- Are Your HOA Fees Tax-Deductible?
Homeowners association (HOA) fees are a common expense for those living in condominiums, townhouses and planned communities that need to maintain shared amenities. However, when tax season arrives, many homeowners wonder if their homeowner’s association fees are tax deductible. The short answer, for most homeowners, is that HOA fees are not tax-deductible. However, homeowners who… read more…
- Offset Mortgage: Definition, Pros and Cons, Examples
Homeowners use offset mortgages to reduce the amount of interest they pay by applying their savings balance against their mortgage debt. While this strategy can be beneficial for some, this type of mortgage setup may not be a good fit for you. Working with a financial advisor can help you determine how it aligns with… read more…
- How to Do a Property Title Search in 5 Steps
A property title search verifies the legal ownership of the property and identifies any claims, liens or encumbrances that could affect the transfer of ownership. While buyers can conduct a title search themselves, the process can be complex, requiring access to public records, historical ownership documents and legal filings. If you’re unsure about navigating a… read more…
- What Is an Alienation Clause and How Is It Used?
When engaging in a real estate transaction, it’s important to understand the details of your mortgage agreement — especially clauses that dictate how ownership can be transferred. One such provision is the alienation clause, which prevents a borrower from transferring ownership of a property without first paying off the mortgage. For homebuyers, real estate investors… read more…
- What Is a Habendum Clause and How Is It Used in Real Estate?
In real estate transactions, a property deed contains key provisions that define ownership rights. One such provision, the habendum clause, specifies the extent of ownership being transferred, including whether it is in fee simple – the most complete form of ownership – or subject to limitations. This clause helps clarify the duration and conditions of… read more…
- What Is a Defeasance Clause in Real Estate?
A defeasance clause in real estate is a provision in loan agreements that defines how a borrower can satisfy the lender’s requirements in order to release their lien on the property. This clause can vary in its application, depending on whether the loan involves residential or commercial real estate. In residential mortgages, defeasance clauses typically… read more…
- What Is Due on Sale Clause in a Real Estate?
A due on sale clause is a condition in a mortgage agreement that mandates full repayment of the outstanding loan balance if the property changes ownership. This provision safeguards lenders by ensuring that a new buyer cannot take over the existing mortgage under terms that may differ from those originally agreed upon. Common in residential… read more…
- How an Encumbrance Can Impact Your Real Estate Portfolio
An encumbrance in real estate refers to any claim, restriction or liability attached to a property that may affect its value or usage. Examples of encumbrances include mortgages, liens, easements or zoning restrictions. Each of these can have an impact on how a property is bought, sold or developed. That’s why understanding the impact of… read more…
- 5 Ways to Increase Your Home’s Value Before an Appraisal
Homeowners often seek appraisals to refinance, sell or access equity. Ensuring the property’s best features are highlighted can make a difference in the final valuation. From enhancing curb appeal to updating key areas like the kitchen or bathroom, there are several ways to make your home more attractive to appraisers. Whether your goal is to… read more…
- What Is Yield Maintenance and How Does It Work?
Yield maintenance is a prepayment penalty designed to safeguard lenders against losing interest income when a borrower decides to settle a loan ahead of schedule. Yield maintenance compensates for these losses by requiring the borrower to pay an additional fee. This fee is based on the present value of the lost interest, ensuring that the… read more…
- How Much Money Can Be Gifted for a Down Payment?
For many prospective homeowners, receiving a monetary gift from family or friends can be a life-changing step in making homeownership a reality. However, understanding how much money can be gifted for a down payment involves more than just accepting a check. There are specific guidelines and regulations that both the giver and receiver must adhere… read more…
- A Complete Overview of First-Time Homebuyer Grants
Buying a home for the first time is an exciting milestone, but it can also be financially challenging. Fortunately, several grant programs are available to assist first-time homebuyers in making their dreams of homeownership a reality. These grants are typically offered by government agencies, nonprofit organizations and some private entities. Unlike loans, grant money for… read more…
- How Tenancy-at-Will Works in Florida
Tenancy-at-will in Florida refers to a rental agreement where there is no formal lease, and the tenant occupies the property with the landlord’s consent. In such arrangements, either party can terminate the tenancy at any time, provided proper notice is given. Florida law requires a specific notice period, depending on the rental payment schedule –… read more…
- What Is Tenancy at Will?
Tenancy at will is a rental agreement that allows either party to terminate the agreement at any time after reasonable notice. Compared with traditional leases that bind parties to a fixed term, a tenancy-at-will agreement incorporates added flexibility as well as uncertainty. It may appeal to those who value adaptability, such as tenants who may… read more…
- Debt Consolidation Mortgage Refinancing: Should You Do It?
Refinancing your mortgage to consolidate debt can lower your overall interest rate and extend your repayment by rolling high-interest debts, such as credit card balances or personal loans, into your mortgage. However, you should also consider the risks, which can include higher costs, longer loan terms and the possibility of falling back into debt if… read more…
- Mortgage Assumption vs. Refinancing After a Divorce
When going through a divorce, an important financial decision that many couples have to face is whether one spouse may have to take over the mortgage of a shared home (referred to as mortgage assumption) or refinancing after a divorce. This decision will depend on the mortgage terms and each spouse’s individual financial situation. A… read more…
- 7 Ways to Invest $200k in Real Estate
Investing $200,000 in real estate can provide a range of opportunities to build wealth, whether you’re an experienced investor or new to the market. With options like purchasing a rental property or investing in real estate investment trusts (REITs), you can tailor your strategy to fit your goals. Each investment avenue comes with its own… read more…
- Massachusetts Security Deposit Laws Landlords Need to Know
Understanding Massachusetts security deposit laws is crucial for landlords to ensure compliance and avoid potential legal issues. There are specific requirements and stipulations surrounding landlord-tenant relationships, and failure to comply can result in steep penalties. Familiarizing oneself with these regulations is critical so that landlords maintain a transparent and lawful rental process. Here is what… read more…
- 12 Creative Financing Strategies for Real Estate Investing
Creative financing for real estate offers investors a range of options beyond traditional bank loans, making it possible to acquire properties without hefty down payments or perfect credit scores. These strategies can include seller financing, lease options and hard money loans, with each providing unique benefits tailored to different investment scenarios. By leveraging creative financing… read more…
- Pros and Cons of a Month-to-Month Lease for Landlords
For landlords, choosing the right lease structure for their rental property is a significant decision that can determine how well their real estate investment is helping them achieve their long-term financial objectives. One option is a month-to-month lease, which offers flexibility, but also comes with its own set of challenges. Specifically, going month-to-month can increase… read more…
- Real Estate Crowdfunding Platform Options
Real estate crowdfunding platforms have become a popular way for everyday investors to gain exposure to real estate. This type of investment doesn’t require the capital and know-how needed to purchase entire properties, making it a potentially simpler avenue for diversifying your portfolio. These platforms allow individuals to pool their funds with other investors to… read more…
- How to Invest in Rental Property
Investing in rental property is a well-known strategy for creating passive income and accumulating long-term wealth. Whether you’re considering a single-family home, an apartment building or a vacation rental, real estate can be a profitable addition to your investment portfolio. However, there are several important factors to consider before jumping in, including the type of… read more…
- Short-Term Rental Regulations in St. Charles, IL
St. Charles, Illinois, has implemented specific regulations to manage the rise of short-term rentals within the city. These regulations are designed to balance the interests of property owners, renters and the community. Property owners must obtain a permit to operate a short-term rental, ensuring the property meets safety and zoning requirements. Additionally, occupancy limits and… read more…
- New York Security Deposit Laws Landlords Need to Know
Navigating New York’s security deposit laws is crucial for landlords to ensure compliance and maintain positive tenant relationships. In New York, landlords are typically allowed to collect a security deposit equivalent to one month’s rent. This deposit must be returned within 14 days after the tenant vacates the property, provided there are no damages or… read more…
- How Much Can You Raise Rent in California?
In California, rent increases are governed by state laws designed to protect tenants while allowing landlords to adjust for inflation and market conditions. Under the California Tenant Protection Act of 2019, landlords can generally raise rent by up to 5% plus the local rate of inflation, but the total increase cannot exceed 10% in a… read more…