Purchasing a new home is one of the biggest financial decisions you’ll ever make. This can be exciting, but your hard-earned cash is also at stake, so you need to be careful.
Most transactions go through without issues, but there are complications in a minority of cases. Something that you need to be on the lookout for is title issues. Outlined below are some of the more common property title issues.
When the seller has unpaid debts
For some loans, particularly mortgages, a property can be put up as collateral. This means that in the event of defaulted payments, the lender may have a legal claim of ownership to the property, otherwise known as a lien. When purchasing your new home, you need to make sure that all the finances are above board – including the seller’s financials.
Poorly defined boundaries
Before committing to a deal, you also need to be precisely aware of the property boundaries. For instance, is there a garden that shares a border with your prospective neighbor’s? Perhaps there is a separate piece of land that comes with the house. In any event, you need to make sure that the boundaries are clearly defined, otherwise boundary disputes could arise later on.
Occasionally, administrative errors that appear relatively minor at first can cause major issues. Public records and details relating to the title and deed all need to be accurate before the point of purchase. You also need to check to make sure that the property’s zoning is as you expect, which can be especially important if you expect to operate a business.
You should be optimistic about buying a new home but you also need to protect your rights. Having legal guidance behind you at each step of the way will be highly beneficial.