Different Laws Every Homeowner Should Know


In our entire lives, we were always taught that one of the most important things anyone should have is shelter. In fact, it’s even written as one of the basic necessities in Maslow’s Hierarchy of Needs. This is probably why it is everyone’s dream to purchase a home.

Because of this, we spend years, if not decades, saving our hard-earned money to gather enough resources to buy a real estate property or at least apply for a mortgage plan. When the day comes that you have finally reached this dream, you might be interested to know that certain laws are in place to protect homeowners. This article will help you understand some of them.

Keep These Laws in Mind

You can rest easy knowing that the government is trying its best to help you purchase, maintain, or pass the ownership of your property, and we’re not saying this lightly. There are, in fact, laws that actually support these. Below are the most important ones that you should know of.


The first law that we will talk about is called the SAFE Act, which is an abbreviation for Secure And Fair Enforcement. This is a mortgage licensing act that aims to protect consumers who wish to purchase or own a real estate property. This act also employs some of the best anti-fraud measures to guarantee that any information or transaction about a real estate consumer is safe and is not used for criminal acts.

Consumer Protection Act and Dodd-Frank Wall Street Reform

2008 was the year that The United States of America faced an economic crisis. A couple of years after, then-president Obama signed the Consumer Protection Act and Dodd-Frank Wall Street Reform of 2010. This federal law was responsible for the creation of an independent agency that enforces and updates certain rules and regulations when it comes to the financial marketplace. Because of this reform, lenders such as banks and mortgage, loan, and credit card providers are closely monitored to ensure that a fair trade or policy is made between a creditor and an applicant.

Right to Property

buying property

While this is most commonly practiced by older people, the Right to Property is actually applicable to anyone with assets. One aspect of this law states that every person has the right to decide what happens to their belongings or properties should they die. However, you can’t just tell your grandkid that they will receive your car or house once you pass on. There has to be a written legal document that supports this. That’s why you should consider consulting a law firm that specializes in estate planning. They will inform you of everything you need to know about your right to property and how you can legally transfer ownership of all your assets.


The Community Reinvestment Act was first enacted in 1977 but was soon revised to adapt to the changes in the financial marketplace. In 1995, the CRA became the beacon of hope for low- to moderate-income families to acquire a real estate property. This became possible because the local government, through this act, encouraged banks and loan providers to set up various plans and policies that are more accessible and affordable for the borrowers.


Although this federal law hasn’t been majorly changed or modified since 1974, it is still one of the most helpful laws when it comes to reducing the total cost of a property. The Real Estate Settlement Procedures Act (RESPA) requires loaners, mortgage providers, and banks to disclose any information about the transaction. This means that a buyer has every right to request for the breakdown of the entire cost of the property. RESPA guarantees that you don’t have to pay for expenses that are vaguely or remotely related to the property, such as referral fees and kickbacks.

Equal Credit Opportunity Act

One of the most important laws for the minority or the marginalized community is the Equal Credit Opportunity Act. As the name suggests, this law aims to reduce discrimination against an applicant based solely on the person’s physical condition, race, age, or religion. This means that all of us have the right to be offered, apply for, or accept a mortgage loan without having to worry about the things we’ve mentioned above.

A home is our haven during the hardest times we ever have to face. That’s why we strive towards achieving this. However, if you ever plan on purchasing a real estate property, make sure that you know how to abide by the law and what the laws actually are to guarantee that all your hard work does not go to waste.

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