Clear Title and Borrowing Against Your Home Equity
Clear title means that a person or company owns a house or another real estate and is clear of encumbrances. Also known as free and clear, good, just, and clean title, it refers to a state in which there are no claims to legal ownership. There is no levy or lien from financial institutions and no reason to dispute or make legal claims to ownership. This is a requirement when a person or business decides to sell real estate.
Benefits of a Clear Title
Many borrowers look forward to the time when they won’t be making loan payments for their home and vehicle. This means that their car or house is free and clear. There are no liens, loans, and mortgages and for this reason, such ownership is called a clear or good title. The person owns the property jointly or separately, and no one else has any legal claims to it.
Factors Determining the Value of the Title
Note that the value of the title depends on market fluctuations. The situation is different with vehicles and other assets that decrease in value due to depreciation or amortization. The value of vehicles, for example, decreases based on wear and tear, mileage, use, and age. The only exception is classic and rare vehicles. The same is true for antiques and collectible items. Regardless of what the value is, a clear title is a requirement for different estate transactions. There are companies that check for liens and legal claims on behalf of clients. Apart from liens and encumbrances, there are other reasons to run a check. Two examples are building code violations and erroneous surveys. These are grounds to dispute legal ownership.
Depreciation as a Way to Reduce Taxable Income and Expenses
Depreciation is a term that denotes the decrease in value of tangible assets such as buildings, machinery and equipment, and other fixed assets. The value of an asset is reduced over its useful life for accounting purposes. Basically, the term refers to the conversion of the original price or a...
Second Mortgages for Home Improvement and Major Purchases
A second mortgage is a type of secured financing, which is considered subordinate. This means that there is another loan against the same real estate property. Payments are made only after the first mortgage has been paid off. Because financial institutions take more risk, they offer a higher...