Page 122

Part Four

fact, if you find there is a serious, ongoing problem (like the foundation wall), you may want to terminate the contract outright. Actually, for Ken’s clients in Colorado, under many currently approved contracts you may terminate the contract for no specific reason at all. There is one other reason to have a professional home inspection. If you do not, and you discover problems with the home after your purchase, you may have given up your right to make a claim against the seller for those problems. It will depend on the legal issues involved, but almost no one wants to hire an attorney after the fact and spend hundreds or thousands of dollars when the small cost of an inspector would have provided the information you needed in advance. Assuming you have resolved the inspection issues, let’s move on to title issues.

Title Documents The contract will describe certain documents the seller is obligated to provide to you, which are either in the form of a title commitment or an abstract of title. Whichever form it takes, it is a legal picture of the title to the property. It shows you who owns it (hopefully, the seller), the existing mortgage company and the initial amount of their loan. Also, it shows other things about the property that need to be cleared up prior to closing or that might impede your ability to purchase the home. You and your Realtor ÂŽ should review these documents to ensure there are no title problems that would prevent you from getting clear title to the property. For example, if there are liens or obligations against the property, which total more than the purchase price, you would want to immediately inquire as to how those debts are going to be paid. Typically, you do not want to take title to a property that has obligations against it 118

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev