Buying property can be a big financial decision to make. Whether the plan is to make the property your new permanent home or to rent out the space, considering some important legal factors can help you to avoid serious problems later on.
Appropriate Insurance Coverage
Having the right insurance coverage can protect you in case of an injury, accident, or other disasters. For example, if someone falls on the property and proceeds with a lawsuit against you, insurance can help to pay for the costs. Medical bills can be expensive, which makes covering the costs without insurance difficult for many. The type of insurance you should get will depend upon the property and its specific needs. If the property is a house located in an area near a body of water that frequently rises, investing in flood insurance may be recommended.
You also must decide what will happen to the property and its contents in the event of your passing. Speaking with an estate planning attorney can assist in determining the details. You could update your will to leave the property to a loved one, and you might choose to have some of the household items donated to charity. Proper estate planning can also make clear to you what will happen to the property if you do not leave the house or space to a specific person.
Renovations and Codes
If you eventually renovate the property, keep in mind that the work will have to be done up to code. Some people purchase homes with older kitchens. When these individuals choose to renovate the kitchens years later, they learn that the electrical system isn’t up to code. Keep in mind that contractors cannot typically do the work unless you agree to the upgrades. In other words, contractors cannot complete a project unless that work adheres to the correct codes.
You’ll also need to pay attention to local laws related to property ownership. The community could have rules about parking on the street overnight or set hours of the day during which you can mow the lawn. Other local laws could mandate the separation of certain recyclables. For example, you might need to separate glass from paper.
When you purchase property, you’ll be subject to all different types of laws. Some of those laws will govern your daily happenings, and other legal situations will be related to what happens to the property if you pass away during the time of ownership.