Category: Uncategorized

Recognizing Why Location Matters With Your Home Insurance

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In the world of real estate, location is known to have an effect on the market price of houses. Location does not only affect the value of a home, but can also impact the rate of your home insurance.

There is a range of factors that determine your insurance rate, one actually being the risk level of your home. Insurers look at what level of danger your home could be in depending on its location, and the approximate cost it would be to repair your home if a disaster were to occur.

The Influence State Regulations and Construction Costs have on Replacement Costs

  • Each state has their unique set of regulations that impact the marketplace
  • Insurers in different states take many things into consideration, like what types of construction materials and methods of construction are needed to rebuild your home
  • Some states are more expensive to build in than others, which can influence the rate of your homeowner’s insurance

The Impact from Higher Risks of Severe Weather and Natural Disasters

  • High-risk areas call for higher homeowner’s insurance rates
  • If you live in a location that is known to have higher risks of tornadoes, hurricanes, or other natural disasters, you will most likely have more expensive rates
  • Areas with little to no risk of severe weather will have more reasonable rates, due to there being a low likelihood of your house being damaged

How your Accessibility to Protection Makes a Difference

  • It is beneficial for you to live in a location that is nearby a fire station
  • Insurers see you as being in better protection if you are located in a neighborhood with a fire station at least a quarter mile away from your home
  • Not living near a fire station is viewed as not having quick access to protection, and will result in less favorable rates

For more information on why the location matters with your home insurance, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

Understanding The Rules Under Homeowner Associations

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Whether you own a new or single-family housing development, a homeowners association is more than likely in your complex. Homeowners’ associations are becoming more more common and often act as the governing body of the development. For instance, if you purchase a property governed by a homeowner’s associated, you instantly become a member of the HOA through the contract indented in the purchase of the property. Generally, the contracts under HOA state you will obey all of the rules listed, as well as, pay regular expenses.

Rules Under HOA

When purchasing a property governed by a HOA, there are specific rules, or covenants, homeowners must follow. These rules often regulate what you can and cannot do within the boundaries of your home. Most of the HOA rules restrict certain colors you may paint your house, the amount of cars you own and where you park, if you may own a pet, and even if you may rent out your home to others.
It is important for homeowners to review the regulations under the HOA contract before the deal is closed as it will be too late by this time. Adding a contingency to the contract stating that you may review any governmental documents before closing will benefit you in learning the rules of the certain HOA community you are becoming involved with.

Violations Under HOA

It is crucial to follow all of the rules and regulations under your septic HOA contract to ensure you do not receive any penalties. Violations are generally light and can be reversed easily. For instance, if a homeowner brings in a pet in an associated that restricts animals, the homeowner can simply give the pet away to avoid any consequences. However, some HOA communities are stricter when it comes to violations, most requiring the homeowner to pay a fine depending on the severity of the situation.

For more information on homeowners’ associations or to learn more about how we can support you through your real estate issues, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

How To Build Home Equity

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In today’s time, it is essential to build wealth through home ownership. This can be done through home equity, which is the percentage of a property you own. Here are the best ways to build home equity while saving money:

Make a larger down payment:

Although it is not the most efficient way to build equity, making a larger down payment can actually benefit your financial issues in the future. Getting in contact with a lender can provide you market insight to further your equity.

Allow your home to appreciate:

With home values increasing over recent years, home appreciation has grown dramatically. For example, if you purchased a home for $185,000 in May 2016 with a 5 percent down payment, your home equity would have increased to 21 percent by May 2018.

Pay biweekly instead of monthly:

A great way to increase home equity is to pay your mortgage every two weeks instead of every month. This will not only build home equity, it will shave at least 5 years off of a 30 year mortgage.

Renovate your home:

To top it all of, renovating your home with new appliances and fixtures is a great way to increase value. New kitchens and renovated bathrooms are likely to help increase home equity.

For more information or any questions about how to increase your home equity, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

Purchasing A Residential Home The Correct Way

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Owning a home is one of the biggest accomplishments through adulthood and is often referred to as the American Dream. It is essential to know what comes with buying a home and how you can be prepared for everything that may come your way. Chang Legal is here to guide you through the buying process of a home and the steps you should take when completing the deal.

Down Payment: Before you are ready to purchase a home, it is important to know if you can afford everything that comes with a house. Some individuals have a difficult time having a down payment since they may have debts in other areas such as college loans. The typical amount required when purchasing a home is 20% of the purchase must be down payment.

Pick A Location: It may seem self-explanatory, but picking a location for your home can be very difficult and stressful. This is why it is important to consult with a real estate agent, who will make the process much smoother. Take time to think about the type of environment you would like to live in, whether it be a urban, suburban, or rural area.

Type Of Property: Are you looking to purchase a 1200 square feet house for your family? Or are you just looking for a property for yourself? It is crucial to ask yourself these questions before purchasing a home. You do not want to buy a home with extra space that is not needed and you certainly do not want a home that is too small.

Explore Your Options: Typically, many future homeowners decide to jump in right away on the first few properties they visit. A better idea is to speak with your real estate agent and to visit as many as properties as you can to ensure you are making the right choice. It never hurts to look at more real estate than less!

Make An Offer: Once you have checked off all of the above steps, it is time to make an offer on the property you choose to reside in. Your real estate agent will provide you with a contract, which states all of the legal terms and conditions and will ensure you meet all of the requirements before purchase. Once this is complete, you will have a successful transaction and will now be a homeowner.

For further information about the process of purchasing a home or to learn more about how we can support you, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

Knowing Your Rights As A Tenant

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Renting is a wonderful option for some who are looking to stay in a space temporarily. One of the strongest benefits as a renter is that you do not have worry about maintenance and repairs. However, issues could arise during this time and it is essential for you to know what your rights are.  Here are some common issues tenants run to and what you can do about it:

Appliance Repairs

While it may seem obvious that your landlord is responsible for broken appliances in the property, some landlords still pull schemes to mislead their tenant to pay for the repair. In most states, the landlord is responsible for providing adequate heating and cooling systems.

 

On the other hand, landlords are not responsible for repairing any broken appliances that the tenant purchases, such as a microwave or toaster.

 

Pest Control

As a tenant, you want to live in a safe and comfortable environment. This includes a pest-free living space. While it mainly depends on the state you live in and the type of pest infestation, it is important to let your landlord know if there are pests in your unit. Most landlords will want to address this issue immediately to prevent further complications.

Mold

If you realize there is mold in your rental unit, you should contact your landlord as soon as possible. Even though there are not many state regulations on your landlord being responsible to remove the mold, they are still required to grant you a livable space. Ensure your landlord removes the source of the mold to prevent further issues.

The only instance where a landlord is not responsible for removing mold is if the damage is a result of the tenant’s actions.

Landlord not complying?

There are many things you can do if your landlord is not complying with you on any of the common issues above. To learn more about your rights as a tenant, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

What to Expect at a Real Estate Closing

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If you’ve never bought or sold property before, the process of closing on your real estate deal may seem a little mysterious. Who is there? What do you need to be prepared for? What will happen? There’s no doubt: closings can be complicated events. In fact, it’s even a bit difficult to tell you “what to expect” in a general sense – every closing is unique. So here are some broad strokes on what a closing entails.

What is a real estate closing?

The real estate closing is the last step in a real estate transaction. This is where you get (or give) thekeys. It’s the point of no return (but it’s not that scary). Transfer of ownership generally happens when one party turns over the deed of the property to the other party – but it’s typically a lot more complicated than simply signing on the dotted line…

 

 

Who is present at the closing?

The list of who is present at a closing can vary slightly from situation to situation, but here is a general list of the major players at a closing:

  • The seller or the builder’s representative (if it’s a new home)
  • The buyer
  • Attorneys for the seller and the buyer
  • Real estate agents for the seller and the buyer
  • The mortgage lender / representative
  • The title company representative (sometimes one in the same as the mortgage lender’s representative)
  • The closing agent – this is the person who is in charge of guiding the proceedings. Sometimes the closing agent is also the title company representative or another person on this list.
  • A notary public

What do I need to do before the closing to assure it goes smoothly?

Your attorney will review all of the closing documents prior to closing to ensure everything goes smoothly. Your attorney will make sure you have taken all the appropriate financial steps before the closing and will let you know exactly what will happen at your particular closing.

There is one other very important step you should take before closing on a property that you are purchasing: 24 hours before the closing, you should do a final walk-through of the property. At this point, you can determine if any changes have been made to the property or if there is any damage to the property that wasn’t there when you signed the contract. If there are problems with the property, they should be dealt with then – not at the closing. Whether or not you are working with a real estate attorney, please do not skip this step – you don’t want to complete the closing, only to find out that you’re going to have to pay for repairs that you did not expect.

Where does the closing happen?

A closing can happen anywhere, but usually takes place at the offices of one of the professionals involved.

What am I expected to bring to the closing?

The answer to this question depends, of course, on whether you are the buyer or the seller and in either case, your attorney will prepare you and make sure you have everything you need. In general, if you are the seller, you need to bring the keys to the property (if applicable). If you are the buyer, you will generally be paying money at the closing, but that doesn’t necessarily mean you’ll be bringing a check with you. The most important thing to remember as a buyer is to communicate with your attorney, who will be sure you are ready for the closing.

What are the actual steps of a closing?

You’ll be doing a lot of signing at the closing so warm up your John Hancock skills. As a buyer, some of the most important documents are those that detail the terms of your mortgage loan. These are complex legal documents that use industry-specific terms that may be unclear to someone who is not a legal real estate professional. Your attorney will thoroughly review these documents – usually before the closing itself – and will make sure its safe for you to sign the documents.

If you are working without an attorney, it is crucial that you pay close attention to these documents. If you see anything you don’t understand or see something that isn’t what you expected, do not sign the loan documents until the issue has been resolved. Once you sign these documents, they are binding legal contracts.

At a closing, you will likely sign the following documents:

  • Closing disclosure / settlement statement – this is a list of all your credits and charges. It is itemized and at the bottom will list the amount you owe. You and your attorney should receive this document a few days before the closing so you can review it thoroughly.
  • Mortgage / promissory note: this is your “IOU” with the mortgage lender.
  • Mortgage / deed of trust: this document secures the mortgage / promissory note.
What can go wrong at a closing?
Optimally, your closing will be smooth sailing; having a real estate attorney as your partner in this process can help make sure that happens. But sometimes even when we do all the right things and follow all the steps, events that are out of our control occur. In fact, there are enough crazy stories out there about ruined closings that we’ll save those details for another time.

That being said, should your closing hit a few bumps in the road, it’s more important than ever to have an experienced real estate attorney at your side, whether you are the buyer or the seller. At Chang Legal, we have the experience necessary to guide you confidently through the process and to help you manage any problems that may arise along the way.

If you are thinking about buying or selling property, we’d love to chat with you about how Chang Legal can help make the process as easy and as successful as possible for you. Please email us at ContactUs@changlegal.com or call 847-907-4971 today.

What You Need to Know About HOAs

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If you’ve lived in a community managed by a Home Owner’s Association (HOA), you know that HOAs can be both the source of and the solution for many community issues. If you are planning on buying a home governed by an HOA, or you currently live in a HOA-governed community, it’s imperative that you are able to spot a good HOA (and a bad one!) in order to protect your financial investment in your home. Continue reading “What You Need to Know About HOAs” →