Friday, March 7, 2025
When I bought my first home, I thought ownership was simple—you buy a house, and it’s yours. But over the years, I’ve learned that how you own your property matters just as much as the fact that you own it. The type of title you hold impacts what you can do with your home, how you can sell it, and even what costs you might face. Then there’s the contract—one overlooked detail can cost you dearly. And when it comes to negotiations, success isn’t just about price, it’s about strategy.
Whether you’re buying your first home or have moved several times, understanding these real estate fundamentals will help you build wealth wisely and make decisions that serve your long-term goals.
Understanding Your Property Title
Not all homeownership is the same. Some owners have full control over their property, while others share responsibility for roads, utilities, or common spaces. I’ve met homeowners who didn’t even realize they weren’t the only ones responsible for their street until they got a bill for road repairs!
Here are the most common forms of homeownership:
- Fee Simple – The most complete form of ownership, where you own both the land and the home on it.
- Parcel of Tied Land (POTL) – You own your home and lot, but also a shared piece of land, like a private road, with other homeowners.
- Condominium – You own the inside of your unit, but everything else—the land, exterior, and amenities—is shared and managed by a condo corporation.
- Land Lease – You own the home but rent the land it sits on. This is common in mobile home parks and some cottage communities.
- Life Lease – You don’t own the property at all, but rather, you purchase the right to live there for life.
Many homeowners don’t realize what they actually own—and what they don’t—until an issue arises. The time to understand your title isn’t when there’s a problem, it’s before you buy.
Why Every Real Estate Contract Must Be Airtight
Back when I started in real estate, every contract was handwritten. I carried a Duo-Tang folder filled with standard clauses because I had to memorize them—there was no computer to look them up! While things have changed, one truth remains: contracts protect you, and the details matter.
Some of the most overlooked (but critical) parts of a real estate contract include:
- Key Dates Matter – The closing date, irrevocable period, and condition deadlines all have consequences. A missed date could void an offer.
- Chattels and Fixtures – If a seller wants to take their chandelier or a buyer expects the washer and dryer to stay, it must be in writing. If it’s not, disputes happen.
- Irrevocable Periods – Once an offer is submitted, it can’t be taken back until the irrevocable period expires. Buyers and sellers need to fully understand what they’re committing to before signing.
- Schedule A and Special Clauses – This is where the real customization happens. Standard contract wording matters, but anything added to Schedule A takes precedence and can dramatically impact your rights.
Negotiation: It’s a Dance, Not a Battle
Negotiation isn’t about winning or losing—it’s about creating a deal that works for everyone. I used to think that pushing harder meant I was doing the best job for my clients. In my early days, I would keep negotiations going until 3 AM, refusing to let anyone leave the table. But over time, I realized that smart negotiation isn’t about pushing—it’s about strategy.
Here are four factors that shape every deal:
- Buyer and Seller Motivation – A seller eager to move quickly may be more flexible on price, while a buyer who has fallen in love with a home may be willing to pay more. Understanding motivation gives you leverage.
- Market Conditions – In a seller’s market, buyers may need to offer above asking price, while in a buyer’s market, sellers should prepare for negotiations and possible concessions.
- Personality of the Parties Involved – Some people are firm negotiators, while others just want a smooth deal. Knowing how the other side thinks helps craft the right approach.
- The Agent’s Approach – Not all agents negotiate the same way. Some send offers without discussion, while others pick up the phone to create conversation and uncover key details. The right agent makes all the difference.
Final Thoughts
Buying or selling a home is one of the biggest financial moves you’ll ever make. Understanding your title, making sure your contract is airtight, and negotiating with a clear strategy will help you protect your investment and build wealth wisely.
At the Dekker Team, we’ve been helping families make wise real estate decisions for over 35 years. Whether you’re buying, selling, or investing, we’re here to walk with you every step of the way. Let’s position you for success so you can build wealth wisely—because it’s about so much more than just money. Reach out today, and let’s start the conversation!
