Warning signs can feel like a common occurrence when purchasing a home in North Hollywood. These signs could potentially cause delays or other issues within the purchase process or could end up killing your deal entirely if they are not addressed properly. The Preliminary Report will potentially reveal some warning signs, so the title officer can review carefully, but your Real Estate Agent and all parties to the transaction must also review the preliminary report for situations that may cause potential delays. See below some warning signs to look out for.
- Bankruptcies
- Business trusts
- Clearing exemptions and conclusions, such as child or spousal assistance exemptions
- Encroachment or even off-record easements
- Family trusts
- Foreclosures
- Probates
- Proper implementation of files
- Recent structure
- Transfers or loans between corporations or partnerships
- Last Second change in buyers
- Last minute change in title insurance coverage
Warning Signs When Purchasing A Home In North Hollywood
- Sellers are recently married: Is the new spouse going to be a seller in this transaction, or could the spouse be asked to sign a quitclaim deed conveying his / her community property interest in the property to the other spouse?
- The buyer or seller has been involved with a bankruptcy: If the bankruptcy is still pending, then obtain the contact information for the attorney. Escrow cannot close before the property is released from any impending bankruptcy proceeding.
- Your customers don’t speak English: Our population consists of many buyers, borrowers, and sellers who don’t speak English or for whom English is a 2nd language. If you do not speak the language spoken with your customers, search a qualified and reliable interpreter. If you plan on using an interpreter, inform your escrow officer so that appropriate accommodations may be made for correspondence and the registering up appointment.
- The seller or buyer are considering the property to be part of a tax-deferred exchange: to stop delays in closing this transaction, obtain the contact information for the (1031) tax deferred exchange accommodator. Your escrow officer will continue to work with the exchange company to make sure all state and federal tax rules are followed.
- One of the sellers recently died. If this is a probate sale, appropriate records must be prepared as a way to close the escrow. Is there a probate proceedings onto the estate of the deceased? If so, a court order confirming the sale of the property is going to be needed before the end of escrow. Was a family trust established before the death of the seller? If so, you have to understand the Successor Trustee is to be able to obtain proper signatures.
- Some of the principals is currently utilizing a Power of Attorney: Is the Power of Attorney legal and binding? The document has to be recorded within the county and state where the property is located and should be less than two years olde. Provide a copy of the record to an escrow officer as soon as you possibly can.
- Buyers want to carry name in the name of a Trust: The new lender may not allow this sort of vesting, so make sure you raise this issue as soon as you can.
- Seller resides in another state or is selling a property other than the principal dwelling: Some states (such as California) require tax exempt on the sale of certain properties. Check with your escrow officer immediately to discuss special tax reporting situations.
This Article is courtesy of Lawyers Title.