Fighting & Removing A Lien on Your Property

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When you hire a contractor to work on your property and they don't do the work, it's reasonable to not want to pay them. But some contractors use what is known as a mechanic's lien to try to force you pay. At this point, problems are starting to add up: your house still needs the work done and now there's a lien on it. A lien can make your house difficult or impossible to sell, your ability to get a loan will be reduced, and it can damage your credit score. So what do you do? How do you get a lien removed from your property? Your attorney through our Legal Protection Subscription Plans will be able to walk you through the process in your state for your specific situation at no additional cost, so learn more about all the benefits of membership and read on for more information about getting a lien removed from your property.

A lien is a security interest that is attached to a property to ensure payment. Liens must be satisfied before you can typically sell your house. Contractors and other workers are not the only people who can put a lien on your house; liens can also be obtained through court judgments, and these typically come from the IRS, a former spouse or business partner, a state government, and other types of creditors.

A real estate lawyer is going to be your biggest asset when it comes to disputing a lien. The first thing is to file what is known as a "preliminary objection" with the court. Your attorney will be able to help you with this. This court filing will detail the reasons you believe the lien to be improper, and can include reasons such work not being done, lien filing outside of the permitted time constraints, improper licenses or registration, among others. These are all reasons that the lien may be found by the court to be unenforceable. Different states allow for different types of objections, and your lawyer will be able to give you advice.

Sometimes, it is best to negotiate with the person who filed the lien, even if you believe that it is money that you should not have to pay. If you are in a time crunch, though, sometimes negotiation can get the lien removed quickly and for less money than the lien holder is asking for. Sometimes, the lien holder of a mechanic's lien will offer to do additional work for the full price, as well.

Another option if you need the lien settled quickly is to obtain a lien bond. Also called "bonding off," this means that you get a bond from an insurance company that covers the amount of the lien. These kinds of bonds are called "surety bonds" or “lien discharge bonds," and they work by an insurance company assuring the county clerk that you are able to pay the lien if the courts decide that you have to, and the lien will be legally attached to the bond rather than your property. This should be considered an option only if you are in a hurry to refinance or sell your house; typically, negotiation with the lien holder is a better option, and a court decision is another avenue.

Filing a suit to vacate the lien is the most aggressive choice to fight a lien, and you will need an attorney familiar with real estate, liens, and the laws in your state. The lawsuit will force the lien holder to explain why you owe them money and give you the opportunity to explain why you don't. In an example of the poor, unfinished, or shoddy remodel, you will be allowed to show evidence that the contractor did not complete the work to the scope of the contract or agreement and provide evidence of that fact. If you win, the lien will be removed from your property and you may even be awarded damages. As with all lawsuits, the outcome is unpredictable, and the process can be expensive and time consuming. Whether it is worth it to you and your specific situation to pursue a lawsuit is a question for your attorney.

If you have questions or need advice about getting a lien removed from your property, the lawyers in our network of law firms across the US, Canada, and UK can make the process affordable. For just $29.95 per month, you can have access to legal advice from experienced, dedicated attorneys for all of your legal questions, from liens and real estate to consumer finance, to contracts and agreements, to estate planning and more. Learn more about all the benefits of membership in our Legal Protection Subscription Plans for Individuals & Families or sign up today!

A Guide To Placing A Lien On A Property

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A property lien can occur when someone owes you money and doesn't pay. Liens can take time, and different states have different laws regarding liens, and you should seek legal advice if you need to get one, but they can be effective tools if someone hasn't completed a payment they owe you. Members of our Legal Protection Plans - both for Individuals & Families and for Small Businesses - can get legal advice any time from experienced, dedicated attorneys in our network of member law firms.

A lien is a claim against an asset used as collateral against a debt. Placing a lien against the property for debts owed is one tool commonly used to collect money that hasn't been paid. You will need a court judgment to secure a lien against the property, and some states let creditors get a lien once that judgment is entered, and other states require the creditor to record the judgment with the county before a lien is granted. Each state also sets its own price to create a lien.

A lien creates pressure on a debtor to pay the creditor, as a creditor may be able to take possession of the asset if the debt is not satisfied. There are two types of liens: judgment liens and mechanic's liens.

A Mechanic's lien is the most common type of lien, and it is used in the construction industry by contractors and subcontractors when they don't receive payments owed. A mechanic's lien is filed in the county where the work took place and it includes a bill for the work done. The lien must then be responded to, and then a court date will be set. A lien will be confirmed if the court sides with the contractor. If the debt isn't satisfied within a certain time frame, the contractor would then be able to possess the property.

Judgment Liens work similarly in that a claimant would be able to possess the property, but it is filed for reasons other than failing to pay for work that was performed.

The general process for filing a lien begins by giving the debtor notice - called Preliminary Notice - that you intend to place a lien on their property. The process of preliminary notice varies from state to state, so you may need a form from your county. Your attorney through our Legal Protection Plans will be able to give you advice for your specific situation. Depending on your state, you may have a deadline to file a lien; some states limit this to 60 days, while others give you up to a year.

You will need to complete a title search to ensure that the debtor is the owner of the property in question and to ascertain if there are other liens on the property; if there are other liens, you will essentially "get in line" behind other creditors in order to collect.

The forms for liens are typically short but include details regarding who is owed money, who owes the money, the property in question, and the work done. Some state require affidavits - also known as sworn statements - and your attorney will be able to give you details as to the laws in your state regarding these details.

The next step is notifying all parties of the lien, including any other lien holders, if there are any. Once all the parties are notified, a court date is set, and, if the court finds in your favor, you can enforce the lien. If the debt isn't paid within the time frame set by the court, the court can force the property to be sold to satisfy debts.

If you need help getting paid for work you've done or for other reasons and need lien, your provider attorney through our Legal Protection Plans for Individuals & Families and for Small Businesses will be able give you advice and assistance for one low, monthly subscription. Learn more about all the benefits of membership to our Legal Protection Plans for Individuals & Families, Legal Protection Plans for Small Businesses, or sign up your family or small business today!

Understanding Quitclaim Deeds

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Removing someone from a deed is a legal process that generally requires the person's permission; however, there are certain situations in which you can remove someone from a deed without their consent. It is very important to consult with an attorney when pursuing a quitclaim deed, whether you have that person's authorization to do so or not. Our experienced, dedicated network of attorneys can provide legal advice and assistance for as little as a dollar per day. Learn more about all the benefits of membership in our Legal Protection Subscription Plans and read on for more information about removing someone from a deed.

What is A Quitclaim Deed?

A quitclaim deed removes someone's name from a deed as an owner of a property. To get a quitclaim deed, you will need the property information from the current deed. You can usually do this by contacting the county clerk where the property is located and conducting a title search. From here you can confirm that the person in question is, indeed, named on the deed. In some states, you'll also need a completed quitclaim deed form that includes the parcel number and legal description of the property. This form must be signed and notarized. If the form is not notarized, it is not valid.

You will submit the completed form to the proper authority in accordance with the state laws where the property is located. Some states charge a fee for this. Make sure to retain a copy for your records.

There are many reasons that you might want to remove a person from a deed, including:

Divorce - One of the most common reasons people seek a quitclaim to a deed is the dissolution of marriage. A quitclaim deed is a document that states your right to transfer a property; however it doesn't guarantee that someone else doesn't also have a claim to it. Quitclaim deeds aren't used to split property or the appreciation of it, and it doesn’t remove someone from mortgage liability. They are only used to convey ownership of a property to another partner.

Death - If a joint owner of a property has passed away, you may be able to transfer the property from the deceased's name to yours by submitting some paperwork to the appropriate authorities, in some states. These documents include a death certificate, a notarized affidavit, and a new deed that is also notarized.

Inheritance - Inheriting or co-inheriting a property can mean disagreements regarding the sale of the property if some of the co-owners don't wish to sell. One legal avenue is a partition action, in which the court can order the property to be sold and the proceeds divided among the co-owners, or the property itself can be divided among the co-owners. Because this is a legal court action, this can take time and be costly.

If you need advice or assistance regarding transferring ownership of property through a quitclaim deed or another legal method, your attorney through our Legal Protection Subscription Plans for Families & Individuals may be right for you. Our network of experienced, dedicated attorneys are available 24/7 through our app to answer any legal questions you may have, all for one low, monthly fee of $29.95. Learn more about all the benefits of membership or sign up today!

Real Estate Attorneys Make Selling Your House Easier

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Many people don't realize how much a real estate attorney can help when they're selling a house. The thought of hiring a lawyer to help sell your house may seem like a luxury, but, in some states, it is actually a requirement. Having a real estate lawyer on your side when things get complicated for the average homeowner - or even a real estate agent - can be invaluable, and our Legal Subscription Plans for Families and Individuals makes having a lawyer during the sale of your home affordable.

Local Laws

Some are surprised to learn that there are local laws surrounding the sale of real estate, and violating them unknowingly can be costly. A real estate attorney can walk you through any local laws or regulations and advise you on how to comply with them.

For Sale By Owner (FSBO)

When a home is sold without the aid of a real estate agent or a broker, it is called a For Sale By Owner (FSBO) arrangement.  While it is not illegal to sell your home without a professional representing you, there is a considerable amount of paperwork, documentation, and regulations that you will need to navigate. If you are selling your home on your own, a real estate lawyer can advise and guide you through the process and give you additional guidance if issues come up.

Judgments and Liens

Before you sell your home, you'll need to settle any adjustments or liens on the property. These kinds of issues should probably be addressed before listing the property for sale as they can scare away potential buyers. An attorney well versed in real estate law in your state can help you negotiate payment plans or otherwise ensure that these roadblocks are removed.

Title Search

Liens and Judgments typically are found during the title search process, but the title search can also uncover other problems, such as clerical errors, unknown heirs or claimants, or illegal deeds, any of which can slow down or stop the sale process. Real estate attorneys are experienced dealing with these issues and can prove invaluable.

Easements

An easement is an agreement with another party that grants them rights to access your property or build on your land for certain purposes; for instance, the local government may have the right to put in utility lines through your land. Certain buyers may turn down buying your property based on these agreements, depending on how restrictive they are. A lawyer can help you through the process of determining the restrictions and how durable the agreement is and if the agreement may be dissolved, and, if so, how that can be done.

Home Sales After Divorces

Selling a shared marital home can be stressful, and the situation can be complicated if both spouses are named on the deed. A real estate attorney can help you unravel the question of ownership and the division of the asset.

Foreclosures

When the unexpected happens, having an affordable option to legal advice can help you move forward without breaking the bank. A real estate attorney through our network of qualified, dedicated law firms can help you negotiate with your mortgage lender to adjust or refinance your home, helping you avoid foreclosure. If this option won't work, your lawyer can also help you negotiate a possible short sale with loan forgiveness.

Tenants

Renters can help with a mortgage, but they can also sometimes present their own set of problems, especially when you want to sell your home. Tenants have rights and cannot be evicted because you're selling your house. An attorney can advise you on the legal aspects of your tenant so that you stay within the law to your renter and selling your home.

Estates

When you inherit a home, selling the asset can be complicated. Estate sales are one of the main reasons that people contact attorneys regarding real estate, and for good reason. An experienced, dedicated real estate lawyer can make sure that the sale of an inherited property is done properly and that the tax burden doesn't weigh you down.

All of the above aspects of selling a home are great reasons to contact a real estate attorney if you're considering selling property, and with our Legal Protection Plans for Individuals and Families starting at just $29.95 per month, it is an affordable option to making sure that the sale is as easy and stress-free as possible. Learn more about all the benefits of our legal subscription plans or sign up today!

Putting Your Home In A Trust

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If you're thinking about creating your estate plan - and you should! - you've probably wondered how best to leave your assets, and how. Your assets have monetary value, of course, but some items, like your family home, probably have sentimental value, as well. One of the most important parts of the estate planning process is planning what will happen to your home, but most people aren't sure what is the best way for their specific situation. While most are familiar with Wills and how they work in general, some might be unaware of their options when it comes to the distribution of assets like a home. A growing number of homeowners are using trusts.

So, what is a trust?

A trust is a financial arrangement by which a person places their assets in the care of a third party. In estate planning, trusts can be useful for parents of underage children, where parents might set up a trust for their child's legal guardian to care for the child financially if something were to happen to the parents. Trust require, well, trust.

A trust created for assets such as your home or real estate to pass on to family members or beneficiaries has a few options. The basic categories for trusts of this type are living trusts and testamentary trusts. Living trusts take effect while you are still living, whereas testamentary trusts go into effect upon your passing. Testamentary trusts are generally stipulated in Wills and created when the Will goes into effect. This means that, like Wills, testamentary trusts can be revoked or changed at any time. Living trusts can be either revocable or not, but irrevocable trusts, as you might guess from the name, cannot be changed, altered, or revoked after they are created. Revocable trusts become irrevocable after the creator of the trust passes on.

When you're creating a trust, you will need to transfer the deed of your home or real estate into the trust's name so that the trustees can assume ownership when it's time. If this sounds complicated, it's because estate planning and trusts are complex and are best done with the help and advice of a qualified attorney.

The Pros and Cons

Trusts and the different types of trusts have benefits and drawbacks. A major benefit of a living trust is that you can usually avoid the probate process, at least in the case of revocable living trusts. Because testamentary trusts are created after death, they must go through probate, which can be a lengthy and expensive process.

A trust may also defer some estate taxes, if your estate is subject to them.

Trusts can also delay the distribution of your estate if you choose, or place stipulations for beneficiaries to qualify for inheritance. Reason you might want stipulations is if you have minor children and want them to wait to receive their inheritance until they are of age, or if you worry that a beneficiary isn't responsible enough to manage the inheritance. A trust lets you set conditions that must be met before the property or assets are disbursed.

One disadvantage of a trust is that they can be complicated to create, especially if it is more than just your home that you want to place in trust. Buying and selling assets can mean that your trust has to be updated frequently and titles have to be updated to reflect your estate and the ownership of the asset by the trust, not the individual. Trusts also do not protect your beneficiaries against any liens that might be on your assets automatically. Several factors are involved, including the time of trust, so if you pass away with taxes or judgments owed against your property, creditors may look to collect those debts from your estate, just as they would in probate.

Making an estate plan is critical for just about everyone, and crucial for parents. Knowing what will happen to the care of your children, your home, your assets, and even your health care decisions if you should become unable to make decisions for yourself is probably the most important legal decisions anyone has to make... and everyone will need to make them. Failing to make an estate plan puts the burden on family to sort out your affairs and assets, and lets probate court make decisions about how your assets are dispensed, making a difficult time even harder and possibly more expensive. Give yourself and your family the peace of mind of knowing that you've made all your own decisions and your estate is taken care of by becoming a member of our legal subscription plans today. Getting your Will and other estate planning documents is free to all subscribers and you can make as many changes as you like as long as you're a member. Learn more about estate planning or sign up today!

How To Solve Disputes With Roommates

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Many people save money and time spent on household responsibilities by sharing a living space with someone else. Having a roommate can have a lot of pluses: it can be fun, cost effective, and safer to live with someone else, especially when you're starting out. It's also a completely different living experience from living with parents, other family members, or a significant other. Living with someone you're not related to or in a relationship with can also mean that disagreements can (and do!) happen, and it's important to know going in that you probably won't agree about everything.

In shared housing at colleges, we rarely get to choose who we share our space with, but it can give you a taste of what living with someone else can be like. Different personalities, hygiene habits, schedules, and lifestyles can make co-habitating a challenge. One way to avoid conflict is to sit down with your roommate(s) and discuss aspects of your new living arrangement and make a written agreement. This can include division of household chores, division of bills and expenses, how food is kept (is it shared or separate; are you labeling your food containers and purchases; how long are leftovers kept in the fridge; etc), when and how many friends can come over, and much more. Writing down your expectations before choosing a roommate can also help you decide what kind of person you'd be most comfortable sharing your space with.

Leases can cover some aspects of shared living arrangements, such as the amount of rent each person is responsible for, the rules on guests and pets, and certain aspects of keeping the property clean. But most other aspects should also be addressed and put in writing outside of the lease agreement. When you're a member of our legal subscription services, you'll have access to an attorney-prepared Roommate Agreement that can help set boundaries and make your day-to-day relationship with your roommate easier. Our Roommate Agreement covers rent and utilities obligations, the use and care of each other's belongings, upkeep of the property, use of the rental unit and visitor policies, and personalized requirements for your unique situation.

Disagreements are probably unavoidable, but having house rules in order can ease tensions when problems arise. Learn more about all the benefits renters have with our legal subscription plans for individuals and families, or sign up today!

Landlords Are Small Business Owners - What You Need to Know

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Whether your rental is your main occupation or something you do on the side, being a landlord means that you are a small business owner. Just like any other business, landlords need to have their business affairs organized and take a professional approach to all aspects of running their business to avoid costly mistakes. Most guides focus on the basics of the business of being a landlord, such as collecting rent and making repairs, but there are additional, business-related aspects that shouldn't be ignored.

Just like any business, it's a landlord's responsibility to get proper business licenses, file and pay taxes, and have proper insurance, but there are a few other areas landlords might want to review.

CONTRACTS

The day-to-day paperwork of being a landlord - accounting, taxes, and marketing, for example - are common small business aspects, but one of the most important things you'll need as a landlord are contracts. These are vital documents for any landlord-tenant relationship, as well as for contracted repairs or maintenance. Not only having these contracts, but insisting upon them with everyone you do business with, protects you and your investment. Don't hire a property manager or a contractor with just a verbal agreement and a handshake, no matter how well you know them, and certainly don't rent to anyone without a written, signed contract. Contracts protect all parties involved, and especially when you're running a small business, you can't afford to take risks. Don't just download generic forms from the Internet; get the advice of a qualified attorney with experience in landlord law and legal issues. (It's easier and less expensive than you might think.)

ANNUAL INSPECTIONS

Yearly inspections are a necessity to ensure that your properties are habitable and all major systems and structures are well maintained and not damaged, either by age or by tenants. Inspections allow both the landlord and the tenant to know the condition of the property and be aware of any issues: tenants can highlight any needed repairs or maintenance, and landlords can make sure that the property is being properly cared for and kept up and that there are no lease violations. These regular inspections avoid any surprises when a lease ends, as well, making it easier and less expensive to repair issues that come up. Inspections should be by-the-book: give tenants proper notice beforehand and avoid invading their privacy more than needed. Document the walk-through with the tenants.

PROPERTY MANAGEMENT

Sometimes, you may need outside assistance to manage your business, especially if you have more than one property or rental unit, so, when you're considering hiring someone to manage your properties or other aspects of your small business, that may make you an employer, which means additional payroll, employment, and tax considerations. One way to avoid this is by using a rental management company. As independent contracting companies, these management companies don't come with administrative work or additional taxes. However, these companies and their services can be expensive, and may be of a greater benefit to you if you own multiple units or multiple properties.

CONTRACTORS AND REPAIRPERSONS

There are always going to be some repair or maintenance work that a landlord needs to have done by qualified experts, and hiring professionals to do work around your properties means that you should have a service contract with any contractors you hire. Make sure that the contract details the specific work to be done, a date for completion, an agreed-upon price, and what happens if the work isn't done on time, or if there are more extensive repairs needed once the work has commenced. Make sure that there is a clause for dispute resolution, a provision that should always be included in any business contract.

CONFLICT RESOLUTION

No matter who the other party is - a tenant, a contractor, or someone else you've contracted with - disputes happen and are always a possibility. Before signing a contract, make sure you understand the terms of fulfillment for all parties involved, and double check the provision in your contract for dispute resolution. Communicating with all the parties involved in a contract to solve problems before they require legal intervention is important and can save you money and time. Some ways to handle disputes include mediation, negotiation, and arbitration. Each of these tactics has their own pros and cons, but ensure that your contracts specify what is to be done in the event of a dispute and that all parties are aware of the resolution strategy.

Don't leave your property rental business to chance, especially when it comes to something as easily controlled as contracts. Small disagreements between landlords and tenants can become large disputes and legal nightmares in a hurry. The Home Business Supplement add-on to your legal subscription plan costs just an additional $12.95 per month, and gives you unlimited attorney support regarding your rental properties and problems with tenants.

Every part of landlord law is covered with the Home Business Supplement. Get legal advice and support in any area of law related to your rental properties or your real estate business as a whole. Our legal subscription plan members get to work with experienced, dedicated, real estate attorneys with extensive backgrounds in landlord/tenant law, and can review all contracts you might need in your small business. Learn more here, or sign up now!

Avoiding Common Home Buying Pitfalls

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Buying a home can be both exciting and terrifying, so it's no surprise that many find the process overwhelming, and find themselves unprepared for the details and work involved. If you're a first-time home buyer or are unfamiliar with the process, mistakes can happen, and when it comes to purchasing a home, there isn't any room to learn as you go. Mistakes can cost thousands of dollars or even the chance at buying your dream home. With that in mind, here are a few things to consider when buying a home:

Think About The Financial Aspects

Common sense tells us that home ownership can be expensive, but it is worth taking the time to account for the costs involved in the houses you're considering. First is the upfront costs - the down payment and closing costs - and although you may be able to make a smaller down payment, that will eventually translate into a higher monthly payment, and, potentially, higher home owner's insurance. Then, there are moving costs, property taxes, and home insurance, and, potentially, the costs of renovations, alterations, repairs, and maintenance... it all adds up.

Getting approved for a loan isn't the end of the financial process: it's the beginning. Credit lenders check your credit when you apply for a loan, and again right before closing, and if there is a significant change to your credit score in between those times, it can put your home loan at risk. Prospective home buyers should put any shopping off until after closing, and spend that time paying down credit balances and other debts.

Finally, there is the mortgage itself. Making the mistake of looking at homes before you've been approved for a loan amount can not only lead to disappointment, but in getting a house you ultimately cannot afford. Considering how much you can really afford each month prevents you from overextending yourself and risking foreclosure and losing everything you've put into your new home. Before you even start looking at houses, calculate your income to debt ratio and your other obligations. Factor in saving for a down payment and figure how long it will take you save that amount of money. Getting your finances in order is the first step to getting the loan you want for the house you need.

Shop For The Right Loan

Eager and excited home buyers often start by looking at homes, trying to find the perfect fit, often leaving the loan process until later. Some even choose to go with the first lender that pre-qualifies or pre-approves them. And while they may be offering a good loan, it may not be the best loan or deal for you and your needs. A home mortgage is a long-term commitment, and usually the biggest expense you'll have for years to come. It pays to shop around for the best offer, particularly when it is your first mortgage. Asking others or a professional for advice is usually the best course of action.

Don't Ignore Problems

It's easy to fall in love with a particular house, the neighborhood, or its location, but that may cause you to overlook some fairly serious problems. You may overlook serious problems or think that major repairs might have easy fixes or that you can live with the problems for a while. Most homes are going to have some issues, but problems with the foundation, roof, structure, heating and cooling systems, plumbing, and electrical are almost always very costly repairs and should be red flags for additional consideration. Getting a thorough home inspection done is part of the closing process, but you can usually see major problems on your own. Not every issue is a deal breaker, and if it is your perfect home, you may be willing to tackle the repairs and renovations. But it is still very important that you identify every problem, not only so that you can determine what needs repaired and what it will cost, but also so that you can perhaps negotiate a better sales price based on repair costs.

Ask An Experienced Real Estate Attorney For Advice

Think this is out of your budget? With our individuals and families legal subscription plan, you'll have access to qualified, experienced attorneys in your area 24/7 to go over contracts, agreements, and other real estate documents before you sign! These document review services are available at no extra charge when you sign up for a legal subscription plan. Avoid potential pitfalls in the home buying process and even when negotiating repair work. Learn more about our subscription based legal plans here!

Home Buying Pitfalls