An integral component of closing a vacant land transaction is taking care of the title search. Real estate investors need to be confident that the individual who is selling the property has a property that is clear. This means obtaining the deed and paying the money to the actual owner of the property versus someone who believes it is under their ownership.
Think of a title as if you were purchasing a car. You may notice the vehicle parked outside near someone’s home with a “For Sale” sign on it, so you decide to inquire with the homeowner. It turns out that the car is not, in fact, theirs but they’re still willing to sell it to you. It sounds ludicrous, yet it happens more often than you may think.
Another reason why a title search is essential is to ensure that the property is free of mortgages or liens. In scenarios where little cash is offered for a property, a seller may refrain from informing the buyer about a $100,000 mortgage or something like a pricey construction lien. If these aren’t caught prior to closing the deal, they will become your responsibility.
This update is by Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application.