Working as a real estate agent can be a very demanding but rewarding profession. Helping first-time home buyers find the right place or retiring adults move into a home where they can be comfortable for years can make a real estate agent still quite satisfied with their career.
There can be a lot of stress and pressure on real estate agents helping buyers find the right property. For example, they have to assist buyers with the due diligence process, which may include navigating title issues. There are certain scenarios in which real estate agents may need to be proactive about helping their clients protect against the possibility of future title disputes.
What are some of the warning signs to watch for when assisting with due diligence?
Sales related to estate administration
Buying a home from an estate can be a smart move. Older adults may not have updated their properties in years, allowing buyers to acquire them at a more reasonable price. A property sitting vacant can rapidly lose value, giving the representative of the estate an incentive to sell quickly. It is sometimes even possible for buyers to retain much of the personal property in the home which can be useful for first-time homeowners in particular. Unfortunately, the trade-off for the affordability and convenience of not needing to wait for a seller to vacate is the risk of a title issue later. Especially in scenarios where a personal representative has struggled to identify or locate heirs and beneficiaries, there could be a risk of future litigation.
Inaccurate title records
The county recorder’s office should have information about current and former owners on record for easy review. However, sometimes the most recent deeds recorded may be inaccurate. There could even be cases where fraud may lead to title disputes in the future. Carefully comparing the seller’s information with the deeds on record at the county can help real estate agents identify when their buyers might be at risk of title disputes later.
Properties subject to easements
Some easements are minor and uncontroversial. The local power company might have an easement allowing them to access supply lines, for example. Other easements can affect property value and the quiet enjoyment of the parcel. A neighbor might have the right to access water or drive across the property, causing damage to the lawn and disrupting the owner’s use of the property. Clarifying the validity of easements and how long they may persist can help agents recognize when a parcel might not be a good investment because of the risk of titled disputes in the future.
Partnering with the right professionals during the title research stage can help real estate agents give their clients peace of mind about their ownership interests. Title disputes can be both costly and stressful, making it important to help buyers make informed decisions about properties where disputes may be likely in the future.