Life Estates, Part 2: Why You May Want One

In my first blog “Life Estates in North Carolina,” I noted that a life estate is an interest in property that is measured by the life of a person.  It can be granted to someone for his or her lifetime or for the lifetime of another.  The life estate interest gives the holder the right to all the benefits of the property during the lifetime for which it is granted.

The Secure, PaperLess Workflow: ALTA Compliance

Pursuant to the Consumer Financial Protection Bureau (CFPB) rules implemented on October 3, 2015, real estate attorneys should obtain certification as being ALTA (American Land Title Association) Best Practices compliant and should maintain and enforce written policies and procedures to protect client privacy. Maintaining clean desk and document storage policies has resulted in real estate firms across the state embracing paperless environments. Managing and storing documents electronically helps to mitigate security risks and adhere to CFPB requirements.

Greenway Projects and Community Benefits

A “Greenway” is usually defined and promoted as an area or strip of land which is preserved for recreational use or environmental protection – though in most cases other benefits are publicized, as well.  Typically, Greenway land consists of underdeveloped or vacant properties which are acquired by municipal or other government entities through condemnation proceedings or private donation.  Greenways usually connect separate city neighborhoods through a series of pedestrian walkways and trails.     

Lease with Option to Purchase

Occasionally we answer questions regarding Leases with Options to purchase, also known as “lease-purchase” or “rent to own” transactions.

Normally the questions I receive are from buyers or realtors representing buyers who would like to purchase a home yet due to an extenuating circumstance they cannot move forward with the purchase. Sometimes in these cases, a seller will entertain a lease with option contract where they commit to sell the property to a buyer while holding an offer to sell open for a set period of time, the “option period."

Family Care Homes in NC: Is Your HOA Against Them?

  • Recently, a neighborhood HOA approached me with a question regarding family care homes in North Carolina. The HOA contained covenants and restrictions which limited the use of homes in the neighborhood to single family residences only.   The question was whether an owner in the neighborhood could establish a family care home based on the neighborhood restrictions. Despite the restrictions written in the HOA covenants, the answer is yes, the owner can establish a family care home.

NC Residential Property Disclosure

WHAT IS IT AND WHY DO YOU NEED TO PROVIDE IT?

Sellers of real property in North Carolina have a lot of obligations to fulfill before selling their property such as ensuring they can provide good title to the buyer and making needed repairs. However, there is another obligation many homeowners do not realize exists, especially those selling their home without the aid of a licensed real estate agent. 

NC Sales Tax - Not Just Goods but Services, Too

While most of us are accustomed to paying sales tax at the grocery store and department store, most people are not used to paying taxes on services provided to the consumer. However, recent changes to North Carolina tax laws make it mandatory for service providers to tax those that benefit from some services. One particular area in which these new service contract sales tax laws may affect you concerns your home.

Landlocked in NC: 4 Possible Easements Solutions

Finding out your property is landlocked with no private or public access to a road is not news that any landowner in North Carolina wants to hear. If you have friendly neighbors that are willing to grant you an easement for access to a road, your problem is solved. However, difficulties may arise and litigation may be triggered when neighbors are not getting along and are unwilling to provide access to the landlocked parcel. With the help of an attorney, there are several methods to enable legal access to his or her property by an easement. 

Capital Gains Tax on Seller Proceeds in Real Estate Transactions

You know the forms: a W-2 showing your income from your employer, Form 1098 with the amount you paid in interest on a mortgage, a 1098-E if you paid interest on student loans, and Form 1099 with any amounts your received as an independent contractor or from interest on an investment, to name a few. If you sold any real estate last year, you also received a Form 1099-S at closing or will receive one. 

The Closing Attorney's Role

EVERY SO OFTEN AT THE CLOSING TABLE, A BUYER WILL ASK ME WHAT MY ROLE IS IN THE CLOSING PROCESS. 

It’s a valid question since our very first face-to-face interaction may be at that table. Up until this point, we may have only been communicating through phone calls and emails. 

Assuming we are representing the buyers, and a lender is involved, here’s a brief overview of the process our office goes through during a real  estate closing:

Can a Chain of Emails Create a Binding Contract?

There is little in the real estate business - or any business for that matter - that is not handled by electronic communications.

Email exchanges are an effective and efficient manner to transact dealings with multiple parties. Most state legislatures have recognized the growing reliance on electronic communications in transacting business and have enacted statutes facilitating the incorporation of such messages into enforceable agreements. North Carolina is one of these states (North Carolina General Statute 66-311, et seq.). 

Rising Interest Rates May Be Good News For Sellers

If you've been keeping an eye on interest rates, you know they have risen in the past few months.  Believe it or not, for some sellers this could be good news and put them at an advantage over other sellers. 

Who are these lucky sellers and what am I talking about? I’m glad you asked. If you are a seller with an FHA or VA mortgage, those loans are assumable. An “Assumable Loan” is one that allows the payments and liability for the debt to be taken on by someone other than the original borrower.

Are All Deeds the Same?

Purchasing property is a stepping stone that prompts a sense of accomplishment and promise for the future. It should be an exciting time, but it can also be stressful and confusing. When the long anticipated day for your closing finally arrives, an attorney will prepare and begin to explain a number of different documents. One of these documents will be the deed. Although all of the documents you will review and sign are important, without the deed, ownership will not be transferred from the seller to you, the buyer.