Buying / Selling A Home

What Is A 1031 Exchange

A 1031 exchange is a provision in the federal tax code that permits a seller of investment property to reinvest the proceeds of the sale into another investment property, deferring the capital gains tax to a later date. It’s a great way to save money as an investor and it’s important to employ the services of an experienced real estate attorney when you’re considering doing a 1031 exchange, as there are many rules and IRS regulations that must be complied with.

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What Is A Balloon Loan

A balloon mortgage is a type of mortgage that after a certain period of time comes due before you would typically pay it off. For instance, you may get a loan that’s amortized every 30 years but has a five-year balloon. After the five years, the entire amount remaining on the loan is due and payable to the mortgagee.

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What Is A Foreclosure

When you purchase real estate with financing, you sign a note and a mortgage. A note is what obligates you to repay the debt. A mortgage is what puts the property up as collateral for that debt. A foreclosure is when the lender is seeking to sell the collateral because the borrower is not making their monthly payments. It is important to consult with an experienced real estate attorney if you’re served with a foreclosure because you could lose the property.

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What Are My Remedies For A Breach Of Contract

If a party breaches a contract, the remedies available to the other party depend on what’s in the contract and whether the contract excludes specific remedies that would be typically available under the law. The most common remedy would be money damages to make the person whole again in the event of a breach of the contract, but also specific performance. That’s when you ask the court to make the seller perform the deal and there are a variety of other remedies, depending on the situation.

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What Are Some Typical Closing Costs

(silence).Some typical closing costs in a residential real estate transaction include state of Florida documentary stamp taxes, recording fees, title insurance, loan fees if you’re borrowing money, a survey. There’s a variety of closing costs and each situation will determine whether or not those closing costs apply to you.(silence).

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What Are The Key Provisions Of The Purchase Contract

Some of the key provisions in a real estate purchase contract are, of course, the purchase price, the closing date, a financing contingency, an inspection contingency, but there’s also a lot of smaller, little-known clauses that are important to the transaction. It’s very important to retain the services of an experienced real estate attorney to review the contract if you have any questions.

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What Do I Do If I Discover Problems With The House That Were Not There Or I Did Not Notice When I Put In My Purchase Offer

It’s important when you buy real estate to draft the contract to give yourself what’s called an inspection period. This is a time period where you can have a professional inspector come in, inspect the house. You can have an AC person inspect the air conditioning, an electrician inspect the electrical system. During this period, the honeymoon kind of has worn off, so that you more realistically get a picture of what you’re buying, but it’s important that you draft that into the contract in advance because if you don’t, then you’re going to be buying the house as is with that problem.

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What Do I Do If I Have Problems Or Questions After The Closing

Sometimes, questions or problems can arise following a residential real estate closing. If you’ve retained the services of an attorney for the real estate transaction, the first call may be to them, to get their advice on the situation. You could also contact the real estate agents or the title company that handled the closing, depending on what the question is.

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What Does Joint Tenancy With Right Of Survivorship Mean

If you own property with another person in Florida as joint tenants with rights of survivorship, if one of the co-owners passes away, the other owners automatically inherit their share of the property. It does not pass to their heirs or relatives, but rather passes to their co-tenants on the property.

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What Does Tenants In Common Mean

Tenants in common means that you each have an undivided interest in the property. For instance, if there are three owners of property, each owner has a one-third undivided interest in the property. If one of the owners were to pass away, their one-third interest would pass to their heirs or to their beneficiaries under a will.

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