Real Estate Newsletters

Mortgagee Insurance

Most residential real estate transactions involve a mortgagee. A mortgagee is the financial institution that loans the money to enable the homeowner to purchase the real estate. The mortgagee is a creditor of the homeowner. When the mortgagee lends the funds, it takes back a security interest in the real estate. As a secured creditor, the mortgagee is entitled to protect its interest in the real estate to the extent of the unpaid balance of the mortgage.

Percolation Tests

A percolation test, or "perc test," is performed on undeveloped land in order to determine whether the land is absorbent enough to support the installation of a septic system. Typically, the test is performed by a hydraulic engineer.

Private Mortgage Insurance

If you purchase a home and make a down payment of less than 20% of the purchase price, you may be required to purchase private mortgage insurance (PMI). In essence, PMI is a fee which provides compensation to the lender in the event the borrower defaults on the mortgage.

The Comprehensive Environmental Response, Compensation, and Liability Act

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which can be found at 42 U.S.C.S. § 9601 et seq., imposes liability on property owners for the cleanup of environmental hazards. Notably, liability accrues under the law even where the property owner was not the cause of the contamination.

The Historic Homeowner -- State and Local Preservation Laws

The issue of historic preservation is governed by a myriad of federal, state, and local laws. Generally speaking, the purpose of preservation laws is to encourage the recognition of historic resources, as well as the preservation of those resources. Without question, historic preservation is a legitimate governmental objective. On the state and local levels, historic preservation controls may be enacted subject to the applicable constitutional constraints.