The Dot Com Miner

Inclusionary zoning ordinances and density bonuses–also known as “below market rate” (BMR) housing programs–can negatively impact the community. These affordable housing programs reward developers who earmark a percentage of new homes or condos for those in the low and moderate income brackets by letting them increase density, build taller structures and curtail open space and parking requirements. This can lead to over-crowding and infrastructure headaches for residents in the area.

But “below market rate” (BMR) housing programs are arguably problematic for other reasons. They are inherently unfair, hurt both market-rate and BMR property owners, rely upon an unfounded evaluation of the home ownership situation, and erroneously see the solution to the housing “crisis” as the weaving of a paternalistic safety net across America.

Nets are vital for hairy high-wire acts, but unnecessary–even deleterious–for the recipients of “below market rate” housing programs, who can earn as much as $126,000 per year in parts of Northern California. A New York Times article tells of Marin County woman who “likes nice things: fashionable clothes, dinner out with her husband, a private school for her daughter (and has a household income of)… $111,000,” but is unable to buy a home without a 30% “inclusionary zoning discount” in her neighborhood of choice, where properties sell for as much as $1.8 million a piece.

This story and the thousands like it amount to an emotional assault on the millions of homeowners who had to make sacrifices (and still do)–forgoing private school tuition, vacations, restaurant dinners and the ability to live in their preferred neighborhood–in order to get into a condo or home. To afford the payments, they may rent out a guest house or share the premises with a “buying partner,” such as a relative or friend. In the more expensive real estate markets, they may allocate as much as 50% of their incomes for mortgage payments and acquire a “stated income,” “no ratio,” or “no doc” loan in order to get bank approval in the first place. Many purchase with little to no down payment because they have no real savings. To know that Uncle Builder and Uncle Sam are handing money to others, especially those with higher incomes, is nothing short of insulting.

“Below market rate” housing programs can assist those who earn up to 120% of the median-income for the area. In Atherton, California–the zip code with the nation’s highest median income–this would translate into home-buying subsidies for those who make $240,000 per year. In addition, BMR programs are prone to abuse by investors who hope to shimmy down a loophole.

“Below market rate” housing programs amount to more than an emotional assault: they arguably attack the pocketbooks of everyone. According to the Reason Foundation, a nonprofit that has extensively studied affordable housing issues, BMR programs “increase(s) the cost of market-rate homes in a typical city by $33,000-$66,000 per unit” because developers raise the prices of regularly priced properties to compensate for their losses on the low cost ones. This means that average home-buying Americans may be subsidizing their so-called needy, but oftentimes wealthier, BMR neighbors.

It seems these “needy” BMR neighbors–who initially bubble like lottery winners–are not so lucky after all because affordable housing programs, almost without exception, impose heavy resale restrictions on their new owners. BMR owners cannot obtain much, if any, equity from their new purchases for a period of time–usually between 15-60 years, depending upon the rules of the locality and program. In parts of Vermont, price controls stay in place for 99 years.

BMR owners have less incentive to upgrade their properties because it is questionable–at least in some parts of the country–whether they will be able to recoup fix-up costs. They cannot access their equity for emergencies or better investments. If they get a raise, the higher income may disqualify them from retaining the property. They cannot sublet or move out without becoming ineligible for the program, and they cannot sell to a relative or friend because the city or county gets first right of refusal at the reduced sales price. If the city or county declines, the property goes to the next BMR buyer on the waiting list.

Unless BMR buyers can weather the lengthy resale restriction periods in their “property prisons,” they will have to initiate the buying process again only to find themselves in a less favorable position since home prices tend to increase over time. BMR buyers may realize they have erred by unnecessarily delaying the opportunity to accumulate equity like market-rate owners. As a Los Angeles city planner says, “These programs are not for those who want to build wealth.”

“Not for those who want to build wealth” are words that express a vote of “no confidence” in the BMRers’ ability to stand on their own two feet. Providing crutches for those without broken bones–since most BMRers could be market rate buyers–leads to chronic impairment because when healthy parts are not used, they become weak.

BMR programs effectively lock the door to real homeownership after giving the “needy” a deceptive weekend playing house. It is like the parent who sneaks an Easter egg into a child’s basket and smiles, “look what you have,” only to snatch it back and give it to another child.

BMR programs will no doubt become more popular as government continues to obsess over affordability statistics rather than consult with real life experts–real estate agents and lenders–who get low and moderate income clients into properties “all day long” in some of the most expensive real estate markets in the country.

When USA Today reports that “the minimum household income needed for a median-priced home at $495,000 (is) $115,910,” it is incorrectly assumed that someone with a $55,000 income cannot buy the property.

Government must shed myths that housing is unaffordable and scarce. Potential buyers must be empowered with avenues for property investment, rather than coddled and saddled with wealth-deflating options.

The threats against current homeowners–whether related to high density or the subsidization of BMR buyers–must end. Government should trust in supply and demand and use available resources to clean up lower density, crime-invested neighborhoods where the market would naturally produce a less expensive product.

A BMR program is an RBM (really bad mistake), so use caution when you enter an affordable housing zone.

THERE’S NO PLACE LIKE HOME …

EXCEPT FOR VICTIMS OF REAL ESTATE FRAUD

DETROIT, MI - Dec 14 - During this joyous holiday season, when most Americans are gathering with family and friends, many others are coping with the impact of real estate fraud. Some have lost their homes to con artists preying on foreclosure situations, others have unwittingly become straw buyers in mortgage fraud set ups, while others are hiring criminal attorneys in the hopes that their naiveté will not ruin their credit scores for life and not land them in jail. How did the American dream turn into such a nightmare?

>From handmade signs stuck on the side of local roads and on telephone poles to eBay listings seeking investors, late night infomercials and newspaper ads promising big cash at closings, real estate fraud and mortgage fraud have become part of America’s landscape. The threat to families, communities and a national economy closely allied with real estate values cannot be underestimated.

“There is no doubt in my mind that the start of this century will be remembered as the decade of real estate scandals,” said Ralph Roberts, nationally recognized real estate expert, author and speaker and creator of www.flippingfrenzy.com.

“Every law enforcement agency, every District Attorney and Sherriff’s department I talk to is astounded at the sheer number of people being scammed, ripped off and financially destroyed through these scams. If we do not educate consumers and all professionals to protect themselves, there will be no end in sight.”

Roberts, who has been a national Top Superstar Realtor for the past 18 consecutive years, is no newcomer to real estate - yet even his office fell prey to scam artists. Today, Roberts is spearheading educational programs for professionals and consumers, building an information central website, www.flippingfrenzy.com and blogging to keep website visitors up to date with the latest occurrences.

As the word spreads through online communities, networks of real estate professionals and a website that is reaching a national audience, www.flippingfrenzy.com, American citizens are starting to respond. In mid-December, three very frightened individuals came to Ralph’s office, anxious because they had learned by reading his website that what they had experienced was real estate fraud. Their fear is very real - - and so is the possibility that they may face criminal charges, even though they had no idea that they were being involved in fraudulent transactions.

Ralph’s anti-fraud efforts include speaking to real estate professionals, mortgage professionals, lawyers, appraisers, notary publics and title industry professionals. His presentation at the National Association of Realtors (NAR) for Superstar Realtors earlier this year was a great success, as was a seminar for real estate brokers held at the Real Estate Education Center. The seminar, which will soon be available as a download at www.flippingfrenzy.com, was presented for real estate agents and brokers who need to know how to protect themselves, their clients and their businesses when presented with a questionable buy or sell transaction.

So how do you keep your home safe from real estate fraud?

* A certain percentage of real estate fraud transactions could be completely eliminated by educated consumers refusing to sign blank documents or take part in questionable sales or purchases.

* The promise of fast cash to pay credit card bills is tempting - but it’s not how you want to remember the holiday season.

* Take a good look at the HUD 1 form - if there’s a discrepancy in numbers, you may be headed into serious trouble.

* Any time someone advises you “don’t worry, this is fine,” it’s time to start worrying. Real estate transactions are complex, but they should be straight-forward.

* When anyone advises you to deposit money slowly into the bank, a huge light bulb should go off - pay attention. Large legal deposits do not require a slow deposit stream.

* Never sign any documents that are blank, never sign anything that you do not understand and make sure that your own independent advisor explains everything to you. That includes federal forms that have been retyped or where the print is almost too small to read.

* More tips will be updated at the www.flippingfrenzy.com blog as they come in and as we learn more about how to thwart real estate fraud. Educated consumers are the first line of defense.

Those purchasing a home for the first time may be unfamiliar with tips
and techniques for selection a good mortgage lender or broker. If
buying a home, choosing the right broker makes a big difference. You have
the option of completing a loan application with individual lenders, or
opting to use the assistance of a mortgage broker.

The Role of Mortgage Brokers in California

Using a mortgage broker to find a fitting loan program is very
beneficial. Each homebuyer has a different situation. Fortunately, there are
many loans available to help homebuyers achieve their dream. For example,
if you have poor credit, it is possible to find a loan that is catered
to those with low credit scores. Secondly, programs that offer closing
costs assistance are available for those with little money.

The responsibility of a mortgage broker is to match you with a
potential lender. There are many mortgage lenders to choose between. Thus,
selecting the right lender may be challenging. Besides, contacting each
lender and inquiring of their loan programs is time consuming. If using a
broker, you avoid the legwork.

Mortgage brokers will gather all your personal information, and submit
it to lenders for review. Within a few hours, you can expect mortgage
quotes from lenders eager to have your business.

Benefits of Using a Mortgage Broker to Find a Lender

Brokers have access to many different types of loans. In fact, a broker
can match you with a lender that offers specialized assistance. For
instance, many government programs and private lenders provide huge down
payment assistance to families with moderate to low incomes.

Furthermore, if using a mortgage broker, you will receive more than one
mortgage offer. When using a broker, lenders literally compete for your
business. After lenders remit their quotes to the broker, the broker
will email you with their offers. This gives you the opportunity to
thoroughly review offers before selecting a lender

Why Apply Online?

The easiest and most effective method of finding a lender is to work
with online brokers. The internet offers convenience and speed. Some
brokers offer instant quotes. Upon receiving and reviewing lender quotes,
you may be able to submit a formal loan application through the broker’s
site. Once the loan approval is finalized, the lender will deliver the
necessary documents for you to sign.

View our recommended California mortgage lenders online.

Carrie Reeder owns ABC Loan Guide, an online resource with information about mortgage brokers and bad credit mortgage lenders online.

Abduction Prevention Tips

Your best protection against child abduction and avoiding the need for an Amber Alert is to have a smart and informed kid that will know how to avoid dangers. There will be times when your child will be alone and they need to know how to react in a dangerous situation. If you teach your child to avoid dangers chances increase that he or she will become more aware of a potential threat and know how to stay safe. Here are a few abduction prevention tips that you and your child should know.

* Never let strangers approach you and ask to take your picture. If something like this happens you should immediately find your parent or supervisor.

* If someone grabs you and tries to take you somewhere try to attract attention on yourself. If you just start crying, people around you will think that’s mom or dad taking you home. Instead, cry for help by saying : “This is not mom” or, if the person is male “This is not dad!”

* Learn to use and appreciate the “buddy” system - one of the most powerful allies you have when it comes to child abduction.

* If someone asks you to go near their car so that they can ask you some questions, avoid doing that. You can answer their questions from a safe distance.

* Do not let strangers tell you “Get into the car, your mom said so.” Many child abductions take place in a similar way, so make sure to get away from a person saying this to you.

* If you are being asked for help by a grown up, be cautious. If they really needed help they would ask another grown up to give them a hand.

* Do not let anyone touch you, anywhere on your body. You have the right to privacy and you have to be aware of this in every situation.

* When going home, never hitchhike, no matter how friendly and kind the driver seems. Unless your parents tell you specifically that someone is going to pick you up, you should say NO to everyone else.

* If someone walks up to you and tells you to keep a secret, run away and tell your teacher or your parents. Several child abductions take place by this method each day - do not become a victim!

* Your parents should decide to use a secret word that only you and them will know. Think of it as a password to a computer. Only you and your parents know it, and, for example if they send someone you don’t know to pick you up, they might tell that person the codeword as well, so that you know you are safe.

In case of an emergency, try to stay as calm as you can and yell loudly for help. React promptly to any gesture towards you as soon as it happens, and you might just avoid a child abduction!

Author: Robert Eaton

Article originally found on: http://www.For-KIds-Safety.com

Other articles written by Robert can be found on these sites:

http://www.USAGolfNews.com

http://www.Pets-Holistic-Med.com

Need to get a little feedback here for the beer database that I will be creating. I met with my fellow beer fiender, HHawk, and we’ve come up with the following fields that we found important to be in this thing. They are:Beer NameBrewery NameBrewery State/Province Brewery CountryServing TypeStyleRatingAlc. %CommentsBeer Notes (not required but in case you want to put down original written notes).The reports we are going to produce out of this are going to be:1.) a report that will list all beers by brewery and give an average rating for that brewery.2.) a report form that essentially lists all of the above field data out into one big flat file (similar to excel) where you can sort columns, filter for field values, etc.)If there are any fields you think we should add or any reports that may be useful, let me know in the next week or 2 while I’m building the meat and potatoes to the database. Hopefully this thing will be as sweet as an Eric Clapton bridge solo.In the meantime, godspeed Franchise, godspeed! posted by JBH20 | 2:50 PMAbout Me Name: Frank Bennett Location: Lowell, Massachusetts, United States I fell in love with craft beer when I started to develop my palate in culinary school. Since then I have found a new love for pairing my food creations with quality wine and beer.

Undoubtedly, you’ve heard the radio commercial claiming you can get a mortgage despite having bad credit. Bad credit mortgages are better known as subprime mortgages.

Subprime

“Subprime” is a euphemism for a borrower who simply doesn’t qualify for a traditional home mortgage. Subprime loans used to be very difficult to get, but things changed in the 1990’s. Banks began to realize there were a lot of borrowers with less than stellar credit or other problems. More borrowers meant more revenues, so banks started creating subprime mortgages and the game was on. As a result of these new loans, home ownership in the United States has risen to all time highs.

One of the biggest determinants in qualifying for a loan is your credit score. A borrower’s credit history is analyzed using a “FICO” score, named after Fair Isaac and Company, Inc. Generally, a FICO score below 620 is considered an indication of bad credit. The borrower is then classified as a subprime borrower.

Importantly, a FICO score below 620 is not the only reason a person may be classified as subprime. An infrequent borrowing history, new employment position or expensive home may also key the designation. In fact, nearly 50 percent of subprime borrowers have FICO scores above 620.

When a lender writes a mortgage, it is betting on whether the borrower will repay the loan completely and in a timely manner. The better your credit score, employment history and so, the better deal you will get from the lender. Obviously, subprime borrowers aren’t going to get the best deal. Instead, a lender may require a larger down payment and will certainly designate a higher interest rate than given to “good” borrowers. In addition, subprime borrowers may have to pay points just to get the loan.

The trade off of all of this, of course, is that you get a loan to buy a home. Home ownership has consistently proved to be one of the best long-term investments in the United States. While Americans are criticized for failing to save money, they are effectively doing so by purchasing homes and building equity in them.

Should you apply for a subprime loan if you have less than stellar credit or other problems? There is no right answer, so you should consider sitting down with an independent mortgage broker to analyze your situation.

Mortgage would have never happened, had mortgages been a no profit venture for the mortgagees or the mortgage providers. The lender receives much more than he had actually lent. And you feared that you would not qualify for the mortgages having a bad credit history. Mortgagees somehow find ways to match borrowers with the offers available with them in order to have your business.

Bad credit mortgages are mortgages offered to people whose credit history has been adversely tainted. Sub-prime lenders make a special provision for people with an adverse credit history. But, it is crucial to escape lenders who pose as sub-prime lenders, but are actually overcharging them. There is a misconception in the minds of people that having a bad credit lessens their chances of getting a mortgage. In fact they take the offer as if it is the best that they can get.

We cannot expect the mortgage providers to not differentiate between those with a good credit history and those who have not. This however does not mean that the borrower must accept all terms on the mortgage without questioning their validity. There are many mortgage providers in the UK and the case will match some or other lender if a proper and exhaustive search is made. There are a few tips which could be used to reduce the intensity of the differentiation.

The trust having been botched because of the bad credit can be restored somewhat by advancing a certain percentage of the mortgage amount as a deposit. The lender is more concerned about the security of the amount lent when he decides to not offer mortgages to people with a poor credit history. With the borrower offering a part of the mortgage, the lender can be assured that the borrower will not default.

A mortgage protection will also go a long way in instilling faith in the lenders. However these will involve an extra payment from the borrower. This often deters the borrowers from taking mortgage protection. The borrower already burdened with the monthly repayments to the mortgage feels mortgage protection as a nuisance. However, one must take mortgage protection as a bitter pill which will be helpful in crisis situations like death, illnesses, and unemployment. Lenders get the impression that the borrower is more concerned about the repayment of the mortgage.

The decision to advance mortgages is made after viewing the credit report. The credit report is prepared by the credit reference agencies. Many a times there are discrepancies in the credit report. It is necessary to apply for a correction in the credit report as many lenders may disqualify at the very sight of a bad credit. It is also necessary to get the credit report from all the credit reference agencies as there might be differences between them.

Before planning to not pay the next installment on the bad credit mortgage, the borrowers must keep this in mind. There is not always a second chance available. While lenders had faith on you in offering mortgages this time, they would not have it the next time. So, it is better to be regular in making payments to the mortgages. This will also help in an improvement in the credit history.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the secured loan web site ukfinanceworld for any type of uk secured and unsecured loan please visit http://www.ukfinanceworld.co.uk

A natural bodybuilding program is designed to produce maximum increases in strength, and muscle mass. The mindless performance of additional sets is not required to warm-up your muscles. When performing multiple sets, only one set of each exercise is responsible for the total muscle gains produced. Additional sets are a waste of time and effort. They actually deplete your recovery ability and reduce your rate of muscle gains.

So, what is the best way to warm-up before performing a workout? Considering that the number of repetitions performed in a specific exercise will be six or greater, the repetitions, themselves, will provide the warm-up for you. If performing ten repetitions of the barbell curl, repetitions one through to nine will be enough of a warm-up for the muscles involved.

The initial nine repetitions permit you to use maximum intensity in the performance of the tenth and final repetition. It is the tenth repetition that actually stimulates muscle growth. Not the nine before it. As a result, the ideal warm-up for a ten repetition barbell curl is each and every repetition that is performed before the tenth. Lightly stretching the entire body before commencing each workout is also recommended. Nothing else is needed.

Remember, the ideal warm-up for any particular exercise is itself. The only truly effective warm-up exercise for the bench press is, in fact, the bench press. This simple secret often causes confusion. So, what’s the best way to warm-up before performing a workout? Definitely not with the use of power lifting techniques. Power lifting techniques are unnecessary and counter productive to any muscle building program.

Rising home prices, particularly on the East and West coasts have put the costs of home ownership seemingly beyond the reach of many. And yet, home ownership is up nationwide, and the percentage of Americans who own their homes is the highest it has ever been. How is this possible?

There are more different types of mortgages available to home buyers than ever before, and one that is growing in popularity is the interest-only mortgage. With an interest-only mortgage, the buyer pays no principal for the first few years of payments. The period of time varies, and is typically anywhere from one to five years. At that time, the principal is added to the mortgage payments and the amount of the payment increases. By keeping the payments lower for the first few years of the mortgage, the interest-only mortgage allows buyers to obtain a more expensive home than they otherwise might. The buyer’s income will probably increase over time, making it possible to afford the higher payments that will come when the principal is finally added to the payments.

The downside to an interest-only mortgage is that no equity accrues in the home if the buyer isn’t paying any principal. For many Americans, the equity in their home is their single largest financial asset, so taking out a mortgage that doesn’t build equity would seem to be a bad idea. Equity has long been used as a last resort source of funding for emergencies. And yet, with the price of homes rising so quickly these days, many buyers don’t seem to care. Equity can be built two ways - either through paying down the principal or by an increase in the market value of the home. If the value of your home increases, so does your equity, even if you are only paying interest on the mortgage. This is great, so long as home prices continue to increase. But what if prices fall?

There are potential problems with interest-only financing. Interest-only mortgages have variable interest rates. If interest rates rise, mortgage payments will increase. If payments increase beyond the level of affordability, homeowners could be forced to sell their homes. This could lead to a glut in the housing market, causing prices to fall. Owners wishing to sell could find that they owe more money than their home is worth and that they have no equity.

The interest-only mortgage is a useful tool to help people buy a home they otherwise might not be able to afford. Prospective home buyers should consider whether taking out such a mortgage is a good idea, or whether they might be better off buying a less expensive home.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.

Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.

Condominium Regime The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.

A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units. Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.

Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.

If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.

The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.

Fee Simple Ownership

In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land. In fee simple, there are several different possibilities with regard to your obligations of ownership:

(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.

(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.

(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.

Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties. Understand your ownership rights and obligations

Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.

If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.

If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.