They Told Me That I Had to Put the Title in Both Names

I hear this comment at least four times a year. Apparently some lenders are telling North Carolina real estate purchasers that if they are married the property they buy must be titled in the name of both husband and wife. NOT TRUE.

While it is true that a married person in NC cannot generally purchase property with out some cooperation or signature from their spouse the public policy behind this is geared at providing a spouse knowledge of new indebtedness. Thus, if you buy a house without creating any debt your spouse will not have to sign any documents at the closing and his name does not have to appear on the deed/title. If you buy the property through the lender then your spouse will need to sign several documents acknowledging the debt.

It is important to recognize your spouse can still acquire a "marital interest" in the property that you have bought even if your spouse's name does not appear on title. The names on a title are not dispositive as to what interest each spouse will have in a separately titled property should a couple divorce.

Finally, there are economic and legal reasons why you should title your property in the name of Husband and Wife (tenants by the entirety). A discussion of this issue is for another day and another time.

Time to Refinance

As mortgage rates drop people should consider if it is in their economic interest to refinance. In the twenty years that we have been conducting real estate closings in North Carolina we have worked with many lenders and hundreds of homeowners.

Most people either refinace to get cash out of their home or to lower their mortgage rate. We have many clients using the cash out refinance option. With a cash-out refinance you can use the equity from your home to payoff outstanding non-deductable debt or high interest debt. Dependening on your existing interest rate you may be able to refinance with a positive or neutral net economic impact. (In paying off a non-deductable debt you may extend your home payments but you are relieving your self of the non-deductable obligation and in all likelihood saving on the interest expense.)

At Devay & Coleman we have been handling real estate transactions since 1988. We have closed on properties in over a dozen counties and worked with at least a dozen title companies. When you pick your real estate attorney remember that you would not choose a house based on price alone -- when you pick you attorney consider experience and whether you will be dealing with an attorney or a para legal. It is important that you choose your own attorney and not let the seller or agent make this most important choice.

Puddles and His Friends

Puddles has a select group of human and animal friends. Recently the Pudman spent a weekend with one of his best canine friends, Jake. Jake has been a friend since puppyhood. Jake is a daschund and I credit him with teaching me how to climb stairs. When I stay with Jake I get to sleep with his Mom and when we play we tease the cat and explore the house. Together we each have taught our humans how best to serve us.

The Pudman wuld like to add a female chiweenie to his group of friends. If anyone out there knows a female chiweenie that I can meet please write me. Chiweenies Rule!

Why you use an attorney for your divorce

Each week we get callers asking about what it takes to get divorced in North Carolina. Many people appear incredulous at the answer; North Carolina has only one requirement that a North Carolina resident must meet. To be divorced in North Carolina you must live separate and apart for one year.

Fault will not allow you to speed up the divorce process. Thus, even if your spouse committed flagrant adultery if you have not been separated for one year you cannot end the marriage with a divorce. Fault is a factor in alimony and other actions, just not in getting a divorce. North Carolina considers issues such as alimony, division of property, divorce, child support and child custody as separate identifiable issues.

So if you have no children, no property and no claim for alimony why should you use an attorney for a "simple" divorce. When our office files your divorce for you the process will only take a few moments of your time. After you sign the papers we file your documents, appear in court for you and, if appropriate, get your name changed. Our appearance will allow you to avoid procedural questions, save you time, avoid parking hassles and ensure that your simple divorce remains simple.

Puddles Reinvigorated

It was heartbreaking going though weeks of limping, pain and leg dragging. On the recommendation of our vet my walks were cut short, I was not allowed to walk, jump or otherwise have fun. How is a charming dog like me to beg if you can't sit up. It was embarrising to be carried to a spot to mark and do my business. I could not run or walk. I even had to change the way I pooped. This was drastic. I was tripping and falling like an old dog.

Now, after two months of restricted movement I am better, fatter and feeling great. I am back to feeling like a good house dog. The paralysis is gone! The difference is clear. The left leg moves better and there is no obvious signs of the former pain.

Last week at the mall I worked my usual charma on a mall store employee. Humans are weak and suseptable to the Pudman's charms. After lavishing attention on the Pudman, she asked if she could give me a little bear. As you can see the Pudman imediately took to his new friend.

This week Puddles had three canine guests (and their masters) at the Law Office. Three Poodles from a local CPA office came by for a refinance of their dog house. Puddles enjoyed meeting and greeting his new friends.

North Carolina Real Estate Closings

Buying real estate in North Carolina is nothing like other purchases that you may make. More importantly buying real estate in North Carolina is unlike buying real estate in Illinois, New York and other states.

Most other states use title insurance agencies for closing. The closing itself is performed by the title insurance agency. In many states you come to closing and find a title company attorney, an attorney for the lender and an attorney for the seller. The North Carolina closing process typically only includes one attorney and that attorney represents you and the lender. In rare cases -if you allow it - the attorney represents you, the lender and the seller.* (Ask yourself do you really want the attorney for the seller representing you when it comes time to a dispute?)

If you are about to make one of the costliest purchases of your life; when do you hire the attorney? Most people don't bring the purchase contract to their attorney until after it is signed and at that point there is little that the attorney can do. Think about it, the attorney can give you more insight into the contract and the closing then any other party to the closing process. Before you sign the contract there are four things that you should do (1)walk the property; (2) view the property on the recorded plat; (3) check the covenants that apply to your property and (4)have the attorney review the contract and ask him or her any questions that you may have!

Once the contract has been reviewed, approved and signed consider what inspections and services you will need. You lender will obtain the appraiser but you should consider a survey, a home inspection and a radon inspection. A survey can uncover problems that may be very costly at a later time it can also give you guidance for landscaping, fences or walkways. At an average cost of $350 many find that the long term advantages of the survey outweighs the cost. Your closing attorney will order the survey for you.

Typically, the buyer and the agent will coordinate the pre-closing process (ordering inspections, arranging the walk through and reinspecting repairs). The closing attorney will send to the agent a summary of all costs associated with the closing. The costs of the closing appear in document called a settlement statement (HUD1). The agent will typically review the HUD1 with you shortly before the closing.

It is important that all repairs and inspections be completed prior to the closing. At closing you are normally accepting the delivery of the property. If there are things that have not yet been completed wither delay the closing or have a writing created setting out what is to be completed.

Your NC closing will most commonly occur in the lawyer's office. Demand that the lawyer be in the room to answer your questions and explain the documents. Don't accept answers from the paralegal talk with the lawyer.

At our office Puddles and I will be with you for the closing ceremony. Another entry will discuss the closing ceremony. Have fun!

Puddles Paralysis

Puddles has not been out among his fans lately. The doctors tell us not to allow Puddles to walk. Seeing Puddles walk is sad and upsetting. As a result of the bulging disc in his neck Puddles has a paralyzed rear left leg.

When Puddles is allowed to walk he frequently falls, limps and drags his leg. It is heartbreaking seeing this little dog struggle to walk or even urinate. The Pudman still loves attention from friends, family and even strangers so we will continue to carry him out to the community and bring him to the Firm.

We do not yet know if Puddles is a candidate for surgery. To those out there that know or have met Puddles we know that you will hope and pray that he comes through this in a manner that will allow him to continue to bring joy and smiles to others.