This week I received some training from our friends at UTILE on how to make a purchase offer. I learned about due diligence, zoning issues and permits, building inspections, decontamination, reasonable delays, and fair market value. But I also learned that the real estate market is a shark tank.
The importance of hiring a notary to deal with all monetary transactions and to insure that everything is in order cannot be understated. One reason that really stands out for me is that the person selling you the property may not in fact be the owner. Let’s say for example that the building you are buying once belonged to a rich and powerful man whose children were jealous and calculating, and that upon this baron’s death there was a succession dispute. And let’s say that the eldest child took possession of the estate. Now, 4 generations down the line the building you are dreaming to turn into comfortable homes and a creative community space for the descendants of those who made the baron so rich may not be for sale after all... Because the great great great grand child of that tyrant of yore just found out that the eldest inheritor was in fact illegitimate!
But there’s no need to worry, insurance companies actually offer “title insurance” so that you don’t lose “your” assets in the event that someone “rightfully” claims it as theirs. Of course, you have to pay lawyers a pretty penny to check the existing records. These records are held in public registries and go all the way back to… you guessed it: colonisation. So if anyone wanted to make a claim on a “transfer” of property that occurred prior to the first white man’s title… well they couldn’t.
Something for Brick by Brick’s selection committee to consider.
And here's something for you to consider: