When it comes to homeownership, there’s more to it than just picking out paint colors and deciding where to place the couch. While many people focus on the fun aspects of owning a home, it’s often the fine print that trips homeowners up. And trust me, if there’s anything worse than paying a fine, it’s dealing with legal issues related to your property.

To help you avoid these pitfalls, here are some common “fine print” situations homeowners often overlook:

1. Mortgage Terms and Conditions

One of the biggest areas where homeowners get caught is their mortgage. The excitement of signing those papers can be overwhelming, but did you really read the fine print?

Many homeowners don’t realize that their mortgage comes with specific terms and conditions, like prepayment penalties or adjustable interest rates. Ignoring these details can cost you a lot of money down the road.

For example, prepayment penalties are fees charged if you pay off your mortgage early. If you suddenly come into some money and decide to pay off your mortgage, you might end up losing some of that money to penalties. Thankfully, you can clarify these details with your lender before signing anything to avoid such surprises.

2. Homeowners Insurance Exclusions

Insurance policies aren’t exactly thrilling to navigate, but reading the fine print can save you a world of headaches later on. Many policies have specific exclusions; certain damages or incidents aren’t covered. It’s crucial to familiarize yourself with these, so you’re not caught off guard if something happens.

3. Home Warranty Limitations

If you’re buying a new home, you might come across something called a home warranty, which sounds like a great safety net for repairs. However, not all that glitters is gold; like everything else, home warranties have their limits.

Home warranties usually cover specific systems and appliances, but reading the fine print is essential to know exactly what’s included. For example, your warranty might cover the HVAC system, but what about the water heater or the refrigerator?

Pro Tip: Be aware of any service fees you might need to pay when you call for repairs. Sometimes, the coverage isn’t as comprehensive as it seems, so knowing the limitations can help you avoid frustration.

4. Property Deed Restrictions

When buying a home, you have to take the good with the bad; sometimes, “the bad” includes deed restrictions. Deed restrictions are rules homeowners must follow, and they can consist of limits on how you modify your home, what kinds of fences you can build, and even the color of your house.

Before starting any renovations, double-check the fine print on your property deed. If you don’t, you could violate these restrictions, leading to fines or, even worse, legal action from your homeowners association (HOA).

5. HOA Rules and Fees

Speaking of HOAs, they have rules that can limit landscaping, parking, and noise levels. Plus, their fees can vary significantly. Knowing what you’re agreeing to is essential to avoid being blindsided.

If your neighborhood has a homeowners association, read the fine print about what those fees include and if there could be any increases so you aren’t surprised by extra costs later.

6. Tax Implications

No one likes paying taxes, but unfortunately, owning a home comes with tax responsibilities. If you’re a first-time homeowner, it’s crucial to understand what those are.

For example, property taxes can increase over time based on your home’s value. Additionally, if you sell your home, you might have to pay taxes on the profit.

Being aware of these can save you a lot of drama—or a call from the IRS—down the line.