I came across an article by Lora Shinn entitled “5 Buyer Mistakes in a Short Sale.” Number 3 on Shinn’s list is “ignoring legal and insurance information.” Although I agree with the author’s list, the list focuses more on the physical attributes of a short sale property than legal issues (specifically title issues) that are often overlooked until they become a problem — either just before closing when such problems can cause further delay, or worse yet, after closing when they can become a legal and financial nightmare. I would like to expand on the buyer’s mistake of “ignoring legal information” while being blinded by the seemingly “good deal” they are getting.Continue Reading Short Sales and Judgment Liens: Unforeseen Issues
Why Due Diligence Before Buying a 'Bargain' is a Must
I was trading e-mails the other day with a general contractor friend of mine, Mark Stevens of Stevens Construction, Inc., and he took the words right out of my mouth:
I wish these prospective buyers would do some more due diligence before buying these ‘bargain’ existing buildings.”
We had been discussing new projects, and
Avoiding Costly Mistakes When Purchasing Property in Today's Market
It is commonly known that a buyer should perform due diligence before purchasing property. If the buyer fails to perform due diligence (obtaining a building inspection, phase I environmental report, mold inspection, Chinese Drywall inspection, survey, etc.) the buyer may incur significant unanticipated post-closing costs and liabilities.
When purchasing property at a foreclosure sale or a property that has recently been foreclosed, a buyer must be even more diligent in his or her inspection of the property and title to the property since the buyer, in most cases, is purchasing the property “as is.”
In any type of purchase, a buyer must be concerned with the title to the property. This is especially important in today’s market since so many properties are in foreclosure. What if the foreclosure suit named the wrong lender as the plaintiff? What if a junior lien holder was not named in the foreclosure suit? These situations and many other situations can leave a buyer with title to a property that is not insurable and can cost the buyer thousands and sometimes tens of thousands of dollars to correct.
Most title companies do not understand the complexity of legal matters involved in a foreclosure suit. Further, a title company does not represent either the buyer or the seller in a real estate transaction and cannot provide legal advice to either party. Continue Reading Avoiding Costly Mistakes When Purchasing Property in Today's Market
Recent Developments in Condominium Cooperative and Homeowner Association Law
Each year, the legislature makes changes to the laws regulating condominium, cooperative, and homeowner associations. This year, many of the legislative changes were intended to address the unique problems which arose as a result of the severely depressed housing market and the effect it has had on these associations. This article summarizes some of legislative changes that took effect on July 1.
Continue Reading Recent Developments in Condominium Cooperative and Homeowner Association Law
Title Insurance Demystified
“Title insurance” is a term that is frequently uttered when discussing real estate transactions. Title insurance costs money, which should grab your attention, but do you really know what it is? It is not just another closing cost reflected on a settlement statement. In fact, title insurance is a unique animal in the insurance world, and understanding its nuances can protect your investment – for much longer than you may think.
This post is a title insurance guide for potential buyers of real estate, and is intended to provide valuable information to real estate enthusiasts engaged in any aspect of a transaction. Although this post focuses on title insurance as it relates to the purchase and sale of real estate, it is important to note that title insurance also applies to lending transactions involving real estate.
What is Title Insurance and Why is it Unique?Continue Reading Title Insurance Demystified