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Update: The State of the Transfer on Death Deed

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Ever thought about placing some of your key assets in instruments that bypass the probate process? In a number of states, homeowners have the option of placing their real estate in a transfer on death deed. Think of a retirement account that’s transferred to its designated beneficiary on death. In the same way, with a transfer on death deed for real estate, a home can pass to a designated person, people, or a charity automatically upon the current owner’s death.

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Zeroing In: The “Subject To” Clause in Your Real Estate Deed

The rights and restrictions that come with a real estate purchase can be complicated. The “subject to” phrase means the full story may not be visible within the four corners of a deed.

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Look for the phrase “subject to” in a deed. The deed might say: “Subject to all rights of way, easements and other encumbrances of record…” The deed is a grant of the land, but not every contingency appears on its face. 

Most home buyers receive warranty deeds, which represent the real estate title as clear of creditors’ claims and other people’s ownership interests. Still, some rules and encumbrances can legitimately apply to the property. Yet they might be dealbreakers for the prospective buyer. Is there, for example, a utility company’s easement that could rule out a new deck, swimming pool, or accessory dwelling unit?

Homeowners’ associations have governing documents, containing rules about landscaping and so forth. And for a single home, the “subject to” clause is a catchall that spares the deed from reciting long, intricate property descriptions that were hallmarks of deeds in earlier times: the measurements and directions, setbacks, wells, driveways and sewer lines, and other parties’ long-recorded rights and responsibilities regarding shared resources. A general plan of development contains those restrictions.

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Viral Fraud: More Deed Crime Targets in the Coronavirus Economy

Well-known schemes are being repackaged for the time of COVID-19. Here’s an overview of how real estate fraudsters are approaching their targets — and how to avoid becoming one.

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Scams flare up during natural disasters and financial crises, so we can expect a spike in deed fraud in 2020 and beyond. Battered by the pandemic, facing snowballing debts and possible defaults, many people are now considering risks they would have rejected in the past. Deed fraudsters can be counted on in times like these to aggressively seek new opportunities.

Any wiring directions or changes to money transfer requests over the phone or by email should arouse suspicion today. Rather than act or answer, recipients should call the company and deal with a real person. And rather than use phone numbers supplied in messages, recipients should take the extra step of visiting the company’s website, copying the published number, and calling that number. Personal details should be volunteered only after the identity of the party making the request if verified, or by physically going to the company’s office.

Of course, COVID-19 itself is making in-person meetings less possible or at least less palatable. Part of the fraud risk involves the way online transmission of our personal and financial data can be so easily and rapidly handled.   

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Buying a Home? How Covid-19 Has Changed the Game

COVID-19 has changed the real estate market. Understanding the recent changes can help buyers prepare for the transaction, and set reasonable home buying timelines. Here is an overview of changes in the buying process. We conclude with a 6-point checklist for the buyer coming into the market today.

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It’s springtime — always a great season for people who show, sell, and buy homes. Enter 2020, and the harsh and often unpredictable impacts of COVID-19. In the year’s first quarter, business and government offices closed in droves, and millions of U.S. jobs were lost. Lenders have a heightened sense of caution now, as they anticipate changes in borrowers’ work situations, income, debt, and credit performance.

The depth of the trouble was undeniable by March 11, 2020. On that day the World Health Organization (WHO) categorized the virus outbreak as a pandemic. As the novel coronavirus is thought to spread mainly from one person to another, the world’s public health experts urged everyone to stay at least 6 feet apart and avoid gathering in groups. Needless to say, that put a damper on home tours and, in turn, listings. By March, the number of homes listed in the market had dropped substantially.

And this brings us to the people who need to buy or sell a home in the not-too-distant future. What will this new situation mean for the home shopping experience? Here, we dive into the present real estate trends and challenges, and the issues most likely to impact transactions from 2020 on.

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Pandemics, Property Transfer Breakdowns… The Digital Real Estate Industry Is Coming

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The latest impetus to digitalize real estate might just turn out to be the tipping point. Practically overnight, COVID-19 is a defining element of our time. This hideous and deadly virus became a major challenge to the systems that carry us through our everyday transactions.

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First-Time Home Buyer Pro Tips

Image of a person's hand holding a set of house keys on a key chain in front of a door to a house. Captioned: First Time Home Buyers

Thinking of buying your first home? First-time buying is exciting. It’s filled with the dreamy pleasure of beholding perfect kitchens, bedrooms and baths, and the cliff-hanger phone calls about your loan approval. (“We’re nearly there! I just need one more document…”) You’ll peruse home inspection results, negotiate the home price so you can re-do that floor, and, ultimately, you’ll get to “yes” with the seller. By the time you finally sit down at the closing table, you’ll feel intense relief, and one of the biggest thrills of your life. Here are some tips to help make that day a resounding success.

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Buying Real Estate: Are the Generations Really Different?

Image of a father and son holding hands walking along a brick paved path toward a house in the distance.

Are generations different in their approach to buying real estate? The fundamentals of buying real estate arguably haven’t changed, but financial and technological trends have. And with more people seeking houses than houses to be found, home prices have taken an upward path. Despite low mortgage rates, all first-time home buyers face a challenging market.

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Lien In: A Primer on Mechanic’s Liens

Image of a blurry stack of coins on a table next to a wood block shaped like a house. Captioned: Mechanic's Liens

In every state, contractors who do work on a home can place a mechanic’s lien (construction lien) on the title if they do not get paid. A mechanic’s lien is a claim filed for work done, materials supplied, or both. By operation of state law, this claim becomes a lien against the property’s title.

This is the contractor’s leverage to get paid. Depending on state law and the contract provisions between the general contractor and the client, subcontractors can also file liens. To protect these companies’ leverage, some states do not allow contractors to give up this right in exchange for payments, but there are plenty of exceptions in the state laws, so it’s a common practice for clients to avoid potential liens through lien waivers. 

But sometimes, mechanic’s liens do take hold. Because these liens attach to the property, not to the individual who ordered the work, an unpaid lien will haunt the next person in line to own the home. If you’d prefer not to live in a haunted house, here’s what you need to know.

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