If you're like most people who are on the verge of purchasing a residential or commercial property, you naturally want the process to be as hassle-free as possible—and this means being mindful of potential legal pitfalls that could derail your transaction. Below are five common pitfalls that you need to look out for:
Title Search
One of the most important aspects of reviewing property records is conducting a title search. A title search involves examining public records to determine the legal ownership of the property and any claims or encumbrances that may exist. This may include liens, mortgages, easements, or other legal claims on the property. If a title search uncovers any title defects or liens on the property, the buyer and seller may need to work together to resolve these issues before the sale can proceed. For example, if the title search uncovers a lien on the property, the seller may need to pay off the lien or negotiate with the lien holder to release the claim on the property.
Property Tax Records
Property tax records provide information about the property's assessed value, taxes owed, and any outstanding balances or penalties. Reviewing property tax records can help ensure that taxes have been paid up to date and that there are no outstanding tax liens on the property. In some cases, unpaid property taxes may result in a forced sale of the property or other legal action.
Building and Zoning Records
Building and zoning records provide information about the property's use, construction, and zoning regulations. This may include building permits, certificates of occupancy, and zoning variances or restrictions. Reviewing building and zoning records can help ensure that any planned renovations or additions to the property are permitted under local regulations.
Environmental Records
Environmental records provide information about any potential environmental hazards or contamination on the property. This may include reports of soil or water contamination, hazardous waste sites, or other environmental issues. Reviewing environmental records can help identify any potential environmental liabilities that may impact the transaction or future use of the property.
Homeowners Association Records
If the property is part of a homeowners association (HOA), it's important to review the HOA's governing documents, including bylaws, covenants, and restrictions. This can help ensure that the property is in compliance with any HOA regulations and that there are no outstanding fees or penalties owed to the association.
It's important to work with an experienced real estate lawyer or other professional to ensure that all necessary steps are taken to protect the interests of both parties in the transaction.
Contact a local real estate lawyer to learn more.