Michigan Real Estate

“As the proud owner of a condominium, you are well aware that you do not own the actual structure when you buy a condo. Rather, you just buy the unit in which you live. Therefore, obtaining the proper coverage to keep your condominium and the entire structure protected can be a bit confusing at times. In fact, in order to make sure you are entirely protected, you will likely need to buy condominium insurance as well as group insurance coverage for the structure.

What to Expect When You Buy Condo Insurance

When you buy condo insurance, it typically covers only the actual unit in which you live. This insurance is different from apartment insurance because apartment insurance only covers your belongings and none of the structure. When you buy condo insurance, on the other hand, you will receive coverage for part of the structure.

Condo insurance, which is more formally known as HO-6 insurance, covers your personal belongings while also providing you with liability protection. This is because the structure is covered by the policy owned by the actual building in which your condo is located.

Getting Group Insurance for Your Condominium

Obviously, you will need the structure in which your condo is located to be covered as well. After all, if the structure becomes damaged, it is likely that your unit will be damaged as well. Or, even if your unit is not damaged, the damage to the property will take away from the aesthetic beauty of your condo.

In order to make sure the structure of the condo is covered, most condos require their residents to buy into the group insurance coverage when they buy the unit. The amount of the group insurance premium may be included in the regular dues that a condo owner must pay or condo owners might simply be asked to pay a certain amount of money each year to go toward the payments for the group insurance.

The types of damage that are covered by your group insurance will depend largely on the type of insurance you decide to buy and what you choose to include in your policy. Typically, group insurance coverage for a condo does not include items such as:

• Water damage that is caused by underground water or flooding

• Damage from earthquakes or mudslides

• Damage from deterioration, settling, nuclear hazard, or contamination

• Damage caused by rodents, birds, domestic animals, and insects

If you live in an area where earthquakes, flooding, or mudslides are a concern, you might want to look at having this coverage added to your policy.

Those costs that are covered by group insurance for a condo, on the other hand, typically include:

• Property damage for reasons other than those previously mentioned

• Theft or damage of personal property

• Personal liability protection when someone is injured or property is damaged within the condo property boundaries

• Replacement of locks after a theft

• Loss of refrigerated content after mechanical or power failure

• Loss assessment coverage

In most cases, you won’t have an option about paying into group coverage when you buy a condo. Since you have a vested interest in the property, however, you will typically have a say in the type of coverage your condominium decides to carry. Therefore, it is essential that you consider all possibilities as well as cost when you decide which type of policy you will buy.”

When considering to purchase homes for sale, we generally think first of single-family homes. There are many advantages, however, to condominiums that single-family homes for sale cannot give you.

According to the National Association of Realtors, condominiums are most popular for first-time homes for sale buyers, especially single women. Next, come retirees and empty nesters, who do not wish to have all the physical upkeep required by single-family homes for sale. Thus, condominiums make up an increasing share of the output of the top homebuilders across the nation, even with the decrease in homes for sale since the bubble deflated.

In addition to new condominiums being built, many apartment buildings, hotels office buildings, and even warehouses that have been vacant or partially filled are being converted into condominiums. These condominium homes for sale take less than a year to convert, with upgrades to the exterior and common areas. They add amenities to the interior; and in some, they add a pool, spa, gym and/or clubhouse to attract the upscale homes for sale buyers.

The best deals in condominium homes for sale are those in the process of being converted or built. You usually can purchase during construction/renovation at a 10-15 percent discount. Look carefully at the purchase contract, however, if the condominium is being converted from an apartment building. Ensure you will not be required to allow current renters to stay for a specified length of time.

A condominium homes for sale has many benefits. Like a single-family home, they appreciate in value and have the same tax advantages. Unlike a single-family homes for sale, your homeowner association and maintenance fees covers all major upkeep costs of common areas, landscaping and so on. Sometimes, several other amenities and benefits are covered, as well.

Converted Condominiums

Before buying a homes for sale in a converted building, find out how old the building is and what updates they made during the conversion. Older buildings generally have more frequent and higher cost repairs. Ask if the homeowners association has enough money in reserve to cover major costs, such as roof replacement. If not, will the owners have to meet the costs. How old are the appliances, especially the furnace, hot water heater, and air conditioning? If the appliances are not new, consider purchasing maintenance and repair contracts to save large expenses later.

Established Condominiums

Before buying a homes for sale in an established condominium complex, ask to see all available documents, including minutes of the association for the past few years. Ensure your potential homes for sale will not see a major increase in maintenance or association fees, taxes, and so on. Also, look for any noticeable disputes that residents have had with the association. You do not want to purchase a condo that will give you a lot of headaches. As with converted buildings, consider purchasing maintenance and repair contracts If the appliances are not new.

Buying Any Condominium

Always check the contract and association rules for the following:

• What is the consequence of late payment of association or maintenance fees? Possible actions are lien against your condominium, foreclosure, and court action.

• What are the restrictions? Do they restrict age of residents; pets; who and how many people may live in your homes for sale; no renting or subleasing; number of guests at one time in your unit, home business; and so on?

• Make sure you understand the definitions of the restrictions (such as, what constitutes excessive noise).

• What are the consequences of the different restrictions?

• How and when can you access the pool, spa, gym or clubhouse?

• Does the association have to approve all buyers? Do they conduct a criminal background check before approval? A condominium can offer you more safety than a single-family homes for sale in that the association can ensure its residents do not have criminal backgrounds.

Once you purchase your condominium homes for sale, insure the inside against liability and damage. Consider the extra cost for flood (if even a remote possibility exists — think Hurricane Katrina) and wind insurance (especially for units above ground level).

Can I purchase a property in Dubai?Anyone can purchase a property in Dubai. In 2002 H.H. General Sheikh Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and U.A.E Defence Minister, announced freehold ownership was now available to all nationalities Worldwide.

Can I get residency in Dubai if I purchase a Dubai property?Freehold property owners in Dubai and their family have the right to apply for a resident visa in accordance with the latest immigration regulations.

What extra fees do I have to pay on top of the purchase price ie, tax?There are no property taxes to pay in Dubai as Dubai is a tax free country. Therefore the price you see on a pricelist is the total property price for new Dubai property.

How do I pay for a Dubai Property?All Dubai Properties are purchased in UAE Dirhams, at Find Me A Property In Dubai we will assist you in this process. We advise you open an account with a foreign exchange company, this way you secure the best possible exchange rate.

Can I get finance in Dubai to purchase Dubai Property?Yes. Finance is available from 50% up to 70% for non residents. However this process and application is specific to each individual development. Speak to a member of our team for more information concerning finance for Dubai properties.

What is the weather like in Dubai?Dubai enjoys all year round sunshine!

Where is Dubai located?Dubai is located in the Middle East and is the second largest of the seven Emirates which make up the United Arab Emirates.

Does the Mexican government own my land if I purchase land in Mexico?
Due to recent trade agreements made between the United States, Canada, and Mexico, called the North American Free Trade Agreement (NAFTA), and bank trusts, called Fideicomiso, foreigners are allowed to purchase land in Mexico. American Title companies are also involved in the purchasing process, allowing for secure transactions.

What is the North American Free Trade Agreement?
In 1994, North American Free Trade Agreement (NAFTA) between the United, States, Canada, and Mexico was formed as the world’s largest free trade area, allowing for purchasing land safely in Mexico. The agreement allows for economic growth and rising standards of living in these three countries, while establishing a strong foundation for future growth and setting an example of the benefits of trade liberalization.

Today, nearly 1.5 million Americans own property in Mexico. As a foreigner, the buyer can obtain all the rights of ownership by setting up a bank trust, similar to a US family trust, known as a Fideicomiso.

What is a Fideicomiso?
A Fideicomiso makes a buyer the beneficiary of the purchased property, allowing the buyer to use, lease, sell, will, improve or encumber the purchased property. The Trust does not give direct ownership to the foreign beneficiary. Instead, it establishes the legal basis by which the bank holds the legal title to the property in order to act on the foreigner’s behalf.

The Foreign Investment Law, which was amended in 1993, allows the trust to be established for a term of 50 years and is renewable anytime during its existence. The beneficiary can instruct the bank to sell or lease the property at any time. The bank (trustee) holds the trust deed for the person who purchases the property (beneficiary). The property is not part of the bank’s assets and cannot be liened or attached for any other obligations.

Why was a trust system established?
The Mexican government established the trust system as a protection for foreigners interested in owning property in Mexico. By making ownership pass through the trust process, the bank is required to check ownership, insurance, and liens against the property. There would be an automatic review of the transaction, thus ensuring valid ownership and no outstanding indebtedness of the property

When is a bank trust issued?
Bank trusts are established by a Mexican Notario (Notary), following the receipt of a permit by the Minister of Foreign Affairs. This procedure is routine due to the large number of foreign property owners. The forms are standardized and the entire process is usually completed by the notary as part of the closing procedure

How does First American Title Company ensure property purchased in Mexico?
First American Title Company works to ensure that any claims will be handled in the U.S. without the buyer having to go through the Mexican court system. That means that the title agency will stand by the buyer in response to a challenge to the buyer’s title in Mexico.

First American was the first U.S. Company to issue title insurance policies on Mexican land and it is the most used agency. Its agents are experts in Mexican law, property ownership and transfer system. First American Title Company has been facilitating complex commercial, industrial and residential real estate transactions throughout the country for over twenty -five years. The agency is directly involved with property purchasing for The Pointe de las Conchas.

The USA property market has been hit hard recently after having been buoyant for a number of years. The severe economic downturn in the USA has meant that there aren’t as many buyers as there have been over the past few years, and there is a glut of prime property for sale in the USA waiting to be snapped up by buyers who are in a good position to purchase.

Properties in the USA have always been a hit with the British because the Brits love to holiday in the USA, particularly in Florida. Only 8 hours distance by aeroplane, it means that British families may enjoy good value holidays in their own villa or apartment at good standards and reasonable cost. American property often has a pool, a terrace and spacious, well-deisgned accommodation that attract purchaser interest because there is a feeling that there is good value for money.

With the economic downturn in the USA and housing stock at a high volume aross the country, property prices have fallen steeply and many realtors and developers are offering enticing discounts to attract purchasers in a very fragile property market. Some buyers, whether they’re looking for a second home or are buy-to-let investors, will hold out until they are absolutely sure that USA property won’t fall in price any further, but some buyers will be attracted by the very low prices and deals that are being offered and strike while the iron is hot.

Combined with the exchange rate of the dollar to the sterling pound, this offers an additional financial incentive for purchasers researching properties for sale in the USA, as they can stretch their money much further. The US central banking system, the Federal Reserve, have also introduced low interest rates in order to stimulate the USA property market and create demand. This means that British buyers can take advantage of the current economic climate and the USA’s eager measures to push demand, and make their purchase of USA property even greater value for money.

British buyers who are researching property for sale in the USA should think about financial matters very carefully and ensure that all purchase costs are researched. Taxes in the USA are often complicated, more than in the UK and they will have to do in-depth research about the taxes they will pay including local, government and state taxes.

They will also need to think about how to finance their purchase and how they will pay their mortgage fees. Mortgage loans in the USA are extremely difficult to be granted because of the position of sub-mortgage lending and the onset of the present economic problems. If purchasers already have a mortgage arranged from the UK or are remortgaging their British property, this will make financing a USA property purchase much easier.