Title insurance is considered to be an essential part of any successful real estate transaction, and most lawyers obtain title insurance as a matter of course. However, title insurance is like any other insurance contract, and what it covers is limited to what is stated in the contract. So how do you know if your title insurance contract will cover you in the event of a title defect?
One of the worst things that can happen when you are trying to buy a new home is finding out the property has a defective title. When that happens, it can throw your entire real estate transaction into chaos, and potentially lead to legal and financial trouble for both you and the seller. But how are you supposed to protect yourself if the title of the property you want to buy turns out to be defective?
According to a recent report by Hippo Insurance, about 43% of all homeowners are delaying maintenance and renovations due to high inflation. This is due to high inflation raising the costs of just about everything, including buying a new home or renovating an existing property. However, this decision may ultimately be short-sighted, and could cost homeowners more in the long term.
The threat of climate change is, for some people, merely a political consideration. However, as the effects of climate change become more evident, real estate developers have begun taking it into account as part of their development strategy, shaping their plans based on the predicted impact of a warming planet. This has led them to begin developing in places that might not have seemed attractive before, while avoiding some traditional markets that look more like bad bets in the face of a changing climate.
Every attorney knows that they must do their due diligence whenever engaging in any kind of legal transaction, and rarely is that more important than in real estate. This is because real estate transactions can be exceedingly complicated, and often involve hundreds of thousands, or even millions, of dollars. Unfortunately, though, no amount of due diligence can be enough to cover every potential pitfall, and that can put you and your client at risk.
As a lawyer, it is easy to think that your grasp of the law will make it difficult to deceive you. Unfortunately, however, fraudsters are everywhere, and if you are not careful, both you and your clients may fall victim to a fraudulent real estate deal. Here are five potential warning signs of fraud you should watch out for when you are assisting clients with their real estate transactions: