In most cases, home buyers about to close a real estate transaction will receive a copy of the title commitment for review a few days before their close date.

What is a Title Commitment?

A title commitment is a document that contains the terms, conditions and exclusions that will be in the final signed copy of the insurance policy issued by the title company to the buyer after closing. It lists all the details about the property, and promises to issue title insurance if all stipulations are met in Section B.

This title insurance policy protects the new owner in the event an issue comes up that could affect the ownership title of the property. For the same reason, if the new owner is buying with a mortgage, the lender will also require one known as a lender’s policy.

The title commitment consists of:

• Schedule A: legal description of the property, sale price, loan amount, lender details and the names of the buyers and sellers
• Schedule B: requirements (of which must be met) include: tax payments, recording the new deed and loan documents, release of liens and proof of identity, exceptions stipulated by the title company and exclusions which the title company cannot cover, i.e. government regulations or any arising bankruptcy claims

What are you protected from and how?

Some deeds could be claimed by heirs, be forged or they could have been executed under false or expired power of attorney. The title insurance searches all public records for any such issues that could prevent a clear transfer.

Why review the title commitment?

The commitment does not guarantee that all issues arising after purchase will be dealt with by the title company. Consider any exceptions carefully; if any issues arise over any of these you will not be able to turn to the title company to solve them.

It is best to have the title commitment read by your attorney to ensure that you completely understand the exceptions and which terms are unacceptable. This will avoid any nasty surprises at a later date.

My REALTOR® services are attentive and professional. Contact me anytime to discuss your real estate needs.

The first signs of spring bring with them a great deal of activity from the birds and insects in our garden. Those first blossoms and slight shoots of green on our lawns make most of us also go into a frenzied start of preparing our gardens for the new growing season. This is not always a good idea and if we start too early our hard work can be ruined by a turn in the weather. 

What do we need to know?

1. In the Midwest spring does not start in March, but in early April and the danger of frost only disappears by mid-May.
2. Crops that can cope with cooler weather can go in earlier. These include cabbage, broccoli and flowers such as pansies and snapdragons. Trees and shrubs can be planted earlier too. All else must wait for warmer weather and if in doubt consult the experts at your nursery.
3. Do not start planting if the soil is too wet and muddy as it will harden as it dries and smother the roots of any new plants. It mustn’t be too dry either. Aim for moist and crumbly.
4. Certain pests are very difficult to control once they appear so be prepared and spray from before. Remember that certain plants act as deterrents to some pests so try and incorporate them into your garden.
5. Remember to include plants that will attract good insects and pollinators such as bees and birds to your garden.
6. Cut back trees and shrubs to enhance growth and divide perennials.
7. Collect leaves and cuttings and make your own compost.
8. Prepare damaged lawn areas so as to begin seeding.
9. If establishing a garden from scratch take some time to plan focal points, create interesting landscapes and focal points. Make sure that you know which areas get more or less sunlight so as to avoid expensive mistakes.

10.Clean paths and paving, repair and paint fences and sheds .

I offer comprehensive and caring support to home buyers and sellers in the Chicagoland area. Let’s talk soon if you are thinking of buying or selling this Spring.

Here’s a compilation of the expected changes in the housing market for 2018. As your trusted REALTOR® serving the Northwest Suburbs of Chicago, I look forward to visiting about your specific needs.

• There is a low inventory of homes for sale and more than 50% of these are not affordable to first time buyers.

• This will lead to new construction but due to ever rising prices of land and building costs most expansion will be in the suburbs and outlying areas of cities.

• There are many people who are about to become first time homebuyers, including millennials, immigrants and foreign investors.

• Many previous homeowners had declared bankruptcies in the previous crisis and are now eligible to buy after seven years.

• Homeowners looking to downgrade or upgrade as family needs change push up demand on some properties.

• As the cost of living rises in the bigger cities many look for job opportunities and homes in cheaper cities.

• The rising cost of building pushes up the price of existing homes and most homeowners will prefer to stay put and to remodel existing homes.

• Developers will concentrate their efforts on building homes for lower to middle income buyers and will have to provide to their future needs such as wider passages.

• Most millennials prefer to live in urban areas but will most likely buy in the suburbs where homes are more affordable.

• The new tax bill might discourage some buyers. Some homeowners might look to sell and buy in states with lower taxes.

If any of these expectations look like they may affect your housing situation, and you would like to have a meaningful conversation about your options… let’s talk.

The signing of the Tax Cuts and Jobs Act towards the end of December 2017 is not going to affect homeowners and the way they will taxed for the 2017 financial year. The changes will come into effect from the 1st of January 2018 and this will impact the decisions that will be made by existing and especially future homeowners.

The changes in the law* which will impact homeowners are:

Limited Mortgage Interest Deductions

The maximum amount of mortgage debt interest that can be deducted is $750,000 from the previous amount of $1 million. This will affect loans that are taken from mid December 2017 onwards. If you are paying off a mortgage for a second home the interest will also be deductible up to the same amount of $750,000. Home equity loan interest will only be deductible if the money has been used for home improvements.

Tax deductions

Up until the passing of the new law all property taxes whether state or localized were claimed as deductions. The new law allows for a total of up to a $10,000 deduction only. The amount is the same for both individuals and married couples.

Standard Deductions

These are doubled under the new law at $12,000 for individuals and $24,000 for joint filers. Many taxpayers will most likely prefer standard deduction to itemizing their filing so as not to reduce the tax related benefits of owning a home.

Capital Gains Tax

The exclusion of capital gains tax for the sale of a primary home is to be maintained. This means that a seller may exclude $250,000 of gain from taxation as an individual and $500,000 if married. The required years of ownership are for two of five instead of the five of eight that was initially sought.

As part of my REALTOR® services, I do my best to stay abreast of important legislative, market, and tax issues influencing housing.

*I do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Get in touch if you are considering a move, or have any real estate related questions; I am happy to chat!

Whether it’s your first, second, an investment, or vacation… buying a home is thrilling!  A big part of the thrill comes from imagining what you’ll do once you own it. Seeing the smiles on my clients faces at the closing table is a big reason I do what I do.

Let’s take a step back and think about the path to the closing table. Making sure your finances are in order before you purchase ensures the long-term benefits owning a home can offer.

Be realistic

Jot down a list of the things you desire (vs need) in your next home. You may be able to have both, and that’s great. Most importantly though, address your primary needs. Take a candid look at your income and expenses; don’t forget about the big costs that could come up in the future (college, family vacations, cars, etc.). Take time to education yourself about the mortgage process. You for sure want to avoid the temptation to max yourself once see ‘how much home’ you can afford.

Lean on your REALTOR®

Your REALTOR® is likely to know a lot about mortgages. Reach out early and allow them to be there for you when you first start contemplating your home purchase. You’ll be amazed at the reliable guidance you can get from a great agent. An experience agent will have more than one referral for reputable mortgage lenders as well.

Find a GREAT mortgage lender

It’s OK that you don’t know all the ins-and-outs of mortgage lending. A reputable mortgage lender will be aware of all your loan options, will educate you, and make proactive suggestions based on your situation.  Be patient and find the perfect fit in a loan officer. You’ll feel supported and confident in your decisions when you do.

Make equity-building a must

From start to finish, don’t lose sight of the benefits that equity growth in your home provides. With every decision you face throughout your home buying journey, ask yourself “Will this contribute or take away from the equity I plan on building in my home?”

Reach out anytime if you are thinking of buying and have questions. Text, call or email! As your Chicagoland northwest suburbs REALTOR®, I am here to listen, help you make a plan, and work for your best interests.