A property report provides an overall picture of the history of a home or property. By obtaining a property report, you can discover hidden information about the home itself and the history of its ownership. Property reports are a quick look at the history of the property, including financial issues, like the tax situations or liens, as well as property conditions.
Finding Hidden Information
Obtaining a property report is required by law for a reason. Understanding all aspects of a property before a transaction is in everyone’s best interest, especially the buyer. Property reports document the entire history of the property, from the chain of ownership, to the condition of the structures, and any land use requirements. You may find any of the following when searching through property records:
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Land use restrictions like real covenants, easements and equitable servitudes, limit the way homeowners can use land or the type of actions that can be carried out on the land. For example, real covenants may restrict the construction of certain size buildings or may forbid businesses from being built on the land. Easements and equitable servitudes are similar in that they allow for others to use part of the land (such as a joint driveway or water for fishing), although they don't possess it. This type of information is important to understand before any negotiating takes place.
- Undisclosed liens may surface during a property title search. Unfortunately, property owners don't always make payments on time, and sometimes this information can fall through the cracks. A property search will expose any unpaid back taxes, missed mortgage payments, mechanic's liens, or any other type of value assessments. Liens on a property will often affect its price, and someone will have to take care of these obligations before the home can be sold.
Condition of the Property
Property reports show both the financial and physical conditions of the home. This information is imperative, whether purchasing private or commercial property. Physical problems inside and outside a structure will greatly affect its value and may even negate a sale. An internal inspection will reveal any potential problems, like mold or leaks, while an exterior inspection will assess any structural damage, foundation slippage, or other weaknesses. A property report on the condition of the home is a great tool for leveraging the price of the property.
Property Valuation during Dissolution of Marriage
When married couples get divorced, they must divide their marital property amongst themselves in accordance with state laws. In some states, property is distributed evenly. In others, marital property is divided up based on several factors.
Most of the time, the biggest asset that a married couple holds is joint property. Of course, this can lead to disputes about the value of the property and how it will be divided. This is where property reports and valuation can be tremendously helpful.
An assessment will be conducted by a surveyor to determine a fair and accurate valuation of the real estate. Many times, this may even include the land surrounding the home and any possessions inside. Divorcing couples will have a much easier time dividing property once a fair property report is obtained.
Probate Valuation
Similar to a property report, a probate valuation provides an accurate number for divvying up property during a divorce. When an individual passes away, having willed some property, a probate valuation may be in order. Firstly, this will report the value of the property, as well as any inheritance taxes that come with it. It will also determine if there are any outstanding debts, and if the value of the property will cover them. Once the property is accurately valued and all debts are paid, the beneficiaries of the will can receive their inheritance.
