You’ve worked hard your entire life to realize your home ownership dream. And you have found the perfect home in an ideal neighborhood. You are understandably excited. Before signing that sale agreement, however, you want to be sure that you’re getting everything right the first time.
One of the most important due diligence you need to exercise during a home purchase is conducting a title search. Basically, this is the process of accessing the property’s record to uncover any hindrances on the property. Specifically, here are three important questions a title search should answer:
Does the property have any boundary issues?
Boundary disputes can range from property line conflicts to access disputes all the way to landscaping, outbuilding and fencing disputes – and they can cause trouble. If the property you want to buy has boundary disputes, it is in your best interest that you have them resolved before closing the home.
Are there any liens or debts on the property?
Has the seller used the property as collateral? Has the property been put on lien due to an unpaid obligation like child support? If the property has any lien or debt on it, you need to get the seller to settle them. If you buy a property that was used as collateral or has a lien on it, you will be responsible for these debts.
Exactly who owns the property?
Most people find this surprising. If a property has multiple owners, then all the owners must consent to the sale. If this does not happen, you might face legal battles down the road.
Most Americans dream of owning a home. However, home purchase can be a complex process. Understanding your obligations during the home purchase process can help you avoid costly pitfalls that can ruin your homeownership dream.
