Five Things to Watch Out for Before You Close On Real Estate

Buying a new property is always a big deal. Whether you’re looking for a new home, or you want a place for your business, getting the right piece of real estate can be essential to your future success and happiness. But before you close on that nice new dream house or that ideal spot at a busy intersection, there are a few things you’ll want to check for, just to be sure.

1. Are there any outstanding mortgages or liens on the property?
   1. Normally, you’d assume that if someone is selling a property, it’s because they own it completely and there are no other problems with it. However, there are some people who will try to sell off some real estate while the mortgage on it is still unpaid. Or, alternately, a creditor may have taken a lien out on the property for some unpaid debt. Either way, you want to make sure you’re not buying someone else’s debts along with their real estate.
2. Has the property been inspected?
   1. There are countless possible problems that could show up in a structure, no matter how good it looks at first glance. Things like termite infestations, mold problems, faulty wiring, and other defects may not be visible while you’re initially looking at the property, which is why doing inspections is so important. After all, not everyone is going to be honest about the problems the property has when they’re trying to sell it to you.
3. Is there anyone else who might claim to own the property?
   1. You’d think people would be above trying to sell property they don’t own, or trying to sell the same property multiple times, but some people are simply that unscrupulous. Or, sometimes, there’s another claim from another source, such as someone who claims to own a property due to an inheritance. It’s because of situations like this that you need to make sure to do a title search on the property, or otherwise you might find yourself with a ton of unnecessary headaches.
4. Are there any easements or covenants to be aware of?
   1. Just because you’re buying a property doesn’t mean you have unimpeded control over that property. For example, easements are rights that other people have over your property, such as the right to cross your property to reach a main road. Covenants are restrictions tied to the property that you need to agree to as part of purchasing it, such as restrictions laid down by Homeowners’ Associations. It’s best to know if you’re affected by easements or covenants before you choose to buy.
5. Is there any issue with your financing?
   1. Finally, there are some people that jump the gun when it comes to buying a property, and don’t make sure all their financing is in order before they agree to buy. Aside from the embarrassment, there are some people who simply will not sell a property until they know appropriate financing is secured. You do not want to get to the closing and realize you don’t have the money for the sale ready, because that means you can lose the property entirely.

If you are looking to buy or sell real estate, contact an experienced real estate attorney for help. The Suffolk County real estate lawyers of McGuire, Peláez & Bennett, PC are sensitive to your needs, skilled in handling real estate matters, and will fight zealously for your rights. For more information or to schedule a consultation, contact our Central Islip real estate lawyers at (631) 348-1702 or fill out our contact form.