How can I protect myself in a real property purchase?
If you are a real property owner, you should protect yourself by purchasing a good liability insurance and title insurance policy insurance. In addition, prior to taking interest or possession of property you should be aware of: (1) any zoning violations on the property which will have to be corrected; (2) environmental hazards which may be present; (3) conditions that could potentially harm another; (4) restrictions or covenants in the real property purchase contract that would be hard to comply with; (5) defects in the chain of title? Resolve these issues before you take title, interest or possession.
What is the advantage of recording title?
Upon your purchase of real property, you will receive a deed transferring the title of the property to you as the purchaser. However, the conveyance of real property is not complete until the deed is delivered to you or your authorized agent. When you get the deed, you should record it with the county recorder in the county where the property is located. The purpose of recording the deed is to give "notice to the world" that you now have an ownership interest in that particular piece of real property. The recording also tracks the chronological chain of title so that anyone who wants to know who owns your real property can check the records of the county recorder for the county where your property is located.
What is Adverse Possession?
Adverse possession is a law that bars an owner of property from suing to recover possession of his or her property from one who has wrongfully entered the property. Normally, a property owner has a cause of for ejectment for a wrongful possessor of his or her property but due to the law of adverse possession, if the owner waits longer than the time period allowed by state, he or she is barred from bring an action to recover possession (typically 20 years but some states allow a 10 year period). An example of adverse possession is if your neighbor builds a fence on your land with the intention of taking the property, pays property taxes with your knowledge and you do nothing. If you don't take action to stop your neighbor within a 10 or 20 year period, you may lose rights to your property.
What is an Easement?
An easement is a privilege to use the land of another. For example, you could give your neighbor the right to use your driveway to get to his property. This right could be given to your neighbor by a deed, a will, or contract. An easement can also be created by implication. For example, if the neighbor uses your driveway to get to his or her house for a period of 10 years, depending on the circumstances, an easement could arise giving your neighbor the right permanently despite your objections.
What Can People Do With an Unreasonable Neighbor?
People have a legal right to enjoy and use their property; however, when a neighbor unreasonably and substantially interferes with the enjoyment and use of your land, the neighbor may be creating a nuisance. A nuisance is defined as a significant harm, which may be actual physical harm or something less tangible, such as considerable inconvenience or annoyance. Nuisance is a question of state law and legal aspects vary considerably from state to state but most courts consider all surrounding circumstances and the unreasonableness of your neighbor's actions.
What is a disclosure statement?
A disclosure statement is a form requiring a property seller to disclose certain defects and other information about his or her property. It is required by most states, but the specific disclosures may vary by state.
What are some typical restrictions imposed on property owners?
Federal laws provide environmental restrictions on property owners while local ordinances impose restrictions on everything from noise levels to fence height. Local law is also the usual source of zoning rules, which limit the uses of property in certain areas. State laws typically regulate who can access property and how boundaries are established and changed. Private agreements and other restrictions may also control property use.
What is joint tenancy?
Joint tenancy is an arrangement in which more than one person owns a piece of property. Joint tenancy can include a right of survivorship, which allows the property to transfer to the other tenants when one joint tenant dies. Joint tenancy is just one way that people can hold property jointly. Tenancy in the entirety is similar to joint tenancy, except each spouse holds an undivided half of the property. Tenants in common can own unequal shares of property and is a common way for commercial partners and cohabiting unmarried couples to hold property.
What happens in a mortgage foreclosure?
If a homeowner fails to make mortgage payments, the lender may foreclose on the property. Depending on state law and the terms of the mortgage contract, the lender may do a statutory foreclosure without going to court or a judicial foreclosure in court. State laws provide strict regulations regarding proper notices and opportunities to pay before the property is sold in a foreclosure sale. In several states, a homeowner may stay in his or her home during a foreclosure. A lender may want to avoid foreclosure and its costs by working out an agreement with the homeowner, frequently accepting interest-only payments or partial payments in order to assist the homeowner.
