Category Archives: Insurance Definition
Real Estate Ownership – Condominium or Fee Simple
Real Estate Ownership – Condominium or Fee Simple
Generally, apartment-style buildings are called condos, two-story row houses are known as town homes, and free-standing homes on small lots are referred to as garden homes. Unfortunately, this description creates some confusion about real estate ownership. Apartment, town home, and garden home describe the design or construction of certain homes. The word “condominium” does not refer to a the layout or style of a building. Condominium is a form of ownership of real estate. The form of ownership of real estate cannot be recognized by observing the building design.
Condominium Regime
The legal definition of condominium is: the absolute ownership of a unit based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners. Each unit owner of a condominium has individual title to the space inside his unit. The space is sometimes described as beginning with “the paint on the walls.” In addition, each unit owner has an undivided interest in the physical components of the condominium buildings and land.
A popular type of condominium development is the multi-story apartment. In this case, there is no land under each unit. In these developments, the condo association usually handles maintenance of the building exterior and common grounds, while the unit owners maintain the interiors of their units. A condominium association is selected to make decisions about expenditures for repairs, and to handle administrative work related to the common areas. Fees are collected from the unit owners to pay for common maintenance. The association normally holds an insurance policy covering the jointly-owned areas, while individual owners carry insurance for the interior components of their units.
Condo projects may resemble duplexes, town homes, garden homes, or residences on regular lots. In general, the creation of a condo regime allows the developer to get more density approved than would be allowed if he had done single-ownership lots. This is often the reason why the condo regime is chosen instead of a development with single ownership lots. A condominium may be built as two units of a duplex. In this case, the two owners may jointly make decisions concerning maintenance of any common areas. By setting up the units of a duplex as two condos, the owner is able to sell them to two different owners.
Each condominium has rules that are specific to the development, so no assumptions should be made about their requirements. It is important to read the condominium documents carefully before purchasing a condo. The documents specify the maintenance that is covered by the common budget. In one project, the association may handle exterior components, decks, pools, sidewalks and driveways. In another, the individual owners may be responsible for more maintenance of their units, including foundations, roofs, and exterior walls.
If you have questions about the division of labor between the common budget and the individual owners of a condominium, you can present your question to the condo board itself. The board can give you an interpretation of the rules and clarify how the issue has been handled in the past. Another possibility is to ask a real estate attorney to review the documents for you. Realtors, other unit owners, or maintenance workers are not appropriate or reliable sources for the interpretation of condo documents.
The Texas real estate contract for condominiums contains a provision requiring that the buyer be given a copy of the condo documents, with a period of time to review them. During the document-review period, the buyer may terminate the contract without penalty. In addition, a resale certificate is must be provided by the association president or manager. This document provides information on the current budgets, insurance coverage, special assessments, lawsuits and other matters that affect the association.
Fee Simple Ownership
In contrast to the condominium regime, you may own real estate by fee simple. “Fee”, which comes from the word, “fiefdom”, refers to legal rights in land, and “simple” means unconstrained. Fee simple is the most common type of ownership. It is the absolute legal title to real property, including both buildings and land.
In fee simple, there are several different possibilities with regard to your obligations of ownership:
(a) Your property may not be in a subdivision at all. In this case, your deed will not include any subdivision restrictions that control your use of the property. Be aware that there could be some deed restrictions put in place by previous owners. In addition to deed restrictions, you may be governed by city or county ordinances or zoning laws that limit your use of the property.
(b) Your property may be in a subdivision with very few restrictions, no common areas, no architectural control committee, and no mandatory dues. Usually these are older subdivisions.
(c) Your property may be in a subdivision of homes on large lots, or in a town home or garden-home community in which there is a legally created homeowners association. In this case, every homeowner is required to be a member of the association. The association may charge mandatory dues and enforce subdivision rules. A certain level of maintenance may be required of each property owner. For example, you may need association approval of exterior paint colors, fences, or additions to your home.
Like the condominium form of ownership, fee simple ownership does not prescribe how maintenance is handled or how developments are governed. For example, the owners of a town house, with fee simple ownership, may be required to fully maintain their units. Or, the owners’ association may cover painting, roofing and yard work for the owners. In subdivisions where there are single family homes on large lots, it is more common for the homeowners association to manage the common grounds, pools and parks, while the individual lot owners fully maintain their own properties.
Understand your ownership rights and obligations
Before buying into a condominium regime or purchasing a fee simple property, you should have a clear understanding of the type of ownership you will have in your property. If you are buying a condominium, it would be wise to read the condo documents carefully and understand how maintenance is divided between the individual owners and the condominium association.
If your ownership is fee simple, with individual ownership of the land, you should review the deed restrictions (if there are any) and understand the restrictions and obligations that apply to your property. In the fee simple form of ownership, there may be mandatory dues to pay for common area maintenance, or, in some cases, the dues may be used for partial maintenance of the individual properties.
If you have a question about your type of ownership or about your obligations as a homeowner, it would be wise to review the title documents with a real estate attorney before proceeding with your purchase. Ask plenty of questions! A clear understanding of your type of ownership, and of your obligations as a homeowner will result in a more satisfying real estate purchase.
Four Reasons to Set Group Goals Collaboratively
Four Reasons to Set Group Goals Collaboratively
One of the tasks that come with being a leader is setting goals. Goals for ourselves, to be sure, but often we need set goals for our groups/teams or the larger organization. While we may instinctively know that we should include people in the creation of goals they will be working to achieve, too often the press of time and the lure of expediency leaves leaders setting the goals, and simply sharing them with those charged with achieving them.
The Four Reasons
There are four significant reasons why we need to get others involved in creating of the group’s goals. Any one of these are reason enough to create a conversation about the goals rather than creating a PowerPoint presentation with the goals already formulated.
• To gain Agreement. There are actually two agreements you want to gain.
1. Agreement on what the goal actually is.
2. Agreement that the goal is worthwhile and beneficial.
Once you have these agreements you will increase the clarity of the goal for everyone. Goal clarity in itself has a very positive impact on ultimate goal achievement. With agreement you will increase focus on the goal as well. Take the time to create both of these agreements and you have a stronger chance of achieving the next item . . .
• To create Engagement. Notice I said engagement not buy-in. I know we all talk about wanting people to “buy-in” to our ideas and plans. And, given the choice between having people who are “bought-in” vs. people who didn’t care or disagree, I choose the former. But engagement is more than “buy-in.” When people are engaged in an idea they are committed to it. They feel ownership for it. They have thrown more than their hat into the ring, they have thrown their heart in too. Once people are engaged in the goal you can capture what comes next . . .
• To set Collective Consciousness. Have you ever noticed that after you buy a new car, you see “your” car everywhere? The reason this occurs isn’t because thousands of people followed your lead to buy the same car you did. It happens because of your Reticular Activating System. Our Reticular Activating System works as a filter helps us notice things we are focusing on or are interested in. Once people are fully engaged in a goal their subconscious mind goes to work and the Reticular Activating System helps. People will begin to see things that will be resources, methods or clues to achieving the goal. Sparks will fly between people on the team and progress may be achieved faster than could be logically expected.
• To manifest Synergy. We have people work together because we know that together we can achieve more than we can separately. This is the definition of synergy. If you prepare your goals in a vacuum and present them to the group the chance for you to achieve team synergies is virtually nil. The whole point of a group working towards a goal together is to gain synergy. If you want it, you have to let people help create the specific goals they will be directly involved in achieving.
Getting others involved in the creation of the goals is more than just a good idea. It is more than just the right thing to do. It is the most important step you can take to improve the likelihood that a goal that is set, is reached.
So when you have a goal to be achieved with the help of others, keep these four reasons in mind and make the time to create the massive benefits described here.
That time and effort is the best insurance policy you can buy to improve the chance your goals will be achieved.
How Much Should You Borrow?
How Much Should You Borrow?
There’s little doubt that we’re borrowing more and there’s also little doubt that credit is one of the great conveniences of modern life. That said, like Goldilocks you want to borrow the amount that’s just right — and no more.
So what’s the right level of debt?
The loan qualification standards used by mortgage lenders are an important guideline. You can typically get that old standby — the fixed-rate, 30 year mortgage — if no more than 28 percent of your gross monthly income goes for mortgage principal and interest, property taxes and property insurance (PITI). In addition, as much as 36 percent of your gross monthly income can go to regular monthly costs — PITI plus car payments, credit card debt, school costs, etc. In addition, because they have more liberal qualification standards, you can often borrow more with other loan programs such as FHA, VA and adjustable-rate financing.
But no matter what type of mortgage financing you consider, the real question should be not how much can you borrow, but rather how much can you borrow comfortably. In other words, financial sanity counts.
Unfortunately the term “financial sanity” is an expression without a definition. The economics that work for the Webbers plainly may not work for the Johnsons. We each have different incomes as well as different interests, expenses and preferences. Given this background one might ask: What makes financial sense for me?
The answer looks like this: If you’re living from paycheck to paycheck, if monthly costs are a burden, if savings are small or non-existent, if you do not have health insurance then it’s time to re-think debt burdens.
The richest person I ever met, someone who started with nothing and created jobs for more than 50,000 people, once offered this advice: “The key to financial success is saving, and nothing is harder than saving that first ,000. After that, it’s easy.”
In other words, it’s entirely possible to have a substantial salary and to fail the financial sanity test. The waiting rooms in every bankruptcy court are filled with people who once had big incomes and bigger debts. One day the numbers didn’t work and away went the trophy houses and the big cars.
So how do you begin the savings process?
The first step, literally, is to open a savings account. The very nice people who provide checking accounts and credit cards will also be happy to hold your savings.
The second step is to go after every nickel and dime you can find.
The economics of savings resemble gravity: Little pieces brought together in one place produce big results. Here’s an example: Imagine that you usually spend .50 per day on little things — coffee, candy or whatever. Instead, you set the money aside in an account that pays 6 percent interest. The result? After 30 years there’s almost ,000 in your account.
There are any number of strategies to save money, but let me suggest a practical approach. Look at your debts. Pick the one with the lowest balance, say a small credit card that requires monthly payments of . Save and pay it off. Then identify the next remaining debt with the smallest balance. You now have a month extra that can be applied to the second obligation. Save and pay off the second debt. Maybe with the second obligation you can save a month. After the second debt is repaid, you have an additional a month to attack the third debt.
During this process there are other steps to take. Bring lunch to work. Have one car (hard in some areas, but not impossible). Collect change at the end of the day and deposit rolls of coins every month or so. Eat out — but not often. Stay away from credit cards. Avoid late fees and maintain good credit by paying bills in full and on time.
As this process continues you’ll notice several interesting results.
First, borrowing for real estate becomes easy as debts decline and qualification scores rise.
Second, better credit results in reduced interest rates that can save you big money. Save a half percent as a result of good credit on a 0,000 mortgage and you’ll cut costs in the first year of the loan by nearly ,500.
Third, there’s no tax on “savings.”
If you have ,000 in credit card debt and auto costs each month, that money is available only after taxes are paid. To get that ,000 in cash you may have to earn ,300 or ,400, depending on your tax bracket and location. If you pay off your bills and don’t have to pay that ,000 a month, Uncle Sam does not raise your taxes and you gain the equivalent of a huge raise.
When you speak with lenders about your ability to borrow, consider that with good credit you likely can borrow as much as you need if not more. But also consider that as a matter of financial sanity you have a personal obligation to save. If you can buy a home, pay general expenses and still save 5 or 10 percent of your gross monthly income, the odds are overwhelming that borrowing will not be an undue burden now or in the future.
The Basics Of Estate Planning
The Basics Of Estate Planning
Estate Planning may be a word that is encountered by many citizens especially the elderly. What is Estate Planning? What benefits does it provide to people?
Estate Planning is a method of arranging and considering alternatives that will satisfy specific wishes and goals to prepare for things that may happen to a person and the people he finds special to him.
Estate Planning includes organizing properties and not just putting them in a simple Will. It also lessens the taxes and fees that may possibly be charged to these properties. Estate Planning also includes contingency preparation to ensure that ones wishes regarding health care and medications will be followed.
An estate plan may be described as good if it financially coordinates with the future of the home, business, investments, insurance and other benefits if ever the person becomes sick or will pass away. A good estate plan also sets directions to bring about personal wishes regarding health care in preparation for the when the person becomes disabled.
It is very important to identify the real definition of the term “estate” before someone can really perform estate planning. Estate means all the properties a person owns or has control of. This is regardless whether if the property is solely named after him or is in managed in a partnership. This may include real properties, accounts, bonds and stocks, cash, buildings and establishments, jewelry, collections, all types of businesses and even retirement benefits.
Typically, those who really need to have an estate plan are parents who have minor children, people who have valuable properties and have sentimental values for them, and also people who are concerned about their medications and health care. However, people can still acquire an estate plan whether they have these categories or not. As long as they have all the things that are covered by an estate plan, then they can avail of it.
While a person is alive, it is important to prepare an estate plan and at the same time implement it. This is the perfect time for a person to perform and have legal capacity to come up with a contract. There may be challenges that could occur if an estate plan is implemented when a person is already disabled. Others may judge the lack of capacity and the person may be prone to fraud, abuse and coercion.
Estate Plans may include wills, power of attorney for health care, living wills, living trusts and limited partnerships. When entering into a contract, it is very important to make use of the services of a lawyer. Lawyers are the only certified people who practice these fields. They are also the only ones who can supply a person with all the legal requirements and advice needed in the estate plan. An attorney will be able to answer legal questions regarding the estate and they will also be able prepare the person on the cost of the estate plan and other finances the come with it.
Estate Planning involves sensitive decisions and legal matters. It would only be beneficial if the person will always consult with legal advisors and also seek financial and medical advice. It is important that before a person will enter into estate planning, he should already have a strong understanding of the process so that things will not be difficult for those who will be left behind.
Taking Charge Of Your Finances Is Easy!
Taking Charge Of Your Finances Is Easy!
Most people don’t like thinking about their finances. If you know what to do, however, thinking about how to improve your finances can be exciting and even, fun! Learn some simple tips for financial management, so that you can improve your finances and enjoy yourself while you do it.
Use your existing sewing skills or take the time to learn how to use a needle and thread. It is not hard to turn a worn out item of clothing into something that looks and feels new. Try not to toss anything into the trash and carefully consider what other use you can find for it. This will help you to recycle and save a bit of money.
Consider renting a home instead of buying, if you want to cut your monthly costs. Financial analysts have been debating over renting versus buying for a long time. Do a cost comparison to see how much owning really costs you, after you factor in property taxes, maintenance, insurance and other expenses. If you rent, you can take the money you save and invest it to earn a return. This can take the place of the appreciation that you would earn on a home that you own.
Using a frugal approach to spending can be a powerful method of keeping your personal finances under control. A few simple changes in your spending can make a dramatic difference. Purchase a used car instead of a new one. Shop around for a cheaper cell phone plan. Look for ways to make your home more energy efficient.
Keep your credit cards in a safe place at home instead of carrying them around with you in your wallet. This will decrease your chances of making frivolous purchases with your card. Credit cards should only be used for things that are important, since you can easily end up in debt if you are not careful.
A great personal finance tip is to be conscious of how much water you’re using each month. A lot of folks take water for granted on a daily basis and often forget how much running that water will cost at the end of the month. Keeping water intake down can save a lot of money.
When it comes to buying a car or truck, never pay full price for a new model. Brand-new vehicles depreciate in value by thousands of dollars, the moment you leave the dealership. Instead, opt for a used vehicle that is one to three years old. You will pay a great deal less, making this a smarter investment.
Cable TV is considered a necessity by many families, but it really is an optional expense, and usually comes at a high monthly cost. Over-the-air TV is free and you can get it in high-definition. Other options for movies include, subscriptions like Netflix, websites like Hulu, renting from Amazon, or wireless set-top boxes like Roku or Apple TV. Chosen judiciously, these options could save money over cable.
As you can see, finances don’t have to be boring or frustrating. You can enjoy dealing with finances now that you know what you are doing. Choose your favorite tips from the ones you just read, so that you can begin improving your finances. Don’t forget to get excited about what you’re saving!
You Can Rely On Yourself: Easy Ideas For Self Help
You Can Rely On Yourself: Easy Ideas For Self Help
Though the definition of self help may change slightly depending on who you’re asking, the best ways of pursuing it are the same. The advice and techniques listed in this article, give a look at effective methods for you to develop a sustainable, calculated, self-help strategy.
For your health and well-being, it is wise to keep up on medical check-ups and preventive tests. You can’t live life to the fullest if you aren’t healthy. Most insurance plans cover physicals and diagnostic tests, such as mammograms and routine blood work. These measures will keep your mind at ease and thwart any issues that need dealing with.
Go out and meet people. By making new connections whether it be finding a new friend or a new romantic interest, this can open up a new world of opportunities for you. Also, a great way to know yourself better and to make improvements is to see how others perceive you.
With personal development, make sure that you make every attempt to wake up as early as possible and still get enough sleep. This is important because you are limited to 24 hours in a day and there is no way of getting around this. Give each day your all and use as much of each day as you can.
In order to develop a positive personality it is good to know what your priorities are. It is a good habit to always avoid procrastination at all costs. The longer we wait to do something the less likely it is for us to do it in the best possible way.
Accept responsibility for the things that happen in your life. Do not blame others; the decisions that you make are the reason that you are in your current situation. Once you realize this, you will be able to start making positive changes in your life, and you will have control over your future.
Treat your body as a temple. Your body sends all kinds of messages to you through your brain. Sometimes your eyes may tell you they are sleepy, or your stomach may tell you that its hungry. Other times, your throat may be saying its thirsty. Listen to your body and accommodate it so that it will listen to you later in life and not ignore you.
Place a rubber band around your wrist to aid you in thinking positively. If you find that you are having negative feelings or thoughts, pull back on the rubber band and let it snap your wrist. It will hurt and that pain may help you keep positive thoughts flowing through you.
Guessing how people percieve you or what they think about you might cost an opportunity for a great friendship. No one can read another person’s mind or heart, so try not to constantly worry about what other people think. Be yourself and be honest, and let time produce the truest of friends.
The most effective self-help process is one that is organized and well thought out. The tips and advice provided in this article will help you to develop this type of effective self-help process, pushing you to fulfill your potential. By following the advice in this article, you empower yourself to move your life in a significantly positive direction.