When you get ready to buy real estate, you are truly ready to start performing a lot of research. You have to research which properties are on the market, learn which ones are affordable, and determine which property has the most benefits. As such, all real estate buyers need to be aware of the legal pitfalls that can await them. There can be issues with property ownership, problems with coming to agreements with the current owner, or even disputes about property valuation. To ensure that your real estate buying experience goes off without a hitch, be aware of these three legal considerations.
1. Land Zoning Rules Can Cause Complications for Buyers
All property is zoned for use. This mainly refers to property being used for residential versus commercial purposes. Most people would not like to have a manufacturing plant built right in the middle of their residential neighborhood, and houses wouldn’t maintain much value if they were built between massive strip malls. Bay Title Company performs detailed title searches for prospective real estate buyers that include details on how each property is zoned, and has been in the past. This information is vitally useful to prospective buyers who might want to look into having their real estate re-zoned for different purposes in the future.
2. Real Estate and Seller Disclosures
During the sale of real estate, there are certain types of disclosures that need to be made by the owner. For example, if a property happens to have trees with historic value that can never be cut down, the potential real estate buyers should be made aware of that fact. Disclosures are important as they give buyers all of the information they need to make an informed decision. No one wants to buy a house and be surprised when the basement floods because they didn’t realize that the land was located in a flood zone. Work with a real estate lawyer to ensure that all proper disclosures are made prior to the sale of any real estate.
3. Liens and Levies are Not Always Immediately Known
Savvy real estate buyers always have title searches performed, not just because they want to establish who truly owns the property. Various people and entities can have a vested interested in a piece of property, especially if they are owed money. Levies and liens can be attached to a property if the current owner has not satisfied their debts. These levies and liens can remain attached to the same property, even if ownership changes hands. You do not want to be the proud new owner of a piece of property that has hundreds of thousands of dollars in liens, levies, and other attachments.
Whether you are buying your first starter home or have years’ worth of experience in buying real estate, the use of a title search company is always important. Not all property records are easy to find, and many courthouses around the country keep records on paper rather than electronic. By hiring a title search company to do the research for you, there is little to no risk of you encountering a legal surprise after closing on your property.