Clouds on the Horizon: Property Title Issues Which Affect Sale
When buying or selling a home, proof of ownership, or the property title, and issues affecting it, are critical. If you have a cloud or lien on your title, this means somebody or some business entity has laid claim to a portion of the equity in your home. There are different types of liens that affect the marketability of your home. For this article, I interviewed Chris Swynford, an attorney in Williamsburg, Virginia, whom I utilize frequently for real estate transactions. Mr.
Swynford commented on several types of property liens that are common issues for homebuyers and home sellers. Property Title Insurance ? for Matters NOT of RecordIn order to understand the different types of liens, it is necessary to review the concept of the actual deed or title. A property title can be insured by a title company, and I always recommend my clients purchase owner's title insurance coverage, even though not required by commercial lenders (which ALWAYS require lender's carry title insurance). "Generally, many matters NOT of public record (including mechanics' and materialmens' liens for new construction) are covered under title insurance, including issues such as misrepresentation of marital status, forgery or fraud in executing documents, missing heirs, or unknown boundary contests," said Mr. Swynford.
Matters of Record for Property TitleAccording to Mr. Swynford, "state law where the property is located covers most matters of title. East of the Mississippi, excluding Louisiana, property is generally held in one of several ways: tenancy by entirety, title passing to the survivor upon death of the first party, and that exists only between husband and wife; and can be reached (lien) only by the creditors of both; joint tenancy with right of survivorship, title passing to the survivor upon death; but which may be severed by the creditor of only one party in judicial proceedings; and, tenancy in common. Upon death of one co-tenant the undivided interest of the deceased passes by will or to heirs under state laws of interstate succession." Chris Swynford described various liens not commonly known:Voluntary LiensMost people are aware of voluntary liens placed on their property. These include mortgages or deeds of trust executed by the owner/borrower.
Involuntary LiensAs the term suggests, involuntary liens are placed on property by other than the legal owner of the property. Common involuntary liens are placed on property to cover real estate taxes; judgments; homeowner's association/condominium liens for unpaid dues/assessments; and mechanics liens for labor and materials provided to build/improve property. Municipal LiensAs the term implies, the local municipality may place a lien on property. Perhaps the owner did not pay trash removal or grass cutting fees. Or, the municipality had to remove inoperable motor vehicles from the property, or remove a structure endangering public health; or, for community improvement, e.
g. to pay for a park adjacent to a property, new sidewalks, gutters, alleys, water and sewer lines. Lis PendensThis provides notice that a suit against the title is pending. A Lis Pendens may indicate a breach of contract, or an heir who claims ownership of the property; or, a person who claims ownership of property through adverse possession. It has to be cleared for property sale or purchase to proceedEstate Tax LiensSome states may have an estate tax, though many do not.
Estate taxes liens do not have to be recorded in order to be valid. If the estate of a deceased individual is subject to federal or state estate taxes, the proceeds of sale are held for one year from the date of the property owner's death. If the proceeds are not held for one year, a bond may be posted to cover any tax due. It is always advisable to seek legal advice in closing a real estate transaction, often involving legal and significant economic considerations..
Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property. Elaine is also an Accredited Buyer's Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia.Why Public Schools Hate Home-schooling Parents
Home-schooling is a great success. That's why many public-school authorities hate home-schooling parents.Home-schoolers are a direct challenge to the public-school monopoly. This monopoly makes it almost impossible to fire tenured public-school teachers or principals. As a result, tenure gives most teachers life-time guaranteed jobs. They get this incredible benefit only because public schools have a lock on our children's education.If public-school employees had to work for private schools and compete for their jobs in the real world, they would lose their security-blanket tenure.
That's why school authorities view home-schooling parents who challenge their monopoly as a serious threat.Many school officials also can't stand the fact that average parents who never went to college give their kids a better education than so-called public-school experts. Successful home-schooling parents therefore humiliate the failed public schools by comparison.Home-schooling parents also humiliate...
Why Public Schools Hate Home-schooling Parents
Tax help > Why Public Schools Hate Home-schooling Parents
I'm being audited by the IRS-Now what?
How does the IRS decide who gets audited? The IRS uses a recently updated formula and scoring system to evaluate tax returns. If something seems out of whack- -like low income accompanied by extremely generous charitable contributions--the return is flagged for a more in-depth look. Simple math errors do not warrant audits. What does warrant an audit are things like taxpayers forgetting to report a source of income or getting paid as independent contractors and forgetting to pay your Social Security tax. There are two basic types of audits.
The most common are by correspondence. The IRS may request further documentation by mail. You should send copies only and always keep original records in your files for at least three years, the amount of time the IRS can go back and audit a return. Keep in mind, the IRS may go back indefinitely if they suspect fraud. The second type of audit is face-to-face.
These occur when the amount of documentation requested by the IRS might be...
I'm being audited by the IRS-Now what?
Tax help > I'm being audited by the IRS-Now what?
Need Ezine Content- Think Holidays
Publishing an ezine certainly has its benefits and rewards, but even the most prolific publishers often need more content ideas, topics and graphics.One of the best resources for newsletter and ezine publishers is holidays; they are a true gift because they can provide an overall theme, a topic, graphics, as well as content. They can add a little spice to your usual, consistent branded newsletter. The best part is that most of the holiday content is free, and it doesn't have to be in your industry or on your specific newsletter topic.There are countless holidays to choose from, with varying lengths- Mother's Day, Book Week, American Heart Month.A common holiday theme is Halloween, which many publishers use as an excuse to add a fun graphic to their ezine. It's an easy one because Halloween images exist in most clip art collections, many can be found online for free as well as for purchase; custom graphics are always an option. Halloween is a fun holiday that brings out the kid in all...
Need Ezine Content- Think Holidays
Tax help > Need Ezine Content- Think Holidays
Sue Doughty MP, Endorses Pedal Power Thanks to Electric Bikes Direct.
On Thursday 30th September Sue Doughty will be visiting Electric Bikes Direct in Burpham to collect her loan bike and discover for herself the benefits of pedal power.Sue said ?with fuel fast approaching ?1.00 per litre we need to utilise more efficient modes of transport and the electric bike really fits the bill for short range travel helping to reduce congestion in our towns and cities.
"Around
town the electric bike can travel at 15mph which is generally faster than any car and a 5p fee for charging will take you up to 20 miles which is cheaper than shoe leather.
"Additionally employers who buy electric bikes for their staff can gain on tax savings as an electric bicycle is tax deductible and National Insurance and VAT reclaimable."I am delighted to endorse any innovative solution to help reduce congestion and reduce emissions in our towns.".
Tax help > Sue Doughty MP, Endorses Pedal Power Thanks to Electric Bikes Direct.
Tax Benefits of A ?C? Corporation - Funding
If you are going to form a corporation, you might be surprised to learn a "C" corporation comes with a lot of tax benefits. While this article isn't intended to replace the advice of a good tax professional, it may serve to open your eyes to the value of a "C" corporation."C" CorporationThe "C" in C corporation has a few legal ramifications, but it is primary a designation for tax purposes. Put in layman's terms, the designation simply means the corporation will act as its own tax entity. In contrast, an "S" corporation acts as a pass through tax entity, pushing its financials down to the shareholder who report the information on their personal tax returns.The Internet Revenue Code sets out the law on tax and it contains a few juicy provisions for corporations. Lets take a look at one of the advantages.
IncorporatingWhen a party transfers something of value to another party, the IRS gets interested. It views the receipt of something of value as a taxable event. In simply terms,...
Tax Benefits of A ?C? Corporation - Funding
Tax help > Tax Benefits of A ?C? Corporation - Funding