June marks National Homeownership Month—a time when the excitement of owning a home is celebrated across the country. If you've recently purchased a home, congratulations! While homeownership is a joyous milestone, it's important to be aware of the legal responsibilities that come with it. This month is the perfect time to review key legal considerations to protect your investment.
Understand Your Property Taxes
As a homeowner, understanding your property taxes is crucial. Property taxes are often handled through escrow accounts, which your lender might manage. These accounts ensure that your property taxes are paid on time. If you ever receive a tax bill, verify with your lender whether the payment has been made on your behalf. For those without escrow accounts, budgeting for property tax payments in advance helps you stay ahead of due dates.
Ensure Your Deed is Properly Recorded
Recorded deeds are vital for establishing legal ownership of your home. Check with your local Register of Deeds or Recorder of Deeds office—often accessible online—to ensure your deed is recorded. An unrecorded deed can result in ownership disputes, leaving your ownership unsecured.
Stay Informed About Property Tax Assessments
Property tax assessments directly affect your financial obligations as a homeowner. Regularly review your assessed property values and be informed about your rights to appeal an overassessment. This knowledge can prevent overpayment and aid in financial planning, helping you manage your finances effectively.
Review Your HOA Rules
Do you live in a community managed by a homeowners association (HOA) or a condo association (COA)? If so, understanding and adhering to the covenants, conditions, and restrictions (CC&Rs) is essential. Violations can lead to fines or legal action. Familiarizing yourself with these regulations early on can help you avoid unexpected surprises.
Prioritize Estate Planning
Incorporating your home into an estate plan ensures it will be passed on according to your wishes. Consider updating your will, setting up a trust, or establishing powers of attorney. Proactive estate planning provides peace of mind, knowing your home is secured for future generations.
Final Thoughts
While the rewards of homeownership are plentiful, maintaining legal awareness is crucial in safeguarding your investment. Take this National Homeownership Month as an opportunity to consult legal professionals for specific concerns or simply to stay proactive about your homeowner rights and obligations.
