Title and Ownership Issues
Defective Title: Errors or unresolved issues in the property title, such as undisclosed heirs or forged documents.
Unpaid Liens: Outstanding liens (e.g., mortgages, tax liens) that must be cleared before the sale.
Boundary Disputes: Disagreements over property lines or encroachments that can affect ownership.
Easements: Unclear or undisclosed easements that may restrict property use.
Unmarketable Title: A title that lacks clarity or legality, preventing its transfer to the buyer.
Read Also:
- https://legalnexishub.com/20-critical-questions-about-property-law/
- https://legalnexishub.com/25-property-law-concepts-every-buyer-should-know/
- https://legalnexishub.com/40-property-law-faqs-explained-for-beginners/
Contractual Issues
Ambiguous Purchase Agreements: Terms are unclear, leading to misunderstandings or disputes.
Failure to Meet Contingencies: Deadlines for conditions such as financing, inspections, or appraisals.
Breach of Contract: One party fails to fulfill obligations, such as not closing on time.
Failure to Disclose Material Facts: Sellers omit information about property defects or legal issues.
Illegal Terms: Contract clauses that violate local or federal laws.
Inspection and Appraisal Problems
Failure to Make Proper Inspections: Missing structural or environmental problems.
Low Appraisal Value: A low appraised value that can make financing challenging.
Hidden Defects in Property: Problems that are not easily discovered, like mold, pest infestation, or foundation damage, which may be discovered later.
Financing Disasters
Failure to Obtain Financing: Buyers not being able to obtain financing due to poor credit or income.
ARMs: Shocks of sudden rate increases which can be crippling.
Unclear Loan Terms: Misunderstanding repayment schedules, penalties, or interest rates.
Regulatory and Compliance Issues
Zoning Violations: Properties not conforming to local zoning laws.
Unpermitted Work: Renovations or additions made without proper permits, leading to fines or demolition.
Environmental Violations: Non-compliance with laws protecting wetlands, flood zones, or hazardous materials.
Homeowners Association (HOA) Rules: Buyers unaware of restrictive covenants or high dues.
Closing Process Risks
Errors in Closing Documents: Errors in deeds, contracts, or loan documents which might lead to delay or even a dispute.
Failure to Pay Closing Costs: Conflicts on who is responsible for the costs, including taxes, title insurance, or legal services.
Last-Minute Negotiation Issues: Last-minute demands or changes.
Fraud and Scams
Wire Fraud: The intercepting of closing funds or down payments by fraudsters.
Misrepresentation: Misleading the client on information related to the property.
Identity Theft: Criminals posing as buyers, sellers, or agents to steal money or personal information.
Post-Sale Complications
Undisclosed Tenants: Buying a property with tenants who refuse to leave.
Failure to Transfer Utilities: Disputes or delays in transferring utility accounts.
Unresolved Tax Obligations: Unexpected property tax liabilities inherited from the seller.
Eminent Domain: Government acquisition of property for public use after purchase.
Being aware of them helps parties involved in a real estate transaction to guard against them, such as providing qualified professionals, conducting thorough due diligence, and complying with all the requirements of the law.
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