Whether you have a mortgage deed or another type of ownership, knowing what is on the deed to your home is essential. Not only will you protect yourself for the future financially, but you’ll also understand your rights. here are 10 reasons why you should take a closer look at the deed to your home.
1. Verify Type of Ownership
Do you know what kind of ownership is listed on your deed? Deeds can have several types of title ownership such as joint tenancy, sole ownership, tenancy in common, and mortgage deed. It’s important to know what kind of ownership is on your deed to determine how it will be passed down or transferred, what your legal right to the property is, and taxes and liabilities.
2. Catch Errors
Sometimes clerical errors happen on deeds. Double checking your deed can make sure that there are no disputes in the future. Sometimes older deeds are handwritten and need to be legible. This may be something that you need to update.
3. Identify Liens
Are there any liens or claims to your property? This should all be evaluated before purchasing a home. Over time, liens can be put on your deed for unpaid debts, taxes, or judgments. These must be rectified before the sale of a property.
4. Prevent Fraud
Did you know that title fraud has become more prevalent? Title fraud happens when someone illegally transfers property by using forged documents or stolen personal information. Loans may be taken against your property illegally or it could be sold without your knowledge. Title insurance can help protect you, but you also should regularly check your deed for unauthorized changes.
5. Confirm Property Boundaries
It’s important that your property boundaries are correct on your deed. Then, if you have any property disputes with neighbors, or are making improvements you can refer to your deed. Developers may also challenge your property lines if a project commences near your property.
6. Easements and Covenants
Easements and covenants may restrict the way that you use your property. For example, a private easement might give neighbors access to use your property to access a beach or a utility easement may run through your property. A covenant like an HOA could restrict your landscaping or exterior. Knowing these pieces of information will help you make decisions about your home.
7. Confirm Mortgage Satisfaction
If you’ve recently paid off your mortgage, make sure that your mortgage company has refiled your mortgage deed and noted the satisfaction of the loan.
8. Comply with Zoning Laws
If you’re planning any improvements in the future, it’s a good idea to see if your deed complies with local zoning laws. This can prevent headaches in the future when applying for permits.
9. Prepare for Property Taxes
The deed to your home will determine who is responsible for property taxes. Certain types of ownership may also qualify for tax exemptions such as trust. If you have a mortgage deed, mortgage interest is usually tax deductible as well. Of course, you should consult a tax professional for help with tax preparation.
10. Ensure the Right Beneficiaries
If you’ve inherited property or plan to pass it on to heirs, you should make sure that the deed to your home reflects this. The type of deed structure will determine how your home is passed on. With the right deed structure, this will make it less complicated for your heirs.
Have you taken a closer look at the deed to your home? What questions do you have?
Read More
5 Home Upgrades That Will Save You Money in the Long Run
10 Game-Changing Financial Management Tools You Need Right Now
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.