1.    Do I really need a contract to sell my house?

Oral contracts to sell real property in the state of Kansas are generally unenforceable. Therefore, if you do not have a written agreement, and either party attempts to back out, the contract probably will not be enforced. Additionally, going through the steps necessary to agree to a written contract is an easy way to avoid future disputes by getting all the issues on the table.

2.    What is the point of title insurance?

Title insurance and the title search conducted before such commitments are issued help you know what you are actually buying. People can only sell you what they actually own. Therefore, if a person does not have good, marketable title to a piece of real property, you generally cannot acquire good, marketable title from such person. The title search results will show you some of those defects before it is too late. If the title examiners miss a defect, the insurance portion will help compensate you for the loss.

3.    If a deed is not recorded, is it enforceable?

An unrecorded deed is only enforceable between the parties. Therefore, if you buy a piece of property and do not record your deed, you will be vulnerable if a) your seller decides to sell the property to some third party, or b) the property is transferred by operation of law (for example, by the seller's bankruptcy). If another buyer records his or her deed before you record yours, the second buyer will own the property as between the two of you even though you purchased the property first.

4.    How is real property taxed?

Real property is taxed by the County Appraiser's determination of the fair market value of the property as of January 1^st of the year assessed. Kansas law requires property to be physically inspected and reassessed every two years. Once the appraised value is determined, the mill levy is applied against the "assessed value." You will not be able to tell whether your actual taxes will increase until you know both the assessed value of the property and the mill levy set by the County Commissioners.

If you disagree with the appraised value, you must ensure that you follow the instructions for disputing the value with the County Appraiser. If you miss the timeline, you waive your ability to complain about the evaluation. The process starts with an informal meeting with the County Appraiser and then escalates through appeals which can involve both the Small Claims Division of the Board of Tax Appeals and the Board of Tax Appeals itself. Agricultural ground is assessed under a separate formula not involving the fair market value.

6.   Can I run a business out of my home?

Assuming that you have all the permits and licenses necessary to run your particular business, the use of your home is still restricted by zoning regulations. These zoning regulations will dictate the intensity of use of a particular piece of property. Even if your particular zoning does not allow for such use, there are procedures in place to ask for a variance or a special use. There may also be special covenants that restrict home business.

Rev. 4/06