Basic legal factors to consider before buying a property
When buying a property, you have to take a lot of things into account. From deciding its use to finding the right location to coming up with a way to finance this endeavor, there are many aspects of investing in real estate that you cannot overlook. One of them is most certainly the legal aspect, so we’ve decided to make a list of essential factors you have to consider.
Check the title deed
Regardless of whether you are buying a piece of land, a house, or an apartment, you need to look into the title deed. The seller has to have clear and transferable ownership of the property to be able to sell to you. While in certain areas you have to pay to get this information, other countries provide you with this service. What you want to do is look up records and history of the property. You can see whether the person you are talking to has the property’s rights and whether there are any mortgages, liens, and other types of issues. Furthermore, check if the seller has only developmental rights or full ownership as well.
Ensure the property is not encumbered
While checking the title deed, you might encounter some unexpected issues. For example, there might be an encumbrance on the property. This is a claim on a property, either financial or non-financial, by a party that is not the title-holder. There are many reasons why something like this can happen. Either way, you should not purchase a property that is not entirely free of dues and disputes, seeing how it might affect its free use. In such a case, you’d want to discuss your options with professionals in the field like Leyden Legal that will be able to guide you through this entire process.
See if the taxes are paid
Another thing you should look into is if the current owner has been paying taxes regularly. Review the tax returns to ensure you will not be required to pay huge amounts of money after you’ve purchased the house. Ask for proof that the taxes have been taken care of before you sign the contract.
Look into land-use permissions
If you are purchasing a lot, you need to know what you plan to build on it. For instance, constructing a residential property in a commercial zone is not allowed, so you need to check the restrictions that particular area. Furthermore, if any land is designated as agricultural, you cannot use it for residential purposes. Make sure you contact the relevant authorities to see what can be done before you spend money on a property you cannot use in the way you intended.
Understand the contract before you sign it
The chances are high that you will look for expert advice when making such a big decision. However, many people believe they can manage on their own and often get tricked by the fine print. Having an attorney go through your contract is the best way to do this. They will tell you if everything is done by the book and make sure the document is legal and has all the conditions you and the seller have agreed.
Buying a property, regardless of whether you plan to live there, turn it into a commercial space or flip it, is a big undertaking. There are many legal issues that you need to take care of, and it would be best to have a lawyer guide you through.
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