Читать книгу Flipping Houses For Dummies - Ralph R. Roberts - Страница 58

When you sign on the dotted line to purchase a property, you own not only the property but also all the problems associated with it. Buy a property from someone who’s facing foreclosure, and you may just own a property that has one or more liens against it — legal claims against the property to secure a debt. (See Chapter 7 for more information about foreclosures and Chapter 9 for guidance on how to research a property.)

To avoid unforeseen problems associated with the title of a property you’re about to purchase, carefully research the title history, as explained in Chapter 9. Researching the title history ensures that

 The property you think you’re buying is the property you’re actually buying.

 The person selling the property is the person who owns it.

 You’re aware of any liens against the property or taxes due.

 Any rights, such as mineral rights, are transferred to you.

 Your deed or title is in recordable form.

 You’re aware of any restrictions on the property; for example, if you’re buying a home in a historical area, the renovations may have restrictions.

If you have any questions or concerns about a property’s title, consider consulting a title company in your area that has a reputation for smooth closings. Establishing a relationship with a reputable title company is good practice even if you don’t have concerns over a specific property’s title history. In exchange for your business (hiring them to handle your closings), a title company may be willing to do free title searches. A reputable title company can also expedite closings to ensure that you don’t miss out on good deals.

At the closing, be sure to obtain a copy of the final title insurance policy, which the seller typically pays for. This policy is your guarantee that the title is clear. If any hidden issues arise later, the title insurance company is accountable. Always get title insurance when buying a house, even if you have to pay for it yourself.

Speaking of insurance, you should always obtain a homeowner’s insurance policy for any property you purchase. In fact, consult an insurance agent before purchasing a property, to make sure the policy is in effect as soon as possible after you close on the property. I know of a case involving raccoons that slipped into the attic of a home and did about $15,000 worth of damage. Thankfully, the investor had the proper amount of insurance on the house and was covered for the damage.

Make sure you have an insurance agent on your team who can help you insure not only the properties you purchase but also anyone who does work for you and doesn’t carry contractor’s insurance. The added cost for insurance is well worth the price. If someone gets hurt on the job, that can cost you big-time.