Archive for category: Homeowner Tips

When the more traditional couple, aka married folks, divorce and go their separate ways, the process of dividing up the property is dictated by the law, for the most part. But what about those who choose to live together without the legal binds of marriage, which is approximately 14 percent of those in the age group of 25 to 34 years. 

And many of those 14% have more than divvying up the dishes, linens, and CD collection. They plunged in together and purchased a house. The rules for this situation is different, so if you find yourself considering cohabitation without a walk down the aisle and that legal piece of paper, here are some things you should know if that relationship doesn’t hold. 

Dividing Real Estate Assets – The Difference When You’re Not Married

There are options for married couples that divorce when it comes to dividing property such as a house or other real estate. For instance, one spouse can buy the other spouse’s part, or the property can be sold outright, and the profit is split. If the couple can’t come to an agreement, the court can make the decision for them and force a sale. 

However, the court doesn’t have much jurisdiction when it comes to unmarried homeowners, if the property is equally owned by the unmarried couple. This means that both names need to be on the title. Who paid the most of what is irrelevant.  If one person is determined not sell, it is a problem for the other person to resolve, not a divorce court.

So, what happens if one of the persons agrees to buyout the other person? This can be an expensive move because the transferring of assets also entails tax issues. For a married couple getting a divorce, this is a tax-free transaction. It is recommended that the unmarried couple seek the advice of an accountant and determine what the taxes are before making this decision. 

How Can Unmarried Couples Protect Themselves? 

Because there are legal complications such as that discussed earlier, experts advise for unmarried couples have a written agreement in place before making a major purchase like a house. Yes, this can take the romance out of the relationship, but it is the best way for both parties to protect themselves.

Today, a handshake just isn’t enough if an unmarried couple decides to buy a home as a couple. In just about every state, any agreement made regarding real estate, must be a written agreement. It doesn’t need to be a formal document drawn up by a lawyer either. It can be a simple one-page agreement that states how the property will be divided if the relationship ends. 

This type of contract is referred to as a “Cohabitation Agreement,” and it should state at the minimum the following:

• If the relationship ends, how will the real estate be divided? Options are selling the property and divide the proceeds, or one person buy the other person’s part. 
• Determine what percentage of each party will receive of the profits when the property sells
• If the two parties can’t come to an agreement at the time of the split, how will those disputes be handled? Before going to court, seek the services of an unbiased mediator is the less expensive route.

What If There Isn’t A Cohabitation Agreement?

If no written agreement is drawn up between an unmarried couple prior to buying a home, it can become an expensive and long legal battle.  The legal fees alone can reach $25,000 and upward quickly and can even be more than the property is worth. With that being said, it would be less expensive to have a lawyer draw up the agreement prior to making the purchase. 

Of course, for one person to bring up the cohabitation agreement can be a delicate time, which is why more unmarried couples buying a home together won’t bring the subject up. It can be an awkward situation for a couple, but the future is unknown and protecting one’s self is key to these things. By mapping out how things will be done and stating who owns what ahead of time is only wise. 

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Whether you’ve just closed on a home for the first time or consider yourself a seasoned mortgage-paying pro, you might be surprised by these ten common mistakes homeowners make. It seems we all live in the fast lane this day and time and I think we are all guilty of taking some short cuts that ended up costing either time and money to correct.  Here’s a list of what we think are some of the most common blunders to avoid:

1. Forget to change your locks
This applies to new homeowners who, in the excitement of moving in, forget about swapping old locks for better security (who knows who has a copy of that old key?). Hire a locksmith to swing by and rekey while you work on other things.

2. Let your ceiling fans run in every room
Ceiling fans are effective only when you’re in the room, since the breeze cools your skin and makes you feel comfortable enough to change the thermostat. Turn them off and save the motor when you’re not there.

3. Confuse classic with trendy.
If you’re thinking, “bye bye, brick” and “hello, outlandish exterior color,” you might want to think again. Your resale value could rely on those original character traits, like a brick fireplace or mid century modern fixture.

4. Let problems pile up
A simple rule of thumb is: When something goes wrong, fix it immediately. Because little things become big things if left unattended, like a small leak that becomes a big burst.

5. Throw potato peels in your garbage disposal
Spoiler alert: This always ends in disaster. The starchy peels thicken into a paste that clogs up the disposal.

6. Dig holes without calling 811
Do you know where your gas and electrical lines are? Call 811 and someone will come for free to mark the underground lines for you before you dig.

7. Plant trees too close to the house
And while we’re on the subject of digging, be mindful of where you’re planting your trees. Even though they provide shade, closer isn’t better when there is a danger of branches falling on the house. Large trees should be at least 20 feet away.

8. Cutting corners on plumbing and electricity
There’s a Youtube video for it, and you did fix that garbage disposal earlier, so you should be able to do it yourself – right? If it comes to ambitious plumbing and electrical work, the answer is no, unless you’re down with water damage and, you know, electrocution. Hire a pro.

9. Water the grass at night
In Arizona especially, it’s tempting to think that the less sun, the more water gets to your grass. While this is partly true (water can evaporate before it hits the ground in the heat of midday), the best time is actually in the early morning when the air is cooler but there is some sun to evaporate water clinging to blades.