When you decide to buy or sell a house, you ready yourself for problems that may come up, and you may have done everything possible to keep those issues from happening.
As you get closer to completing the paperwork on your home, be on the lookout for some common mistakes that the title or escrow company might bring to your attention.
1. Public record errors
People make mistakes, but the error may wind up taking time and money to fix when it affects the property you are buying. For instance, someone may enter the incorrect square footage of the house, which affects the appraisal price. As a result, the bank may not approve you for the loan.
2. Unknown easements
In real estate parlance, an easement gives you the right to enter a property that another person or entity owns. For example, you may need to go through someone else’s property to get to your home. There are five types of easements in North Carolina:
- Implied from prior use
- Implied by necessity
- Cartway proceeding
Have you checked to verify there are easements on the property you want to purchase?
3. Unknown liens
Banks and other companies can place liens on property for unpaid debts. Even though you do not owe the money, you may have to pay to get the property. The title company should be able to find if there are any issues.
You can help make the purchasing of your dream home a relatively painless experience if you do your due diligence before buying.