Homeownership

Another cost of home ownership is insuring the home.  Home insurance is required by lenders.  If you do not have a mortgage, then you are not required to have it (although we still recommend it).    

In order to have actual insurance coverage, the name of the insured must match the name on title to the property. Make sure the names match. This is more of an issue with investors who use limited liability companies or holding companies to own the real estate.  

Homeowner’s insurance does not cover all possible damage to a house. The most common issue not covered is flooding caused by outside water. Most standard home insurance policies do not cover any flooding. If the house is in a flood plain, a lender may require flood insurance in addition to homeowner’s insurance.  

Having the cheapest homeowner policy is not the best option. There are very important coverages that owners often need to request in order to get them added. A policy may not cover earthquake damage or sewer backup damage unless there is a rider to the policy. These extra coverages can usually be added by the insurance company, but you often need to request them. 

Consult with your insurance agent to make sure your coverage is what you expect. It does not hurt to shop around for home insurance policies every couple of years to see if you can get the same coverage for a lower price.  

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

You closed and have been handed the keys to your new home. Home ownership comes with a lot of responsibility and work. Once the deed is recorded in the county records, you can expect an avalanche of junk mail, which often pretends to be from your lender or some official office in the county or state.  

If you did not get a home warranty, then definitely do not ‘renew’ one in the mail.  Junk mailers will send fake checks or anything to get your attention to sign up for their service or pay a fee for a service you do not want.  

Do not pay anyone to get a copy of your deed. You will receive the original recorded deed from your closing attorney a few weeks after closing.  When you receive that deed, make sure your name is spelled correctly.  It is easier to correct any errors right away as opposed to years later.  

If you own the property with another person, make sure the tenancy is what you want. If the deed simply lists the two buyer’s names, then title is held as tenants in common. This tenancy means that if one owner passes away, the person’s heirs would inherit ownership. If the deed states the grantees are ‘joint tenants with right of survivorship, ‘then the surviving owner would own 100% of the property if the other owner passed away. (Georgia does not recognize ‘tenants by the entirety,’ which does exist in other states.)  

Once you receive the deed, file for your homestead exemption if you are living in the house. The exemption is through the county tax assessor and has firm deadlines. Missing the deadline can cost thousands of dollars. The county will cross-reference your address with the DMV, so make sure you update your address on your driver’s license and any car registrations.  

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

It is exciting to move into a new home, but it’s also a lot of work.  Hiring movers is extremely helpful, but there is more involved than simply moving furniture.  

The first step should be to get all the utilities set up or transferred into your name.  The seller will close their accounts for water, gas, and electricity. It is important to make sure those stay on, especially in cold weather.  Coordinate with the seller to transfer accounts if you plan to use the same utility provider. 

Second, change the exterior door locks, because you don’t know who has keys to the house.  A locksmith can often rekey the existing locks with new keys, so you won’t have to install all new hardware.

Check the smoke/carbon monoxide detectors and replace the batteries.  Don’t set yourself up to need to find a smoke detector in the middle of the night in an unfamiliar house if the battery goes out and starts beeping incessantly. Batteries seem to fail at 3am.  Learn where they are as soon as you move in. 

Change your address with all your accounts, especially banks, financial institutions, and government agencies such as Social Security, so your private information doesn’t accidentally end up in the hands of your old home’s new owners. Also, make sure to change your address with your healthcare provider, life insurance, voter registration, the IRS, and your employer.  Be aware that mail forwarding takes an additional two weeks or more to receive.

If you have the luxury of waiting to move into the house, it is a good idea to get it professionally cleaned and painted before moving in. Both cleaning and painting are much easier to do in an empty house, and the results will be more thorough.  

Use that excitement to get to work on moving. It is exhausting to move, but it is also important to take care of everything as quickly as possible.

John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.