A number of years ago before more ambitious weights and measures departments were in use, it was a common practice by butchers to put a lead weight in the head of chicken that would give extra weight when placed on scale for sale. Then when the butcher, after the bird was weighed, would cut up the chicken, he would chop the head off and with it the lead weight. It would be rescued later on to be re-used. The buyer would be unsuspecting that much of what he or she had paid for was lopped off and thrown in garbage.
There are real estate transactions where the seller, agent, or investor have put something extra into the deal that will not give the buyer the desired intent of more profit. When we find that some of the luster, promises, and profit was lopped off at closing, we are much like the unsuspecting chicken buyer. We must make every effort to verify the promises, considerations, and statements of the agent or seller are met. Make sure that any item the seller says will be left with the property will be done so after closing. That it will identified by color, shape, size, and down to the vin number if is a riding mower, tractor, curtains, etc.
Another potential for loss can happen is by not checking the legal description of the subject against the plat map and site details of a home. Homes where this becomes a problem is in rural settings. Well sites, recorded right of ways, accessibilty to repair etc are among the biggest concerns in this area.
Houses can be built on the wrong property. This can be a major problem. A house or building site sold with out a legal right of way or access way will not be financed by FHA, VA, or conventional loans.
Irreputable developers have sold parcels of ground with no legal right of way to access the property. The well that provides water may be shared and is on property owned by the developer with no legal right to fix or repair the line if problems exist. No legal access is a major problem since a buyer would have to pay heavily for the land to make one.
Clouded titles, garages or buildings built on lot lines, unrecorded deeds, and issues above can be prevented with a preliminary title search and good visual inspection of the paoprty. DO YOUR DUE DILIGENCE.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125