Terminating the Co-Ownership of Hawaii Real Property

There are times when co-owners of Hawaii real property are engaged in a dispute and no longer wish to continue co-ownership of such property, or one party is no longer making payments on the mortgage and the paying party wants to remove the non-paying party from title. The question that usually follows is what are the co-owners’ options if they wish to sever such relationship.

In the event that there is no prior written agreement among the co-owners setting forth each owner’s obligations and the procedures for resolving disputes, the co-owners are basically left with two options:

(1) work out some agreement to resolve the dispute or

(2) terminate the co-owner relationship through a court supervised partition action pursuant to Hawaii Revised Statutes Chapter 668 (Hawaii’s Partition of Real Estate Statute).

The co-owners should first try to resolve their differences and come to some compromise. By reaching such a compromise, the co-owners would not need a Hawaii partition action which can be a very costly process. However, if seeking such an agreement proves to be a dead end, then a Hawaii partition action is necessary.

In a Hawaii partition action, one or more of the owners files a lawsuit against the remaining owner(s). The filing party is also required to join as a party every person having or claiming to have any legal or equitable right, title, or interest in the property described in the lawsuit.

Once a Hawaii partition action is filed, the court has the jurisdiction to partition the real property by (1) partition in kind or (2) partition by sale. A “partition in kind” occurs when the court physically divides the property and each owner ends up controlling an individual portion of the property. A “partition by sale” is accomplished by selling the entire property at a public auction and dividing the proceeds among the owners according to their respective interests in the property.

The courts tend to favor a partition in kind first, but if such a division is not feasible, then the court will proceed with a partition by sale. As you can see, terminating a co-ownership relationship of real property is not that simple and can be costly. Therefore, you should seek consultation with a Hawaii attorney experienced in resolving co-ownership disputes of Hawaii real property.…

Realtor Commission Fees

Many people wonder if their realtor should be paid their commission or give a credit back to them, well the answer is simple; do you want a junk car that is shiny and pretty on the outside or do you want a solid investment that won’t kill you in the end? Buyers agents get paid from the listing brokers. The listing brokers negotiate commission paid with the sellers at the time the listing is taken. Usually 6% of the total sale amount, that is split two ways between the agents.

Some sellers that want to keep all their profits and not get quality guidance from their agents could ask for a reduction in fee’s. However, agents do not get paid before a closing.They spend their own money on marketing, showing, detailed reports and it goes on. Now if a seller expects the agent to do all of this and not pay them what they deserve, the seller would be better off trying to sell their property in the dark with no guidance at all. A bad Realtor is just that… BAD. They can ruin a sale, give wrong advice, be selfish in pricing and not care about anyone but themselves. Those are the agents you want to steer clear of. Figure your boss telling you that your not getting paid that day because he wanted to save to buy a new car, what would you do? Yell, quit, report them? It is no different. After all, you go to work expecting to be paid what you agreed to when you got hired. Now why would sellers and buyers think any different with Realtors?

Agents may make more money at one time but there are several weeks and sometimes months of work and spending involved in a sale. Even more so for commercial sales so in reality they are getting paid as one would who gets a check every two weeks that has been held and held and held over a period of time and then released. What if your boss was to under pay you because they wanted a new car or something else? Would you allow that? Would you do the best you could? Then don’t under pay your agents! Agents that have their own proven success, not a team but an individual agent themselves, that is the one you should want to work with whether to list your property or to buy. This is a great time to sell and buy in real estate but be wise with your agent selections and pay them what they should be paid.…

How a Guarantor Home Loan Can Help You Enter the Property Market

Struggling to save enough to buy a property? You may want to ask your family if they can provide a helping hand in the form of a family guarantee loan. This is when the equity in a family member’s home is used as security on your loan.

Also known as a family pledge or guarantor home loan, it is a type of mortgage that allows you to borrow more money and provide less of a deposit. Usually when a loan is more than 80% of the purchase price (80% LVR) you will have to pay lenders mortgage insurance, but a family guarantee means you won’t have this extra expense.

It’s even possible to avoid paying any deposit because the equity in your family’s home can act as a deposit. This ‘guarantee’ makes it possible for you to borrow the full 100% cost of the home, plus stamp duty and legal fees. Lenders mortgage insurance will still be payable if you borrow over 80% of a property’s value.

There are many issues to consider when taking out family guarantees and it pays to keep in mind that loan terms and conditions can vary between lenders. Not all lenders even offer these type of loans, so give us a call and we can advise you which lenders would best suit your situation.

Here are some of the common questions we get asked about guarantor home loans. For more detailed information about any of the following, don’t hesitate to get in contact.

Does the entire loan have to be guaranteed?

No, the loan can be split, enabling the equity in your family’s property to be used as security for a small portion of the loan, for example 20%. The lender will take a mortgage out over the guarantor’s property to this specified amount.

Who can act as guarantors?

Guarantors are usually parents, but some lenders under certain conditions will accept grandparents, siblings, a de facto partner or a former spouse. To be approved by a lender they must provide enough equity to cover the amount being guaranteed and in most cases do not need to show proof of income. Normal lending criteria will apply in all circumstances.

What are the risks of a guarantor home loan?

There are risks involved, which is why it is important for the guarantor to know what they are getting into. Some lenders even require legal advice is sought to ensure the guarantor understands that if there is a default on repayments, they will be the ones held liable.

How long does the guarantee have to be in place?

If the guarantor home loan is structured correctly, the guarantee doesn’t need to be in place for the entire duration of the loan. Once you have repaid the portion of the loan that is guaranteed or your property has increased in value, the guarantor can be released.…

Rookie Mistakes To Avoid When Investing In An Apartment Building

An apartment building can still be a good investment today. Why? For starters, there are still a lot of people who are still looking for homes to rent. In addition, the units of an apartment building do not just have to be spaces for residence or homes for families and individuals. By getting the right permits, units in an apartment building can be rented out as commercial spaces.

First-time buyers of apartment buildings will certainly have high expectations regarding this particular investment. This is mainly because they will invest a significant amount of money for this venture. As such, if you want to make sure you will own the right apartment building that can help you find success in the field of property rentals, make sure you avoid these common (and costly) rookie mistakes:

Not looking into the history and reputation of the apartment building’s builder or developer.

As a first-time owner of an apartment building, the last thing you want to happen is to stumble upon some structural problems or system failures. As such, it is important to check the background, capability, and reputation of the company that constructed the whole property. Going online and asking companies or individuals that have worked with the property developer is a good way to get some ideas about their competency. If the property developer has a good reputation and has stellar reviews about the properties they built, chances are, it is quite safe to buy a building that they constructed.

Buying a property that is located in an unpopular area.

When purchasing an apartment building, keep in mind that aside from your budget, an important factor you have to consider is its location. Real estate experts say that it is a good idea to buy a property in an area that is improving since buying in a declining location will simply result in high vacancies and rent drops.

Not having sufficient cash flow and reserves.

As a newbie investor, if you are not confident with your reserved funds, you have to get into deals that will create a quick cash flow only. Avoid going into deals that won’t provide a cash flow from day one even if that transaction promises a huge potential profit since you may be put at risk of being unable to pay the bills.

In addition, make sure you have enough cash reserves. Failure to do so can get you involved in different complicated situations. As a property owner, keep in mind that a lot of unexpected issues can happen. As such, you need to have a reserve fund that is adequate to pay for these emergencies.…

Pros and Cons of Home Inspection

Millions of Real Estate transactions happen on daily basis and it is important for buyers to protect themselves in as many ways they can. One of the simplest is to hire a home inspector. Home inspection offers both the immediate and long term benefits to the buyer. It can also be beneficial for the seller as it can avoid deal-breakers. If the issues and problems can be resolved before being identified by a potential buyer the seller has more chances in getting their asking price. In general, it’s worthwhile to get the inspection done for both, sellers and buyers.

The buyer gets benefits in several ways.As the buyers invest a sizable chunk of money to buy a home it is important to identify any deficiencies that may cost extra money and stress, an inspection by a qualified third-party will disclose the facts. All the serious, major and minor defects are revealed. In some cases there may be some critical structural defects that may be as good as rebuilding the house. Or, the defects may eat away a lot of money and time to rectify them. They may not be able to use the house at all till those are taken care of. There can be some problems related to the safety of occupants, which are to be removed before moving in.

Another benefit inspection offers are that the buyer can get quotes for needed repairs and uses them to negotiate the price with the seller. Moreover, a home inspection eliminates buyer’s remorse about the problems later on.

The home inspector will check and report about ins and outs of the property, areas like basement, structural, construction and safety issues, condition of the roof, and electrical, water lines and heating, air conditioning or ventilation systems. That will ensure to the buyer what all needs attention to repair or replace and he can get the quotes for evaluating the costs involved and the buyers can plan what should be done when and make their budget.

When it comes to disadvantages of hiring an inspector, there isn’t really anything major, except incurring some expenses for inspection. The cost is small in comparison to saving that can be achieved. Of course a qualified and in-depth inspection is key here.

A seller also benefits from a home inspection as he/she can avoid problems later on. Before listing the house for sale, a home inspection will help the seller to recognize the potential problems with the home and they can be addressed before showing the property to buyers. Multiple quotes fir repairs can be obtained and a proper job done as oppose to making urgent repairs 2 weeks before closing. This cant cost a fortune.

Most importantly, all issues and problems resolved before the buyer shows up. If a seller is not ready to allow inspection, and is firm on the price as is, the likelihood of a fast sale or a sale at all is very small.

A home inspection gives confidence to both seller …

Protecting Your Homestead Property Against Liens & Judgments

Today, most residential homeowners do not realize that they do not have a “legal status” of homestead on their Home.

Some states have homestead exemption(s) and homestead benefits but very few people have failed to realize that they must first “proclaim” their home as their homestead in order to be entitled to such benefits.

Currently, the states that have the the best homestead protection limits are Florida and then Texas but few homeowners have failed to legally establish their homestead status and receive their entitled protection pursuant to that state’s constitution. HOMESTEAD EXEMPTION does NOT protect your home!

The one of the worst courses of action that any homeowner can do, is download one of those “cheap, cookie cutter” homestead forms online, without having an in-depth knowledge of the homestead laws and their limitations and/or how it may affect them, specifically.

Never, Never, Never buy a generic form over the internet unless you thoroughly understand the Homestead laws of your state and you can defend the meaning and purpose of that form, in a court of law. This is highly ill-advised and probably one of the Worse Action that you can possibly do. Buying a cheap and very in-expensive Homestead form “product” from the internet (normal cost: $25-50), instead of purchasing a valuable “service”. This is very poor form of asset protection and estate planning. Your residential Home is your greatest financial asset that you & your family own – Do not become “cheap and/or thrifty” when it coming to protecting your home. Remember, the old wise saying, “You get what you pay for !” – there is much truth in that

The biggest misconception is that homeowners “assumes” that Homestead exemption protects their residential home… IT DOES NOT!

You have to protect your greatest asset – Your home against any possible future litigation and claims that can be attached against your home unless several specific self-executing procedures are completed and filed in their entirely.

We are proud to announce the expansion Homestead Services of Florida to others states and launching of our website for our revolutionary home protection service.

http://www.homesteadservicesflorida.com

What is exactly is “Homestead Services of Florida”?

What we do:

We offer Maximum Protection for your Florida Home against the all non-equity Judgments, Liens, Attachments, Lawsuits from lienors.

What liens or judgments are considered “non-equity”?

medical bills, credit cards, child support, nursing home,

judgement from lawsuits, etc.

What liens or judgments are considered “Equity”?

1) mortgage

2) Real Estate taxes

3) Assessment or maintenance fees (condo, villa, deed restricted)

4) construction or mechanics liens

Unfortunately most of us would agree, is that our legal system has run amuck and is out of control. With over 19,000,000 lawsuits filed annually generating over $135,000,000,000 billion dollars in court costs and legal fees, against individuals and companies. These numbers have consistently increased from year to year and continue to dramatically increase by surpassing the previous years totals.

Most consumers today feel that we are currently living in a “Sue-Crazy” society. Statistically …

What Is the Difference Between a Living Trust and a Life Estate in Real Estate Investing?

Both a living trust and a life trust are legal documents that are designed to facilitate financial planning for a homeowner. They are also both designed to aid in the seamless transfer of a property after the death of a beneficiary of these trusts.

A living trust is a document that is designed to avoid probate and allow the beneficiary(s) to control the destiny of the assets in the trust even after the death of the beneficiary. Essentially, the beneficiary, who is usually also the trustee, can determine the distribution of the assets or their liquidation and the proceeds distributed figuratively from the “grave”.

By avoiding probate, the beneficiary can save a lot of money and probate battles between wannabe heirs. These probates can be very lengthy and even take many years to resolve. Between estate taxes and attorneys’ fees, many estates lose 30% – 60% of their value before the liquidated assets are disbursed to the proper heirs as determined by the court.

Possibly more important to the beneficiaries of these living trusts, is the assets of the trust are not shown in the public record as with simple probated wills. The trust must pay income taxes and estates taxes and the trust does not save the beneficiaries any money in these areas.

Finally, in the event the trustee (beneficiary) is incapacitated, the trust contains language so a new trustee can be installed without a court order and this new trustee can take appropriate action with regard to the medical condition of a beneficiary. This avoids having to get a court order for a medical procedure which could take so long that the patient could die – or live an unreasonable time.

The life estate is also a legal document that is actually a special deed to a property that titles the property in such a manner that when the owner of the property dies, the additionally named individual on the deed automatically becomes the new owner as soon as the former primary owner’s death certificate is filed in the public record. This instrument also bypasses the probate process but does not avoid any Federal estate taxes due.

The difference in the living trusts and the life estate is that the living trust is a document that contains specific instructions for a trustee in the manner and disbursement of many assets owned by the beneficiary of the trust. The property remains in the trust with a different trustee until the terms of the trust instrument are carried out by the trustee.

The life state is simply a special deed that conveys a single property from a primary owner to a second person when the primary owner is deceased and the death certificate is filed in the Clerk of the Court’s public records. Both instruments bypass the probate process.…

Identifying Winning Real Estate KPIs

Balanced Scorecard for business is what the car instrument panel for a driver. However, instead of telling how fast you are going and how much fuel you have, the Scorecard will show you how well you are operating today and what can happen with your company tomorrow. Properly designed business evaluation framework gives an accurate picture of your business’s health and predicts possible difficulties and gives warning signs. In this article we are going to touch upon the importance of selecting proper Key Performance Indicators on example of real estate business.

Tips on Selecting Proper Metrics

It is not a secret that the indicators are the core of the entire framework. When a person designs a strategy evaluation framework he or she can either take a ready set of measures or make up own list of KPIs. Sure, using readymade templates is an easy, time- and effort-saving option, yet it is not always effective. Each business unit is a distinct entity that has it own unique internal processes that should be presented in the business strategy evaluation system. Of course, to save some time an executive may also take a readymade template and adjust it according to the specifics of his/her company. It is important to realize that identifying KPIs is a rather responsible task, and for this reason many executives simply hire experts to do this task. However, in case you have decided to create the scorecard yourself, take into consideration the following suggestions:

  • The number of indicators should not exceed standards. Too much metrics clutter the evaluation system, and distract workers (when it comes to data mining).
  • The indicators should be quantifiable measures. In case you need to use seemingly intangible indicators, you need to find a way to turn them into figures.
  • When you pick measures, simultaneously consider different ways to gather data (questionnaires, application forms, calls, reports, etc.).
  • Involve as many workers as possible.

Creating a business strategy evaluation framework may seem like a complicated task with a lot of aspects to track, but once you have made a system for it, you will get the holistic picture of your organization very soon.

Examples of Real Estate Performance Indicators

Because different real estate businesses may specialize in different spheres, you will find the most various sets of measures developed for this particular industry. So, let’s give a few examples of the most common real estate KPIs:

  1. Construction hours: actual hours versus planned hours.
  2. Defects remediation after construction.
  3. Average time needed to relet empty dwellings.
  4. Average time needed to sell property.
  5. Late rent payments (measured in percents).
  6. Percentage of houses in inappropriate condition.
  7. Percentage of purchase/rent cancellations.

When setting up metrics for your evaluation framework it is essential to encompass all the parts of your business that can be monitored, including independent customer ratings, monthly client referrals, etc. With properly identified indicators and wisely implemented Scorecard you will get a sense of control and confidence regarding the future of your firm.…

Title Companies Vs Real Estate Lawyers

Is a real estate lawyer a better choice than a title company when it comes to selling your home? You can choose any one of the two but you should first be aware of the difference between real estate lawyers and title companies. Here is some information about both the entities and whose services can benefit you most.

Real estate lawyers

Real estate lawyers specialize in laws relating to real estate and make sure that your interests as a seller are met in the transaction. These lawyers can act as escrow agents as they can hold your earnest money, down payments as well as help you with the requisite documentation. These attorneys can also help you understand the legalities involved in the sale transaction, the offer made by the buyer and your rights as a seller.

An attorney can also handle a closing in case the lender’s lawyer doesn’t do that. Every real estate lawyer has two most important responsibilities.

• To advise on the documentation process of the transaction

• To represent you at a closing

Besides these two important services, an attorney also negotiates any modifications in the purchase contract that the seller wants to incorporate. Preparing the seller’s deed, another crucial aspect, is also taken care of by the attorney. The attorney you hire will also accompany you on your meeting with the client/buyer at the time of settlement. He/she will also advise you on the tax implications involved in your home or property sale.

Title companies

Title companies are insurance agencies that represent title insurance companies. Such companies insure titles to lenders and buyers by ensuring that a title is free from any encumbrance that can cause financial loss.

The title company assures the buyer that he/she can get his/her title on the home or property with no liens against it. The availability of a title on the particular home/property is made clear and vouched for by a title company. In the process, such an entity protects the rights and interests of both parties in question.

Usually, most title companies insure a closing with the help of a lawyer to fulfill certain requirements. Closings also depend on the area you are living in. Toronto natives can hire the services of a real estate lawyer for sale closings.

Keep the following things in mind when you sell your property:

Title companies can hold the down payment and close your home without additional costs. Also, there is a possibility that title companies may give you a discount on your title insurance if you had previously used their services to either refinance or buy your home or property. Lawyers can also close your home/property sale and hold your down payment but may charge an additional fee.

A lawyer can charge a higher fee to write a contract. In cases of simple transactions, this can complicate negotiations. But in most other property sale transactions, the services of a real estate lawyer can prove invaluable.…

Looking for Affordable Apartments for Rent

Are you moving to a new city? If you are then, finding affordable apartments for rent is probably one of your priorities. You can choose from plenty of options in your search these days. Finding the right rental property may not be as difficult as you imagine.

Your income is the first thing that you should consider if you are looking for an apartment. It may be possible to seek help from organizations like HUD if you fall within a certain yearly income. You can benefit from the affordable apartments for rent for low income tenants that these groups offer.

Do you fall within the state guidelines of programs like HUD? If you do, then you should make sure that you take advantage of the opportunity to find affordable apartments for rent according to your income. These organizations work with your specific level of income so you will only pay what you can actually afford.

Asking questions from the people I knew was the first thing I did, when I was looking for affordable apartments for rent. This turned out to be one of the most valuable resources available. I was lucky to have friends and family members who were willing to help me find a place that I could afford on my meager waitress income. I have to say that I was shocked when I discovered many cheap, unadvertised apartments for rent in my area.

An unadvertised rental that was behind a private home was one of the nicest options available to me. I found a cozy one bedroom suite that was perfect for me in that small building. I almost fell in love with the place, even though it wasn’t one of the affordable apartments for rent that I put on my list. That wonderful apartment was just too far out of the way for me.

I had no choice but to try the other affordable apartments for rent on my list. I had my eye on a place that was located on a perfect location and I already knew the landlord. I talked to the owner and asked to be put on a waiting list because the current tenant was about to move. I would have never known that the apartment was going to be available if I hadn’t networked with friends and family.

You can also find affordable apartments for rent by searching the newspaper. However, shopping around might be a better option. It’s important that you become familiar with the neighborhood. It would also be wise to consider how far you want to drive to work each day. You can find the best cheap apartments for rent available by simply asking around.…