Should parents buy house for college kid, rent rooms?
A: Without knowing all the facts, it sounds like a good plan; it will save you money on college expenses and hopefully make you some money at the same time.
You should immediately retain a local attorney. If you don’t have any names, you can contact the local bar association in the county or state where the college is, and it will provide you with some names.
Once you have a lawyer on your side, she or he should assist you in getting a local real estate agent that will help you locate several properties that could work based on your plan.
While your daughter should be spending time studying as well as having fun, she should also be kept in the loop during house hunting. After all, she will be living in the house for several years.
Your attorney will give you the local and state requirements that residential landlords have to follow.
Keep in mind that every state has different landlord-tenant laws; one misstep — no matter how small — can cost you a lot of money. There are many tenant lawyers throughout the country who love to bring landlords to court; from my experience, many of these lawsuits are valid, but some are rather frivolous.
Your lawyer should know the local zoning laws. For instance, will four or five roommates be allowed to live in the house you want to buy?
Finally, your attorney or real estate agent should provide you an estimate of the closing costs you will have to pay. Again, custom and practice varies.
A: Mechanic’s liens are common throughout the country. They primarily are designed to protect a contractor — home improvement, auto mechanic, etc. — against nonpayment from the person who hired them to do the job. Over the years, state laws have changed as to what rights a contractor has when he or she is not paid.
In your situation, if the lien is causing you problems — such as it affects your credit rating or you are having trouble getting a mortgage — you can bond it off by paying a bonding company a sum of money. The bond will protect the contractor should he prevail in court, but at the same time it will free you up slightly.
However, you should immediately talk with a local attorney.
Was the contractor properly licensed? Is there a written contract? Does your state law require the person filing a lien to also file a lawsuit against you within a certain number of days or else the lien will have no legal effect? Many contractors don’t want to file suit but use the filing of a lien as a scare tactic.