You are out looking at houses, and there’s one you really like. But your nose is twitching the entire time you are inside the house.

It’s easy to say to yourself, “Oh, it just needs a good airing out.” and focus on things like the number of bedrooms, the size of the yard, or how close it is to good schools. But have you thought about what you can’t see? Air quality inside the home might not be something you notice right away, but it’s just as important as those other factors. Poor indoor air quality can impact your health and comfort, so testing for it before you make a purchase is a smart move.

What Is Indoor Air Quality?

Indoor air quality refers to the cleanliness and safety of the air inside a home. So many people immediately jump to the idea of mold when it comes to air quality. But the air quality can be affected dust, radon, carbon monoxide, and harmful chemicals from paint, building materials, or furniture. If a home has poor air quality, it can lead to health problems such as allergies, asthma, or long-term respiratory issues.

Test Before Buying

For as little as a few hundred dollars, you can discover any hidden issues. You’ll get results on:

1. Radon, which is a naturally occurring gas that can seep into homes and is linked to lung cancer.

2. Mold and fungi of all types, which can grow in damp areas and can cause respiratory issues or worsen asthma.

3. Carbon monoxide, the odorless gas that can be deadly if levels are too high.

By knowing about these issues ahead of time, you can decide if the home is worth the cost of fixing them or if you need to look for another property.

Hiring a Professional

Hiring a company that provides testing services is the most reliable option. They use specialized equipment to check for pollutants and allergens. Some home inspectors include air quality testing in their services, but you can also hire an environmental testing company for a more detailed assessment.

And If There are Problems?

Should an issue be revealed, that doesn’t mean you have to cancel the purchase. By doing this during your due diligence period, you can make an informed choice whether to proceed. Some options might be:

1. Negotiating remediation or repair

2. Negotiating a lower price so that you can address the issues yourself (you may even have a remediation company come by to price out the work as leverage for your proposed price)

3. Determine whether the risks are worth it; don’t forget to consider the issues you may have selling the house later base on the issues and whether they are likely to get worse over time.

There are Solutions

A qualified professional can install a radon reduction system and/or increase ventilation, or seal cracks in your home. There are also companies that can address the presence of mold. Some issues can be helped through the installation a home purification system or a duct cleaning.

Your health and safety should always come first, even when choosing your dream home. Testing air quality is a simple but important step to make sure your new home is a safe and healthy place to live. It gives you peace of mind and can save you from unexpected problems in the future.

A contingency in a real estate transaction is a way of setting a rule that has to be met before the deal can go through. It’s an agreement between the buyer and seller that says, “This sale will only happen if certain things are done first.”

For example, the buyer might need to get approved for a loan, sell their current home, or have the house inspected to make sure there are no big problems. If those things don’t happen, the buyer can potentially back out of the deal. The idea is that one party can terminate the deal without losing their Earnest Money. It’s a way to protect both sides while they work out the details.

Common Contingencies

Inspection Contingency
This lets the buyer have the home inspected to check for problems like a leaky roof, bad plumbing, or other issues. If something big is wrong, the buyer can ask the seller to fix it, lower the price, or cancel the deal without losing money.

Financing (or Loan) Contingency
This protects the buyer if they need a mortgage (loan) to buy the house. It says the buyer has time to get approved for the loan. If they can’t get the loan, they can back out of the deal.

Appraisal Contingency
If a buyer gets a loan, the bank sends a person to see if the house is worth the price the bank is lending to the buyer.  This is called an appraisal. If the house appraises for less money, the buyer can negotiate with the seller or back out of the deal.

Home Sale Contingency
This is for buyers who need to sell their current home before they can buy the new one. It says the deal only moves forward if the buyer’s old home sells by a certain date.

Title Contingency
This ensures the home’s legal ownership is clear. If there are problems, like unpaid taxes or claims on the property, they need to be fixed before the sale can happen.

Other Contingencies
Sometimes there are special rules, like making sure the home passes certain tests (like for pests or radon) or that it’s approved for specific use (like adding a pool or starting a business).

Each of these protects the buyer so they don’t get stuck in a deal that isn’t fair or affordable for them.

Due Diligence is a phrase used in to generally indicate a person’s need to take time to research whether something is in the same condition as someone claims it is. In real estate, it is the name for a period of time during the buying process where the buyer makes absolutely sure that this is the house they want. They do that by investigating as much as they can. A buyer does their “due diligence” before they commit to buying.

Why it is important

Due Diligence is a name for a period of time in a real estate purchasing process that the buyer uses to make absolutely sure that this is the house they want. They do that by investigating as much as they can. A buyer does their “due diligence” before they commit to buying.

Part of understanding due diligences is also knowing what steps you as a buyer can take to find out more about what it is you are buying. There is a lot to do quickly during the due diligence (DD) period. It’s not a time for dawdling!

First, buyers hire a professional inspector do a thorough review of the home. They also ask the seller to provide informative documents, like warranties and other paperwork. They might use the time to hire other workers to address concerns, like possibility of flooding or a roof that looks old. During this time, they also can renegotiate the price, or decide to walk away from the deal.

So how long is the due diligence period? It varies. For a standard transaction, it’s about 5 days. The length of the due diligence period is agreed upon during contract negotiations. And since circumstances vary, DD can last up to several weeks, or even longer in special cases. There are also circumstances where the due diligence period is zero days because the buyer feels comfortable with the risk.

What research happens during this time?

1. Home Inspection – A critical step is hiring a professional inspector to check the condition of the property. The foundation, roof, plumbing, electrical systems, and more can be looked at. Many buyers even pay for air quality tests, sewer scoping, or other specialty assessments. If major issues are uncovered, the buyer may renegotiate or even walk away from the deal as long as they do it during due diligence.

2. Appraisal – The buyer’s lender typically requires an appraisal to ensure that the property is worth the agreed-upon price. If the appraisal comes in lower than the purchase price, it may affect financing or lead to renegotiation.

3. Title Search – A title company will perform a search to ensure there are no outstanding liens, claims, or disputes on the property. This ensures that the buyer receives a “clear title” when the property is transferred.

4. Reviewing Documentation – Buyers should review important documents such as the homeowners’ association rules, zoning restrictions, and property surveys. This helps avoid any surprises after the purchase is complete.

5. Final Negotiations: – If any issues arise during the due diligence period, the buyer can negotiate with the seller for repairs, price adjustments, or closing credits. If a resolution isn’t reached, the buyer can withdraw from the deal—often without losing their earnest money.

In essence, due diligence protects the buyer by allowing time to fully assess the property and ensure it meets their expectations. It’s a vital part of the home buying process, ensuring there are no hidden surprises and giving both buyers and sellers a smooth path to closing.

Your REALTOR works hard during Due Diligence

You must choose a REALTOR that helps you navigate all the moving parts of due diligence and keeps you on track. And the amount of time set aside for due diligence in the contract can be extended if permission is granted by the seller.

A word about “As-Is” sales: When a seller says the house is being sold “As is,” that does not mean you forfeit due diligence. It actual means that whatever you uncover will most likely be your responsibility to address. Or of course, you can decide not to buy based on the information you uncovered during due diligence.

When you are dealing with real estate, it can sound like the agents and lenders are speacking a different language. Build your home buying confidence by knowing more about earnest money and understanding what is it, and why is it important.

Earnest money is basically a cash deposit made by the buyer to show they are serious about purchasing the property. The more earnest money they promise in their offer, the more serious they are.

Key things to know

The amount of earnest money is usually between 1% and 3% of the purchase price, however it can vary depending on circumstances and the market.

The earnest money is provided by the buyer quite quickly (within 5 days) after both the buyer and seller sign the purchase agreement (which is also known as “going binding” or being “under contract”).

The earnest money is held in an escrow account until closing. At closing, it is applied to the buyer’s down payment or closing costs at that time.

It’s their job

Buyers pay their REALTORs because they work hard to protect your earnest money by making sure that all parties meet all deadlines. If the clock is ticking and the other agent looks like they might not be making good on their promises, a good agent sends a termination request to protect your earnest money! That’s because the seller gets to keep the earnest money if the buyer backs out of the deal without a valid reason or misses the timeframe that is called out in the contract. Deadlines are vital!

On the other hand, if the sale falls through due to issues like a failed home inspection or financing problems, the buyer is still entitled to a refund of their earnest money as long as they are within the contingency timeline.

When navigating the world of real estate, you’ll likely encounter the term “escrow” at some point. Whether you’re buying or selling a home, understanding escrow is essential to ensure a smooth and secure transaction. But what exactly is escrow, and how does it work in real estate? Let’s break it down.

What Is Escrow?

In the context of real estate, “escrow” refers to a neutral third party that holds funds, documents, or other assets on behalf of the buyer and seller during a transaction. The use of an escrow account helps protect both parties so that money doesn’t change hands before certain things happen.

Think of escrow as a temporary holding account that guarantees everyone involved in the transaction follows through with their responsibilities.

When is it important?

When delivering your Earnest Money:

Once the buyer and seller have agreed on the terms of the sale, the buyer deposits earnest money—usually a small percentage of the home’s purchase price—into an escrow account. This deposit shows that the buyer is serious about purchasing the property.

During your Contingencies:

Most real estate transactions include contingencies, such as inspections or the buyer securing financing. Escrow allows both parties to work through these contingencies without risking the deal. So no money should change hands until the contingencies have been satisfied—such as the buyer securing financing, completing inspections, and ensuring the title is clear—the escrow agent prepares for the closing of the transaction.

During Due Diligence:

Due Diligence is the period where the potential buyer is typically conducting inspections and appraisals to ensure the property’s condition and value align with the agreement. If any issues arise, this period allows the buyer to negotiate repairs or adjust the sale price. This is also when the buyer arranges financing, like securing a mortgage, and finalizes their lender’s requirements.

On Closing Day:

On the closing date, the escrow agent distributes funds according to the agreement. The buyer’s money is transferred to the seller, and the title of the property is officially transferred to the buyer. Any fees or closing costs are also paid at this time. The escrow account is then closed.

What is an Escrow Agent?

The escrow agent or company acts as a  neutral third party whose role is to manage the process and make sure all conditions of the sale are met before finalizing the transaction. The agent ensures that:

– The seller holds clear title to the property.
– The buyer’s payment is securely held until the title is transferred.
– All parties’ agreements (such as repairs or conditions) are met before funds and property change hands.
– All necessary paperwork, such as the deed, is correctly signed and filed.

The escrow agent does not favor either party and is bound by the instructions agreed upon in the purchase contract.

Another way you’ll hear about it

You’ll also hear the the word used when talking about building up the balance of your various tax and insurance accounts. When buying a home, escrow accounts are often used to pre-pay property taxes and homeowners insurance. Lenders typically require this as part of the mortgage agreement to ensure these essential payments are made on time. In this process, a portion of your monthly mortgage payment is deposited into an escrow account, which is managed by the lender. From there, the lender will use the funds to pay your property taxes and insurance premiums when they come due. This system benefits both the homeowner and the lender: it ensures that taxes and insurance are consistently paid, preventing potential penalties or lapses in coverage. By setting aside these funds throughout the year, homeowners can avoid large lump-sum payments, making it easier to budget for these essential expenses.

What Does It Mean When a House Is Sold “As Is”?

You see a house being sold “as is,” and you feel as though you should avoid looking at this house, much less consider it for purchase.  Keep in mind, all “as -is” means is that the seller isn’t going to fix anything before selling it. The house comes just the way it is right now, with all its good parts and any problems it might have.

Why Do Sellers Sell “As Is”?

1. They Don’t Want to Spend Money on Repairs
Maybe the seller can’t afford to fix things, or they just don’t want to deal with it. Many times, the seller feels as though they have reduced the price to adjust for the work or updates that need to be done.

2. It’s Part of the Sale Terms
Sometimes the seller wants to make a quick sale or avoid negotiating about repairs after a home inspection.

3. It’s an Older or Fixer-Upper Home
Some “as is” homes need a lot of work, and the seller knows the buyer will likely remodel or repair it anyway.

What Should Buyers Know?

1. You Still Get to Inspect the House
Even though it’s sold “as is,” you can and absolutely should pay to have a home inspection. This will show you what repairs might be needed and help you decide if the house is worth buying. If the inspection reveals any issues, you might also want to have additional experts give an opinion on the extent of the repairs.

2. The Seller Isn’t Promising Anything
The seller won’t fix anything found during the inspection, so you need to be okay with handling repairs yourself or paying to hire someone to do them.

3. It’s Not Always a Bad Deal
Sometimes “as is” homes are priced lower because of their condition. If you’re willing to make repairs, it could be a good opportunity to buy a house that others would not even consider purchasing.

Be Careful!

Buying an “as is” house means you’re taking on all the risks of problems the house might have, like a leaky roof or an old heating system. Make sure you:

1. Hire a professional inspector that uses accredited inspectors

2. Budget for repairs or updates to address issues that may make it hard to inhabit the house 

3. Know what you’re getting into before you buy

An “as is” home can be a good deal for the right buyer, but it’s important to be informed and prepared! There is risk involved in any purchase, and an as-is property is essentially like the homeowner is acknowledging the risk instead of implying “trust me, this house is perfect!” Read about Due Dilligence which is when you’d do your inspection and fact finding about the house.

When people decide to sell their home, they usually hire a real estate agent. Sometimes however, they choose to sell a home themselves. This is called a “For Sale By Owner” (FSBO) (also pronounced Fizz-Bow). FSBOs can be risky. Let’s look at this more closely:

Why Would People Choose FSBO?

1. Save Money on Agent Fees – Real estate agents charge a commission (a percentage of the home’s price) as their compensation for the work they do getting a home sold. Some homeowners want to avoid paying this fee and keep more money from the sale.

2. More Control – When selling on their own, homeowners have full control over the process. They decide the price, show the house themselves, and negotiate directly with buyers. Often these owners feel as though nobody knows their home well enough to highlight its best features. To them, no one can showcase their home as well as the person who lived there.

3. They Think It’s Simple – People believe they don’t need an agent and that agents don’t do much to earn their commission. Especially if the market is strong, or they already have a buyer lined up (like a family member or friend), they are willing to go it alone.

The Risks of FSBO

While FSBO might seem like a good way to save money, it comes with risks:

1. Pricing the Home Wrong – Without an agent’s expertise, homeowners may set the price too high, which scares buyers away, or too low, which means losing money. Agents look at all the recent sales and carefully compare condition and size of home to price the house accurately. It’s been shown that many owners price their own home too high because they don’t have the data that agents have and they simply struggle to remain objective about the appeal of their own home when compared to a lot of other homes in the same area or price range.

2. Limited Pool of Buyers – Real estate agents list homes on the MLS (Multiple Listing Service), which is broadcast out to a lot of real estate search sites that other agents use to help their buyers.  FSBO sellers can post their home on some sites, or hope that prospective buyers might see a sign in their yard., but actually might not get as much attention. That makes it harder to sell a home quickly.

3. Legal and Paperwork Mistakes – Selling a home requires lots of paperwork and legal knowledge. A mistake could cost the seller money or even lead to a lawsuit.

4. Time-Consuming – FSBO sellers have to personally coordinate everything, from marketing the home to showing it and negotiating with buyers. This can take a lot of time and effort.

5. Harder Negotiations – Without an agent’s experience, FSBO sellers may struggle to negotiate a good deal or handle tough buyers.

6. No Buffer – Buyers may be wary of dealing directly with a homeowner. There is an implication that if a homeowner isn’t willing to use a real estate agent, they may be harder to negotiate with or sensitive when issues with their home are brought up.

7. Statistics say anywhere from 80-90% of FSBOs end up using an agent.

The problem is that no one really knows how FSBOs end up, since there is no consistent reporting by these owners of what sold and whether they got their asking price. But a good majority of FSBOs doe end up with an agent after realizing that more goes into the marketing and exposure you need for your home to get the best possible price.

Selling a home on your own might save money upfront, but it can lead to stress, mistakes, and even a lower final sale price. For many people, the support and expertise of a real estate agent are worth the cost. If you’re thinking about FSBO, make sure you’re prepared for the risks and challenges!

What Are The People Who FSBO Overlooking? 

1. Your agent’s compensation is fully negotiable 

2. Whomever you hire should be able to tell you clearly what they will do for you, in exchange for the money you pay them

3. Agents promote your home to thousands of buyers, which creates a larger marketplace for your home and potentially driving up interest

4. As questions and challenges pop up, your agent is there to answer questions in an ethical & legal way (misstatements about a home or neighborhood can land you into legal hot water)

5. Professionals have real-time access to data that can help you make smarter decisions (which is better than using biased emotions)

6. A good agent will protect your home by tracking who comes and goes and schedule everything around your needs and wants

7. The use of an agent signals to buyers that you are aware that buying and selling a home can be a complicated life event

There are so many agents to choose from. If you are considering selling your own home, it’s still a good idea to speak to a few to see how they differ and get a clear understanding of the kinds of services you will be giving up if you decide to DIY the sale of your home. A professional agent can easily explain how the bring value to the table that can even result in a higher return.

A flood plain is an area of land next to a river, lake, or other body of water that is likely to flood during heavy rain or storms. These areas are important because they help manage water flow, but they also come with risks if you’re thinking about buying or selling property in a space identified as a flood plain. Knowing the ins and outs of flood plain considerations is paramount for both buyers and sellers.

There are Different Flood Plains Categories

Flood plains are categorized based on how likely they are to experience flooding in any given year. These labels help buyers, sellers, and insurance providers understand the level of risk for a property. Here’s what the terms mean:

50-Year Flood Plain – A 50-year flood plain has a 2% chance of flooding in any given year. While that might sound small, it’s actually considered a high-risk zone. Properties here are more likely to require flood insurance, and flooding may occur more often than people expect.

100-Year Flood Plain – A 100-year flood plain has a 1% chance of flooding in any given year. This is the most commonly referenced flood plain in real estate and insurance. Properties in this zone are still considered high risk, and lenders will usually require flood insurance.

500-Year Flood Plain – A 500-year flood plain has a 0.2% chance of flooding in any given year. While the risk is lower, it’s not zero. Properties here are often not required to have flood insurance, but it’s still something to consider, especially with changing weather patterns that can increase flooding risks.

It’s About Probability

The “50-year,” “100-year,” and “500-year” labels don’t mean floods happen exactly once every 50, 100, or 500 years. These terms simply indicate the probability of a flood happening. A 100-year flood plain could flood multiple times within a few years if conditions are right (or wrong). It’s misleading to tell a prospective buyer that because a property flooded last year, it won’t happen again for many more years since it is in a 100-year flood plain.

What Buyers Need to Know When House Hunting

First, you need to know if the house you like is in a flood plain. It is also a good idea to know just how far away your home is to the nearest flood plain. Your real estate agent should  look up flood plain information on every property they show you as well. To look up on your own,  visit websites like:

FEMA Flood Map Service Center

Flood Factor

Local government or county websites, which often provide flood maps and additional resources.

Then, if you find out a home you like is in a property in a flood plain, don’t totally despair. First, find out if flood insurance is required. Standard homeowner’s insurance doesn’t cover flooding. You need a separate policy, and these policies can be pricy.

Another note: Even if the property you are considering is not in a flood plain, you can still get information on any history of flooding. Read more about causes of water intrusion and flooding. 

Sellers Must Disclose Flood Information

As a seller, you’re required to disclose if your property is in a flood plain. Be upfront about any past flooding or insurance claims. This honesty helps build trust with buyers and avoids legal issues later. Highlight any steps you’ve taken to reduce flood risk, like installing drainage systems or raising the home’s foundation.

Rely on Your Agent

Your real estate agent should be checking every property for proximity to flood zone and keeping you informed. Nothing is more disappointing than liking a home and finding out afterwards that it’s in a flood plain!

What Is a Home Warranty, and Why Does It Matter?

A home warranty is like a service plan for your house. It helps cover the cost of fixing or replacing things like appliances or home systems (plumbing, heating, etc.) when they break down due to normal wear and tear. It’s not the same as homeowner’s insurance, which covers damage from things like fires or storms. Home Warranties are great for negotiating a deal, and for marketing your property. Buyers can ask for sellers to pay for a standard 1-year home warranty if the home has some older systems or appliances. And sellers who offer a 1-year home warranty as part of their listing can lure in more buyers.

What Does a Home Warranty Cover?

A home warranty usually covers:

1. Appliances: Refrigerator, oven, dishwasher, washer, dryer, etc.

2. Home Systems: Heating, air conditioning, plumbing, and electrical systems.

3. Each plan is different, so it’s important to check exactly what’s included. Some things, like roofs or pools, might cost extra to add to the plan.

How to Choose a Home Warranty Company:

1. Your Agent Can Direct You
They have likely interacted with  the top companies so can tell direct you

2. Check Reviews
If inquiring on your own, look at companies with good reviews and a reputation for fast service

3. Compare Plans
Companies offer different tiered options; Make sure the plan covers what you need, like specific appliances or systems in your home.

4. Understand the Costs
Look at both the annual fee and the service fee (what you pay each time you make a claim).

5. Ask About Limits
Some companies have limits on how much they’ll pay for repairs or replacements. Make sure these limits are reasonable.

Why Should a Seller Offer a Home Warranty?

Whether a home is in excellent condition or it has older systems and appliances, offering a home warranty when selling your house is a good idea because it:

1. Entices Buyers
Buyers feel more confident knowing they’ll have help with repairs if something breaks after they move in.

2. Make Your Home Stand Out
A warranty can set your home apart from others on the market.

3. Protect You as a Seller
If something breaks right after the sale, the warranty can handle it instead of the buyer blaming you.

4. Gives Buyers Peace of Mind
New homeowners have often used up their cash reserves, so it’s good to know that the costs will be less should something happen.

A home warranty is a win-win. Buyers get some reassurance, and sellers can sell their home faster and with fewer worries. It’s an extra layer of protection that makes the process smoother for everyone!

When you sell a home but still need time to move out, a lease back might be the ideal solution. A “Lease Back” means you sell your house to the buyer but rent it back from them for a short time. In other words, you stay in the home as a renter for an agreed period after the sale is complete.

Why Would Someone “Lease Back” a Home?

1. More Time to Move If your new home isn’t ready yet, leasing back gives you extra time to pack, plan, and move.

2. Avoid Moving Twice It’s easier to stay in one place until your next home is ready instead of moving into a temporary spot.

3. Flexibility If you sell quickly but need more time to find a new home, leasing back keeps things simple.

How Does It Work?

1. You and the Buyer Make an Agreement – Before the sale is final, you both agree on how long you’ll stay and how much rent you’ll pay.

2. Rent Is Usually Based on Market Rates. – The rent is often similar to what someone else would pay to rent the home in your area, and sometimes a bit more to address the inconvenience the the buyer. That little extra can sweeten the deal.

3. There’s a Set Move-Out Date – You agree to leave by a specific day, giving the buyer a clear timeline.

Things to Know:

1. It’s Temporary – A lease-back is usually short-term, like a few weeks or months.

2. The Buyer Becomes Your Landlord – After the sale, the buyer owns the house, and you’re just renting it.

3. You Need a Clear Agreement – It’s important to put everything in writing so there’s no confusion about rent, move-out dates, or responsibilities.

What are the Risks?

Buyer Risks: Buyer is Now a Landlord

1. What if Seller Stays Longer Than Agreed? – If the seller doesn’t move out on time, it can cause problems, especially if the buyer is planning to move in. Evictions can be costly and stressful.

2. What if Damage Happens? – Since the seller is now renting, there’s a chance they could damage the home or not take care of it properly.

3. Who is Liable? – As the owner, the buyer could be held responsible if the seller gets hurt on the property during the lease-back period.

4. How About Disagreements? – Without a clear written agreement, disputes over rent, utilities, or responsibilities (like lawn care or maintenance) can arise.

Seller Risks: Seller is Now a Renter

1. Abiding By the Move-Out Timeline – If the seller can’t find a new home or delays their plans, they might be forced to move out quickly, creating stress.

2. Making On-Time Rent Payments – The seller must pay rent on time. If they fall behind, it could harm their relationship with the buyer and even result in legal action.

3. Only Having Limited Control – Since they no longer own the home, the seller must follow the buyer’s rules, which can feel restrictive.

4. Being Liable for Damages – If something breaks or gets damaged while the seller is renting, they might be responsible for fixing or replacing it.

How to Reduce Those Risks

1. Put Everything in Writing – A lease-back agreement should clearly outline the rent amount, move-out date, and responsibilities for maintenance, utilities, and damages.

2. Set an Adequate Security Deposit – The buyer can ask for a deposit to cover potential damages or unpaid rent, just like a regular rental.

3. Work with Professionals – Real estate agents and attorneys can help ensure the lease-back is fair and legally sound.

Info about the NFIP, a partnership between the federal government, property owners, and other organizations

A property setback is the distance between a building and the property lines, streets, or other structures. Property setback rules are dictated by local zoning laws and are meant to ensure safety, maintain privacy, and create space for utilities or landscaping. For example, setbacks might say that a house must be a specific distance from the sidewalk, a neighbor’s property, or a creek.

Why Are Setbacks Important?

Understanding setbacks is crucial when buying a house, especially if you’re planning to build, expand, or make major changes. Here’s why:

1. Building Limits: Setbacks might restrict where you can build an addition, install a pool, or even plant large trees.

2. Legal Compliance: Ignoring setback rules could lead to fines or the need to remove structures built too close to the property line.

3. Future Plans: If you want to add value to the property, such as building a guesthouse or expanding the garage, setbacks may limit what’s allowed. A great example of this is when you want to buy a home that yard large enough for a swimming pool. Without knowing the setback requirements or getting a survey, you can’t make any assumptions. A sewer line or septic tank underneath the yard will impact the available area due to the setbacks needed for the pool.

Changing Setbacks & Grandfathered Structures

Setback requirements can change over time. Homes built before the rules were updated are often “grandfathered in,” meaning they don’t have to comply with newer regulations. However, if you decide to renovate or expand, you might be required to follow the current rules, which could complicate your plans. Read more about the importance of a property survey.

Regional Differences

Setback rules vary depending on local governments and neighborhoods. For example, some cities have stricter setbacks in historic districts or near environmental features like wetlands. Before buying, review the local zoning laws or ask your real estate agent to help you find the setback requirements.

Knowing about property setbacks helps you avoid surprises and ensures the home you’re considering fits your long-term plans.

When you buy a house, the words “title” and “deed” often come up. First, let’s define these terms for you:

Title: Refers to the legal right to own a property. It shows that you are the official owner. Think of it as the idea of ownership.

Deed: Refers to the piece of paper that states who has the title. This legal document transfers ownership from the seller to the buyer and is proof of the transaction. It is filed/recorded with the local government at the county or city level.

Title Insurance: Insurance just in case a new owner faces an issue with the home’s title down the road. Sorting out problems in court is very expensive, so this insurance is a must when buying a home.

Why is Title Insurance Important?

Before closing day, a title company checks the property’s history to make sure there are no issues, like unpaid taxes, mistakes in past paperwork, or claims from previous owners. Title insurance protects you if something was missed during the title research. And things do happen more often than one would think. Sorting out the issues is time consuming and expensive.

What Cause a Title Dispute In the First Place?

Here are some specific examples of why Title Insurance is worth the expense:

1. Unresolved Liens – Liens are claims against a property due to unpaid debts, like taxes or a contractor bill that was never paid. If these aren’t sorted out before the sale, the new owner may face a title dispute. Example: A buyer discovers a tax lien from a previous owner years after purchasing their home. The buyer is now responsible for resolving it.

2. Boundary Disputes – Neighbors can disagree over where property lines are. If a fence, driveway, or structure is built in the wrong place, it can lead to a title dispute and create a delay in a sale or purchase of a home. Example: A homeowner discovers their garage is partially built on their neighbor’s land. The dispute ends up in court to determine the rightful boundaries. Learn more about property lines and surveys

3. Fraudulent Sales – Scammers are rampant in real estate today.  They forge documents and sometimes are able to sell a property they don’t even own. Example: A property is sold by someone pretending be the owner. The real owner is out of town. When they return, the buyer realizes their title is invalid. Learn how to protect yourself from scammers 

4. Unknown Heirs – If a property is inherited, long-lost heirs may show up years later. Example: After a property is sold, a distant relative appears with evidence that they are entitled to a share of the home, creating a legal battle.

5. Clerical Errors – If a public record has a misspelled name or is missing a signature, it causes confusion over who legally owns the property. Example: A typo in a previous deed lists the wrong buyer, creating a dispute over the current owner’s claim.

6. Undiscovered Easements – An easement gives someone else the right to use part of your property for a specific purpose, like utility access. If easements aren’t clearly recorded with the government, disputes can arise at the time of sale. Example: A buyer learns after purchasing a home that a utility company has the right to build on their land due to an old, undocumented easement. This fact might give that buyer second thoughts on purchasing the home or cause them to ask for a discounted price for the property.

Protect Yourself

Don’t try to save money by not buying title insurance. This is a really short-sighted idea. This insurance covers legal fees and other costs if a dispute arises. Disputed titles can be a headache, but understanding the risks and taking precautions can protect you from unexpected surprises.