The Mira Law Firm, L.L.C. Page 1

The Mira Law Firm, L.L.C.

Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Welcome to Legal Talk! Where you can read about updates on important legal topics. Please see our FAQ page for additional information.Page 1

Extension of the First-Time Homebuyer Tax Credit

1. A first-time homebuyer is someone who has not owned a principle residence during the three-year period prior to the current purchase;2. The total tax credit received is equal to 10% of the home's purchase price - up to a maximum of $8,000;3. Existing homeowners who have lived in their principal residence for five consecutive years out of the last eight and are purchasing a home (in a targeted area) to be their principal residence may be eligible for up to a $6,500 tax credit for purchases after November 6, 2009;4. Extension of the tax credit now makes it available for homes purchased on or after January 1, 2009 and before June 30, 2010. This means homebuyers must secure a sales contract on or before April 30, 2010 and close no later than June 30, 2010;5. Single taxpayers with incomes up to a maximum of $125,000 and married couples with incomes up to a maximum of $225,000 may qualify for the full tax credit. Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit;6. Buyers must live in the house for at least three years, or they will be obligated to pay back the credit; and7. The tax credit can be claimed on your federal income tax return. Homebuyers should complete IRS Form 5405 to determine their tax credit amount

For more information please visit the IRS Q&A Page

Page 2

Importance of Title Insurance

A deed or mortgage from prior ownership may be a forgery;A deed or mortgage from prior ownership may have been signed by a person underage;A deed or mortgage from prior ownership may have been made by a person of unsound mind or an otherwise incompetent person;A deed or mortgage from prior ownership may have been made under an invalid or expired power of attorney;A deed or mortgage from prior ownership may have been made by a person other than the owner - namely, a false impersonation;There may be undisclosed or missing heirs;A deed or mortgage from prior ownership may have been procured by fraud or duress;There may be liens for unpaid estate, inheritance, income or gift taxes;There may have been defects in judgment proceedings affecting title of the property;Title insurance covers attorney's fees and court costs associated with defending a claim challenging title to a property, and reimburses an insured Buyer in the amount of their covered losses up to the policy limits;A deed or mortgage from prior ownership may be voidable because it was signed while the grantor was in bankruptcy;Title insurance can be obtained for a one-time premium paid for at closing and protects the Buyer for the life of ownership by the Buyer or the Buyer's heirs;When purchased simultaneously with the obligatory Lender Policy, an Owner's Policy can be obtained at a reduced rate and is the best value a Buyer can receive to protect title to their property;Title insurance protects against defects in the recording of legal documents; Title insurance protects against claims arising due to marital status and challenges to the validity of divorces;Title insurance protects against the misinterpretation of wills.Page 3Page 4Page 5Page 6Page 7Page 8

Important Links:

Connecticut Judicial BranchMain Website

Connecticut Secretary of

State Main Website

Connecticut Small Business

Guide

West Hartford, CT

in Top 100 Places to Live

in the U.S.

HOME

Legal Talk

Contact Us

News & Events

Office Location:West Hartford, Connecticut75 Brace RoadWest Hartford, CT 06107Tel: 860-251-9552Fax: 860-838-0409DISCLAIMER: All information on this site is provided for information purposes only and does not constitute a legal contract, covenant or agreement of any kind. Although the information found on this site is reliable, no warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any information, either isolated or in the aggregate. From time to time, links will be referenced on this site, however, The Mira Law Firm, LLC is not responsible for the content of any referenced or linked off-site page and is therefore not liable for reliance on such content. The risk rests entirely with the user. These links are provided as an information service only. It is the responsibility of the user to evaluate the content and usefulness of information obtained from other sites. ALL RIGHTS RESERVED THE MIRA LAW FIRM, L.L.C. 2009Page-0Page-2Page-3