When buying a San Diego Condo, the process of due diligence is one of the most important aspects of the real estate transaction. After the buyer and seller have come to an agreement, and before the close of escrow, it is important for the buyer to review the details of a Preliminary Title Report. It is a difficult document to review, and should be done with either the oversight of the Title Representative in the transaction or your trusted Downtown San Diego Realtor. Either way…this document should be reviewed carefully, as it is one of the most important disclosures a buyer will receive. The Preliminary Title Report is designed to disclose to the buyer important information about the condo: Ownership, Vesting, and details regarding anything that is recorded against the condo. In the “Prelim” the buyer will be able to review details about any liens encroachments, easements, or anything else recorded against the condo. The following is a list of important sections of the report that a buyer should pay attention to:
1. Vesting: The Vesting should be in the name of the sellers. If the names differ in any way, a buyer should take the time to properly investigate and make sure this discrepancy is corrected.
2. Taxes and Assessments: All tax payments and Assessments should reflect Current, any any special assessments should be reflected.
3. Deeds Of Trust: Deeds of Trust that are “still of record” can negatively affect the seller’s condo, and will prevent the seller from conveying clear title to the current buyer.
4. Identity Matters: The seller is required to submit a Statement of Information to clear up any confusion with a person of the same name having any outstanding liens against them. A good Title company will research this for the buyer.
5. Pending Actions: In a specific search of the condo title, the report will sometimes show that a “Lis Pendens” or “Notice of Action Pending” has been recorded against the condo. This means that a lawsuit has been filed concerning clean title, and anyone buyer who takes an interest in the property will take it subject to the outcome of the pending lawsuit
6.Maintenance Agreements: When buying a Downtown Condo, this section will generally outline the access the HOA has for general maintenance and things like window washing.
7. Legal Description: The legal description set forth in the preliminary report must match the map of the condo attached to the report. Any questions as to the description of the property being conveyed should be directed to the title officer. In the purchase of Downtown Condos, access to assigned parking spaces and storage should be listed in the legal description.
8. Notice of Default: This is a Notice the the seller is currently behind or in default of their mortgage payments. Theses issues should be cleared up an brought current prior to the close of escrow.