While it might not be the first thing on your list, there are quite a few reasons why you should several important documents before making any property purchase. Those include your title abstract, the title insurance policy with schedule of exclusions, the survey while you walk the property lines, and any homeowners’ association documents. You may inspected a property and everything looked great, so you didn’t look at the county plat or have a survey done and rushed to buy it. Then after closing, you see something you thought was a part of your land and turns out it is not.
The truth is that in almost every circumstance, there is a potential for issues to arise if important documents aren’t all reviewed thoroughly before purchasing property. There is a chance you may be okay with dealing with that issue yourself, but wouldn’t you like to know about it before you choose to purchase?
When you are purchasing a property using a multiple listing service transaction, the escrow company being used usually provides you with information on the legal rights and responsibilities that come with your new home or land. They may also provide a plat of the property, which will show property boundaries.
Your Schedule of Exclusions will be provided by your title insurance company alongside your insurance. You need to read that list of exclusions and make sure you review any issues. You typically receive all these documents in a packet after you are going into escrow. Make sure you read them! Review them with your agent, insurance officer, and potentially a lawyer if needed. You are making one of the largest purchases you might ever make. Use your knowledge to protect yourself and your purchase.
August 31, 2020
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