Buying or selling a property is a decision significant financial that requires a due diligence to avoid legal issues and the economy in the future. One of the most important steps in this process is the conduct of a study of the title, which allows you to check the legal status of the property before you complete the transaction. Below, we explain in detail the importance of this procedure and the risks to ignore it.
1. This is a Study of Title
A study of title is a research detailed on the legal status of a property. Your goal is to determine if there are problems that can affect your ownership, such as encumbrances, liens, restrictions of use or inheritance disputes. This analysis is performed through the documents registered in the Registry of Property and other government entities.
2. Benefits of Conducting a Study of Title
2.1 Warrant that the Seller Is the Owner's Legitimate
One of the aspects most important in a transaction with real estate is to make sure that the seller has the legal authority to transfer the property. A study of title to verify the chain of ownership and confirms that there are no irregularities in the documentation.
2.2 Detects Encumbrances and Liens
Many properties can be associated debts, such as mortgages, unpaid contributions owed or legal claims. If a buyer purchases a property without knowing these loads, could be forced to do so. A study of title allows you to identify these problems before finalizing the transaction.
2.3 Avoids Problems with Restrictions of Use
Some properties have restrictions that limit their use. For example, certain properties may be subject to zoning specific or easements that prevent structural modifications. A study of title helps to identify these conditions and prevents future problems.
2.4 Reduces the Risk of real Estate Fraud
The real estate fraud is a reality that can affect buyers unprepared. Cases in which a person tries to sell a property that does not belong to him or falsifies documents are more common than you think. A study of title authenticates the validity of the records, and protects the buyer of scams.
2.5 Facilitates the Collection of Funding
Banks and lenders require a study of title before approving a mortgage loan. This document provides assurance that the property does not have legal problems that may affect its value or viability as a guarantee.
3. Risks of Not Performing a Survey of Title
3.1 Acquire a Property with Legal Problems
If a buyer fails this process, could be found with legal disputes over the property after the purchase. Heirs unknown, sales, fraudulent or errors in the documentation may result in loss of the investment.
3.2 Loads and Debts Not Identified
The debts associated with the property does not disappear with the purchase. If a property has a lien or mortgage outstanding, the new owner will be responsible to repay the debt if it is not detected previously.
3.3 Difficult to Sell in the Future
If a buyer purchases a property without a title, could face difficulty to sell it later. Many buyers and banks require this document before you perform a transaction, which could delay or prevent a future sale.
4. Conclusion
A study of title prior to buying or selling a property is a measure of protection is essential. This process allows you to check the legality of the property, detect hidden problems and prevent future legal disputes. Skip this step can result in lost economic and legal complications that can be avoided with a simple preliminary study.
If you are considering a transaction with real estate, make sure to get a study of title professionals trained to ensure that your investment is safe and risk-free.
For more information on studies of the title, you may contact us at:
E-mail address: info@estudiodetitulo.net
Phone: 939-437-0091
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