The Best Strategy in a Business Transaction
October 30, 2008
Buying ad Selling real estate in the state of California is accomplished with written documents. My last two postings, stressed that issue. In know that many times when faced with a lengthy and unfamiliar document, the temptation is to initial and sign where the agent tells you. My husband, who is an engineer and reads every word in anything he signs can be a tad annoying. However, many disputes and mistakes could be avoided if folks read the documents that they are asked to sign. (I must confess that when I am purchasing a large item, if I trust the salesperson, I rarely read all the clauses.)
One document in a real estate transaction that MUST always be read - and probably is read the least - is the Preliminary Title Report.
The escrow that is processing your transaction has never seen the property. They examine the title report for the legal and vesting and for liens against the property that will have to be paid in order for an escrow to close. Other than the Assessor's parcel number on the map, they do not know if the property shown on the map is the one the sellers thought they were selling and the buyers thought that they were buying. If liens show up on the property neither the agents nor the escrow officer know whether these numbers are correct or not. They will order demands from the lien holders and should discover the status of these liens.
A buyer should receive a copy of this preliminary report within a week of opening an escrow. Don't wait to read it, read it immediately. If there are issues to correct it is better to know them early in the transaction so that they do not hold up or stop a closing. If you do not understand the report, have your agent sit down with you and go over it. It will always be time well spent.
Buying ad Selling real estate in the state of California is accomplished with written documents. My last two postings, stressed that issue. In know that many times when faced with a lengthy and unfamiliar document, the temptation is to initial and sign where the agent tells you. My husband, who is an engineer and reads every word in anything he signs can be a tad annoying. However, many disputes and mistakes could be avoided if folks read the documents that they are asked to sign. (I must confess that when I am purchasing a large item, if I trust the salesperson, I rarely read all the clauses.)
One document in a real estate transaction that MUST always be read - and probably is read the least - is the Preliminary Title Report.
The escrow that is processing your transaction has never seen the property. They examine the title report for the legal and vesting and for liens against the property that will have to be paid in order for an escrow to close. Other than the Assessor's parcel number on the map, they do not know if the property shown on the map is the one the sellers thought they were selling and the buyers thought that they were buying. If liens show up on the property neither the agents nor the escrow officer know whether these numbers are correct or not. They will order demands from the lien holders and should discover the status of these liens.
A buyer should receive a copy of this preliminary report within a week of opening an escrow. Don't wait to read it, read it immediately. If there are issues to correct it is better to know them early in the transaction so that they do not hold up or stop a closing. If you do not understand the report, have your agent sit down with you and go over it. It will always be time well spent.
posted by shirley harry at 8:50 AM
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