For many people, homeownership is a great source of pride and joy. And why shouldn’t it be? In a society where real estate properties get more and more expensive by the day, being able to buy a house is indeed a great accomplishment.
While there’s no denying the tremendous amount of safety and security that comes from knowing you’ll have a roof over your head for the rest of your life, the benefits of owning a home go way beyond that. Your property appreciates in value and builds equity over time. Moreover, federal and real estate laws also protect your rights and liberties as the homeowner and present you with certain tax advantages that you won’t get if you’re renting.
Tax Benefits of Homeownership
To boost homeownership throughout the country, the government implemented various tax benefits for those who own homes. Purchasing a home may be your most significant financial investment by far, but it can be quite profitable because of the tax breaks that you get to enjoy during tax season. Some of them are:
Mortgage Interest Deduction – if you itemize your federal income tax deductions, you can deduct the entire mortgage interest that you’ve paid for your home that year.
Real Estate Tax Deduction – you can deduct the amount of state and local taxes that you paid for your home from your federal tax filing.
Capital Gains Exclusion – in case you decide to sell your home, you won’t have to pay capital gains tax for the profit you made on the sale.
The Bundle of Rights
The greatest benefit afforded to you by real estate laws is the safeguarding of your homeownership rights and liberties. As the titleholder, you have the freedom to do what you want with and in your home. This freedom, however, is not absolute — you have to abide by the requirements and limitations of the law and, of course, pay your property taxes.
Although you’d rather leave the legal aspects of your home ownership to your real estate lawyer, it’s essential that you learn of your basic rights, also called “the bundle of rights,” if you want to fully enjoy the benefits.
By the right of possession, as the titleholder, you are the rightful, legal owner of your home. The right of control, on the other hand, gives you the power to use that property and do whatever you want with it as long as it does not violate any rules or laws.
The right of enjoymentallows you to hold or participate in activities that give you happiness and pleasure within the property you own, while the right of exclusionlets you limit who can access your home and protects you from trespassers. Basically, you don’t have to let people in if you don’t want to unless instructed by the law.
Finally, through the right of disposition, you have the ability to transfer the ownership of the property temporarily (by leasing it) or for good by virtue of a sale.
Protecting Your Property From Disputes
Learning the fundamentals of real estate law will help you defend your rights and exercise your freedom as a homeowner, but in times of disputes, this won’t be enough. It may be a lien on your home or a problem with the title. Whatever it is, when it comes to property-related issues, it’s best to seek the advice of a real estate attorney.
If you’re planning on buying a new house, a real estate lawyer can help you check the title to ensure it’s clean and that there are no other parties with claims to it. You can also purchase title insurance from them so you’ll be compensated for any damages in case defects in the title are found in the future.
Homeownership carries with it a lot of wonderful benefits, but it can be a huge pain when problems arise. When you have time, learn of the ways on how you can look after your interests as much as you can.
If you are looking to purchase property, do not hesitate to contact M&A Law Firm, PC, today. Our experienced real estate attorneys will provide you with expert legal analysis and advice to make sure your property investment is a good one.