While it might not be the first thing on your list, there are quite a few reasons you should read several important documents before making any property purchase. Those include your title abstract, the title insurance policy with schedule of exclusions, the survey while you walk the property lines and any homeowners association documents. You may have inspected a property and everything looked great, so you didn’t look at the county plat or have a survey done and rushed to buy it. Then after closing, you see something you thought was a part of your land and, as it turns out, it is not.
The truth is in almost every circumstance, there is a potential for issues to arise if important documents are not reviewed thoroughly before purchasing property. There is a chance you may be OK with dealing with the issue yourself, but wouldn’t you like to know about it before you choose to purchase? When you are purchasing a property using a multiple listing service transaction, the settlement company usually provides information on the legal rights and responsibilities that come with your new home or land.
They also may provide a plat of the property, which will show property boundaries, or you may order a survey to be completed with your purchase. Your schedule of exclusions will be provided by your title insurance company alongside your insurance. You need to read that list of exclusions and make sure you review any issues. You typically receive all these documents in a packet after you are going into escrow.
Make sure you read these documents. Review them with your agent, insurance officer and, potentially, a lawyer, if needed. You are making one of the largest purchases you might ever make. Use your knowledge to protect yourself and your purchase. If you are not familiar with title insurance, be sure to ask questions of your REALTOR® as this information is vital to your purchase.