Why is this important? If there are other claims, be prepared for things to get complicated. “Title disputes can take years and thousands of dollars in legal expenses to resolve,” says appraiser Bourland. Title-related issues can include an illegal deed as well as missing heirs who turn up and claim the property. Title insurance is required in most transactions, thankfully, which will protect you. But it’s a red fl ag if a title company won’t provide title insurance for the property. Best to walk away in this case. “Sellers can only sell the rights to property they actually own, so if there are competing claims, those come with the house,” says Bieber. “You’ll inherit the easements, the creditor claims, and any other encumbrances. If there are problems like a boundary dispute, a weird easement granting access to a creepy neighbor, or a third party with a claim on the property, walk away. Otherwise, you could end up having to pay o ff someone else’s debt or watching your neighbor trudge through your yard as you sip your morning co ff ee.” 4. Work Has Been Done without a Permit If you discover that work has been done on the property without a permit, that’s a red fl ag and a sign that perhaps it’s time to walk away from the deal. If you go through with the purchase of the home, signing a contract and going through the closing process, that home is now yours. But if work was done on the home without a permit — even if you had no knowledge of it and the work was done by a previous homeowner — you will still be held accountable for it and be forced to deal with the repercussions.
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