Real Estate - Disclosure Statement:You can ask the seller to give a disclosure statement, as to the condition of the building, age of the building, any repair work recently done, any known or possible flow or leakage of hazardous substances, etc. After buying the building if you face any major problems, and if you feel that the seller had not disclosed the actual fact of the building, you can sue against the seller for claiming compensation. Consult your attorney and he will guide you and provide you more information related to getting compensation. Tenancy:If you buy a building which has more tenants, you cannot evict them until you get the eviction order from the court. If the tenants are legally valid tenants the court cannot evict them until the lease period comes to an end. Insurance:Title Insurance helps in facing any legal risk if arises in future related to the title of the property. Title insurance guarantees you a complete legal ownership of the property which you are buying. If any problem arises in the future as to the title of the property, you can file a petition for the claim to the Title insurance company for the loss you have suffered. You can insure the Property and can claim the property damage insurance if any accidental damages caused. If your building is damaged or destroyed by fire or some other natural calamity, Property damage insurance will protect your investment. You can also insure for the Public liability coverage. If someone is hurt in your building and sues you, the public liability coverage will pay for that person. For suitable Insurance coverage you can consult an Insurance advisor and he will guide you about the different types of insurances and its risk coverage. Escrow Agent:Escrow is the third party who distributes the documents and funds collected from the commercial lender, seller and buyer to the respective owners and acts as per the instructions given by parties. The document includes the sale deed, mortgage deed etc. In other words the Escrow agent acts like a common middle man between the seller, buyer and the commercial lender. For e.g. the buyer pays the sale amount to the seller, which he borrows from the commercial lender and owes to surrender the sale deed as well as mortgage deed to the commercial lender. On the other side the seller in turn transfers the title to the buyer and gives the sale deed to the escrow agent after receiving the entire sale amount as per the sale deed. Then the escrow agent handles the sale deed and mortgage deed to the commercial lender. For these transactions the escrow agent collects commission. Mortgage:Mortgage is the process of borrowing of money from a lender, giving the lender a security of any immovable property for the money borrowed, and allowing the lender to bring the security for sale if the money is not repaid within a stipulated period of time. You hold the possession of the property. In case, you do not repay the mortgage money within a particular period of time the commercial lender can bring your property to sale and realize the mortgage money. Consult a Real Estate attorney to draft a perfect mortgage agreement before you mortgage any property. Defective Title:If you feel there is a defect in the title deed it is always advisable not to buy such property. If you feel that there is only a minor defect, consult a Real Estate attorney whether it will involve any risk in buying the property. Your attorney will guide you whether you can buy the property or not or how the defect can be rectified legally. |
