Describe in detail the advantages and disadvantages of renting versus owning a home. According to SFGATE, the Advantages of Leasing a House depends on your personal circumstances, leasing a home may be a better option for you than buying one. There are many advantages of leasing houses rather than becoming a homeowner, all centering around finances and freedom. Before you make the decision to lease or buy, investigate the advantages and disadvantages of leasing a home.
Here are the advantages and disadvantages:
Smaller Financial Investment
Leasing a home requires only a security deposit and first and last month's rent, depending on the lease agreement. It's significantly less money to enter into a lease agreement than it is to buy a home …show more content…
According to Zillow Group, a title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.
Title companies also often maintain escrow accounts these contain the funds needed to close on the home to ensure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home. At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new titles, deeds, and other documents are filed with the appropriate entities.
During the title search, the title company also looks for any outstanding mortgages, liens, judgments or unpaid taxes associated with the property, as well as any restrictions, easements, leases or other issues that might impact ownership. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on, whether the home sits within those boundaries, whether there are any encroachments on the property by neighbors and any easements that may impact an ownership …show more content…
Then, it will issue a title opinion letter, which is a legal document that speaks to the validity of the title.
Once the title is found to be valid, the title company will likely issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.
There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. You, the home buyer, will pay for the lender’s title insurance when you close on the house, but it’s also a good idea to make sure you have an owner’s title insurance policy as well (in some areas of the country, sellers pay for these policies; in others, the buyer must purchase it).
For example, You buy a home and get both lenders and buyer’s title insurance, but then someone comes forward claiming they are the rightful owner of the home. If in fact, the title was wrong and they are the rightful owner of the home, your title insurance policy will likely pay you the value of the home and the lender the amount they lent you to buy the
Here are the advantages and disadvantages:
Smaller Financial Investment
Leasing a home requires only a security deposit and first and last month's rent, depending on the lease agreement. It's significantly less money to enter into a lease agreement than it is to buy a home …show more content…
According to Zillow Group, a title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.
Title companies also often maintain escrow accounts these contain the funds needed to close on the home to ensure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home. At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new titles, deeds, and other documents are filed with the appropriate entities.
During the title search, the title company also looks for any outstanding mortgages, liens, judgments or unpaid taxes associated with the property, as well as any restrictions, easements, leases or other issues that might impact ownership. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on, whether the home sits within those boundaries, whether there are any encroachments on the property by neighbors and any easements that may impact an ownership …show more content…
Then, it will issue a title opinion letter, which is a legal document that speaks to the validity of the title.
Once the title is found to be valid, the title company will likely issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.
There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. You, the home buyer, will pay for the lender’s title insurance when you close on the house, but it’s also a good idea to make sure you have an owner’s title insurance policy as well (in some areas of the country, sellers pay for these policies; in others, the buyer must purchase it).
For example, You buy a home and get both lenders and buyer’s title insurance, but then someone comes forward claiming they are the rightful owner of the home. If in fact, the title was wrong and they are the rightful owner of the home, your title insurance policy will likely pay you the value of the home and the lender the amount they lent you to buy the