ways with the home; that’s where investors come in. Investors could turn the new owner’s lack of desire to own a new property into an opportunity. Their lack of interest actually serves as motivation to rid themselves of the home, and patient investors may be able to capitalize. What is real estate probate Probate Real Estate In 4 Steps The probate process may seem confusing between the court proceedings and legal documents; however, probate properties will typically follow the same course. In general there are four main steps to the probate process (though exact proceedings can vary depending on your state). Read through the following list for a better understanding of probate real estate: Executor Of The Estate: For the probate process to begin, an Executor of the estate must be appointed. Typically, the Executor is named in a decedent’s will, but if not the court will appoint an Administrator to fulfill the role. The will includes whether or not the property will be inherited by an heir, or if it will be sold. Property Appraisal: If the property will be sold, the Executor will then determine a listing price for the property in question. The list price will be determined after an appraisal with the help of a real estate agent experienced in probate sales. Property Listing: After the listing price is established, the property will then be put on the market. The real estate agent working with the property will market it like any other home, using signage, websites, and more to attract a high offer. Approval And Sale: Once an offer is submitted, the real estate agent will negotiate the terms to satisfy both parties. An official notice will be mailed to all heirs of the estate, establishing a 15 day period to object to the sale of the property. If there are no objections, a court date will be scheduled where the sale of the house will be officially executed. How Long Does Probate Take? The probate process takes two years on average, though it will vary depending on a number of circumstances. According to FindLand, the typical probate process can be affected by the number of heirs, any issues with the execution of the will, and any taxes or debts attached to the property. Additionally, the state and local laws where the property is located could impact the overall timeline. The reason probate can extend for so long is that the various legal proceedings associated with the process take time. In some cases, probate can take as little as six months, though this is not always the norm. Investors who have worked with probate properties may be aware: but the presence of a will can speed things along greatly. The reason being, a will signals that the property has already been assigned to a specific beneficiary. That heir can then decide how to move forward with the property. How To Avoid Probate To avoid probate, homeowners can put all of their assets into a revocable living trust. This is a written document (signed and notarized) that determines who will receive the property when a homeowner dies. In order to do this, a homeowner must create a trust document and then transfer any assets into said trust. It is not required to make a trust if you own property or other valuable assets, though it can be helpful down the road. While it may seem melancholy, it is not uncommon for individuals to create a living trust (or will) to prepare for the future. You do not need a lawyer to create a trust, though legal help can be invaluable as you navigate the process. When done correctly, a revocable living trust can help homeowners, or more specifically their trustees, avoid probate court after death. How …

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Divorce / Home Selling / Real Estate Brokers / Real Estate Markets

ADVANTAGES OF LEASE OPTION AGREEMENT

In real estate investing, as complicated as it can seem, there are mostly two options: Buy and sell or buy and hold. It can be argued that those are the same two options for any sort of investment. Stocks, for example, can be bought low and sold for a higher dollar amount. Or they can be held for long-term appreciation and for dividends collected along the way. But there might be an avenue for residential real estate investors to kind of combine the best of both worlds  to reap the advantages of buying and selling, plus gain the advantages of holding real estate in a portfolio. And that avenue might be the lease option. “Lease option” is the legal term for what is commonly known as “rent-to-own,” which sometimes has a negative connotation because the rent-to-own industries outside of real estate have been viewed by some as exploitative. But in real estate, a lease-option is just what it sounds like: a lease with the option to buy. In real estate, the lease-option is a legal instrument between the investor/seller and a tenant/buyer. It involves a lease with a monthly rental amount due, but it also includes an option to buy  for a predetermined price  at any time during the agreement. Typically, lease-options include a rental credit that goes toward the purchase of the home. If the tenant-buyer pays the rental amount due each month, a portion of that rental payment is credited back should the tenant-buyer exercise his or her option to purchase the property. This arrangement has plenty of advantages for the owner of the property under the lease-option agreement. Those advantages, in a nutshell, include: Higher monthly rents: Because a portion of the rent paid is to be credited to the buyer at the time of purchase, the owner of the property can typically demand monthly rent higher than the market norm. Greater tenant responsibility: If a rental is structured as a lease-option, the tenant (buyer) is operating under the assumption that he or she will eventually own the property, which means he or she might be more willing to take good care of it. On-time rental payments: If structured properly, a lease-option arrangement can include the provision that the amount of rent credited toward purchase is only applicable if the rent is paid by a certain date each month. The tenant has a big incentive to pay on time. Prearranged sales price: The owner of the property can build in expected appreciation and be guaranteed a bottom-line sales price years in advance. A typical lease-option period is one to three years. The tenant signs a lease, including the higher-than-market-average rental amount and agrees to a purchase price set in advance. An investor might write the lease-option on a home worth $100,000 to be sold to the tenant-buyer in three years for, say, $115,000, thereby guaranteeing the sale of the property for more than its original purchase price. In the meantime, during the three years, the tenant will be paying above-market rent each month. Even if the monthly credit is achieved every month, reducing the sales price or contributing to the buyer’s down payment, the investor is likely to get more out of the property than it cost. That’s a version of the “buy-and-sell strategy” that many real estate investors aim for. The buy and hold advantages are realized in regular rent payments each month. But instead of collecting positive cash flow and having to manage the property indefinitely, the investor has an Lease options, blending the buy-and-hold and buy-and-sell strategies of real estate, might be the best of both worlds for the real estate investor who plays his or her cards right. HTTPS://KCREALESTATELAWYER.COM Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS SearchSearch AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS SURVIVORSHIP AFFIDAVIT TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate

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Boundaries / Land Use

FENCES

  Fences Fences are essential to protecting privacy in your backyard, keeping pets safely in, and establishing property lines. Few people today question that a good fence is essential to a newly built or remodeled home. Gone are the days of vast, interconnected backyards. Urban density and legal liability have taken care of that. Even though you may want to build any kind of fence anywhere and at any height, chances are good that in your area you cannot do this. Laws are enacted to protect the visual texture of your area and to keep neighbors in a neighborly mood with each other. While fence-related laws, regulations, and zoning are different from one area to the next, there are a few common themes: notification, expenses, placement, and fence height and type. Notifying Neighbors Before Building a Fence If you want to build a fence on the property line, are you required by law or any other regulation to notify your neighbor? Maybe. Traditionally, notice has not been required, but the trend is for communities to require neighbor notification. One example of this is California’s Good Neighbor Fence Law. It requires 30 days’ advance written notice, along with details about the proposed building, maintenance cost, timeline, and design. Whatever you do, it is always good etiquette to speak to your neighbor first. Can Your Neighbor Build a Fence on the Property Line? You wake up one Saturday morning to the roar of gas-powered earth augers drilling holes precisely on your property line for a new fence. Can your neighbor do this? From the standpoint of informal neighborly relations, the answer is always no. If that neighbor can discuss this with you ahead of time, it is always best for them to do this. From a purely legal standpoint, the neighbor, in most circumstances, can build that fence and even can ask you to pay 50-percent of the cost of the fence. Their sudden fence project may hinge more on the issue of notice than anything else. If you live in a jurisdiction where the neighbor must serve you notice before embarking on the fence project, then that neighbor is indeed unable to build and still remain within the laws of your area. If the neighbor is building the fence with the express intention of malice, annoying, or harassing you, this may be what is often termed a spite fence. Your local statutes may allow a court to halt the construction of a spite fence. Sharing Fence Building Expenses With Neighbors If you intend to build a fence on a property line and wish to pay for the fence, you are not required to seek compensation from your neighbor. At the same time, shouldering the cost of building a fence does not entitle you to special privileges over your neighbor’s desires. If your neighbor initiates the fence-building project, are you required to pay for half of the costs? Most likely yes. Local fence laws assume that boundary fences benefit both homeowners and so both owners must pay for the fence. The same holds true for fence maintenance and repairs.? For example, Washington State law (Wash. Rev. Code Ann. ? 16.60.020) states that “[the neighbor] shall pay the owner of such fence already erected one-half of the value… as serves for a partition fence between them.” In other words, both landowners must equally share the cost of a partition fence In many areas, state-level fence law dates back centuries and mainly addresses issues of grazing animals. Beyond the general edict that fence costs must be shared, details are left open-ended. Unless state laws such as California’s or local ordinances firm up those details, the matter is left in the hands of the two property owners. Should that fail, the only recourse is court. Getting a Land Survey Before Building a Fence Since partition fences mark divisions between properties, it would seem logical to assume that a survey is required before building a fence. Actually, this is not the case. In most places, you are not required to survey the property line in question before building the fence, though you may still want to do so. It is expensive to order up a true property line survey, but this is the only way to know for certain where property lines fall. Forcing a Neighbor to Remove an Ugly Fence Two types of fences tend not to be allowed by most cities: barbed wire and electrified fences. Beyond that, your neighbor is allowed to build that chainlink, vinyl or concrete block wall. If you live in a neighborhood controlled by a homeowner’s association (HOA), all bets are off. The HOA may not just exclude fences but require certain types, such as natural cedar wood with a certain stain. Planting Shrubs to Evade Fence Restrictions You might have a real need for a fence that is taller than normal: traffic noise, an adjacent industrial area or multi-level structures. Can you plant shrubs in place of a fence and grow those shrubs super-high? Probably not. Wise to such evasions, local lawmakers often include vegetation as a form of fence. However, because it is difficult to keep foliage at precisely 6 feet or less, laws for natural fences may provide for a higher top. Fence Height Rules Often, 6 feet is the maximum height anywhere on the property, except for: Within 15 feet of a street line or street curb In the front yard When traffic sight distances are impaired In the case of the exceptions noted above, the fence can be no higher than 3 1/2 to 4 feet. Building a Fence on an Easement In most cases, you can build a fence on an easement that runs through your property. However, the dominant estate (for example, the utility company) may need to take down the portion of the fence that runs over the easement for a certain activity, such as repairing the sewer main. They are allowed to do this. Installing a Fence Just Inside a …

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Deeds / Estate Planning / For Sale by Owner / Home Selling / Land Use / Real Estate Brokers / Real Estate Markets

LOAN SUBORDINATION

A subordinated loan is paid after all first liens have been paid. If there is a first and second mortgage loan on a property, the second mortgage is usually subordinate to the first mortgage. In the case of foreclosure on the property, the bank or other financial institution that holds the first mortgage is paid first and the financial institution holding the second mortgage is paid second, if there is anything left with which to pay them. Subordination and Mortgage Loans In real estate, the mortgage taken out first and used to buy the property is the first mortgage. It is also called senior debt. If the property, at a later time, has either a home equity loan or home equity line of credit (HELOC) placed on it, that is called junior debt. The home equity loan or HELOC almost always has a higher interest rate than the first mortgage because of the possibility of foreclosure. If the home goes into foreclosure, the financial institution that holds the first mortgage will get paid first since it is senior. The financial institution that holds the home equity loan or HELOC will get paid with what’s left over, if anything. It has to carry a higher interest rate to compensate for this additional risk. If the homeowner needs a home equity loan or a HELOC and applies to the same financial institution that made the first mortgage, there is usually no problem with regard to subordination. The home equity loan is automatically made subordinate to the first mortgage. What is a Subordination Clause in a Mortgage? The purpose of a subordinate clause in a mortgage is to protect the primary lender on the home, usually the financial institution holding the first mortgage. That institution will lose the most in the case of foreclosure. The subordination clause simply guarantees that the first mortgage holder will be paid first if the home goes into foreclosure. In times of lower interest rates, homeowners may build up equity in their homes quickly and home equity loans may be more common in order to take out the equity on the home. If a second mortgage is taken out, usually in the form of a home equity loan or HELOC, there is usually a subordinate clause that gives the first mortgage holder priority in case of foreclosure on the property. If a first mortgage is paid off, a second mortgage then becomes a first mortgage. Refinancing and Re-subordination If you have a first mortgage plus a home equity loan or HELOC and you want to refinance, then you have to go through the re-subordination process. Re-subordination is often shortened to just subordination. If you refinance, you pay off your first mortgage and put a new first mortgage in its place. Because the original mortgage loan is no longer there, the home equity loan or HELOC moves into the primary or senior debt position unless a re-subordination agreement is in place. The financial institution holding the home equity loan or HELOC has to agree that their loan will be second in line to the new first mortgage loan through a re-subordination agreement. Most financial institutions will agree since it is in the best interest of the borrower. There are usually some requirements before a lender will agree to a re-subordination agreement: There will be administrative charges to pay.You have to be in good standing with your lenders on your payments.There are limits on your total mortgage payments.It is possible that you wont be able to consolidate debt or take cash out with the new first mortgage. There are two instances where financial institutions may not agree to resubordinate. The first is if you have a large amount of equity in your home and want to do a cash-out refinancing. This type of refinancing involves taking a large amount of cash out of the equity of the house and borrowing a larger amount of money for the first mortgage. The second instance where you might have a problem getting a re-subordination agreement when you refinance a mortgage is when you have little or no equity in your home. In this case, the lender worries that you wont have the ability to repay the loan. Re-subordination Issues to Consider If you refinance your home and you have a home equity loan or HELOC in place, your new lender will insist that the home equity loan or HELOC be re-subordinated. The lender of the home equity loan or HELOC that you already have is not required to do this, but most do. If that lender refuses, you may have to wait to refinance until you build up more equity in your home to refinance. The lender of the home equity loan or HELOC is going to look at the combined loan-to-value ratio of both the new first mortgage and the mortgage they hold. If home values are rising, this is less of a problem. If they are falling, this could cause you to hit a bump in the road. If you have any problems re-subordinating your existing home equity loan or HELOC, you can try refinancing that loan. Refinancing a second mortgage is much less difficult than refinancing the primary mortgage. HTTPS://KCREALESTATELAWYER.COM Boundaries Deeds Divorce Estate Planning For Sale by Owner Home Buying Home Selling Land Use llc Locations Real Estate Brokers real estate finance, FSBO, real estate markets, home buyers, home sellers Real Estate Markets Tax-Related Issues Title Issues AUDIO/VIDEO ONLINE CONSULTS AVAILABLE DIRECTLY WITH A LAWYER What is a Side Letter Agreement in Real Estate? MISSOURI STATUTE ON PROPERTY FRAUD OPTIONS FOR SELLER FINANCING INVESTMENT FIRMS MAKING IT DIFFICULT FOR FIRST TIME HOME BUYERS AFFIDAVIT OF SURVIVORSHIP affidavit of title BUYERS commercial real estate COMMON LAW MARRIAGE COVID AND EVICITION DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE …

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Estate Planning / Home Buying / Home Selling / Real Estate Markets

SELLER FINANCING

Seller financing can be a useful tool in a tight credit market. It allows sellers to move a home faster and get a sizable return on the investment. And buyers may benefit from less stringent qualifying and down payment requirements, more flexible rates, and better loan terms on a home that otherwise might be out of reach. Sellers willing to take on the role of financier represent only a small fraction of all sellers — typically less than 10%. That’s because the deal is not without legal, financial, and logistical hurdles. But by taking the right precautions and getting professional help, sellers can reduce the inherent risks. The Mechanics of Seller Financing In seller financing, the seller takes on the role of the lender. Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a promissory note (which contains the terms of the loan). They record a mortgage (or “deed of trust” in some states) with the local public records authority. Then the buyer pays back the loan over time, typically with interest. These loans are often short term — for example, amortized over 30 years but with a balloon payment due in five years. The theory is that, within a few years, the home will have gained enough in value or the buyers’ financial situation will have improved enough that they can refinance with a traditional lender. From the seller’s standpoint, the short time period is also practical — sellers can’t count on having the same life expectancy as a mortgage lending institution, nor the patience to wait around for 30 years until the loan is paid off. In addition, sellers don’t want to be exposed to the risks of extending credit longer than necessary. A seller is in the best position to offer a seller financing deal when the home is free and clear of a mortgage — that is, when the seller’s own mortgage is paid off or can, at least, be paid off using the buyer’s down payment. If the seller still has a sizable mortgage on the property, the seller’s existing lender must agree to the transaction. In a tight credit market, risk-averse lenders are rarely willing to take on that extra risk. Types of Seller Financing Arrangements Here’s a quick look at some of the most common types of seller financing. All-inclusive mortgage. In an all-inclusive mortgage or all-inclusive trust deed (AITD), the seller carries the promissory note and mortgage for the entire balance of the home price, less any down payment. Junior mortgage. In today’s market, lenders are reluctant to finance more than 80% of a home’s value. Sellers can potentially extend credit to buyers to make up the difference: The seller can carry a second or “junior” mortgage for the balance of the purchase price, less any down payment. In this case, the seller immediately gets the proceeds from the first mortgage from the buyer’s first mortgage lender. However, the seller’s risk in carrying a second mortgage is that he or she accepts a lower priority should the borrower default. In a foreclosure or repossession, the seller’s second, or junior, mortgage is paid only after the first mortgage lender is paid off and only if there are sufficient proceeds from the sale. Also, the bank may not agree to make a loan to someone carrying so much debt. Land contract. Land contracts don’t pass title to the buyer, but give the buyer “equitable title,” a temporarily shared ownership. The buyer makes payments to the seller and, after the final payment, the buyer gets the deed. Lease option. The seller leases the property to the buyer for a contracted term, like an ordinary rental — except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms (possibly including price). Some or all of the rental payments can be credited against the purchase price. Numerous variations exist on lease options. Assumable mortgage. Assumable mortgages allow the buyer to take the seller’s place on the existing mortgage. Some FHA and VA loans, as well as conventional adjustable mortgage rate (ARM) loans, are assumable — with the bank’s approval. Getting Professional Help Both the buyer and seller will likely need an attorney or a real estate agent — perhaps both — or some other qualified professional experienced in seller financing and home transactions to write up the contract for the sale of the property, the promissory note, and any other necessary paperwork. In addition, reporting and paying taxes on a seller-financed deal can be complicated. The seller may need a financial or tax expert to provide advice and assistance. Tips to Reduce the Seller’s Risk Many sellers are reluctant to underwrite a mortgage because they fear that the buyer will default (that is, not make the loan payments). But the seller can take steps to reduce the risk of default. A good professional can help the seller do the following: Require a loan application. The seller should insist that the buyer complete a detailed loan application form, and thoroughly verify all of the information the buyer provides there. That includes running a credit check and vetting employment, assets, financial claims, references, and other background information and documentation. Allow for seller approval of the buyer’s finances. The written sales contract — which specifies the terms of the deal along with the loan amount, interest rate, and term — should be made contingent upon the seller’s approval of the buyer’s financial situation. Have the loan secured by the home. The loan should be secured by the property so the seller (lender) can foreclose if the buyer defaults. The home should be properly appraised at to confirm that its value is equal to or higher than the purchase price. Get a down payment. Institutional lenders ask for down payments to …

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WHAT IS A MASTER LEASE?

What is a Master Lease? Dictionary.com defines a master lease as a controlling lease under which a lessee can sub-lease a property for a period not extending the term of the master lease. A master lease conveys rights to the Lessee (Master Lease Investor) that help make this an ideal solution to the investment dilemma. Master Lessee gets two major rights through a master lease: Right to control the asset for a period of time Right to sub-lease the asset These rights allow a Master Lease Investor to acquire cash flow assets with limited cash capital. Is Now a Good Time for Master Leases? Let us breakdown todays investment environment. Owners cant sell as prices are still depressed from the heights when many of them bought their houses and not all buyers cant get mortgages yet everyone needs a place to live. This leads to growth in gross rental rates. Growing rental rates and difficulty selling real estate is a perfect mix for implementing the Master Lease strategy with the right sellers. Who Should is the Right Seller? As a master lease investor, you need to get creative on who you can approach with this strategy. The beauty about this strategy is that you can approach any owner with it but there are certain owners who would be more open to the idea: Free and Clear out of town owners who want to sell for a specific price and cannot achieve that price in the current market. Their motivation is driven to achieve that hurdle number and may not need all the cash today and do not like renting given the headaches associated with the tenants and repairs. You can target owners who bought their assets at the height of the market and need to sell but cannot due to the market value being less than their original purchase price. These owners maybe motivated to accept a Master Lease contingent on it working for their debt carry costs due to the inability to refinance and not achieving the price that they want for the asset. Types of Master Leases The two most prevalent master lease types are: I. A performance master lease requires the master resident to pay a percentage of the funds he receives from his sub-resident only when he receives those funds. II. A fixed lease, on the other hand, generally requires the master resident to make payments even if he does not have a sub-resident. There are many hybrids given that each owners has different needs. As a master lease investor you can negotiate any and all aspects of your master lease the variable or fixed rent amount, the term, the liability for expenses, escape clauses, etc. The key is to draft your documents by design based upon your negotiations with the owner rather than by default (i.e. using a standard realtor lease). Fears Associated with This Strategy Many investors are more fearful of executing a long-term lease as a master lessee than they are of buying an investment property. I think this is an irrational fear since it is easier to terminate a lease than it is to get out of title so the liquidity risk is less with a Master Lease strategy. Some investors also think that they may have to be licensed under their states real estate brokerage law to engage in master leasing. Usually this is not true. Licensing is generally required for property managers (with few state exceptions) because managers have a fiduciary relationship with their principal. Perspective of a Master Lessee Pros Long-term secured lease without an option often acts as a stealth option, since the owner must negotiate with you to remove your lease from the property when refinancing or selling. A master lease in many ways allows you to test drive a property before deciding whether or not you might want to buy. The master lease is a great way to get your foot in the door for future negotiations. A master lease gives you the opportunity to build the relationship that leads to future purchases and often owner financing. Do not make the mistake of thinking that your master lease is the final negotiation. It should be the first negotiation that can lead to one or more future negotiations. Cons You have first payment risk to your landlord. This simply means that you still have pay the rent to the owner even if your sub-tenant stops paying rent. This liability is similar to the liability that any owner of cash flow real estate would have to the lender who gives you money to buy the asset. You can and will have variability in cash flow associated with unexpected repairs that can lead to negative cash flow. You can mitigate this risk by conducting a home inspection prior to master leasing the investment and craving out special repair ceilings within your master lease agreement. Landlord-Tenant court. This is something that all buy & hold investors have to deal with so welcome to the club Master Lease Investors. You can mitigate this risk by conservatively underwriting your tenants so you can weed out the good from the bad tenants. Capital Improvements to make the unit rentable. As a master lease investor you may rent the unit that needs to be cosmetically repaired to get top market rent for the asset. Be prepared to have a few months worth of capital reserves built up prior to making a master lease investment. 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For Sale by Owner / Home Buying / Home Selling / Tax-Related Issues

OWNER FINANCING

What Is Owner Financing? Owner or seller financing means that the current homeowner puts up part or all of the money required to buy a property. In other words, instead of taking out a mortgage with a commercial lender, the buyer is borrowing the money from the seller. Buyers can completely finance a purchase in this way, or combine a loan from the seller with one from the bank. For the financed portion, the buyer and seller agree upon an interest rate, monthly payment amount and schedule, and other details of the loan, and the buyer gives the seller a promissory note agreeing to these terms. The promissory note is generally entered in the public records, thus protecting both parties. It doesn’t matter if the property has an existing mortgage on it, although the homeowner’s lender might accelerate the loan upon sale due to an alienation clause. Generally, the seller retains the title to the home until the buyer has repaid the loan in full. Types of Owner Financing Sellers and buyers are free to negotiate the terms of owner financing, subject to state-specific usury laws and other local regulations; some state laws, for example, prohibit balloon payments. While not required, many sellers do expect the buyer to provide some sort of down payment on the property. Their rationale is similar to any mortgage lender’s: They assume that buyers who have some equity in a home are less likely to default on the payments and let it go into foreclosure. Owner financing can take several forms. Some variations include the following. Land Contracts Land contracts do not pass the full legal title of the property to the buyer but give them an equitable title. The buyer makes payments to the seller for a certain period. Upon final payment or a refinance, the buyer receives the deed. Mortgages Sellers can carry the mortgage for the entire balance of the purchase price less the down payment, which may include an underlying loan. This type of financing is called an all-inclusive mortgage or all-inclusive trust deed (AITD), also known as a wrap-around mortgage. The seller receives an override of interest on the underlying loan. A seller may also carry a junior mortgage, in which case the buyer would take title subject to the existing loan or obtain a new first mortgage. The buyer receives a deed and gives the seller a second mortgage for the balance of the purchase price, less the down payment and the first mortgage amount. Lease-purchase Agreements A lease-purchase agreement, also known as rent to own, means the seller is leasing the property to the buyer, giving them an equitable title to it. Upon fulfillment of the lease-purchase agreement, the buyer receives the full title and typically obtains a loan to pay the seller, after receiving credit for all or part of the rental payments toward the purchase price. Owner-Financing Benefits for Buyers Buyers who opt for seller financing can enjoy several advantages. Little or No Qualifying The seller’s interpretation of buyer qualifications is typically less stringent and more flexible than those imposed by conventional lenders. Tailored Financing Unlike conventional loans, sellers and buyers can choose from a variety of loan repayment options, such as interest-only, fixed-rate amortization, less-than-interest, or a balloon payment if the state allows it or even a combination of these. Interest rates can adjust periodically or remain at one rate for the term of the loan. Down Payment Flexibility Down payments are negotiable. If a seller wants a larger down payment than the buyer possesses, sometimes sellers will let a buyer make periodic lump-sum payments toward a down payment. Lower Closing Costs Without an institutional lender, there are no loan or discount points, and no origination fees, processing fees, administration fees, or any of the other assorted miscellaneous fees that lenders routinely charge, which automatically saves money on buyer closing costs. Faster Possession Because buyers and sellers aren’t waiting for a lender to process the financing, buyers can close faster and get possession of the property sooner than with a conventional loan transaction. Owner-Financing Benefits for Sellers A variety of advantages for sellers arise in owner-financing situations as well. Higher Sales Price Because the seller is offering the financing, they may be in a position to command full list price or higher. Tax Breaks The seller might pay less in taxes on an installment sale, reporting only the income received in each calendar year.7? Monthly Income Payments from a buyer increase the seller’s monthly cash flow, resulting in a spendable income. Higher Interest Rate The owner-financed loan can carry a higher rate of interest than a seller might receive in a money market account or other low-risk types of investments. Quicker Sale Offering owner financing is one way to stand out from the sea of inventory, attracting a different set of buyers and moving an otherwise hard-to-sell property. Advantageous as it can be, owner financing is a complex process. Neither buyer nor seller should rely just on their respective real estate agents but instead should engage real estate lawyers to help them negotiate the transaction, ensuring that their agreement conforms to all state laws, covers every contingency, and protects both parties equally. HTTPS://KCREALESTATELAWYER.COM

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For Sale by Owner / Home Selling / Land Use / Title Issues

RETALIATORY EVICTION

What is a Retaliatory Eviction A retaliatory eviction occurs when a landlord evicts a renter or refuses to renew a lease in response to a complaint or action within a tenant’s legal rights. BREAKING DOWN Retaliatory Eviction Retaliatory evictions are generally illegal since they take place following a tenant’s exercise of one or more legal rights. State laws govern situations in which landlords can legally evict their tenants, typically for failure to pay rent or for some other action that breaches a rental contract or lease agreement. In a retaliatory eviction, landlords take action when tenants act within their rights, for example, when the tenant complains about potential health or building code violations, withholds rent as leverage for necessary repairs the landlord refuses to make, or similar circumstances. Tenants who experience a retaliatory conviction can run into difficulty proving their case in court, however. In some cases, landlords will present the court with an entirely different rationale for an eviction, forcing the tenant to lay out the connection between their activities and the landlord’s decision. Retaliatory evictions that take place within a reasonably short time after the precipitating event are generally easier to prove in court than evictions that take place long after the tenant upset the landlord. Example of Retaliatory Eviction Suppose a tenant renting an apartment in a highly attractive area lodges a complaint about a pest infestation or a persistent mold issue. The landlord may believe it will be easier and cheaper to evict the tenant and put the apartment up for rent in the hope of finding somebody who will live with the issue or solve it on their own. If the tenant can prove the eviction stemmed from their complaint, a court would likely consider the eviction retaliatory, placing the landlord in legal jeopardy. Legal Evictions and Other Types of Retaliation Both landlords and tenants should be aware of their legal rights under state and local law as well as rights enumerated in their rental or lease agreement. Most states allow landlords to evict disruptive tenants when they engage in illegal activities, such as selling drugs out of an apartment, or when they disturb neighbors, for example with loud parties, arguments, or fights. States generally consider other retaliatory activities undertaken in an attempt to get tenants to break their lease illegally. For example, landlords usually cannot legally harass tenants, cause a deterioration in their living conditions or raise rents in an attempt to make tenants uncomfortable enough to break the lease themselves. When tenants refuse to obey an eviction notice, courts often must navigate a gray area to figure out whether the landlord’s activities fall under the retaliatory category or whether the eviction lies within the landlord’s legal rights. HTTPS://KCREALESTATELAYER.COM

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Deeds / Estate Planning / Home Selling / Real Estate Markets

CONSIDERATIONS IN GIVING REAL ESTATE TO YOUR CHILDREN

Before the days of income and estate taxes, adult children often just moved into the family home after their parents died. Unfortunately, its not that simple anymore. There are several ways to give a home to your child. And a few are tax-free. But to get the best tax results, youve got to plan ahead. Here is a rundown of your options. Stay put If you plan to live in your home until you die, and your estate is below the unified federal estate gift and estate tax exemption amount ($11.4 million for 2019), this is your best strategy. When you die, your homes tax basis will be stepped up to fair market value as of the date of death. So you and your heirs will escape capital gains tax on all the appreciation that occurs up to that date. And, because the value of your estate is below the estate tax exemption, your heirs will owe no federal estate tax. They are free to move into the house, or sell it and keep the cash while owing little or no tax to the Feds (thanks to the basis step-up rule). If they do move into the house, their tax basis for calculating the gain or loss on subsequent sales will be the homes fair market value at the time of your death. This is a much better strategy than gifting your house to heirs while you continue living there. Why? Even if you pay market-rate rent to your child, the IRS might argue the homes full date-of-death value still belongs in your taxable estate. The only sure way around this problem is with a qualified personal residence trust, which is explained later in this story. If you are moving out of your home, you can give the property to your child today. However, you will probably have to dip into your unified federal gift and estate tax exemption ($11.4 million for 2019). Here is how it works. First, offset the amount of the gift by using your $15,000 annual gift-tax exclusion. Remember it is $15,000 per donor per Donee (gift recipient). So if you and your spouse make a joint gift to both your child and his spouse, you can offset $60,000 of the homes value (4 x $15,000) for gift tax purposes. Then, as long as the net figure is less than $11.4 million or $22.8 million for a married couple for 2019, you wont owe any current gift tax (unless you made very substantial gifts earlier that used up part of your exemption). There are two drawbacks to this strategy. First, your child’s tax basis on the home will be your presumably low cost for the property, which increases the odds he or she will owe capital-gains tax on a later sale. Second, you have whittled down your unified federal gift and estate tax exemption (the exemption is reduced dollar for dollar by gifts in excess of the $15,000 annual exclusion amount). On the plus side, you at least get any future appreciation in the homes value out of your taxable estate. Sale for a bargain price If you sell a home to a perfect stranger for less than fair market value (FMV), you have simply made a bad deal. The IRS does not care. When you sell to a relative, however, its a different story. You will be treated as making a gift equal to the difference between FMV and the sale price. For example, if your house is worth $700,000 and you sell it to your child for $350,000, you just made a gift of $350,000. Of course, you can use your $15,000 annual gift exclusion to whittle this down. The net amount of the gift then goes against your unified federal gift and estate tax exemption ($11.4 million for 2019). However, thats OK if the property is expected to appreciate because the sale successfully removes all future appreciation from your taxable estate. For income tax purposes, you subtract your tax basis in the home from the $350,000 sale price to calculate your gain or loss. Any loss is nondeductible. If you have a gain, its probably eligible for the $250,000 (for singles) or $500,000 (for married couples) home sale gain exclusion. However, your child’s tax basis in the home will be only $350,000, which increases the likelihood that he will owe capital gains tax on a later sale. Full-price sale with seller financing Instead of making a bargain sale, consider making an installment sale for full market value instead. As you will see, this can still meet your primary objective of transferring the home to your child in a way he or she can afford ? probably with better tax consequences. Here’s the deal. You sell the property to your son or daughter for a relatively small down payment and carry a note for the balance of the purchase price. Lets again say the house is worth $700,000 and your child can afford to pay $70,000 down. So you take back a note for $630,000. Make sure its a written note. Also, it definitely helps your case if the child has the wherewithal to make the monthly payments. Speaking of payments. You should charge at least the applicable federal rate (or AFR) on the loan. That rate, which changes monthly and is almost always well below the average commercial mortgage rate, is available in monthly Internal Revenue Bulletins. You can find them on the website at www.irs.gov. Make sure to go through the legal process of securing the note with the house. That way, your child can deduct the interest payments made to you as qualified mortgage interest. If you fail to take this step, your child wont be able to deduct the interest payments. If you wish, you can then ease your childs financial burden by making gifts under the annual $15,000 gift-tax exclusion rule. Just make sure your child actually makes all the payments on the note. Then write checks for any …

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Estate Planning / For Sale by Owner / Land Use / Real Estate Markets / Tax-Related Issues / Title Issues

DECLATORY JUDGEMENTS

A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants. It is a form of legally binding preventive adjudication by which a party involved in an actual or possible legal matter can ask a court to conclusively rule on and affirm the rights, duties, or obligations of one or more parties in a civil dispute(subject to any appeal). The declaratory judgment is generally considered a statutory remedy and not an equitable remedy in the United States, and is thus not subject to equitable requirements, though there are analogies that can be found in the remedies granted by courts of equity. A declaratory judgment does not by itself order any action by a party, or imply damages or an injunction, although it may be accompanied by one or more other remedies. A declaratory judgment is generally distinguished from an advisory opinion because the latter does not resolve an actual case or controversy. Declaratory judgments can provide legal certainty to each party in a matter when this could resolve or assist in a disagreement. Often an early resolution of legal rights will resolve some or all of the other issues in a matter. A declaratory judgment is typically requested when a party is threatened with a lawsuit but the lawsuit has not yet been filed; or when a party or parties believe that their rights under law and/or contract might conflict; or as part of a counterclaim to prevent further lawsuits from the same plaintiff (for example, when only a contract claim is filed, but a copyright claim might also be applicable). In some instances, a declaratory judgment is filed because the statute of limitations against a potential defendant may pass before the plaintiff incurs damage (for example, a malpractice statute applicable to a certified public accountant may be shorter than the time period the IRS has to assess a taxpayer for additional tax due to bad advice given by the CPA). Declaratory judgments are authorized by statute in most common-law jurisdictions. In theUnited States, the federal government and most states enacted statutes in the 1920s and 1930s authorizing their courts to issue declaratory judgments. The filing of a declaratory judgment lawsuit can follow the sending by one party of a cease-and-desist letter to another party. A party contemplating sending such a letter risks that the recipient, or a party related to the recipient (such as a customer or supplier), may file for a declaratory judgment in their own jurisdiction, or sue for minor damages in the law of unjustified threats.[8][9][10]This may require the sender to appear in a distant court, at their own expense. So sending a cease-and-desist letter presents a dilemma to the sender, as it would be desirable to be able to address the issues at hand in a candid manner without the need for litigation. Upon receiving a cease-and-desist letter, the recipient may seek a tactical advantage by instituting declaratory-judgment litigation in a more favorable jurisdiction. Sometimes the parties agree in advance of discussions that no declaratory-judgment lawsuit will be filed while the negotiations are continuing. Sometimes a lawsuit is filed, but not served, before sending such a notice, to preserve a jurisdiction advantage without engaging the judicial process fully. Some parties send cease-and-desist letters that make “an oblique suggestion of possible infringement” to lower the risk of the recipient filing a declaratory-judgment lawsuit. Declaratory judgment actions in patent litigation Declaratory judgments are common in patent litigation, as well as in other areas of intellectual property litigation, because declaratory judgments allow an alleged infringer to “clear the air” about a product or service that may be a business’s focal point. For example, in a typical patent-infringement claim, when a patent owner becomes aware of an infringer, the owner can simply wait until he pleases to bring an infringement suit. Meanwhile, the monetary damages continuously accrue ? with no effort expended by the patent owner, apart from marking the patent number on products the patent owner sold or licensed. On the other hand, the alleged infringer could do nothing to rectify the situation if no declaratory judgment existed. The alleged infringer would be forced to continue to operate his business with the cloud of a lawsuit over his head. The declaratory-judgment procedure allows the alleged infringer to proactively bring suit to resolve the situation and eliminate the cloud of uncertainty looming overhead. Common claims for declaratory judgment in patent cases are non-infringement, patent invalidity, and unenforceability. To bring a claim for declaratory judgment in a situation where a patent dispute may exist or develop, the claimant must establish that an actual controversy exists. If there is a substantial controversy of sufficient immediacy and reality, the court will generally proceed with the declaratory-judgment action. The court may even hear the action if the patentee has not filed a cease and desist letter.The standard for an actual controversy was most recently addressed by the Supreme Court in Med Immune, Inc. v. Genentech, Inc., 549 U.S. 118 (2007). But even if an actual controversy exists, the declaratory-judgment statute is permissive?a district court, in its discretion, may decline to hear a declaratory-judgment action. Usually, the claimant is actually making, using, selling, offering to sell or importing or is prepared to actually make, use or sell, offer to sell or import an allegedly infringing device or method, and usually, the patent owner has claimed that such activities by claimant will result in patent infringement. An express threat of litigation is not needed, nor is it a guarantee that jurisdiction will be granted. Some factors courts have considered in this analysis are whether a patent owner has asserted its rights against an alleged infringer in a royalty dispute, whether the owner has sued a customer of an alleged infringer, or whether an owner has made statements regarding its patents in trade magazines. If a patent owner does suggest that there is patent coverage of what an alleged infringer is doing or planning to do, …

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SECURITY DEPOSITS

A security deposit is an amount of money  ranging from hundreds to thousands of dollars  that a tenant pays a landlord or property manager at the beginning of a lease above and beyond first or last months rent. The security deposit is kept by the landlord or property manager in a separate interest-bearing bank account and is returned to the tenant when he or she moves out at the end of their lease. However, if a tenant damages the property, the landlord or property manager will use some or all of the security deposit to pay for repairs. The security deposit has long been a bone of contention between tenants and landlords and property managers. Some courts are awarding double damages to tenants who sued their landlord for not returning their security deposit. This post will provide guidance for property managers, landlords, tenants, and others who want to navigate the world of security deposits. It will discuss the laws in each state, provide advice from landlords and property managers, and address some of the most commonly asked questions about security deposits. Security Deposit Tips for Tenants If you are looking to rent, following some simple advice will help you avoid getting scammed. Don’t be afraid to negotiate. Remember that security deposits can be negotiable. There are no minimum amounts that property managers or landlords have to charge for security deposits. Know how much of a security deposit you will need to pay. There are some state laws that set the maximum amount you can be charged. Some states (such as Massachusetts) place the limit at one months rent, while still others (like Nevada) place the limit at three months rent. Other states, however, including Florida, Ohio, and Texas, don’t place limits on how much a property manager or a landlord can charge for a security deposit.  Read your lease before you sign it. State laws vary on what landlords can deduct from your security deposit for things like property damage and unpaid rent. Make sure that you know what you are committing yourself to before you sign on the bottom line. Think twice before paying less than a months rent as a security deposit. Sure, it sounds good at first, but getting a full months rent back (minus any damage) when you move out can really help with moving expenses and even paying the security deposit on your next rental. Understand what fees you might be charged for cleaning the unit when you leave. State law varies here. Also, pin your landlord down on what terms like broom clean mean when they appear in your lease. Remove any unused furniture. Take a look around your new rental and point out all the flaws. If anything is broken, ask your landlord to fix it. If you wait to say something, the repair cost might come out of your security deposit. A good idea is to take photos of the property to document any preexisting damage. Know that your landlord cant keep your security deposit if you break your lease. This is your money, held in trust unless you forfeit some or all of it through damage to your rental unit. They can, however, keep your last months rent and sue for any other unpaid rent. Confirm when you will get your security deposit back. Again, the laws vary. New York law states only that the security deposit should be returned within a reasonable time, but the time period typically ranges from 14 days (Vermont) to 60 days (Arkansas). Take action if your landlord refuses to return your security deposit. According to a Rent.com survey, 26% of renters do not get their security deposit back when they move, and 36% of group get no explanation from their landlord. After waiting the state-mandated amount of time without seeing all or part of your security deposit, consider writing your landlord or property managers a demand letter for return of security deposit. Download the form, fill it out, and keep a copy. This will ensure that you have a paper trail in case you decide to take them to court. Security Deposit Tips for Landlords and Property Managers Property managers, too, can follow a few steps to avoid problems when it comes to security deposits. The bottom line is that security deposits do not have to be scary and problematic. Know the laws in your state. Learn where you keep deposits, how much you can collect, how quickly it needs to be deposited into the bank, whether and how interest should be paid, required reports, etc. Its important to understand that security deposits for residential properties are controlled by statute and call for nondiscriminatory and equal treatment. It is a prohibited discriminatory practice to charge a family a different amount then an applicant without children. It is also prohibited by law to require an excessive amount for the security deposit. Check the laws pertaining to security deposits in your state for similar guidelines in your area. Do not be tempted to charge less than you are entitled to charge for a security deposit. While it may seem easier to lower the amount to attract more tenants, you run the risk of creating headaches down the road. As Salvatore J. Friscia of San Diego Premier Property Management puts it in his blog post on how much to charge for a security deposit, there are three good reasons for this: 1. It weeds out financially unstable tenants, 2. its a hedge against rent default, and 3. it protects against tenants moving out unannounced. Security deposits are not extra rent. Do not treat them as such. These deposits need to be returned to your departing tenant, assuming there is no damage to the unit. Get it on video. This tip is from Mary Yetter-Hurd of Rent Smart Missoula in Missoula, Montana: ?The move out inspection and deductions to the security deposit is the most contested and potentially hostile situation in the landlord-tenant relationship. It is for that reason …

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6 SIGNS OF A GREAT RENTAL PROPERTY INVESTMENT

Rental property investing will require prospective buyers to consider a number of factors, not the least of which are outlined below. A good rental property is contingent on both tangible and intangible characteristics. What makes a good rental property will differ from investor to investor, but there are six universal rental property signs to look at. What are the most important factors to consider when looking for the perfect rental property investment? Investing in rental property successfully, not unlike your standard flip, is contingent on several factors. In this case, the sum really is equal to all the parts, as everything needs to fall into place for a rental property investment to reward investors. Some rental property investors allow themselves to be frozen by analysis paralysis and never get deals done. At the very least, they end up paying a lot more than they need to. For one reason or another, green rental investors are confused by all of the numbers that come up in a deal. So what are the most important factors when picking rental properties that will actually be profitable? Perhaps even more importantly, how can you make sure investing in rental property is lucrative for your business? What makes a good rental property, and how can you make sure you see the signs? What Makes A Good Rental Property? There is no universal definition that exists to define a good rental property. Assigning such a subjective moniker to an asset is almost arbitrary, but that is not to say there are not several signs to look for. While not the only signs of a good rental property, the following characteristics are almost universal in their inclusion: Location Cash Flow & Growth Potential Property Condition Property Management Property Value Market Trends Rental property investing Location Do not consider investing in a rental property if you are not going to put any thought into where it will be. It is said that location is the most important factor in acquiring a good real estate deal, which is absolutely true. However, the best time to get into a certain location can definitely change, as markets are constantly in flux. National real estate may represent the overall tone, but its all about locale. Picking the right cities, neighborhoods and even lots makes a difference. What is your timeline for holding the property? Will, you self-manage or have professional property management on hand to deliver superior returns and generate truly passive income Cash Flow & Growth Potential Cash flow is one of the most important factors to consider when investing in a rental property. If there is no cash flow, why does it make a good income property investment? What guarantees are there of future income, or even finding a renter at all? How long will it take to get a property in ‘rentable? condition? At the very least, if the property does not already have cash flowing, look into a professional property management company. A good third party management company is worth their weight in gold. Much of the rest, including location, may not matter much without cash flow. It is important to get a handle on future growth potential and where real estate values are headed. Where will they be when you plan to sell, or at crucial moments when you may want to tap equity for big-ticket items? Be conservative, but hope for the best. Property Condition Property condition is where most real estate investors sabotage themselves. New property investors all too frequently underestimate how property condition can impact their investments. Of course, some also allow themselves to be scared off investing in otherwise awesome property investments. For example; no matter how ugly the house, great value can often easily be found in cosmetic improvements, and even in some homes with foundation issues or that have termite damage. Will it take $5,000 and four days to get a property completed and rented, or $150,000 and six months? Will the property need to be torn down at a cost of tens of thousands of dollars and rebuilt? Just as important is the ongoing property maintenance and costs. Depending on age, quality of building, and other factors, how much will need to be set aside for capital reserves each month and year? How does this compare to other investment property options? How will it impact the intensity of property management needs? Property Management Perhaps even more important than the property itself is the management. Any opportunity is only as good as the execution. An ugly house in a deeply depressed area can yield amazing returns with good management. On the other hand, even the best home in the nicest neighborhood might deliver horrific results with poor management. Who can bring the expertise to manage your property for superior returns? Its wise to have your property manager identified ahead of making an acquisition than scrambling after the fact. Property Value Property value is important. Of particular importance, however, is the value of the property compared to what you are paying for it. Income investors clearly have different priorities to other types of investors. They might not need the bargain basement discounts of wholesalers. They need good income-producing properties that will have enough equity to liquidate on their timeline. Appreciation is good, and it may not make sense to buy brand new pre-construction, but cash flow rules and speculation on future value comes second. Also recognize how valuations are changing in many areas, and are being based on the income potential of a property. Market Trends What do area trends predict for the future performance of this property? What new developments are coming? What revitalization efforts are being made? How are the fundamentals likely to change? Is the population growing? What about jobs and wages? Who will live here in 20 years from now? HTTPS://KCREALESTATELAWYER.COM

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WHEN IS A TAX GAIN RECOGNIZED WITH A CONTRACT FOR DEED?

Tax Laws for the Seller of a Contract for Deed Can I Deduct Interest on a Rent-to-Own? In cases where qualified buyers are scarce, selling a home through a contract for deed can make sense. Homeowners might sell homes using contracts for deed because they want regular income streams rather than lump sum payments. Selling a home using a contract for deed does come with certain tax implications for sellers. For example, contract for deed sellers usually lose any property tax deductions to their buyers. Property Tax Deductions Also known as land contracts, contracts for deed are installment sales pertaining to homes. A homeowner selling a home in a contract for deed retains ownership until the installment sale contract is fulfilled. However, the IRS gives the right to claim property tax credit to the buyer, not the home’s actual owner. In other words, if you sell your home through a contract for deed, you usually can’t deduct its property taxes. Seller Tax Benefits The IRS allows contract for deed home sellers to control how their capital gains is reported. Capital gains resulting from a contract for deed home sale can be reported over the years you receive principal payments from your buyer. Additionally, any interest income you receive from your contract for deed buyer can be declared as ordinary income. You report your contract for deed installment sale income annually to the IRS. Reporting Requirements Generally, contract for deed sellers use IRS Form 6252 to report installment sales in the year in which they take place. You also use Form 6252 during each year you receive income from your contract for deed. Attach Form 6252 to your Form 1040 and Schedule D, “Capital Gains and Losses.” First-year installment sales are reported on Form 6252 on lines 1 through 4, Parts I and II; and lines 1 through 4, Part II in later years. Caution Smart contract for deed sellers always craft thorough sale contracts covering buyer contract forfeiture circumstances. In contracts for deed purchases, buyers receive what’s called “equitable title rights” to their properties. In certain states, it can be difficult to get a defaulting contract for deed buyer out of a property if that buyer claims an equitable interest in it. Lastly, if you sell a mortgaged home through a contract for deed, the lender could foreclose if it finds out. HTTPS://KCREALESTATELAWYER.COM