June is National Homeownership Month, a time to celebrate the excitement and pride that comes with owning a home. However, with this excitement comes the responsibility of understanding the legal aspects that secure your investment. As a new homeowner, it's crucial to familiarize yourself with essential legal considerations to protect your property and your future. Here are five legal tips to guide you through this new chapter.

Understand Your Property Taxes

Property taxes are a key responsibility for any homeowner. They are usually handled through escrow accounts managed by your lender, which means your lender collects payments and pays the tax bill for you. However, it's important to verify that your lender has promptly paid these taxes by checking tax records. If your home doesn't involve an escrow account, be proactive and budget for property tax payments to avoid penalties for late payments.

Prioritize Estate Planning

Incorporating your home into an estate plan is fundamental to ensuring that it remains protected for your beneficiaries. Consider updating your will, establishing a trust, or setting up powers of attorney to dictate the future management of your estate. Proactive estate planning helps ensure that your property is distributed according to your wishes and can prevent legal complications later on.

Review Your HOA Rules

If your home is part of a Homeowners Association (HOA) or Condo Association, you must thoroughly understand the covenants, conditions, and restrictions (CC&Rs) they impose. Violating these rules can lead to fines or even legal action. Review these guidelines carefully to avoid unexpected penalties and ensure peaceful coexistence within your community.

Stay Informed About Property Tax Assessments

Ensure you're aware of how property tax assessments affect your financial obligations. Regularly reviewing the assessed value of your home helps you understand any changes in your tax liability. If you believe your property is over-assessed, don't hesitate to appeal. Awareness and proactive management can help prevent overpayment and assist with financial planning.

Ensure Your Deed is Properly Recorded

Recording your deed is vital to confirming legal ownership of your property. It is typically managed by your local Register of Deeds or Recorder of Deeds office, many of which offer online services. An unrecorded deed poses risks like ownership disputes, so double-checking that your deed is correctly recorded is crucial for protecting your homeownership.

Owning a home is indeed rewarding, but it's equally important to stay informed about the legal aspects to fortify your new investment. Consult a legal professional for specific concerns and maintain a proactive stance on all home-related legal matters to enjoy a worry-free homeownership experience.