All properties have a past. When you are considering purchasing a property, you may discover that it has title issues that were not resolved before the house was put up for sale. For this reason, it's a good idea to work with a real estate attorney whenever you purchase a property.
There Might Be Title Issues
Before you close on a house, you'll need to perform a title search and purchase title insurance. A title search can be handled by a title company or could be handled by a real estate attorney. An attorney can also help with purchasing agreements, mortgage documents, and transfer documents.
The Property Might Have a Lien
Make sure there are no liens against the property. One of the most common types of liens is a mechanic's lean. A contractor might have performed work on the house and the homeowner may still owe money to the contractor. In some states, it's required by law for the mechanic's lien to be acted upon. There may also be unknown liens to banks or other financing institutions. Even when it is not your debt, a lien may be placed on your property for unpaid debt.
The Public Records Might Contain Errors
In some cases, there is an error in the public records. This can be an expensive problem that can take a while to resolve. A sizable portion of real estate purchases requires substantial work for the transaction to successfully go through.
The Seller Might Not Have Rights to the Property
Sometimes, the deed was made by someone who is not allowed to have ownership of the property, such as a minor. In other cases, documents may have been forged and the individual selling the property does not actually own it. The forgery might affect your right to the property. This can affect ownership and you may need to consult with a real estate attorney to sort out the problem.
There May Be Restrictions On How You May Use Your Property
You may not have as much control over this particular property as you think. For instance, there might be an easement that allows businesses or the government to use your property in a particular way. This may prevent you from making decisions you had intended to make. There might also be a boundary dispute with other neighbors and you may discover that your property is smaller than you had intended. However, when you work with the right team of professionals, you'll be informed about the property you are purchasing.