Whether it’s your first or fourth, home purchase can be a nerve-wracking experience. From the search for your ideal home to negotiating and getting your loan approved, real estate transactions can be complex, to say the least. Given what is at stake, it goes without saying that you must never overlook the importance of due diligence.
One of the most important steps you need to take during the home purchase process is conducting the property’s title search. Basically, a property title search involves examining public records to establish the legal owner of the property you are about to purchase.
Here are three things you need to look out for when conducting a title search on a property.
Property ownership
From documentation issues to missing co-owners and impersonation of the real owners, property ownership disputes come in a variety of ways. A transaction on property that has ownership disputes can be voided, and this can lead to the loss of your investment. For these reasons, it is crucial that you perform an in-depth title search to unearth any ownership issues that exist.
Public record errors
Clerical or filing errors can have a negative impact on a real estate transaction. Missing signatures, figures or other paperwork can delay the closing process. A comprehensive title search can help avoid disruptions that can hinder a successful property transfer.
Restriction allowances
Liens on the property, conflicting surveys, easements and boundary disputes – all can create problems down the road. While looking out for these, be sure to pay attention to building by-laws so you can identify any restrictions and allowances that regulate developments on the property.
If you are looking to purchase a home, there are certain critical steps you need to take to ensure that everything goes smoothly. One of the most important precautions you need to take is to complete the property search prior to closing the home.