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Remembering to look for the pitfalls

Author: Diana Heeb Bivona

Purchasing real estate — any real estate — involves a certain level of risk. Obviously, your goal is to minimize those risks as much as possible. To do so, requires doing your homework and thoroughly checking every aspect of the sale. Examples of potential problems that may lead to legal disputes often include:

  • Defects in title
  • Debt service and lender requirements
  • Mechanics liens
  • Zoning and land use problems
  • Market fluctuations
  • Hazardous waste and environmental contamination
  • In terms of defects in the title, the buyer must be aware of any potential liens and judgements, sales of partial interests, easements, etc. that were not properly recorded on the property. This unfortunately translates into a bigger problem for the buyer who may not be buying everything they thought they were buying, because someone else may have a prior claim that the buyer knew nothing about.

    To ensure that your interests are protected, consult with an attorney prior to signing any documents or depositing any money.

    Next posting: debt service and lender requirements..

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