Justia Legal Resources: Home Ownership Legal Center

A lot of financial and emotional investment can go into real estate transactions or disputes. When the stakes are high, it’s vital to know the law. The Home Ownership Legal Center at Justia sheds light on key issues in this area.

Approximate Read Time: 4 Minutes

Buying or selling a home is the most significant transaction that many Americans ever undertake. They should understand the details of the process from the outset so that they can protect their interests. Meanwhile, disputes may arise between a homeowner and a neighbor, a guest, a homeowners’ association, or a government entity. Knowing the rules and procedures that may apply in these situations can help a homeowner avoid problems or pursue solutions. The Home Ownership Legal Center in the Justia Legal Guides aims to inform buyers, sellers, and owners. Here are some common questions to which this resource provides basic answers.

What Does a Purchase Agreement Cover?

The contract should identify the buyer and seller and describe the property involved in the transaction, as well as specifying timing elements like the closing date. In addition, it will outline financial terms like the price, the down payment, the earnest money deposit, and closing fees. Purchase agreements usually include certain contingencies that need to be resolved before the deal can be finalized, such as issues related to financing or the condition of the home. The buyer and the seller also may want to include provisions for resolving disputes that might arise between them.

What Disclosures Does a Seller Need To Make?

Laws vary by state, but a seller usually needs to disclose any hazards or other significant problems with the property. This often involves completing a disclosure form that covers a list of property features. In some cases, a seller may need to disclose broader issues, such as whether the area suffers from a high crime rate. A seller who does not know whether they must disclose a certain issue probably should err on the side of caution and disclose it, since inadequate disclosures could result in liability to the buyer down the road.

How Does a Mortgage Work?

A buyer probably cannot pay the purchase price of a home in full at the time of the closing. Instead, they arrange to pay a down payment while taking out a loan from an institution like a bank. The loan accounts for the remaining cost of the home outside the down payment. The homeowner will pay off the mortgage by making monthly payments that include both principal and interest. The principal is the amount owed, while the interest is the rate charged for making the loan. If a homeowner does not keep up with their payments, they may face foreclosure unless they can work out a loan modification or another alternative.

What Happens at a Real Estate Closing?

The buyer receives ownership rights from the seller at the closing, which marks the end of a real estate transaction. The seller or their agent will provide the buyer with the deed. Typically, any contingencies or other conditions in the purchase agreement must have been resolved. The buyer will pay the down payment to the seller, while the lender will pay the remaining purchase price. After a successful closing, the buyer usually can take possession of the home, although sometimes their deed must be recorded first.

What Do Homeowners’ Associations Do?

A homeowners’ association enforces the covenants, conditions, and restrictions that apply to a community. These may affect issues such as parking, pets, rentals, and additions to a home. An HOA also may collect fees from property owners for the maintenance of common property, and it may collect special assessments for improvements. If the owner fails to keep up with these payments, the HOA likely can place a lien on their property. This can make it harder to sell the property and could even result in foreclosure.

Can a Squatter Get Ownership of My Property?

A rule called adverse possession can allow someone who possesses property that they do not own to eventually take ownership. In general, the adverse possessor must have occupied the property in a way that is open and notorious, hostile, and exclusive. This means that their presence must be obvious, without the permission of the owner, and not shared with the owner or the public. It also usually must be continuous and uninterrupted for a certain time specified by statute. Justia provides a 50-state survey on statutory periods for adverse possession.

How Should I Handle a Dispute With a Neighbor?

You should first approach the neighbor directly to see if you can reach an informal resolution. If this does not work, you can write a demand letter to the neighbor explaining why the law is on your side. You might also contact a local government agency if the neighbor is violating a law or ordinance. Further steps in a dispute with a neighbor might include going to mediation, where a neutral third party could help the neighbor and you try to reach a compromise. Ultimately, you could bring a formal nuisance claim against the neighbor if they are interfering with the use or enjoyment of your property.

Can I Be Sued if a Guest Was Injured on My Property?

You might be sued if someone was injured on your property if they had a legal right to be there. This generally covers friends and other social guests who have your permission to be on the property. You must take reasonable care to protect these people from dangerous conditions on the property of which you are aware, or reasonably should be aware. This might involve either fixing the problem or warning your guest about it. If an accident happens, though, homeowners’ insurance should cover the resulting costs.

Can I Appeal the Tax Assessment on My Property?

You cannot challenge the tax rate, for which the assessor is not responsible. However, you can appeal the valuation assigned to your property if you think that the assessor made a mistake. You also might argue that the calculation of the property tax did not account for certain abatements or exemptions that you should have received. Sometimes a homeowner might use an outside appraisal to support an appeal, although this is not always allowed.

Who Is Covered by Housing Discrimination Laws?

The federal Fair Housing Act protects home buyers from discrimination based on their race, color, religion, sex, familial status (including pregnancy), national origin, or handicap. According to the U.S. Department of Housing and Urban Development, sex discrimination in housing includes discrimination based on sexual orientation or gender identity. Some states protect a broader range of characteristics. Justia provides a 50-state survey on fair housing laws, covering topics such as protected characteristics, prohibited conduct, and the timing for bringing a claim.

Final Thoughts

Many property transactions or disputes benefit from legal advice or representation. Someone with a specific question or need should consult a real estate lawyer in their area. In the meantime, the Home Ownership Legal Center provides an overview and a starting point for consumers. Like the other Justia Legal Guides, it furthers our mission of making the law transparent and accessible to all.

• Justia Legal Resources: Child Custody and Support Law Center
• Justia Legal Resources: Medical Malpractice Law Center
• Justia Legal Resources: Landlord-Tenant Law Center

Lee este artículo en Español en Justia Avanza.