Many homeowners understand the value of title insurance for their home, but many don’t understand that they should also worry about title insurance and title searches for vacant lots. Undeveloped land can seem like a free pass, but surprising things can pop up when performing a title search on a vacant lot, so it is always worth hiring an experienced professional through Colony Title to make sure the job is done right. Here are some of the surprises that can pop up during the title search process for vacant lots.
Even though empty land seems like a blank piece of paper that you can do anything to, that is frequently anything but the case. Vacant lots can come with limitations due to local or state zoning regulations. A title search can uncover various zoning restrictions or subdivisions that might not be disclosed on the sales contract or the deed. If you don’t take the steps to get a proper title search beforehand, you could purchase land that you are unable to use for your intended purpose (and only find out once the papers are already signed).
Just like road easements that can be common when purchasing a residential property, utility easements can occur with many vacant lots. While you might not view such an easement as a deal breaker or something that will prevent you from purchasing the property at all, they are certainly good to know about beforehand. Another advantage to knowing about utility easements during a title search is so that you can include in your title insurance a policy that will cover the cost of any potential damage to your vacant lot (or developed lot) by the utility company if they need to do work.
Liens and Unpaid Taxes
Liens and unpaid taxes are a popular reason why residential homeowners perform title searches and purchase title insurance. Believe it or not, even vacant lots can have liens or taxes against them. By performing a title search, you can learn about these in advance and then determine whether or not you want to complete the sale.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.