Ch. 28 Housing Law

Buying a Home Major Purchase Major Purchase Many people finance home with a mortgage. Many people finance home with a mortgage. Interest Interest

Owning vs Renting Freedom of Use Freedom of Use Privacy Privacy Collateral Collateral Creates equity Creates equity Credit Rating Credit Rating Tax Benefits Tax Benefits It’s Yours! It’s Yours! Mobility Mobility Sm. Deposit instead of huge mortgage Sm. Deposit instead of huge mortgage No direct costs No direct costs More discretionary income More discretionary income Less responsibility Less responsibility

Laws Protecting Home Buyers Fair Housing Laws Fair Housing Laws Equal opportunity to rent or buy a home. Equal opportunity to rent or buy a home. Real Estate Disclosure Laws Real Estate Disclosure Laws Major defects of a home must be disclosed. Major defects of a home must be disclosed.

Renting a Home

Renting Many people pay to live in a home for a period of time. Landlord Landlord Tenant Tenant What are the responsibilities of each?

Leases Type of contract that sets guidelines and rules for renting a home. Month-to-month lease Month-to-month lease Tenancy at will Tenancy at will Tenancy for years Tenancy for years

Parts of a Lease: Rent Rent Rent must be paid at a specified time. Rent must be paid at a specified time. Rent may only be raised in certain situations. Rent may only be raised in certain situations. Increases in rent can only occur at the end of a lease, or to cover increasing tax and utility costs. Increases in rent can only occur at the end of a lease, or to cover increasing tax and utility costs.

Parts of a Lease: Time How long will the lease be in effect. How long will the lease be in effect. Month to month, tenancy for years Month to month, tenancy for years Neither party can break the lease, unless the lease is violated or the two parties agree on a release. Neither party can break the lease, unless the lease is violated or the two parties agree on a release.

Parts of a Lease: Quiet Enjoyment Right to Quiet Enjoyment Right to Quiet Enjoyment Tenants cannot disturb others. Tenants cannot disturb others. Frequent complaints could result in eviction. Frequent complaints could result in eviction.

Parts of a Lease: Upkeep and Repairs In the past the tenant was responsible for repairs. In the past the tenant was responsible for repairs. Today courts have ruled the landlord as the responsibility. Today courts have ruled the landlord as the responsibility. Warranty of Habitability Warranty of Habitability

Parts of a Lease: Use of Property Property must only be used as a residence. Property must only be used as a residence. In most cases tenant cannot use property to operate a business. In most cases tenant cannot use property to operate a business. Illegal activities on rented property can often lead to eviction. Illegal activities on rented property can often lead to eviction.

Parts of a Lease: Security Deposit Amount of money given to landlord as security. Usually same as 1 month’s rent. Amount of money given to landlord as security. Usually same as 1 month’s rent. Used to repair damages or cover rent that is not paid. Used to repair damages or cover rent that is not paid. Many places put a limit on security deposits and may require landlord pay interest. Many places put a limit on security deposits and may require landlord pay interest.

Parts of a Lease: Sublease When tenant allows another person to live on the property and pay some or all of the rent. When tenant allows another person to live on the property and pay some or all of the rent. Must have approval from landlord before subleasing Must have approval from landlord before subleasing Can seek a release to avoid responsibility for the rent. Can seek a release to avoid responsibility for the rent.