All Forum Posts by: Peter Walther

I believe there is only one homestead in Florida with multiple benefits.

Article X Section 4 of the Fl Constitution provides:

SECTION 4. Homestead; exemptions.— (a) There shall be exempt from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty, the following property owned by a natural person: (1) a homestead, if located outside a municipality, to the extent of one hundred sixty acres of contiguous land and improvements thereon, which shall not be reduced without the owner’s consent by reason of subsequent inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the exemption shall be limited to the residence of the owner or the owner’s family;

Florida statutes provides:

(1)(a) A person who, on January 1, has the legal title or beneficial title in equity to real property in this state and who in good faith makes the property his or her permanent residence or the permanent residence of another or others legally or naturally dependent upon him or her, is entitled to an exemption from all taxation, except for assessments for special benefits, up to the assessed valuation of $25,000 on the residence and contiguous real property, as defined in s. 6, Art. VII of the State Constitution. Such title may be held by the entireties, jointly, or in common with others, and the exemption may be apportioned among such of the owners as reside thereon, as their respective interests appear. If only one of the owners of an estate held by the entireties or held jointly with the right of survivorship resides on the property, that owner is allowed an exemption of up to the assessed valuation of $25,000 on the residence and contiguous real property. However, an exemption of more than $25,000 is not allowed to any one person or on any one dwelling house, except that an exemption up to the assessed valuation of $25,000 may be allowed on each apartment or mobile home occupied by a tenant-stockholder or member of a cooperative corporation and on each condominium parcel occupied by its owner. Except for owners of an estate held by the entireties or held jointly with the right of survivorship, the amount of the exemption may not exceed the proportionate assessed valuation of all owners who reside on the property. Before such exemption may be granted, the deed or instrument shall be recorded in the official records of the county in which the property is located. The property appraiser may request the applicant to provide additional ownership documents to establish title.

(b) Every person who qualifies to receive the exemption provided in paragraph (a) is entitled to an additional exemption of up to $25,000 on the assessed valuation greater than $50,000 for all levies other than school district levies.

Exemption of homesteads.—196.031 

@sethJacowski

Take a look at the definition section of your title policy Seth, you may find that if you are the only member of the LLC the coverage under the policy will continue.

A title insurance policy is risk avoidance policy, that's why the title company does a title search and as or more importantly, an examination of the documents that are found in the search.  The exam helps the title insurance company identify possible defects in the title, decided on the requirements it will make to eliminate the defects to insure the transaction and what matters will be excepted from the coverage of the policy.

But a title policy also provides protection for loss caused by things that cannot be found in a title search.  Things like forged deeds or mortgage satisfactions, deeds signed by people who are not legally competent to convey, either because of age, i.e. a minor or mental incompetency which generally will not be shown in the public records.  Also, depending on the state where the property is located, protection against loss caused by mis-indexed instruments.  If they're mis-indexed, all the searching in the world won't find them.

The foreclosure of a HOA or condo association lien will extinguish a 2nd mortgagee if the lender is properly joined in the foreclosure. The foreclosure will not extinguish a 1st mortgagee.

@connie wolfram

Why do you believe HOA liens in Florida will wipe out a first mortgage holder?

The loss recoverable under an Owner's policy and a Lender's policy are different.

You buy a property for $100k and take out a $75k loan. You buy a policy for the lender because you have to in order to get the loan but don't spring for the Owner's policy.

A year later you go to sell the property and the new title search turns up a $5k judgment against your seller that pre dates your purchase so you can't close on your sale. You don't have a title policy so you can't file a claim. You call your lender that you are paying each month and complain. Your lender gets concerned and files a claim under its policy. The title company will confirm that the loan is current and will tell the lender to give them a call when the judgment creditor tries to levy on the property, until then the lender does not have a loss so the title company doesn't have to do anything. As far as you not being able to close, too bad so sad. On the other hand, if you had bought the Owner's policy, you could file the claim, and if covered, the title company would have to do something about it.

Thanks Jon,

I read the IRS reg after I posted my follow up. Obviously I should have done it before.

Peter

Thank you Jon and Will but can you tell me why you belive it is self dealing? Wikipida lists the following as examples of self dealing:

Examples of self-dealing include:
Having your IRA purchase real estate that you own or use.
Issuing a mortgage on a relative’s new residence purchased by a family member who is a disqualified person as listed above.
Granting a child a second mortgage for the down payment on his or her first home.
Buying stock from the account owner involving IRA funds and a disqualified person.
Purchasing stock in a closely held corporation in which the account owner has a controlling equity position.
Purchasing restricted stock from a family member who is a disqualified person listed above.

Equity list the following:

Some examples of “Self Dealing”
Having your IRA purchase real estate that you own presently.
Having your IRA purchase real estate that is owned by a family member of lineal descent, such as your father.
Issuing a mortgage on a relative’s new residence purchased by a family member who is a disqualified person as listed above.
Granting a child a second mortgage for the down payment on his or her first home.
Buying stock from the IRA owner (any transaction involving IRA funds and a “disqualified person” is prohibited).
Purchasing stock in a closely held corporation in which the IRA owner has a controlling equity position or, if such corporation is the IRA owner’s employer, in which the IRA owner is an officer if the IRA is established pursuant to the employer’s SEP or SIMPLE program
Purchasing restricted stock from a family member who is a disqualified person listed above.

Neither list my purchasing an asset from the SDIRA that will not be used for personal use and my research did not find any source that did.

If I decide the risk of managing property owned by my SDIRA is too great can I, individually, purchase the property at the SDIRA's cost basis?

If they were divorced before he died they were probably tenants in common with his heirs inheriting his half. Taking a deed from her only gets you her share. Make sure you understand what you are getting.