Smart Spring Real Estate Moves: Legal Tips for Buyers and Homeowners
Spring is one of the busiest seasons for real estate in Chicago. As the weather warms up, homebuyers are on the hunt for new properties, while sellers prepare their homes for the competitive market. Whether you’re purchasing a home, selling property, or simply maintaining your current residence, there are key legal considerations to keep in mind. From estate planning updates to tax savings and homeowners insurance, taking the right legal steps can protect your investment and your family’s future.
At the Law Offices of Michael V. Favia & Associates, we are your general practice law firm with the right resources and connections to help you take advantage of the best options available to save money, protect your investments and your family. This spring, there are all kinds of choices we can make, and smart people know to ask their professional friends to look over their options and agreements.
Do you have residential or commercial real estate, tax, or related questions? Talk to Chicago real estate attorney Michael V. Favia.
Updating Your Estate Plan with Real Estate Changes
Buying or selling a home is a significant financial move, and it should be reflected in your estate planning documents. If you’ve recently acquired a new property, it’s essential to update your will, trust, or other estate planning tools to ensure your assets are distributed according to your wishes.
Revise Your Will and Trust – Ensure your new real estate holdings are included in your estate plan, specifying beneficiaries and potential property distribution.
Consider a Living Trust – Holding real estate in a trust can help avoid probate and make property transfers smoother for your heirs.
Review Beneficiary Designations – If your estate plan includes transfer-on-death deeds or joint ownership, confirm that these align with your overall estate planning strategy.
Taking Advantage of Tax Savings on Real Estate
Chicago homeowners can benefit from several tax-saving opportunities, but they must be properly planned and legally sound.
Homestead Exemptions – If the property is your primary residence, you may qualify for a homestead exemption, which can lower your property tax bill.
Property Tax Appeals – If you believe your property taxes are too high, you may have legal grounds to file an appeal and reduce your tax burden.
1031 Exchanges – If you’re selling an investment property and purchasing another, a 1031 exchange can help defer capital gains taxes when executed correctly.
Deductions and Credits – Mortgage interest, property tax payments, and home improvement expenses may be deductible, so consult a tax professional to maximize your benefits.
Protecting Yourself with the Best Homeowners Insurance
Homeowners insurance is a crucial component of property ownership, offering financial protection against unforeseen events. However, not all policies provide the same level of coverage, and legal pitfalls can arise if you’re not adequately insured.
Understand Policy Limits – Ensure your policy covers the full replacement value of your home and possessions in the event of damage or loss.
Liability Coverage – Protect yourself against potential lawsuits from accidents that occur on your property.
Flood and Disaster Insurance – Standard homeowners policies may not cover natural disasters like floods, which are a concern in certain parts of Chicago. Consider additional coverage if necessary.
Legal Review of Insurance Agreements – A real estate attorney can help you understand policy terms and ensure you’re not underinsured or vulnerable to exclusions.
Consult a Chicago Real Estate Attorney
Navigating the complexities of real estate transactions, estate planning, taxes, and insurance can be overwhelming. A knowledgeable Chicago real estate attorney can help you review contracts, ensure compliance with local laws, and protect your financial interests.
Whether you’re buying your first home, refinancing, or updating your estate plan, legal guidance can make a significant difference in securing your property and your future. Contact a trusted legal professional to help you make informed decisions and safeguard your real estate investments this spring. Contact the Law Offices of Michael V. Favia & Associates in Chicago and Rolling Meadows.
