1. HOAs are common among planned communities.

Whether you decide to buy a home with an HOA will depend on what kind of community you want to live in. An HOA is basically a nonprofit membership organization that oversees maintenance and upkeep of a neighborhood’s communal areas. Condos, townhouses, and single-family home communities may all be subject to HOAs. Community members pay monthly fees to the HOA to cover things like upkeep of common resources (sidewalks, pools, tennis courts, security gates, lights, etc.) and enforcement of covenants, conditions, and restrictions (these are the rules that govern how the properties in a community can be used — they range from directives about house paint color to yard maintenance to number of vehicles parked in a driveway).

2. HOA fees range dramatically.

Nationally, the average monthly HOA fee is around $500. However, HOA fees can range dramatically depending on the kinds of amenities and perks a particular HOA offers. Generally, the higher the HOA fees, the more that’s covered. However, that is not always the case. Find out about the HOA fees that apply to a home before putting in an offer. In fact, the amount of an HOA fee may impact your ability to afford the house. That’s because a mortgage lender will include the monthly HOA fees when assessing the price of a house you can afford. Depending on your financial situation, an HOA may create a trade-off: a higher-priced house with a lower HOA fee OR a lower-priced house with a higher HOA fee.

3. There are some great benefits of living with an HOA.

Of course, there are some great benefits that come along with living in a community governed by an HOA. For starters, the mere presence of an HOA indicates community involvement and collective responsibility for shared spaces and amenities. It also likely means that there will be a certain standard of cleanliness and order enforced throughout the community. HOAs typically cover things like keeping flood lights on, keeping streets swept and orderly, and ensuring that each individual homeowner does his or her part to keep the neighborhood looking clean.

4. There are also some real drawbacks to buying a home subject to an HOA.

On the other hand, HOAs can present some problems for homeowners, especially if you don’t take the time to read all covenants, conditions, and restrictions. Different HOAs restrict different parts of neighborhood life. Some rules, like the limitation on leaving trash bins by the road, are there for the neighborhood’s safety and sanitation. Other rules, however, may be harder to swallow. If you have always wanted a home with a red door, or you plan to keep chickens, or you own an RV you need to park, check first with the HOA to avoid future conflict, fines, and possible litigation. Before moving into a community with an HOA, you need to know you can comply with the neighborhood’s standards.

5. Do your homework.

This is where doing your homework comes in. To ensure that a particular community’s HOA rules and restrictions are right for you, you need to know what they say! Your realtor can obtain a copy of the HOA’s bylaws and any covenants and restrictions placed on the community. Read them carefully and look out for restrictions that you don’t think you can live with. If all rules seem to work for you, then you might be on the right track!

When looking at HOA documents, make sure you look for:

• Fines for violations of the HOA rules and restrictions
• Whether the documents grant the HOA power to use foreclosure in the case of unpaid dues or fines
• Any language that may restrict or make it more difficult for you to rent out the property (if that’s something you are considering)

6. Ask the right questions of the right people.

One of the common things we see among homeowners who have problems with their HOA is that the homeowner didn’t know which questions to ask or who to talk to before buying their home. To help avoid some common issues we have seen with HOAs, make sure you attend a meeting of the HOA. Find out if the HOA is managed by community member volunteers or is professionally managed. Ask to speak to the board president. Walk around the neighborhood and knock on doors. Talk to neighbors about the HOA.

Here are some things to consider asking and finding out:

• What do neighbors think of the community and the HOA management?
• What financial condition is the HOA in? How much does it have in reserves? (You can even request balance sheets and dues histories. This will show you how the HOA spends funds, how much is in the reserve, and how often the HOA increases its dues.)
• Are there any major improvements or updates planned in the future? (Many HOAs cover improvements and updates out of the financial reserves. If reserves are lower, however, HOAs may levy special assessments against homeowners, which can be costly on top of your regular HOA dues. Ask whether any special assessments are planned and take a look at the HOA bylaws to see how/when additional funds can be levied from homeowners).

7. Look hard at the home you are thinking about buying. Does it comply with all HOA restrictions?

You may have fallen in love with the home you are considering buying, but that doesn’t mean it’s going to come to you in full compliance. When looking through the HOA rules and restrictions, take note of anything on the property you are considering that may not comply. Find out if the current homeowners have had any trouble with a particular aspect of the property remaining in compliance.

8. If all this legal legwork has you spinning in circles, ask for help!

We know, purchasing a home is a daunting experience. It can feel even more daunting when you’ve got to conduct relatively quick legal analysis about a particular property’s rules, covenants, and restrictions. That’s why hiring an experienced real estate attorney can be a huge help. Not only can a real estate attorney help guide you through purchase negotiations and closing, he or she can be helpful when assessing whether a particular HOA will work for you. If you are in the market and would like some support, give Brian M. Douglas & Associates a call at (770) 933-9009.

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Taking Steps to Protect Your Vacation Home Investment

If you are considering purchasing a vacation home, or if you’ve already made the investment, what steps have you taken to protect your property? Protecting a part-time residence, as opposed to your year-round home, can take a whole different approach. You may consider different kinds of insurance, different security, even holding title differently.

If you own a second home out of state, this becomes even more important. Out of state properties take extra care and attention to ensure that they remain safe and well-tended. They also need to be carefully managed before you pass. Why? Without properly planning for out of state property to pass to your loved ones, that gorgeous oceanview condo can quickly become more of a burden than an asset for your heirs.

The Risk of Ancillary Probate

Outside of the estate planning world, the term “ancillary probate” is not heard too often. However, in our day-to-day, it’s something we work hard to help our clients avoid. What is ancillary probate? Basically, it is the requirement that an out-of-state resident go through a second probate process in the state where real estate is located. It’s easiest to understand using an example.

Let’s say we are working with Tom, an Atlanta native and homeowner. Tom lives here in Atlanta full time, and all three of his children live at home with him. The two younger kids are in middle and high school, and his oldest is a sophomore in college out of state. When all three kids were young, Tom bought a beachfront condo in St. Petersburg, Florida. He and the kids have spent some incredible summers at the condo, enjoying the sunshine, riding bikes, and playing in the surf. To protect his children, Tom has a will in the State of Georgia that provides for his three kids, leaving them equal shares of everything, including their comfortable Atlanta townhome. When Tom passes suddenly, his sister (who is named personal representative in his will) steps in to care for the younger children at home and help guide his estate through the Georgia probate process. She gets a great lawyer, and she does a wonderful job caring for the kids’ needs. But,, probate is still pretty overwhelming. It takes a long time, she isn’t able to access any of Tom’s funds that he left behind to care for the kids until the proceedings are over, and she keeps having to take off of work to go down to the courthouse and meet with her lawyer. Then, on top of everything, the matter of the Florida condo comes up. Why? Because his out of state real estate can’t pass through Georgia probate. Any real estate held in a different state than the decedent’s residence will need to go through probate in that state. So, Tom’s sister has to fly back and forth to Florida. She has to hire a Florida probate attorney. The property gets held up. It takes a long time to move through the probate process before she can get access to be able to sell it. In short, it’s a mess. 

Including Your Vacation Home in Your Estate Plan

Tom’s story is a typical one of ancillary probate. As we think about Tom, there are a lot of things he could have done in his estate plan to ease the time, stress, and cost of probate on his sister and his kids. For now, though, let’s focus on the ancillary probate problem. At the very least, what could he have done to prevent his sister from having to travel repeatedly out of state and deal with the burden of ancillary probate?

Lucky for Tom, his sister, and the kids, the answer is relatively simple: A Revocable Living Trust. When a property is titled in a trust, no matter where that property is located, it passes in accordance with the trust instructions. We’ve explained the basics of Revocable Living Trusts elsewhere, but here, we see clearly one of the greatest benefits of this estate planning tool. Of course, you can choose to title all of your real estate (and the rest of your assets, too!) into an RLT, avoiding probate altogether (ancillary or otherwise). However, if you choose not to do so, an RLT can be used solely to transfer an out of state property easily and quickly. As with any trust, the instructions can also provide how the property should be treated and for whose benefit. For Tom, not only would an RLT have kept his sister from traveling to Florida and spending money on a second attorney, it also would have allowed her to quickly sell the property and use those assets for the benefit of Tom’s named beneficiaries. If his trust beneficiaries are his three children, Tom’s sister (assuming she is also named as trustee for the RLT) can take the proceeds of that Florida condo sale and immediately begin providing for the kids in accordance with Tom’s trust instructions.

If You Own Property Out of State, It’s Time to Take Control

As an estate planning attorney, I often meet with clients who say, “I don’t need much. My life is pretty simple. I just need a basic will.” For some people, that may be true. However, owning real estate out of state is one of the most prominent triggers that says to me, this is not a basic will situation. This family needs a more comprehensive estate plan. If you own, or are considering buying, real estate out of state, let’s talk. Give Brian M. Douglas & Associates a call at (770) 933-9009.

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Don’t Just Throw it in the Trash

Although your annual Property Tax Assessment Notice is not a bill (not yet!), it provides you with some pretty meaningful information. It’s important to take a close look as soon as you receive the Notice because, if you disagree with the assessment, there is a short window during which you can take action.

Every year, properties throughout Georgia are assessed to determine the Current Year Value of that property. This value is then used to calculate the annual property taxes due. For the majority of Georgia homeowners, the property value assessment will not come as too much of a surprise. However, if the assessment just doesn’t look right to you, there is recourse available if you act fast.

You have 45 Days to File an Appeal

If you have your Property Tax Notice on hand, take a look at it. On the face of the assessment, you should see an appeal deadline date. An appeal must be filed with the Tax Commissioner of Assessor’s Office within 45 days from receipt of the Notice. Appeals sent after the filing deadline will not be accepted. Depending on your county, you may be able to file an appeal online. Of course, an online appeal is faster and easier than delivering an appeal form by mail or in person.

An Appeal Isn’t an Excuse to Not Pay Your Taxes

It is important to note that filing an appeal for your annual property value assessment does not change your tax payment obligations. Make note of all deadlines and ensure that you pay all taxes on time to avoid penalties and fees. If you end up paying your property taxes while your appeal is still pending, don’t worry. If your appeal is accepted and your tax liability changes as a result, the Tax Commissioner’s office will recalculate your final bill.

Make Sure You are Clear on the Process

Depending on your county in Georgia, the office to contact with questions is different. Although all Georgia counties do issue annual property tax assessments in May, the appeals process may be slightly different for each county. If you have any questions about the property tax assessment appeals process, your particular county’s rules, or anything else related to the legal maintenance of your home, feel free to reach out to the team of experienced real estate lawyers at Brian M. Douglas & Associates. Our office number is (770) 933-9009. We are always happy to help!

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Wholesalers buy properties in need of repairs and then quickly sell them to investors who will flip the property for an even greater profit. Essentially, wholesalers assign the contract to purchase to the ultimate purchaser. Wholesalers make their $5,000-$20,000 on assigning the contract and then exit the deal. When wholesaling is done right, everybody wins: the property seller, the wholesaler, and the investor.

Many real estate investment companies advertise wholesaling as a quick, easy, and safe way to earn money. While wholesaling can be less costly than other real estate investments, it is important to know what exactly is involved in growing your wholesaling business. As with any real estate transaction, wholesaling can be risky. However, with the help of an experienced Atlanta real estate attorney, you can minimize that risk and maximize your profits.

What is the Difference Between Wholesaling and Flipping?

Many people think wholesaling real estate is the same as flipping property. While wholesaling and flipping are similar — and wholesalers often work hand-in-hand with property flippers — there are some significant differences between the two. Wholesalers will buy a property with the intention of selling it very quickly (or assigning the contract before closing) to an investor. Often, that investor may be a property flipper. People who flip properties will purchase the home, make needed repairs, and then sell the newly renovated property to a private buyer for profit. The goal of flipping is to actually fix up a distressed property and then sell it to an individual buyer. When wholesaling, on the other hand, the goal is to purchase a property and then quickly sell it to another investor.

Going about Purchasing Property for Wholesale

Purchasing your first real estate property can be exciting and a little intimidating. Wholesalers have a number of strategic options to choose from when purchasing property. Some wholesalers will buy a property outright for a low cost and then sell it at a profit to an investor. Many wholesalers, especially first-time wholesalers, may not have the capital to do that. Instead, they will go through with a dry closing that allows them to delay the disbursement of funds until after the closing date. Other wholesalers will pursue a back-to-back or double closing where they simultaneously close on the property and then sell it to an investor. To learn more about dry closings, double closings, and the mythical “double dry closing,” check out our blog post.

Regardless of the type of purchase, wholesalers depend on contracts to make these deals happen. The type of closing will dictate whether a wholesaler needs to have contingencies in the contract regarding transactional funding or other clauses that can protect them from risk. Purchasing a property is the first step toward having a profitable wholesaling business.

Working with Brokers and Buyers

Wholesalers rely on being able to quickly buy and sell properties so that their capital doesn’t remain tied into a single property for too long. It is very important to create your own network of investors and buyers who are willing and able to work with you. Often, first-time wholesalers try to work solely with real estate brokers because they think brokers bring a level of much-needed expertise to the deal. However, many brokers do not want to work with wholesalers because of the number of contracts they have to write before a deal actually goes through. If you depend solely on brokers, you may be waiting a long time to sell the property you purchased. The good news is that you don’t have to depend on brokers to grow your wholesaling business. There are better partners out there for you! Building your own network of investors and private buyers is key to having a profitable wholesaling business.

Tapping into your network, instead of relying on a broker, gives you more control over your business. You get to choose the partners you work with, instead of having to trust the broker in finding the best investors out there. Having your own stockpile of cash buyers (private investors and developers) means that you can have a buyer on hand to quickly purchase a property or to assign the sale contract to. Additionally, building and maintaining your own network of investors will help you learn about your market faster because you’re working directly with your own customers. Your investor network can also give you a better sense of what deals are actually worth, which is usually less than as advertised by the seller. As the market shifts, your investors can also tell you directly what they’re looking for in a property, so you can better tailor your deals to meet their needs.

How a Real Estate Attorney Can Help You

Wholesaling is a business that depends on contracts. Wholesalers need to have contracts with property sellers and with their investors to grow their businesses. It is vital that your contracts are tailored to your needs as a wholesaler. Many wholesalers depend on contingency clauses in purchase contracts that will allow them to avoid closing if their transactional funding falls through. Having strong, clear contingency clauses in your contract can really protect you and your capital. Tailoring your contract is just one way a real estate lawyer can help you. Your attorney can also guide you through other potential legal pitfalls, provide you with actionable advice on growing your wholesaling business, and save you time so that you can focus on your profits.

Many first-time wholesalers don’t realize how many contracts they have to write before getting their first offer from an investor. Wholesaling can be profitable, but it can also take a lot of work to build your investor network and complete your first deal. This process can be both daunting and exhausting, but you don’t have to go through it alone. Brian M. Douglas & Associates has experienced real estate and business attorneys who can guide you through the process and help you mitigate risk while growing your real estate business. Give our office a call at (770) 933-9009.

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So, why do buyers keep using real estate agents?

Being Able to Find Data is Different than Being Able to Interpret It

Sure, millennials are doing the majority of the home searching themselves online, but doing an initial home search is only a small piece of the home buying puzzle. Buyers and sellers need to know what’s on the market, price, and property specifics. That’s data. But do homebuyers know what to do with that data when they see it? Often, they need help analyzing the data, making sense of it, and navigating the process after the initial searches have been conducted.

What Does a Real Estate Agent Do?

Some brokers point out that the “real work” doesn’t even begin until the property is under contract. Then, real estate agents who have experience with the full home purchasing process become especially important.

Beyond scheduling viewings, finding homes that meet your needs, and writing up the offer, real estate agents are a valuable resource and representative in

• Negotiations (Getting the Best Deal!)
• Inspections
• Dealing with Boards, Home Owners Associations, Zoning, Land Use, etc.
• Ensuring Clear Title
• Getting the Sale Finalized

On top of all the work they can do for you, agents also have a network of attorneys, lenders, inspectors, and other professionals you will need throughout this process. Having a pre-vetted list of professionals to choose from can save you big time on expenses, time, and frustration.

Maybe you’ve heard, but the market is particularly challenging for buyers right now. Inventories are particularly low, and prices are high. In this environment, it is a particularly wise investment to work with an experienced agent who can help you save time, get the best deal, avoid costly mistakes, and get a home you love.

Research and Knowing When to Ask for Help Make for an Informed Homebuyer

Having access to online home searches makes homebuyers more informed and more prepared to engage in the home buying process. Across the board, this is great! But, being an informed home buyer doesn’t mean you are an expert, and research isn’t actually a good replacement for an experienced agent. An informed homebuyer not only has done the work to fully engage in the real estate transaction process, but he or she also knows when to ask for help. An experienced real estate agent is a valuable guide to help walk you through the entire process.

In the State of Georgia, professionals are actually a required part of the real estate transaction process. Closing must be conducted by an attorney. At Brian M. Douglas & Associates, our experienced real estate attorneys work every day with home buyers to help them navigate the process, alongside their real estate agents. To learn more about what a closing attorney does in the home buying process, click here. If you have any questions, feel free to reach out! You can reach one of our excellent Atlanta attorneys by calling (770) 933-9009.

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Location scouts are always on the lookout for locales that evoke a certain feeling or match a particular character, and stage sets don’t always cut it. Did you know that you can rent out your home as a location for commercial, TV, or movie filming? You can actually make some decent money at it, and there are other perks, too: you could get a behind-the-scenes look at how film production works and maybe even meet some of your favorite celebrities.

It’s often said that buying a home is an investment. Making your home work for you is a creative way to use that investment to build wealth — or at least, to earn some extra spending money.

In the past couple of years, the State of Georgia, slipped from its top spot as the number one filming location in the world. We may not still be on top, but we are pretty high up there. No wonder people call Atlanta the “Hollywood of the South.”

How Much Can I Earn?

How much you can actually earn by renting your house as a film location depends on a number of factors: the budget of the production, how intrusive the filming will be, and the size of your property. You can likely expect somewhere between $2,000 and $5,000 per filming day, plus $500 per day for prep and wrap. Some locales fetch up to $35,000 a day! In Atlanta, it is possible to hire a management company to represent your home. Managers can help get your home into more films and negotiate price on your behalf, but they generally take about 20% of your rental fee.

How Disruptive Will Filming Be? 

Offering your home as a film location is not for those who don’t like people in their space or their stuff being moved. How disruptive filming will be depends on the nature of the production. A vehicle crash scene will be more disruptive than a walk in the garden scene. It is not unheard of to have all of your furniture moved around or even to have a home completely repainted. Film days often exceed 12 hours, and there will likely be prep and clean-up days. Depending on the length of filming time, you may find your home in use anywhere from a few days (for a single TV episode) to a few weeks (if your home will feature prominently in a full-length film). Expect over 100 strangers in your home at any given time.

What Other Perks Might be Available?

In addition to the cash you can earn, there are other perks to renting your home as a film location. Depending on the needs of the production, home improvements like cleaning and painting may come with the price. You also may negotiate more substantial improvements in exchange for use of the property.

Do I Have to Live in a Mansion to Get My Home in the Movies?

Nope! TV and movie producers are looking for sets that are realistic, so homes need to range socioeconomic levels. Often, production companies are looking for standard, middle-class homes.

How Do I Get Started?

If you are interested in getting your home onto the big screen, you can start by submitting photos and other information on the Georgia Department of Economic Development film commission’s website. You can also post your home on websites such as Reel Locations or Locations Hub. Around Atlanta, keep an eye out for fliers in your neighborhood. Location scouts often seek filming locations that way.

If you do get some interest in your home, respond quickly and clearly. The crew will move on if you don’t move fast. Ask questions, make sure that insurance covers the whole operation, and make sure your own expenses are covered if you need to relocate during filming.

Remember to be careful! If a production approaches you about using your home in a film, run a check on the company name, as well as on the location scouts. Ask them for references and a list of previous film or TV credits. If the scout is with the Location Managers Guild International, they are likely ok.

For more advice right from the Atlanta-based set directors’ mouths, check out this interview on Atlanta Journal-Constitution. As always, don’t be afraid to reach out to us at Brian M. Douglas & Associates, too! We may not be Hollywood buffs, but we definitely know our way around a rental agreement. Our experienced real estate attorneys can help you through the process of getting your home into Show Biz. Give our office a call at (770) 933-9009.

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You know Airbnb as the company that revolutionized travel around the world by making home-sharing easy. You have probably also heard about the big waves the $38 billion company has caused in the hotel industry, sparking legislation and regulation throughout the US. But have you heard about Airbnb’s latest project? There could be big things coming in 2019.

Airbnb: Home-Sharing AND Home-Building?

In November, Airbnb’s co-founder Joe Gebbia announced a new project called Backyard, “an endeavor to design and prototype new ways of building and sharing homes,” according to a press statement. What does this mean? According to Gebbia, Airbnb is launching its first prototype buildings in 2019 for its latest project: to develop and produce green building materials, prefabricated dwellings, houses, and multi-unit residential complexes.

In Gebbia’s telling, Backyard is going to rethink home building by responding to its vast community of home-sharing travelers. Pretty soon, the new branch of Airbnb will be designing a home around the needs of its occupant, “utiliz[ing] sophisticated manufacturing techniques [and] smart-home technologies.”

It seems like a usual shift, from home-sharing to home-building, for the tech company, but this may be Airbnb’s way of diversifying and moving away from a purely digital business model.

We Will Keep You Updated

Although much of Backyard’s announcement, and its 2019 plans, remain somewhat mysterious, it is clear that Airbnb has some big ideas in the works. You can read more about Gebbia’s November announcement here. Keep an eye on our blog for updates about Airbnb, as well as other real estate news in Atlanta. We will do our best to keep you informed!

The post Airbnb Cities May Become a Reality in 2019 appeared first on Brian M. Douglas.

Escrow, Defined

The word “escrow,” used in different contexts can mean slightly different things. In the world of homeownership, an escrow account is a special account that you fund and a bank (or other financial institution) manages for you. The purpose of an escrow account is to make it easier to pay the costs associated with homeownership.

Each month, homeowners make one payment into their escrow account. This payment includes the monthly mortgage payment, as well as prorated monthly contributions to real estate taxes, homeowners insurance, and mortgage insurance. Unlike mortgage payments, which are due every month, these other costs are only paid once a year. By contributing to an escrow account, the homeowner can make smaller monthly payments over the course of the year rather than having to come up with a lump sum payment for each. When each of these bigger bills comes due, the financial institution holding the escrow account simply withdraws the full amount and pays the bill on time.

How Does a Bank Determine the Amount a Homeowner Should Contribute Per Month?

A bank, or any other financial institution that manages escrow accounts, will determine how much a homeowner should pay monthly into the account by determining what he or she will pay over a twelve month period in real estate taxes, homeowners insurance, and mortgage insurance. These amounts are based on estimates using previous years’ data. Some states allow for a little extra money to be contributed as well to offset any potential increases in costs. Once adding together these yearly costs, a bank will divide the amount by twelve and then add that prorated amount to the homeowner’s monthly mortgage payment.

Let’s take a look at an example. Homeowner Harry pays $1,800 per month toward his mortgage. Each year, his real estate taxes amount to about $3,000 and his homeowners’ insurance premium is $1,200. He also pays an annual premium of $1,500 for mortgage insurance.

Harry’s annual costs are:

$3,000 (real estate taxes) + $1,200 (homeowners’ insurance) + $1,500 (mortgage insurance) = $5,700

Divided over a twelve month period, Harry’s monthly contribution to these costs equals $475. Added to his monthly mortgage payment, Harry will contribute $2,275 into his escrow account each month. When the real estate taxes, homeowners’ insurance premium, and mortgage insurance premium are due, the bank will simply make those payments on Harry’s behalf out of his escrow account.

What if the Contributions are Not Enough to Cover the Actual Annual Costs?

Since the monthly contributions are based on estimated costs, it is possible that the actual real estate taxes may be higher than expected. If it happens that a homeowners’ actual annual costs exceed the amount being held in escrow, most banks offer two options.

The first is that the homeowner will be notified of the deficit and is given the opportunity to simply pay the balance into escrow to cover the full annual costs. A second option is that the homeowner may decline to pay the difference between the amount held in escrow and the amount owed to the state and/or local government. In this instance, the bank will cover the shortage and then increase the homeowners’ monthly contribution amount to repay the difference.

What if the Contributions Exceed the Actual Annual Costs?

If at the end of the year, the actual costs are less than the amount being held in escrow, the bank will simply return the excess to the homeowner. If the excess amount is relatively small, some financial institutions may roll the amount over into the next year.

What are the Pros and Cons of Using an Escrow Account?

For the most part, using an escrow account to pay annual homeownership costs is a convenient and easy way to budget for these large expenses and ensure they are paid on time. In our experience, the majority of homeowners prefer to use an escrow account to manage their homeowners’ bills. However, some homeowners do not like the concept of an escrow account. This is because not all escrow accounts are interest-bearing, so some homeowners see escrow accounts as an interest-free loan to the financial institution.

Are Escrow Accounts Required for all Homeowners?

Some mortgage lenders require homebuyers to use an escrow account. For example, the Federal Housing Administration (FHA) requires that borrowers have an escrow account to pay homeownership costs. However, not all lenders require the use of an escrow account, and others offer an opportunity to cancel an escrow account if the homeowner is able to show a history of on-time payments.

Contact an Experienced Atlanta Real Estate Attorney to Learn More

If you are a first-time homebuyer or if you simply would like to learn more about escrow accounts in the State of Georgia, feel free to reach out to Brian M. Douglas & Associates. Our experienced Atlanta real estate attorneys are always happy to answer questions and help in any way we can. To make an appointment, give our office a call at (770) 933-9009.

The post Homeowner 101: What is an Escrow Account? appeared first on Brian M. Douglas.

If you are in the process of selling your home, likely it’s not the only thing you’ve got going on. You may be moving, starting a new job, starting a new family, anything. It’s a time of transition and the last thing you need is to end up in a lawsuit. So, hire an experienced real estate attorney. You will be glad you did. Here are the top five reasons why.

#1 Real Estate Closings in Georgia Must Have an Attorney Present

In the State of Georgia, real estate closings are conducted by a real estate attorney. There are a number of reasons for this, but mostly it is to avoid mistakes. However, it is important to understand that this attorney is not your attorney. He or she is hired to oversee the sale of the property, but the attorney is not there to protect one side over the other.

#2 Resolve Title Issues Without Losing Sleep

As the seller in a real estate transaction, it is your job to provide real estate for sale that has free and clear title and no undisclosed conditions on the property. We will get to the property conditions in a moment, but first, you’ve got to have clear title to make the sale. After you accept an offer on your home, the first thing that will happen is a title company will start looking into your title. If they find anything — trust complications, liens on the property, unpaid property taxes, or cloudy title — the sale could be delayed or fall through. By working with an attorney, you can preempt some of these challenges before you even put the property up for sale and any unexpected title challenges can be dealt with quickly and accurately. It can take a lot of documentation to clear title, and it’s definitely not something you want to do alone.

#3 Have a Strong Advocate in Negotiations

Before closing, the buyer will want to have the home inspected to confirm that there are no undesirable conditions on the property. If the inspection shows anything — mold, environmental issues, structural problems — the buyer and his or her agent will want to start negotiating. Everything is on the table: price, who will pay for repairs, whether repairs need to be done before or after closing. An experienced real estate attorney, trained in the art of negotiation, will be a valuable asset in this part of the process.

#4 Save Money in the Long Run

Hiring a real estate attorney from the get-go, before you even put your house on the market, may seem like an unnecessary expense in an already bank-breaking process. We have seen it go wrong so many times: waiting to hire an attorney until there is a serious legal problem ends up costing way more than simply hiring an attorney to protect you throughout the process. The amount of time and money it costs to unwind a thorny title or messy escrow issue is exponentially higher than the cost of hiring a lawyer from the start. Don’t let the sale get away from you. Make the investment up front to save time, stress, and money down the road.

#5 Dot Every ‘I’ and Cross Every ‘T’

Even if no problems arise during a home sale, an attorney on your team puts your mind at ease. You can go into the sale of your property knowing that every single line of every closing document has been reviewed and approved by your legal counsel.

Work with Experienced and Versatile Atlanta Real Estate Attorneys

At Brian M. Douglas & Associates, our attorneys are not just real estate lawyers. We are experienced in a wide array of commercial and residential real estate matters, including asset protection, corporate entities, and real estate investing. Our experienced attorneys have seen and done it all, so we have what it takes to work efficiently, effectively, and creatively on your behalf. Give us a call to set up an appointment at (770) 933-9009.

The post Five Reasons You Need a Real Estate Attorney to Protect Your Home Sale appeared first on Brian M. Douglas.

As we near the end of the year, we draw closer to another tax season. If you are a homeowner in the State of Georgia, you are likely very familiar with the season of property assessments and taxation. However, you may not know as much about your homestead exemption. In the State of Georgia, there are special benefits conferred to properties that qualify as homesteads. We have written extensively about the Georgia Homestead Exemption here, but we wanted to provide a reminder for all Georgia homeowners before the end of the year.

How Do I Qualify for the Georgia Property Tax Homestead Exemption?

You qualify for the Georgia Property Tax Homestead Exemption if

• You are a homeowner in the state of Georgia
• Your Georgia home is your legal residence on January 1 of the taxable year (the only exception to this is if you have to be away from home during the year for health reasons)
• You do not already have a homestead exemption for another Georgia property, or for a property in any other state

If all of the above criteria are met, you are likely eligible for a homestead exemption on your property taxes.

What are the Main Homestead Exemptions Available to Me?

The Georgia Homestead exemption is meant to help ease the burden of property taxes, and there are a number of versions of this exemption designed for Georgia residents in different circumstances. Each county also has slightly different homestead exemptions, so it is worth reaching out to your county Board of Assessors or Tax Commissioner to learn more about your options. However, in general, the State of Georgia provides certain minimum homestead exemption benefits, including the following:

Standard Homestead Exemption:

Each Georgia home that is occupied and used as the primary residence of the owner may be granted a $2,000 deduction from 40% of the fair market value of the home.

65 Years of Age or Older:

Homeowners 65 years of age or older may claim a $4,000 exemption from all county if the household income does not exceed $10,000 for the prior year (retirement from retirement sources, pensions, disability is excluded up to the maximum amount allowed to be paid to an individual under the federal SSA. In 2018, this is $66,912).

Disabled Veteran or Surviving Spouse:

Qualifying disabled veterans may be granted an exemption of $60,000 plus an additional sum from paying property taxes for county, municipal, and school purposes. The additional sum is set by the US Secretary of Veterans Affairs. In 2018, it’s $81,080. The value of the property in excess of this amount remains taxable. This exemption is extended to the unremarried surviving spouse or minor children as long as they continue to occupy the home.

What Do I Need to Do if I Have Applied for and Received the Homestead Exemption in the Past?

If you have applied for, and received, a homestead exemption in the past, you may not need to apply again. Homeowners only need to apply for the homestead exemption once, and then it continues to apply as long as

• There is no change in ownership
• You have not made any changes to the deed (including changes in name and spelling)
• You do not wish to apply for a different homestead exemption

If any of the above circumstances do apply, you will need to submit a new application, applying for the homestead exemption again.

How Do I Apply for a New Homestead Exemption?

As you likely know, property tax returns are due each year by April 1st. To apply for a homestead exemption, applications must also be submitted by that date. Late submissions received after April 1 will apply for the following year.

You may file a Homestead Exemption Application any time of year. The only requirements are that you own the home on January 1st and submit the application by April 1. November is a great time to check in on your property tax exemption options and speak with someone in your county tax assessor’s office. He or she can provide you full information about your homestead exemption options and let you know if there is any additional paperwork required for elevated homestead exemption benefits. This gives you plenty of time to get your tax exemption application in order and speak with the necessary governmental representatives, as well as your CPA, well before the craziness of tax season begins.

Get in Touch with an Experienced Real Estate Attorney for Assistance

If you are a Georgia homeowner who has not yet taken advantage of the homestead laws, or if you are considering changing your homestead exemption status, contact Brian M. Douglas & Associates. Our experienced real estate attorneys can help you prepare to make the most of your county’s homestead exemption laws and ensure that you don’t miss important deadlines. Give our office a call at (770) 933-9009.

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