Buying a Beachfront Home? Keep These Points in Mind

If you plan to buy an oceanfront home in Delaware, it’s important to be aware of a few specific areas that require care and attention. From advising separate flood insurance to preparing you for a lengthy loan approval process, a real estate lawyer can be a great asset through the buying process.

Whether you’re planning on purchasing your first home, or buying a home to spend your retirement in, Delaware offers great access to the oceanfront. With miles of spectacular coastline on offer, a house right on the beach can be a tempting idea. Retirees often even choose Delaware over Florida for the reason that Delaware requires the purchase of fewer insurance products to cover homes with, than Florida — products such as sinkhole insurance and wind insurance. It’s important to understand, however, that the purchase of oceanfront properties can come with specific risks and concerns. Delaware law requires investors to have a lawyer scrutinize their real estate deals. If you’re interested in an oceanfront property, a lawyer can be an especially valuable ally. The following are some of the areas of concern that an experienced lawyer is likely to direct your attention to.

Thinking about flood insurance

The coast of Delaware is no stranger to Nor’easters and hurricanes. These powerful weather events can result in flooding damage to oceanfront homes. Insurance cover for flooding, however, isn’t typically included in homeowners insurance policies. Many homeowners tend to be surprised that they need to buy specific flood insurance that costs hundreds a year for entry-level properties, to thousands for high-end ones.

If you learn about the fact that a property you desire is in a zone that is vulnerable to flooding, you may not be able to drop a contract. If you don’t assess the risks before you sign, you could find yourself locked into a deal that is expensive to cover against flood damage.

Be prepared for more documentation

Oceanfront properties tend to command higher prices than other properties. Since these properties are considered luxury purchases, lenders tend to typically be extra careful about approving borrowers for financing. You should head in prepared for a lengthy home loan approval process involving more demands for documentation proving income and financial stability than you may be used to. In addition, if the property you try to buy is a condo, those purchase agreements can be especially complex, and come with costly fees of different kinds.

With the kind of potential for surprises and complications that buying beachfront properties comes with, it’s important for anyone planning a purchase to begin the process by speaking with a real estate attorney. An experienced attorney can offer advice not only in the specific areas that need care when buying oceanfront properties, but also in general ways in which you may ensure a smooth buying experience — including proper title verification, the identification of potential liens, and checks for legally done modifications.

A real estate attorney is able to help buyers through the entire property acquisition process, including documentation and the discovery of risks.

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