People are flocking to the internet to advertise their homes and property for sale, and especially popular are the online auction sites. Even though it is a growing trend to sell and buy homes on the internet, it might not be a very wise decision. Serious consequences can arise which can involve unscrupulous characters promoting out right scams on the uniformed buyer. The impersonal nature and cloaked façade of the internet can quickly get you into financial and legal difficulties. In particular the elderly and young adults are vulnerable. Being aware that you might not get what you paid for is a good rule to follow; because scam artist just know there is an ocean front home in New Mexico waiting just for you. Become aware of the possible complications involving land and property transaction, and the vital information that can be obtained from knowing sensitive and personal information.

As hard as it is to believe there are many individuals that are buying property site unseen on many of the popular, and some not so well known, online auction websites. Bargains are a great thing to lay your hands on, especially when it comes to known expensive real estate, but as ole timers might say, don’t bet on another mans game. Aside from pictures and videos, which can be enhanced or out right lied about, there is not much evidence to go on, unless you make a trip to personally view the property and structures yourself. If you’re seriously considering buying an online piece of real estate, you need to examine a few issues. For example, what about the deed and title to the property, are they clearly deeded and owned by the seller? Are there any other encumbrances on the land and or home, such as inheritance claims, foreclosure actions, or mortgage and bank claims? Also, is the property a land locked area where no building or road frontage is available. How well has the property and any structures associated with it been maintained? Consider too that certain utilities might not be available for lands that are remote. In other words, if you want to build is there enough property to dig for a well, or to install a septic system because of local ordnances governing such activity? These are just a few of the issues that you will encounter when purchasing real estate through an online auction.

Not only do you open yourself up to all kinds of real estate legal issues, but have you seriously considered the very personal information that online sellers might require of you to conduct transactions? Even though most, but not all, internet auction sites will state that transactions on bidding for real estate do not constitute a legally binding transaction, you must read the fine print. Be careful of hidden clauses on property sale at online auction sites. Fortunately, most ads online are really just advertisement and fronts so to speak, to get you to privately contact the seller for further information, with no intention of deceit. However, the danger of contacting anyone that you don’t personally know with your private information can result in unpleasant circumstances for you later. Information such as full name, phone and email addresses are just part of the problem. Many scam artists will ask for your saving, checking and credit card numbers to verify who you are, and lay claim that there are costs to fax paperwork or even copies of deeds as an example.

As a buyer looking to purchase property whether for your own personal use or as an investment consider contacting a realtor or buying from someone in your local area. Often a great deal can be worked out among home town neighbors! At least you will be able to verify facts concerning deeds, titles, and mortgage information by visiting your local courthouse, and there is not the constant threat of identity theft! Even if you end up paying a slightly higher price for you new home or investment, isn’t peace of mind comforting? Seriously consider using a local reliable realtor for all of your transactions. They are professionals trained in the legal issues of property issues and management. After all it will be you that gain substantially over the long run. In the end it can be said that by using common sense against scammers is just using your plain ole common sense.

It is the nature of family to love and protect each other – but how does that transfer to the financial realm? Is your family obligated to help you with your financial debts? Are you obligated to help a family member who is overwhelmed with mortgage payments or saddled with massive credit card debt? Though the answer to both of these questions is probably no, it is a much more complicated than a simple yes or no answer. You and your family are not obligated to help each other with financial problems, but most people would like to help their loved ones with a crisis if it is within their means to do so.

When you face financial problems, it is probably tempting to turn to family first, rather than face the impersonality of a bank or other lending institution. But do family and finances really mix? Financial debts to family members can complicate even the best relationships and in extreme situations it can result in nasty arguments and the severing of familial bonds. Some of the most common arguments families have are over money. On the other hand, borrowing money from family and having that security can ease the stress of any financial crisis. If family members have the money you need in their savings account and are willing to lend it to you, then why not pay the interest to them instead of the bank?

Right from the start, you need to be realistic about your financial situation. As the person looking to borrow money, you should ensure that you have cut back on non-essential expenses and have exhausted all the possibilities before approaching family members for money. As the lender, you must also take a close look at your financial situation and make sure you have the money to offer to your family member. If it is not within your means to help them, then you must say so. There is no point both of you going into debt just because you have the desire rather than the means to honor the request for money. It is hard to say no to family, but sometimes it is necessary.

Where most families go wrong with lending to one another is a failure to establish firm guidelines and rules. You need to be very clear from the start whether this is a gift or a loan. If you give money without specifying which it is (a gift or a loan), then the other person may just assume it is a gift. If you need the money back down the road, he or she may not have the means to repay it, because there was no understanding at the start that the money would have to be repaid at some point. Even though you are dealing with your mother or father or your daughter or your son, you still need to treat the arrangement as you bank or lending agency would. You need to write down the amount being lent and the agreement you have made concerning the amount to be paid back and the amount of time that repayment will take. Writing it down will solidify the arrangement and ensure that no one is taken advantage of.

You and your family should agree on a reasonable interest rate and you should also consider arranging monthly payments (as you would with the bank or other lending institution). It is better to pay the money back gradually over time rather than try to gather one lump sum.

If you are the one borrowing money, you need to make sure that they money is used only for the thing it was lent to you for. If you have borrowed money for the down payment of your house, then all of that money needs to be put into the home, not a new pair of shoes or vacation to the Bahamas. Problems arise when family members think that they money they have lent is being misspent or mismanaged.

As you can see, family and finances can mix if you take a few precautions and clearly outline the expectations on both sides. It is worth putting in the extra effort to prevent uncomfortable holiday dinner scenes.

Buying a home is a significant investment. A title insurance policy helps you protect that investment against potential losses that may occur after your house deal closes and you discover that someone else has an ownership claim to the property.

It may seem unlikely that such a scenario could play out, but it is a surprisingly common occurrence – frequent enough to make purchasing a title insurance policy a good idea to safeguard your investment.

When you buy a home, your lawyer or legal representative will conduct a title search (also called a title examination) to determine ownership of the property in question. A title search involves collecting and examining, in detail, all of the public records that involve the title to the property you are purchasing. The search may include past deeds, wills, trusts or other liens against the property to ensure that it has passed properly from owner to owner. The person conducting the search will also attempt to confirm that all previous mortgages and judgements involving the property have been fully paid.

Most times, your title search will come back clear. On occasion, however, a ‘cloud’ or ‘defect’ such as a missing signature will be detected, and while the defect is likely the result of an administrative error, it should be cleared before your deal is completed. A thorough title search should also reveal nuisance issues such as easements that may affect your interest in purchasing the property. Easements or right of ways may not present an immediate problem, but could adversely affect the property in the future.

Title searches are helpful in identifying any potential title-related issues relating to your property, but mistakes happen (in the public records themselves, as opposed to just mistakes on the part of your examiner), and you may find yourself involved in a legal battle in the future if a title conflict does come to light after the close of your house deal. That’s where title insurance comes into play; if you have a title insurance policy, your legal fees will be paid if you are forced to go to court, and if you lose the property as a result of a title dispute, you will be reimbursed up to the limit of your policy.

Similar to other types of insurance, title insurance policies do have certain exclusions, so it is important to clarify what your policy covers and what it does not. Some title insurance policies, for example, do not cover, or have limited coverage of problems related to easements, liens or mineral rights. Shop around if you want greater coverage and are willing to pay extra for it. No matter which policy you purchase, defects that occurred after you bought the property are not covered by title insurance.

Now that you have a better idea of what title insurance is and how it is used, do you need it? Maybe. If you pay cash for your property and do not require a mortgage, you may choose whether or not you want to purchase title insurance for your own protection. If, however, you are obtaining a mortgage to finance your house purchase your lender will likely insist on title insurance coverage to protect its own interests in the event of a title dispute. Your lender may also stipulate additional coverage to guard your portion of the home’s value. Policies vary by insurance carrier, but generally, a lender’s policy is for the amount of the mortgage and is payable to the lender in the event of a lost dispute while an owner’s policy covers the full cost of the property plus legal fees. An issue to consider when purchasing title insurance is whether your policy includes inflation riders that will increase the amount of your coverage as your property value rises. You may pay a premium for this service.

Home buyers are usually responsible for the cost of title insurance, but may defray the charge by including title coverage as a condition of sale or by having the seller’s policy adjusted and transferred to the buyer’s name. Additionally, some states may require the seller to pay some or all of the title insurance costs, which are typically paid in full as part of your property’s closing costs. Ask your legal representative to outline your responsibilities and the seller’s responsibilities.